The New York herald., 1876-12-24
LIFE INSURANCE.


cuRIrY-wHAT THE NEXT LEGISLATURE MAY
DO WITH THE SUBJECT OF INsuRAScE-THE
CONTINENTAL AND THE NEW JERSEY MUTUAL
LIFE.
The officers OF the Insurance Department have found
so much that is inexpicabe IN the affairs OF the Sc
curi.y Lilo Insurance Company that the statement
expected from them 10 considerably delayed The ex-
animation has already taken week more than would
have been required under ordinary circumstances, and
several days yet elapse before its completion.
The officers have found discrepancies and fasicaons,
that could not possibly be construed as blunders, TO
such an extent that has become necessary TO trace
back the record OF every policy issued. Numbers OF
contracts reported In the last OF the con-
cern found to have lapsed many OF the
most important have been entered upon The
ledger al ALL Under such shameful circumstances the
difficulties attending q careful examination in
creased beyond reckoning, and The labors OF the de-
parmcnt become not only wcarsome, but dishearten-
ing. u is thought probable that accurate estimate
OF the conpany's will be obtaincd by the middle
OF the present week.
Even with this unavoidable delay the prospect pre-
senis significant the OF the Cont-
MENTAL where tho company undertook its receiver
ship kept the State Department from IT'S rishtiu
duties, and have denied the policy holders any nior
NAHUM WiatcVer lot period OF some SIX weeks.
An Informal meeting OF the directors OF the security
Lc Insurance Company took place Friday, when
several OF tho members avowcd their utter g.
norance at the time OF the reckless that
being pursued, aud intmatcd their desire that the
blame should be placed with rigid justice upon the
shoulders oil the real offenders. IL has bocn discov
cred that the company not only played false 10 the
State and the public in their representations out in
many instances treated individual policy holders with
INSCRIPTIONS and swindus behavior. As case IN
point, there was original stocknoIdcr in the con.
who held OF the nrst policies issued the
Office The upon this amounted 10 about $500
little before the failure ne induced
TO exchange this tor a new policy OF supposed equal
valac. Il hns turned out that the new contract is
worth little nothing and holder has therefore
been literally swlndled out OF 5000 AS in most other
OF the sort there apparently no means Of
redress within reach OF the victim.
PROBABLE LEGISLATIVE ACTION
In view OF the recent astounding developments OF
siderable gossip current regarding the possible
OF the next Legislature. In the last session rcsoiu-
mon tho an
by committee TO be appointed. This in
vestisation might, and probably would, have
led TO the consideration Of other points deserving
attention. and the results would have been exceedingly
valuable and beneficial to the insurlng public But
the bill met with pertnacious opposition by certain
parties who had private interests to subscrvc and
who aided By the influence OF some irresponsible
insurance companies oil this city.
II stated that another bill will be introduced upon
the first day OF the coming session, which will meet
the reforms so imperativcy demanded in the manage
mcnt of life insurance companies II Is thought that
when this matter again presented the opponents of
the former measure can hardly assume such bold
defiance In the face Of recent events.
On account Of the death OF Senator Booth vacancy
exists in the Insurance Committee, which Is rumored
VIII be filled by the appointment OF Senator Bxby, who
has shown 30 great and deserving interest in the
subject
CORRECTING AN UNJUST IMPRESSION.
To THE EDITOR THE HERALD:-
BY one OF those ,nexplicuble mistakes incident to
interviewing was made to say to correspondent
Albany that the Hon. 0. W. Chapman. ex supcrn-
tendent Of the Insurance Department. hac not made
or ordered any examinations Of insurance companies
during his term OF Office This is so untrue and SO
cruelty unjust to Mr.. Chapman, who, us diligent,
faithful, judiclous and energetic officer has had no
superior, that respectfully ask pubncaton OF the
facts the HERALD in which the interview referred
to was hrst published There have been examined by
orders OF Mr.. Chapman during the three years and
two months Of his SUPPLEMENTARY l23 companies,
as folows:-Nne-one ire, twcnty-eight life, three
marine and one plate glass. TINS certainly does
indicate any lack OF attention to official duty, but
reverse make this statement that no injustice may
Acting superintendent New York Insurance Depart
mcnt.
THE CONTINENTAL AND NEW JERSEY MUTUAL.
To THE EDITOR OF THE HERALD
Though tho very able articles IN the HERALD which
present the conduct of the officers of the Continental
ami New Jersey Mutual Lille Insurance companies in
their past transactions with policy holders yet they
not IL is believed point the way by which the large
number othose persons insured in the former
pany may escape the trap set for them ingenousy
by those who at present manipulating the affairs Of
the two concerns FOR the benefit IN large degree OF
their private interests
II is understood by those who practically on
gagged in the life insurance business that large induce
IN.
tnl by the officers Of the New Jersey Mutual provided
these agents will use their Influence with policy
holders to transfer their insurance and assign their
policies TO the latter company BY this method the
assured parts with the full legal policy
taking for it the New Jersey Mutual policy, designated
as It's Dcccnnial c." contract, which, let II be UNDER
stood, Is simply term insurance, carrying with Il at
the Insurance Department OF this Stale tho mcrest
trhc in the form of reserve ana which Is measured
al the end Of the term by o.
TO illustrate fully tho entertainment to which the
Continental company's policy holders are invited by
the concern over the river, give the experience
OF policy-hoder who insured life policy tho
age Of thirty-fve years for $1,000, and paid the
Continental company the usual annual premium of
s26 3S for five years The reserve required under
the laws OF the state, this policy would be S53 20
but il the party holding such policy permits himself
To be transferred 10 the New Jersey Mutual, under
their .Decennal C'' policy, he will have parted with
that and accepted for it the tring one OF s. Is
This statement may be verified II required by appli-
cation 10 the actuary OF the Insurance Department
Unfortunately the Insurance law cocs not provide
remedy for the case, as II was contemplated by
its trainers that men nrustcd with the interests
involved In tnc business of lie insurance would
wholesale robbery Of their clients IL can be
readily that while the New Jersey Mutual tcchni-
caIiy conforms the laws OF the several States by
making return OF liability OF So IL when they have
received the sum Of $53 20, yet they provide
quate protection TO their assured members though It
may be readily the large they enabled
TO utilize to their profit a corruption fund
whcrowitb 10 employ unprncipled agents TO huggcr-
mugger innocent policy holders In the Continental
POLICY HOLDER
BUSINESS TROUBLES.