New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-03-24
INSURANCE DISCUSSION.
THE LIFE INSURANCE BILL.
SECTIONS THAT ARE oBJECTIoNABLE-AGENTSP PER-
CENTAGEs-coUNTY AUDITORS, ETC.
tn Ia EHifnr NJ The TribuNe.

THE LIFE INSURANCE DILL
SECTIONS THAT ARE OBSERVATION-DISCLOSURES PER-
CENTAGEs-CoUNTY AUDITORS, ETC.
To the Editor Of The Tribune.
SIR: The broad and statesmanllke views
which you have taken discussing the present duty OF
the Legislature to the business of life insurance encou
age the belief that remarks OF more specai ma
ture on the principal bill now pending may ma an I'M
preudiced reception with your readers once auhlll
that the true aim of government now is not to destroy
or embarass this business but TO purify and strengthen
It, and the problem Of legislation seems greatly sim
plifed
MIR Graham's BILL reported by the committee mas
the evident merit OF good intentions. The next queshoh
is whether it is drawn with sufficient knowledge both OF
life insurance itself and OF the duties and responsD
ties OF the State in relation to its own corporations.
On the first point that of knowledge of the business
would instance Section T. which limits the compensation
of an agent for negotiating assurances ana Collecting
premiums TO 20 per cent the first premium ana 20
per cent on any renewal premium Let us see no" tiS
limit will operate. Four agents OF the same com
pany find each purchaser % of age for $1,000
nee, Of whom wants his Insurance 1Or IRE ana
NAYS for IL outright; wants it for life but prefers 10
pay annual premiums; wants 1t as an endowment az
30 years OF age and wants il for one year ohy' Inc
prime cost 10 the company for the insurance p' e
American Experience Table and at four per cent ures'
requires first premium, besides all expenses from
of 5000 70; from Of $l4 81 from OF $ll 81 rom
IL
sums enough TO pay all expenses including medical eN-
amnations commissions, and management The hpor
and difficulty Of negotiating each contract Is sup''dn
TALLY che same the service done by the agent 10 the COM
pany is az least in the first three cases Substantially .c
same; vet If the premiums increased by loa0hg
lust sufficient to meet the commissions permitted py tS
hill the first agent will receive commission oil ~ per
cent on 1897 2i or S67 Is the second 80 DO the hrd
so 30 the fourth IL Of OF take the actual premium
rates now in use at age 40 One man chooses TO take
whole life policy at annual premium OF S5l oV an
other an endowment at Co. with five payments annual
premium SI5s 90 the bill allows the agent 20 20 LOT
OH, ming tbo former and $3l so, more than hVc
lines as much for obtaining the latter or course me
result is 10 compel the companies bound oy su' Io
10 pay CX0rbltaut commissions on one clss VI H. i
MAKE I'D for inadequate on other classes Inc p
# PASSED, would disturb the rights OF insurer h9 "a
them would tcnd 70 oerauI one SCI Vi Poio' "o''
| erg Oh the prctcXi OF helping another. III, , :,
What would practically ne still worse II won il'he
directly for the interest OF every man insnrluS I" lde
tne form policy which has the lowest hrst VA!
This would encourage the credit syhei o. 6ro
the expense Of the cash system ana ihs h'nSGi
mote ases the fertile cause OF almost every c' III '"o
i little consideration wilsshow o. that any legal pre-
Rsryrlon Of tho amount Of commissions must rn .
49, IN their natural standard; (2l that if any such
ric he adopted it viii be utterly futile a. well a. per
Acious, unless il made percentage nor on lc
paid d9vn in cash but the amount OF the contract
negotiated. law that the aggregate sum l'iu Nv aiS
year she n"t chc'c' = por o,, , W. r"firort.
issued, and Il Vi one per cent on f-th,i an
| CONTRARY dong an ordinary business, -, A..
M ftcond iuquiry, whether tn bill respects the iruc
Relations Of the Siae It's corporations needs 10 Nus
ration Lcv0d reference 10 SECTIONS ana 10 section
ScrI at,s I'm a,,pia.gsnp in every county; new 20
llti4l flee maintained ana PAID ~ tht cNrhS Oh
fhc 10 ic holders II the companies should accept the
appr;iscincnts made by these men, whose competence
! ti,y cannot know, and who viii bc under no IESOhsi
h.y 60 trcn they would deserve Ia he di'Soi'cd 1.y
us ,,taip iii ihtir present guarantees against exogcc
valuations. and Will gan no new one lhc soi'
l,c OF this section would be 10 appropriate the tius
finds of the companies 10 support large number OF
local politicians; 10 make the high Judicial Giicc 4i the
cicnt grca, political piizs and 10 divide ana
dc-Iy the rrsuInsbilty the companies are under Tor
me safe investment OF their reserves sun more on
irc Iah.c section H. the I0ih which Is evidently lie
signed 10 prevent oppression by tie conIfies bdt Is So
m n ms destroy tr common law principle that frahd
whites contract, and CncuuIagr fd AID conalirt
tors 10 rob honest policy holders b. fraudulent claims
| l.csrccifully, WALL oihEhI
trLr- 4 orL Mach 20, 1877.