The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-03-09
FORGERY, PERJURY, EMBEzSLEMENT
The Astonishing story OF the Protection Lift
Insurance Company OF Chicago.

CHICAGO, March s.-The papers accom-
panying the application for receiver for the
Protective Life Insurance Company Of this city
contained some startling allegations.
The Protective Life Insurance Company was
Incorporated under a special act of this State.
passed March T. 1867. which was amended in
March. 1869. and has since been doing business
in this and other States under its peculiar plan
OF life insurance. which is described as fol-
lows: All policy holders and applicants
for insurance are divided into four classes
according to the age Of the insured. persons
from Is to 25 years Of ago forming ono
class. from 26 to 40 years another class. those
from Al to so years another class. those from 81
to 5j years another class. those from So to 60
years another class. and those from 6l to G5
years Of ago still another class. Every person
becoming insured is required to pay mem =
bership-fee varying from $40 to s2O on recev-
ing his policy. Tho policy Is issued for
the sum OF 1890 80 500 or $1,000. with
the stipulated agreement that the assured
shall thereafter pay to the company annually n
sum OF from So to 50 as annual membership
dues. according to the amount OF the policy OF
the assured and shall also pay on the death of
any member OF the company holding policy in
force. his just proportion taccording to the age
10y which he IL claescd and the amount OF his
policy) OF a sum sufficient TO liquidate and pay
in full the amount for which such deceased
member may have been assured, provided the
number Of policy holders liable TO contribute
exceeds the number of dollars for which such
deceased member he assured. IL the number
Of policy holders liable to be assessed be less
than the number OF dollars to be- collected. then
each surviving member e 10 pay ST. The COM
pnny agrees 10 mako the proper assessments
when member dies. adding 10 cents 20 each
assessment 70 pay Tor the cost OF Collecting
the same. 1t also agrees 10 collect these
assessments ns trustees for the policy
holders and bcnefciaries, and 10 pay over the
amount collected. less the ten cents, on ea h
/ q res =
i've death. Ii also agrees 10 receive the sums
paid for membership fees and annual dues.
fund with which to pay ali expenses OF COM
pany OF every Kind and nature. and gunran-
tees that all such assessments made shall be
Tor about six years past the Protection Life
| Insurance Company has advertised to the world
| that II furnished lii. insurance nt cost, and has
| always distinctly stipulated with all lis policy
holders that every dollar of the ass ssm"nis
| levied was tor the sole benefit of the assured
| that all assessments were faithfully paid over &
| the members entitled thereto, and that IT,,
| officers ot the company were only paid from
| membership and annual fees. During th'
| past iOur ycnrs the company mas Issued
! great number OF policies, lis members
Death occurs among the members of tn,
! company every month, and Tor several years
the company has made monthly assessments
profess 'dly 10 meet death losses. which have
| been collected and frequently been paid over
1t has guaranteed that Whatever may have been
the number Of members in class, II would phS
| at least 81 600 on a $1,000 policy, and a prOlor-
| tona amount on policies for a less sum. Tn.
| company hps also advertised Tor the lirt fuUl
years that as security for It's members IL had
| 5000 OOu capital invested in good securities.
The assets have been greatly exaggerated ir
the company's exhibits. The real estate l. val
| ued at $4,000 more than II is worth, there be-
| ing Il mortgage for that amount on II. som" o
! the mortgages are Urruu"pu~ly reported unt
| largely oyerratsl; tie loans on colut"ralS arr
! not one-quartrr OF tleir alleged value, III" pre-
| MUM notes are not properly assets. and are Of si
/ mated at $4,000 moro than they are worth. th'
| actual cash in hand 80 III" time above mcntionc.
| WIS not over one-half of the amount given in th'
| report. and what money was on hand boiong d T.
! the policy holders ON death loss -. and not I.
| the company; tn" gross premiums. sJ-cdil"t
are mythical. ae there are no deferred prrWl
| ums IN the plan OF insurance; and, in short Ia
| whole assets oi the company are rated az man
times their value AMI would, II estimated n''
| curatrly. hot be sufficient 10 comply with th
! insuran 'e laws OF the State. The fictitious as
sets amount to sl2j.43s,29, and the oyer-"sii
! mates on the other u~-rt- Is at least slJnuit
On the other hand the Liabilities We're under
The complainant alleges that the company
ON 'crs have forged proofs of death and ceriil
,qit.s Of notarirs public. names of att"n Mn
physicians X .. and ON them have made assess
Ineuts on II i'titious death lOss,s TO the amour
Of not less than S1julO. Furthermore, th
complainant charges the on Of the com
pany have used III money contrary to the char
ter and 10 their duties as trustees, AMI hay
taken in all not less than s2prOpo. and hay
used il in attempting 10 procure or proven. c"f
tain lss station ia tnclr Own Interests, Or ia pr
N,tte IN estuIuut-.