, 1877-07-07
1.IFE-1NbURANCE
a Movu in tho Right Direction to Be-
store the Confidence Of the
People.
Equity OF the New Non-Forfctt-
ure Law OF Mains

|
Tho clouds apbear to have lifted somewhat |
from 1fc.tnsu,sncc. and Tho time t,as como for
Candid, fair.m'nded PERSONS must NUM-. nj. tnst
tnIustfcc has had Its full sweep, and that, IN
stead Of being ruined by tho onslaught, tho
~ s ~ 1919 .....r, ~ rc.l}v come cut
victorious and triumphant. H." ~"
clearly seen that Tho public mas oceh
thc chtef sufferer and victim Of tho
nev,h,ncr raid unon iifc-lnsuranee. II Ia also
Clearly pefccse1' - s"' e.sas tntrra., l., the
ali along insisted. that no otnes interest III .ne
country, financial or Industrial nus more nopiy
held H. own under pressure calculated 70 10
taS"k 90 20. tosn ~It II, Tho c,sroor that
ihcfe nave NOT ocs"' W." ~ ',"..".s,, ~. s s"n
has been maae' 30 many OF 80 "hss asss'l a ~
banks, and tho aggregate loss BY The failure
of llfe-iasuranco companies does not equal 10
per cent Of the depreciation and tnss tn railroad
stocks and bonds. Nobody denies ttlatthefe Wefc
iife-lnsurance management in the past, but tho
f{ttcst have survived, ami the nnft hare been
exposed and let die. Reason will oncn moro
resume It's sway over tho mIntle Of men who
pcreclvo that llfe-insurancc supplies need and
guarda tntcrcsts they can IN no other wy pro
fcct. Prejudice, taking root in tho debris Of
few worthless corporations. ts obliged to give
give way to tho truth; Ihe ssgnal ior new as-'
patturc has sounded, and lifc-insnsnnce, puf'.
lied By public scrutiny, hos takcn up ia onward
march. 80.
The public mind is, tuat now, In 4 condition
and equity In litc-nsurancc practice: Anything
that sa7oFs Of relaxing Of restrictive features
y peculiarly timely ana calculated f9 rebntia 1i
tho waste places 9! tl,o business. Aom H'c.
not be rchearscd. We all knuw that part of the
story by },caft, and sone hagc ohtalnca the
knowledge ut rather round cost It is simple
truth, however, to say that tho primo factor IN
roughshod ovcr-riding Of equity ln cascs or
compulsory lapse. Non-paymcnt Of premium
on tho very day when duo lbs rcmorsclessIJ
wrought forfeiture Of po!'ries,-legaNy' no
eubvcfElyo Of ali tdeas OF equity, Except In
tho case Of hiassachuset's companies. and pos
elbly one Of two others, there is, even now, no
!ooho!e ot hope i9r ti,o 1T zen n'i MhGsS ts @ premium =
ncasurahly rIRf!ted and polcY-holders gguitaole
tas we'll ~ simply icsaD rtghta are freely fssoE.
njzcd BY life managers. or compelled to be 20
1e be- siim ptospect s. II rehata.ing lifc.insurauce
| In public regard and confidence.
| In this View Of tho mutter, It is crcditaote
thing which Tho State Of Mainc las done, In on.
entire fairness. Eycn greater credit is duc to
tho Union Mutual Life Insurance Company for
having first suggested an1 championcd tho
pAssaBo OF encF !aW, ah1 tAeh .P!on1ptt3 W.
ccptIng Its pruyistons rs rule Of futurc action.
| To hare taken this atcp tnlst naturally Rtso tho
| Union Mutual the pdstion of pioneer In limo
Of progress whose end VII ho TIC tede1,ptlon
al the buancss. III Just the degree IN which notl-
forfeiture shall bccope the rule in llfc.lnsur.
ance, instead Of tho exception. All this goes
without ssyfng; but It deserves to be said all
the same.
| A everybody knoMs, Massachusetts has for
many years fad = non.fortc!ture law on lier
| statute bookt. Although weal!utcnded. an1 In
tho main Wisely drafted, slie Massachusetts law
has. 10 aome rcspects. out'tved IL uscfu1ness
| admit, not only has defects, but II. ccrtaln
cases becomes tho engine ol oppression and
injustice. This last has been tts practical effect,
cspccaalY when endowment pollclcs re IT. , SUD-
under tho working Of tho Law, tho discrlmtna-
tion agalnst IL, endowment policy haa been such
~ to exhibit the anomaly Of legal injustice. In
T9rt aa % .nstd ans spaa@
mcnss, upon which The larger premiums - hase ts
his money than he would have had on 1apsco
rhole Life policy whose premiums aggrceatca
illustration Of this which showed taatt anact
equnl circumstances " 70 sun ,nsdteo yea1a q
payment ana tntle ot oensn; sa;,e sao g. ~ IA
assured, for payments q s8av, ieeTsea s Sn,su
while tho "cndowment" aMssnrcd, M lor paym.sen1xt .e1x
OF &l,o1G, received onlS $5too5' or apoHt WV
loss, ard this Is only one specimen. EoNonuef,
them that symptoms OF ancon.epi H. aass n9e
but whose provlstons hsso coma TO ec iess iaifl5
adaptable to tho pusincss uhdcf "s 4attc'"oa,
methods.
The law lately enacted 10 MIME, a!tnouRn II
principle like that of hassacl!usctts is suscenti
bio Of IN application IN practice Which does ava
with TIC lsstcr's defects. ID not Necessary . M e
Elvo The text Of tao iax u ~ ~ .oa aa. " -
pErI1ltt tho prC6unttlOu that almost efcfY ono