New-York tribune., 1877-06-02
LETTERS FROM THE PEOPLE.

WORKINGS OF AN INSURANCE LAW
ERRORS ooRREcTEp-rHE MASSACHUSETTS sIAIulL
IN RELATION TO PND-UP POL1CIES-WHAT is
NEEDED IN NEw-YORK.
70 me FdifOr of The Tribune.
SIR: Your correspondent "W. b." whose
article appeared in THt TRIBUNE some time ago un"oF
the head Paidup Insurance Policies. is IN error rc-
spectug the provisions ami workings Of the MassachU
,e,ts law The law to which bo refers was passed in
Aurjl. sol aud for 16 years has prevented the for
feiture o. policies issued by the companies OF that state
Instead however. Of "InaEng il obligatory upon the
companies o. give proportional I@dup pohe.es ~ "''
who have paid two annual premiums and are un"'e 10
continue their payments" It obliscs the companie'
irrespective Of the pohcyhodcs ability 70 pay their
premiums to continue all policies In force for TIER in
nmonnf afer single Rlment only. t thcirfespeciiVe
values as determined by the law, shall nave been eN-
hausted in carrying them, the companies having the
right in case Of death during the time that la'ed
paIicy i thus continued in force, to deduct from the
amount OF tne policy only the amount Of the oyerdne
prcmiums with interest at the rate Of per cent per
annum.
An nexamllc viii serve TO illustrate the working Of the
law Should person at the Of 80 years oheot msu-
ance on hs fe I'm Massachusetts, company ana pay he
premium thereon for only, the law would Keep
the policy IN force for ycals and three days from Us
date while payments for two years would continue III
force for tour years twelve DAYS; five payments for
ten years and 50 days. ten payments for l9NeaTs ana
"a DAYS &c-thc time OF continuance varying OF course
accordinc 10 the age the assured and tie number oi
payments made II simple justice 10 the Massachusetts
companies Co ay tlat during the last 1G ycas-nnder
The Operations Of thot excellent laW when theotUtN
secures 80 each policy holder just equivalent io a te
money that hc pays-thc> have ltd brhgtct' u u,
fhousend. Of dollars uuOn laPScd policies Wiich WOMB
have been worthless had thcy pcen ued hY thc con-
pancs OF otncr States which offer 70 thcir p0c"deIS
no cquival DO protection. ia ,,r.
TRIBUNE i securing for this state tlc enactment o some
such humane AND cqutgblc law, the ncC 'SiF ~" Nh'
the following .cs thar have cafeiul gathered VIII
helm to render apparent. Tho Official report o le
Insurance Commissioner OF NcVlOIk, issued n 1910,
600 OCO were allowed 10 lar n single wear b> the
nOupaymont ot the premiums wien Cl, VI ih's liA'I
only -OS policies iisiiling about rAOj0OOD were pro-
trcted by the NonfOrfcure law, ht' ing brth ss,d ny
The Massachusetts companies Inc rest We
the pn'icv-uOldgrs deriving NO Dehcut from
Them either I'm cash surrender values pmd-up policies or
continued insurance. The report Issued !ast year I'D
tells scarcely less favorable story Tue record OF iN'o
so far as written shows no Improvement m TINS olItclo
The writer rls called the attention Oi some oi our SJe
legislators 10 OF these facts ana enGe3No 40
secure their influence IN favor OF the thucedeu ia"
buf has thu, lar with very little cucouagcmcnt, as
the more powerful influence OF these moncycd corpora
is ad 20 such enactment ana ID" uouDt
would arrtyci against IT, This remark is warranted
by the influence rom til> quarter ln
been brought 20 bear upon the Massachusetts, lcgsla-
ture with view 20 the repeal OF the law III thaI '4te.
This II not random rcm4rK, aS an Oiicf OF one % o"i
most prominent Ncw-NOIK cOmpHrlcS-Whuse name
shall he ready To- give proper oCoasOi-'olul me ne
was there. The passage OF such q Jaw Would ue 'Ee
deathhlow To the miserable TontiEc schemes Wnch IN
their varied forms regard as The biggest huDS ever
- SSir' YORK uay ~ lS77. SAMUEL WRIGHT.