The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-02-25
LIFE INSURANCE.

JfELtrF ftgTNUGfnG-~ Inc FeGnhb EaIlHEeH @I lie
insuranee companies in New York and Missouri,
involving such vast aud disastrous reeults, nat.
urGI direct The minds OF policy holders to
ascertain In what manner they can be better
protected Ia the future, and in what special way
the monies they have paid out for many years
can be secured 80 aa to accomplish the end de-
sired, and guarantee their widows and orphans
prompt payment when death occurs.
The doctrine long believed that life insu ance
companies coula nsver fail Ia now proved to be
failaey, and the public, or at least that portion
most deeply interested, find that Life insurance
companies, like all human institutions, are liabls
| to human contingencies aud traitiss..
Il has also long been believed and advocsted
that State supervision placed this special trust
beyond the pale Of the uncertainty to which other
corporations were exposed. This haB aiso prev cd
| to be fallacy, as We find the greatest and most
disastrous failures OF life insurance companies
have occurred in the very States where State su-
pervision backed up by str ngentlaws and \ pub
ltc officer appointed to the charge OF this special
trust, known IA the State Com issioner OF 1nsur-
| ance, has had its fullest aud fairest trial. No
| States have enacted statutes stronger aud more
protective than New York and Missouri, the very
| ines in which the greatest failures hay occur
r. d. This Ia good and satisfactory evidences that
State supervision and insurance commissioners
do net furnish the required protection for the
policy holder, and some more perfect aud
reliable mode must be adopted before
| confidence in life insurance can be July
restored to what it WAS prior To thu sad and sick
ening results which have so recently been devels
oped.
sion has BEEN and always will be, that the office
OF Insurance Commissioner Ia political Office.
that il to be flied by political party, and ena OF
great power and sueh Is liable to reat abnses.
May leading Insurance. Journals OF the North
bave cried out against the blaclmhiling aud
other abuses emanating from state insurance
Comul ssioners. The Insurance Chronicle, pub
lished in New York, has constantly raised lts
voice against this detective system. NotWith-
standing theee objections we see States following
the same old track, and passing useless laws.
which open the way to fraud aod insecurity. mere
Iy to give fat Office to some political intivldual.
who thus IL enabled 10 prey upon the community
OF nolioy holders.
The south ia peculiarly placed in regard 10 life
insurance companies, aud when we consider the
millions Of dollars annually expended for this So
called protectien aud which finds its way to the
North aud West, enabling companies to erect
pal tti,l Offices and we see how little security we
nave for the large amount We pay, We are LED to
think the business al conducted Ht present 10
miseraby detective. What security has citizen
of Louisiana. whose life is insured IN Rev York,
Massachusetts or any other Northern or Western
State? We NIL know that the money We pay for
this protection leaves ore section to enrich an
ether, rs most OF the States require Investments
to be made only wi hin their borders and accord.
ing to their laws and under the supervision OF
some pIlitician known by the name u STATE Com
missioner OF Louisiana.
La the event OF the insured or his heirs fl ding
IL necessary to sue a company liz order to obtain
Justice, suit can only BIZ brought in the State
where tho company IL located. These are only
some OF many OF The Objectionable features OF
the present system.
We do not see why every life insurance COM
pany doing business ia any other state than liz
home should not be compelled to invest what in
called and known ss Its reserve In the State
where the policy holder resides. Then the
assured would have como tangible security TO
fall back npon in the evsnt OF failure OF the COM
pany. suppose each company insuriug lives In
any State should bs cancelled By law to
deposit and to keep annually depositipg with
the state Controller Or Auditor, rs trust, suta-
cif mt securities to cover the reserve neo ssary
for the p election of the assured In such state,
this would certainly be no more than necessary,
and would not ree1 any Legislation nor political
officer as Commie sioner Of Insurance. Iu case OF
the failrtre OF the company, the state iii or, ~
trustee, Or the assured could with such reserve
obtain full protection In soms other company.
What would now be the condition OF our c1ti-
Zens who have been insured in the Continental
Security or st. Louis Mutual Life companies,
sufficient securities to cover the reserve upon
their policies Had this been dore The policy
holders would oil have been fu ly protected
against loss, aud W Jnld have had fecufity much
more ample than the New York or Missouri ON
missioners Of Insurancs will give them. What ie
OF greater Importance, life Insurance. woud to
made absolutely safe and protective, rs we would
get rid OF tho abominations OF state supervision
and the foles and frailtles OF officials OF every
kind.
simple act passed by our Legislature to this
sffsct would do mora good and furnish more CO.
curity to the assured han all the insurance COM
missione1s In the world. X.