, 1879-08-09

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LIFE INSURANCE.
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An Isxposltiou OF tho HAIaaaac!,uxeitp Nou-
rorfat,nrc Law"
FoI."'"e"
=" ~. '"r'' :" ~. ',".",.
CEDAR RAPIDS, lats Aus' 1-l take t0e posi-"
tol, and li1yc occupied tile same tor yeafe, that
tflts Inv Is both Illogical and unjust.
lam nerauodctl tn ptyo tb,s cxpose nj this
.,.. H.. S.sa ~ ss.,. ,.s,ort,, ar,ta1s -, H.
uu'u W seAho. VI ,u.' oo'solAt % ".t'e'e y" '''o
insurance. Vi aate o"l5 " III ""'t" 3uu recon-
mend said Inv 10 The favorable consideration Of
certain State Legislatures. Abstract Of tho
~ .s,as,,,, .@'n 0sa'e VI ~'''
s,,-., .,,..
SEcTtnS i. ;a lne 4s iss'ne d q Ine polGy'
si,aii In Il" a ascertnIned ACCORDING 10 ihe 's''s
"Actuasles'" rats Of mortality. viii, interest a.
not value nny indebtedness 10 Tho Company etc.,
80. :. ton5-fftbs Of what remains uhnll lie con-
s'dets,l AZ nct stnsle premium % ,cmporaFy II;
saFsnet anu ~ term aos Wa.ch ,l",l nsrre shali
TIC TING NJ o. ~ sse n prsmla anu iho a'fnp'
W. =. . y ii" ,,caf IT. ti,c nar,v t~crr ,v,,
tho term u tempotary ip;urancs e..setc,s bv tic
value Of thc policy. :. md il no ct,n,iIt!un
Of s I'M. h,x se, vonc sn IL =
co'nnany ahall be bnanl t. pay t,e amount Of the
policy. tue sane as T. there naa osgh 70 ,apso or
pet|i pot Icro fojjows ~ nnmpal,aTt
nposlso; fsn nov CONF coaes II. nal pt"s.os beInx
Ana ppovacI ill., ,hst M M tle Gumpany = shaii IT. savs
ihs I'm . deast from &c amo'nt mot insured IN the
s premiums TINT had been fostosne at tie lInc Of
tho death. ......
An explanation Of what co1ststutca the net
value OF policy. and how II aecrl1es: Tic
probability of diving That attends any. ASSIGNED
lfo h constantly increasing IN well defined
ncccIeratyc ratio, until 1t reaches. ut tho high
limit uf age set by tic "tub1cs." 100 pcr cent.
Hence it Is rcniily seen .llnt the ac:ral yearly
cost OF insuranec must increase 10 n like rato.
and, in consequence, that a fixed or levci
ersum for na 81 u; @ at Its isspo na
to It's tcrs must be In exSess Of Tho ncilai yearly
cost. It's from such cxrfss that The "reserT."
OF net valnc Of policy 1crrucs: the san'c being
tho overpav'nents u TUG insured unearncd In tl'e
hanta Of Tho Eo!npany., This net value Is atso.
properly, tcrl1cd "seIf-lp4urance fund. :" bccanso
it tlitntnlshes tho risk barpe by The COMPANY
Tho not annual rrcsntnnt at ngc s,, for >a1i t'r.
Gfnnry life Insurance. 0f tOo0 ts--as per " Act
for ihc frat year fa only 1888, leaving as oror-
payment $ll0i, wllcEl lt'npFovcd at !cr cunt III
trres, amounts, at 'hr cn Of tic yrar, 10 sl1iS
Hence tho risk bnrn1 Nv 1he CoInpnnv the first
yenr is thu ditlercneo betEecn Sl,ooo and Sll.45
Up 10 the ttnle Of The enacttnent Of tho law
In qucatf0u, In 1861, II tlictc lad been auT
acknowledgement In tllebtY thrre ha1 bean
none IN Praciico oE't7 tic rtEht or thr
poltcy.holdor to anyt interest Or owner
shtp In tho net 'alqc Of his policy.
This law. bclIrve, Fas TT: irst seeming rccog-
milton OF such right, but I maintain that It is
only sconfng. ~
0bseryu carefully the Words nuaerscorcd in
the abatract given, and t!'en road tito final pro-
v[so; thKcn tugether, thqru nppesra to inc to be
t1at contradiction. Tho FIRST, M1 part ot tho
second. section acknowledges, Il language hus
any meaning, tMt thu insurance under lilo con-
vortcd policy is tnily coytfr'l a' pad for by the
money of tie policy"hottcy 10 tile hands Of tho
Company. The proyf6' plainly denies this IN
case the policy becomes claim. II t!c lnsur-
onco covered IL those roifvertel policies fhnt DO
mt brconr claims is tatd sor, "wl'y IL it not In
In the other easel -
Il purlY tnkcs out an ordinary 1ife-nolcy,
agreeing to pay Au auulai premium fnr lie.
After pnylng several prcHluns l.e htscontirues
nasmcnt; therefore, thd ,contract is broken n,al
tile policy lnpscs. Now ille "law" steps In,
md what dues It 10 reality cffectl DOES It en-.
forcc Or rrnew the ol1 eQnt1aet, or does It force
d naw contract upon thes Company. i c,nIpn.
ny'H practice nndcr the "law y will answer this
WHICH, be 1t ulscrved, Nas tcrn,.poIIcy Tie
Company, Ut tho reuuc4t D! the lloltlor converts
Tho policy Into slnlnls torn,-insuranco; aftt1,
III caso It becuu,ca claim, does 1t deduct tl,t:
Moi al nil, hns de,luets MI ordinary llte.oro-
MUM rhargablo to the ayc OF original entry,-a
11rc.nii1sn cl,lrrly foreign to thu original cnn-
tract.-thus admitting "a new contract Fur
ths ten,uerary terin Of. Insurance, \ now con-.
,putation il Inajc upop nnolller, anti ADVANCED
age, an cntlscly new t!tal. Tho only difference,
which Ia uu,,.csscnt!a,f between one OF thcso
converted policies ulll au original or1inary-tcrua
tcrn,ned by tic au,ount of money ii, haull, aud
In tic secoi,J, to nluuky requisite s determined
Ly the term, In equity, lIiU insurance is as
fully pail for IN The former In Tho latter casp
anytll,lV In lho .slas ";tu ihc contrary notwith.
uton,ln, .' ,''''