The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1879-07-04
New nrnnrlnres In Insurance.


What is known as the Rowland inSHr'
ance law went into effect in Ohio on the
lst OF this month. Under this law insur-
unce companies are compelled, in case the
loss is total, to pay the full amount OF the
policy. The effect OF it will be to make
agents more careful in estimating the value
Of the property they insure.
Another new departure-and volun-
tary change, by the way,-ls a radical
innovation in the life insurance business.
The Equitable Company, Of New York,
one Of the largest and best companies in
the country, has determined on the fol-
lowing new methods OF doing business in
the future.
!. Policies will be made incontestiblC
after three years from their date. .. Each
ordinary policy will provide for definite
surrender value in paid up assurance in
case the policy is forfeited after three
years from its date. 3. Each TontinG
policy will contain II definite surrender
value in cash in case Of withdrawal at the
end Of the Tontine period. 4. The con
tract will be conCisely and clearly ex'
pressed, containing only such provisions
rs are necessary to protect the policy
holders. 3. The above concessions will
hereafter innre to the benefit Of all poll.
cies already issued and in force after three
years from their dates respectively.
1t will be remembered that the EQuita.
BILE was the only one Of several companies
that had an insurance on the life OF the
now famous Mr.. Dwight, Of Binghampton,
New York, that paid up promptly its loss
(S50,O00), the most il not all Of the Others
standing out in litigation. This action on
itspart, aitera reasonable investigation, did
much to popularize the Company, and
now that it has initiated the new depart.
ures alluded to above it must become
more popular than ever.
Life insurance has been under cloud
for several years past, owing to the num-
Der Of failures among the companies, and
owing also to disposition to litigate on
the part Of some Of them. Failures ind
litigation have caused widespread popu-
lar distrust OF this method of providing
for family in case Of death. Life insur.
anCG is one OF the most sacred OF contracts,
and It ought to be surrounded by every
safeguard that can assure payment after
death. Men do not want to bequeath a
law suit to their families, and hence the
new step taken by the Equitable will
be tep towards quieting fears that
have tended to prevent many
persons from insuring their lives.
When u man knows that after three
years an insurance on his life will become
absolutely incontestible by the company
he will not hesitate half so long to take
out policy He is thereby assured that
10 informality or technically can result
in the loss Of benefits to his family,
and this is u danger to which all insured
persons have been exposed at the hands
OF companies inclined to he litigious.
The second OF the proposed reforms by
the Equitable is likewise a very impor.
portant departure, viz: the payment OF a
proper surrender value Of a policy. Many
persons are deferred from taking out poll.
cies because Of M apprehension that for
some reason or other they may find it
necessary or cxpedient to discontinue
their policies after ono or more payments.
Up to this time there Inns apparently been
no definitely ascertaincd amount that
companies were willing to pay in case
Of surrender. We published an account
the other day showing how wide
was the first oller OF n company from TINT
which 1t finally agreed to pay. This
ought not to be the case. There should
be nothing arbitrary or speculative about
such payments. A fair surrender value
should DO ascertuined and made known to
every person who asks for IN insurance.
Insurance would not then be the blind
operation that it is now. People would
be easy in their minds as regards their
risks under all circumstances OF life or
death,
Now that the Equitable has led of in