The Ouachita telegraph. [volume] (Monroe, La.) 1865-1889, 1881-09-16
THE LOUISIANA LIFE INSURANCE
g COMPANY.
The History OF the Company Since ITS
Organization.
Il From the N. o. Democrat, j


t. the louisiana Life Insurance Company,
that scorporation had decided to dis
continue the life insurance business
andto Hquidate its affairs, necessa-.
rilycreated considerable stir and talk
= abdt town, as many of our citizens
wep Interested, either as holders of
stok or policies. Since then the news
50 has spread Throughout the country,
Wire many policies were also held,
re pnd letters are now pouring in daily
J. Som every parish, making earnest
"a ,,spany, and desiring to know how a
tlpration, believed to be as well
peA ,4ded and protected, as this was, by
3 II act of the Legislature, could have
,S aS' 'tmaNed. When the notice of liquidation
1G, ISIS at first published, it was, of course,
popertpossible to give any full and thorough
Parsount of the affairs of the company.
q frauiries have been SO solicitous since,
st. Jrwever, that it is full time that all
feetould know something of the affairs
roe this company, and what prospect
: Where is ahead for them to recover the
taxeoney invested in it.
The Louisiana Life Insurance Com
foPS ny, or, as it was originally called, the
! Fiihuisiana Equitable, was organized in
ng a bril-, 1868, with capital of 500, 200.
9 faet areutl..as during the prosperous season of
'unpale life insurance business. The new
i, 1877. aization fourished beyond all
during the first few years of
\ ,ceerIife, everybody preferring to insure
from home company, under the man
T. iEement of ellknown and trusted
?. kdividuals. For three or four years
premiums poured in so fast that it was
= Not found necessary to touch the capital
Y the company, whichwas accordingly
Iot called in. About 1872 its fortunes
|segan to wane and the capital was
= ltnally asked for in order to give the
.ompany vitality. Deaths We're num-
:, krous and new policies few, and the
ce business of the company soon became
yysmall and unpromising. 1t was still,
Hhowever, doing a moderate business,
I and certainly could not be considered
~ as weak or tottering. Things soon
y changed, however, and as far back as
/ five years ago the decline began that
/, has eventuated in the failure and
liquidation of tho company.
= -.-i,apts1S75 thegisusincss of the Louis
lana Equltable, like that of nearly all
LIE insurance companies throughout
the country, began to show a great
falling off. Times were haid and few
persons cared to invest what little
money they had in insurance on their
lives, as so many had been caught by
rotten companies. This unwillingness
to insure was particularly observable
in LouiSiana-for we were very poor
then-and few new policies were issued,
l although the. business was well adj
vertised throughout the country par
, ishes of the State, and the very highest
commissions offered agents for the
securing policies. The insurances on
the original policy holders also began
to fall due through death. A great
: many of these were men we'll advanced
in age when their policies were taken
out, and death was frequent visitor
among them.
T. This took large sums out of the
treasury and began to affect it's financial
Istanding. In view of the unpromising
condition of affairs it was resolved to
l ask the protection and aid of the State
: by legislation, and to convert the COM
!, pany into strictly local one, SO as to
!. secure State business. At the request
; of the company an act was passed in
, 1877 creating and regulating life
insurance companies. This created a
9 reserve fund, which it was required
.. should be invested in State or Federal
securities. Similar acts had been
: passed in nearly all the Northern
! States, and had been found highly
y advantageous to these companies greatly
! increasing their credit, as they served
W SlTOUSly
T panies and to protect the policy-holdcrs
: by compelling the Investment of the
reserve funds at home in State securi
= ties in the hands of State officers,
and where the exact condition of the
Q corporation could be seen by any one
n at any time.
This act provided that every insur-
: ance company Incorporated here,
q should give notice of each of its
policies to the auditor, and deposit
with him, in State or United States
bonds, the amount of rcserve-siX per
cent-that the law requires shall be
set aside for the protection of policy
holders. The company is thus COM
PEELED to have all its policies registered
. at the auditors Office and its reserve
Q fund deposited there. Each policy
It was to contain certificate to this effect,
= signed by the auditor.
The Louisiana Life conformcd with
these provisions and appealed to Louis