Savannah morning news. [volume] (Savannah) 1868-1887, 1882-03-07

The Claim Made Upon the Policy"
Holders in Ihe KntckerD0ckeF
Life Insurance Company - some
Interesting Information for Savan"
nah POlIcy.Holders.

Holders in Lhe KnickerbockeF
Life Insurance Company = some
Interesting Information for Savan"
nah PolIcy-H olders.
There are in Savannah probably two hun
dred holders of policies in the Knicker-
booker Life Insurance Company, which
some years ago withdrew their agency from
this city, but the insured continued paying
their premiums to the headquarters In
New York, and a number have paid
up policies. Recently an agent OF the
company made his appearance here and
called upon nearly all the policy holders, 10
whom he made certain statements In refer
ence to the condition of the company, and
requested them to sign az obligation &C.
knoWledging a claim against their policies
for losses sustained by the company, which
It was asserted would be OF mutual oeneht.
The proposition met with very little en-
couragement from the holders here, and,
with but one exception, the parties ap-
preached fatty refused. One OF these gen
tiemen, a merchant on the Bay, desiring to
get full information on the subj ect, addressed
a communication to the Boston Commercial
Bulletin. which is answered at length in the
issue OF that journal of the All. As the
matter is one OF great importance and IN
terest to many of our readers in this city
and section we give the correspondence in
full:
SAVANNAH, GA February %, 1882.
To the Editor Of the Commercial Bulletin:
Having read your remarks with interest,
upon life insurance companies, thought
perhaps you would not object to giving ia
formation or comment upon the standing OF
the Knickerbocker, of New York have
policy in that company for $4,000, and in
fifteen years have paid them some $3,6OO.
The enclosed circular will show you what L
wish to get at. Is the claim they make upon
policy holders proper one? No notice of
this clause was furnished to those whose
patronage was sought, and We could not
know except through notice from the CON-
pany. If you can consistently give infor-
nation about this company 1t would afford
satisfaction, perhaps protection, to many OF
| your readers, both North and South.
Most respectfully yours,
The circular accompanying the above let
ter reads as follows:
| KNICKERBoCKER LIFE ms. Co.. OF N. Y,
New YORK, February 25, 1882.
- -, Savannah, Ga:
By Chapter 1913 of the Laws of New York,
passed in 1862 amending the charter OF this
| company, authority was conferred upon the
losses to the extent they have been credited
with profits, II the losses by insurance re-
qure it. It is we'll settled by repeated de-
cisions that such provision In the charter
of an insurance company becomes part of
it's contracts Of insurance. By virtue of the
power thus conferred, policy No. -, held
| by you, has been charged with losses,
| amounting, at.its anniversary date in 1881, to
| the sum of $4l6 %, being the amount you
| have been credited or benefited by plrtci-
| patton in distributions of surplus heretofore
| made by the company on account OF premt-
ums paid or adjusted to secure said policy.
| (This charge is in addition to the premium
note of s., now held by the company
against this policy.)
The enforcement by the company of this
| provision of its charter has been called for
| by the large excess Of mortality among the
| lives insured by its policies over that which
was anticipated, and IL promptly scquiesced
in by policy holders adjusting the liability
| charge, cannot fail to promote their inter
ests, and will place the ultimate strength of
| the company beyond question. You are
therefore hereby notified of this charge
against your policy to afford you an oppOr-
tunity to adjust the same and thus agojd the
consequences mich aCiU result If 1t remains out
| standing.
| Tue mode OF adjustment can be ascertain
| ed by calling upon me with your policy and
| all papers connected Herewith, at --
where 1 shall be until the OH day of March,
| 1882
II the matter is not settled on or before
that date, you will be considered IS declin-
| ing to avail yourself of the privilege ex-
| tended to you by the company.
| Respectfully, .
The Knickerbocker Life Insurance Com
/ pany of New York was incorporated In
| 1853, and commenced business at that time.
/ u IA oN 10 boo
that decade, its insurance In force Novem-
Der /, 1859, being only 81 ,S43, 1914; assets,
1892, 1856; liabilities. $l67 024.
From this time on its business rapidly in
| creased until January l, 1870. when its in
surance in force was sos, SIS 968; its assets,
1850, 900 and its liabilities Sc, 162, 800. Since
| that date the business of the company has
steadily decreased, and the last official fig
ures, published in January, 1881, for the
previous year show the amount of insurance
in force to be about Sl3 600 900; assets, S.,
$50 l41; liabilities $4,8l3 $40, thus leaving
an apparent surplus of $445, 800.
The Knickerbocker has not been allowed
by the New York Commissioner to do new
business for several years, owing to what he
considered the then questionable manage
ment. The company was not put into the
hands of a receiver because there was a
chance, with proper management, for it to
| recuperate. 1t was restrained some years
ago from doing business in Massachusetts,
because it could not maintain its deposit In
tact.
A QUERY ANSWERED.
Now as to our correspondents query as
to the payment of the sum demanded. Our
answer is most emphatically, "Don't pay 1t. "
And for the following reasons:
]. the company had on December 81, 1880,
$445, 800 surplus, as appears from their sworn
I uHa hn cfn of of
pears from the weekly returns, do not re-
quire resort to the expedient referred to in
the above circular. The clause in the char
ter above referred to appears in Section 3 of
Chapter 123 of Laws of New York passed
| April 2, 1862, and reads as follows: "And
mutual policies may be charged with losses
| to the extent they have been credited with
profits, If the losses by insurance require it. !"
2 II the company did not have the above
| amount on the date newfoundland 1t may
| be stated here that the Secretary SAYS the
statement published by the Insurance Com
| missioner was nat sworn to-and had reason
for resOrting to the charter expedient, Gan
expedient, by the way, which is an anomaly
In life insurance, as it appears in the char
| ter of no other company, still payment
/ should be refused for the simple reason that
the charter does not demand it. It says /:
| "Policies may be charged with losses" To
| pay this charge before maturity would sim
ply be ito confess judgment, whereas it is
the business of the court to decide at the
maturity of the policy whether the exieen-
Giles of.the company justified this charge at
| the time it was made.
These are reasons enough. There is
nothing but the mere fiat of the officers to
show that Charging back" is necessary.
Losses during the last year do not appear to
| have been severe, and the investments of
the company are as valuable to-day as they
were a year ago. The company in our
opinion, should at least have accompanied
such circular as the above with a sworn
statement of its financial condition.
Always Refreshing.
A delicious odor is impaired by Floreston
Cologne, which is always refreshing, no
matter how freely used.