The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1886-04-27
Commissioners Tarbox and the CO.
Operatives.
INSURANCE. DEPARTMENT.
SURANCE DEPARTMENT,
BOSTON. Dec. 1. 1885,

INSURANCE DEPARTMENT.,
BOSTON, Dec. 1, 1856
This statement is made in recognition of a gen
eral public desire for information on the subject it
treats.
The value Of life insurance as temporary pro-
lection or permanent family provision, has of late
years. commanded the attention of people in all
conditions of life, and created popular demand
for such insurance at the cheapest possible cost.
This want has naturally induced the invention
of various plans to supply it, and several schemes
are rival suitors for confidence and favor.
To assist the people to judge intelligently be-
tween these claimants, and to protect themselves
from the devices of the dishonest and impractical
BILE, is the object of this publication. The Com
missioner has sought in judicial spirit, and unaf
fected by any prejudice to exhibit the facts in re-
gard to the several companies engaged in this
commonwealth in the business of life and bodily
injury insurance on the assessment plan and in
his comments thereupon to state only such prop
ositions as seem to him self-evdent truths.
Insurance that does not insure is dear at any
price Insurance that costs beyond the needs of
safety is an unjust burden.
That system is best which combines safety with
the minimum of cost. The old system is, human
ly speaking safe but it is too expensive, and can
not reform the fault. Some other system that can
PROVIDE SaIeJy WIFI lcSS cOSt VIII oupclocuc IL, uut
to rival the old, the must prove itself safe as
well as cheaper.
The original idea of assessment life insurance
was of the simplest. 1t was mutual assurance
benefit payable on the death of member from
moneys thereafter collected from the survivors,
no accumulated fund or other financial provision
to secure the payment of the promised benefits
the insured member to pay, beside expense dues,
only the actual cost of his insurance, as dctermn-
ed by actual death losses, and not payable until
after the death.
This distinguished it radically from the elder
system, under which the insured pays in advance
fixed sum computed to be his share of fund
sufficient to pay death claims as they shall accrue,
the expense cost of the business, and to guaran-
tee the ability of the company to meet its policy
obligations, near and remote, involving the accu-
mutation of large cash reserve beyond the
needs of immediate disbursement. Whether
life company is so established as to make reason
ably sure the performance of its engagements
with its poliey-holders is answered by an examl-
nation Of its assets and investments, its selection
OF lives, its premium rates, and its liabilities.
This, upon the assumption of integrity and sound
Judgment in the future conduct of its affairs, and
subject to the uncertainties which attend all hui
man institutions No such answer can be predi-
Gated of company on the assessment plan, at
least not until it has reserve sufficient under its
system to supply any deficiency that may eyentu-
ally exist in it's assessment resources.
Confidence in such company rests solely upon
the probability that it will be able to collect future
assessments of an amount equal to its promised
benefits and this ability depends on whether it
shall maintain its membership by the retention OF
old members and the acquisition of new. With
out other pledges of stability company so con-
stituted cannot safely be relied on for life nsur
ance however it may serve as temporary lnsur-
ance 1t is the difference between tenancy at
will, which may terminate at any time and an alb
solute estate for life.