The times., 1898-05-23
Problems at Present Confront
Ing Underwriters.
PREMIUMS PROBABLE
Fire, Marine. Accident and Life
Company Managers Seem Indis-
posed to Allow Their Respective
Interests to BE Additionally Jeop-
nrdized-Past Experiences.

ticular attention given to the status of
life insurance companies and their pros
pective action in the case of policy hold
ers now serving or contemplating service
in the American military or naval forces.
A recent compilation by Mr.. Edward
BunneI Phelps throws considerable light
on this topic. dealing briefly as it does
with the views of various leading under
writer's on the war problem and in which
numerous experiences in war times rang
ing through three periods of strife be-
tween this and other countries, as fol-
lows: From 1776 to the war of 1872; the
Mexican war period and the late civil
war between the States of this Union.
In the years preceding the revolutionary
war Ife insurance had little If any place
whatever in North America. There were
companies and individual underwriters
during the war for independence to re
spectively insure lives and property
against the destructive powers of the
mother country, but in those days all
American contracts and documents issued
on this side of the water were practically
reproductions of the English forms and
all English policies specifically excepted
/ In other words English insurers emphat
ically exempted war risks and reviews
of very many records tend to show that
! the prudent business men of colonial days
/ carefully abstained from the assumption
| of the unknown and unknowable war haZ-
| ard.
/ Up to and including the war of 1872 the
! regular insurance institutions of America
were restricted to marine and fire
companies. Life insurance was a factor
conspicuous by its absence. The war of
| 1S12 practically suspended the writing of
marine insurance on American merchant
men and there is no case in evidence
where the budding insurance companies
| of that time doing business had the bold
ness 10 waive the inevitable war clause
and assume responsibilities on property
( at New Orleans, Washington and other
points on or near the coast line at which
troops of invasion were landed from the
British warshIps
] During the Mexican war several COM
panies were engaged in this country in
| the operations of general life insurance
! business btit at the time when hOstilities
| began on the Mexican border II does not
seem from any obtainable data that more
/ than 200 policies covering about 5000
l 900 in insuraice policies and annuities were
| then in force A pursuance of this sub
I ject through many records indicates that
up TO the advent OF the Civil War in 1861
/ no American insurance company had sus
( tained or at least paid any loss C0nse-
quent on wars waged by this Govern
/ ment.
The compilation from which these facts
/ are mainly derived plainly indicates the
. surance companies operating in America
. found themselves at the time of the as
I sault on Fort Sumter. The general result
I Of discussions between leading officials OF
I life insurance companies and correspond
ence between policy holders in the South
as well as in the North appears To have
been summed up in a war time u!-imdtum
Of the then secretary Of the New Eng
lang Life Insurance Company. Mr. Ben
jamin +. Stevens, to The effect that mis-
company could not insure Or continue
policy on the life of anyone in actual
hostility 10 the Government.
Fire insurance companies also consid-
cred that while the simple act Of seces-
sion did not violate outstanding policies.
If any loss occurred in consequence of
that act the policies covering such prop
erty would be rendered null and void
Life insurance policies were continued
during during the war by several leading
institutions but at the expense Of extra
1 premiums upon all then existing policies
| References to present circumstances
are, however, of vastly more Importance
TO the affairs Of former days and the
Z views of several of the most important
| authorities on insurance are considered
as particularly valuable.
Hon. John A. Finch, the well-known
legal authority on insurance, expresses
the opinion that "a provision in a fire in
loss arising in war is valid and binding"
Also. that "a provision of a life insur-
ance policy rendering it void or lessening
its value, if the insured enters the mill
tary service, is valid and binding. This
may be waived by the company. A policy
without such provision would cover loss
of life in war
Mr.. E F. BeddaIl, president of the New
York Board of Fire Underwriters, express
the opinion that the writing of war risks
by any fire company in New York would
be a fiagrant violation of the insurance
laws.
Mr. John H. Washburn. vice-president
Of the Home Insurance Company, holds
that no fire company organized under the
laws of the State of New York has
right to assume the risk for damage to
property by bombardment or any hostile
act of like character.
While as yet there seems to have been
no definite agreement between the vari-
Gus casualty companies the consensus of
/ opinion among the more prominent man.
ayers and underwriters indicates that in
no case viii war risks be accepted The
probability is that the various companies
/ insert clauses in their policies similar
10 that expressed by the Fidelity and
Casualty Company. of which Mr.. George
+. Seward is president, which, in effect
as shown in its accident policy provisions
does not cover disappearance nor war
risks
Mr.. George Ellis. secretary of the Tray
elers' Insurance Company of Hartford in
dicates that it is not the disposition Of the
board Of directors of that company TO
giant assurances covering the hazard of
extra services in the field or on sea-
Many of the leading life insurance com
! panies of the country have not as vet
made definite their rulings concerning
policies issued since the war began or as
to the continuance of old policies to per
sons who enter the military or naval ser
vice. In time of peace. as a general rule
r il would appear that officers and enlisted
men serving within the limits of the coun-
try's domain are exempt from any dis
turbance Of their policies, but should hos
tilities continue to any great length extra
premiums are not unlikely. Some of these
campaigns have a regular Army and
Navy class and in the case of one of the
most extensive institutions in the country
at least free war permits are issued to
officers of the Army and Navy. who be-
fore the war with Spain began belonged
10 this regular class, while another spe-
cial class without extra charge of votes
has been assigned for new assurants who
go into the Army and Navy and desire a
permit for service in Cuha or elseyU here