The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1900-08-14
FACING A PROBLEM
Insurance Companies May
Have to Pay Risks
ARISING OUT OF THE WAR
What Prominent Men in In
surance Offices Say.
ARISING OUT OF THE WAR

New York, August 15.-The war risk
contingency may have to be assumed by
American life insurance companies oper-
ating in China At the office of one Of
the largest companies this was admitted,
since Cinnamon already insured could
force the company to assume the addi-
tonal risk upon payment of the increased
premium. This is, perhaps, the most in
teresting aspect of the complications in
China, from an insurance standpoint, and
recalls the provisions of American life
companies during the hostilities with
Spain and later with reference to the
South African campaign.
After long investigation, the war-rtsk
hard remains, for the most part, an I'M
known quantity. Actuaries have been
puzzling over it for years. but with every
war conditions change and modifying cir
Gums tanceS have 10 be reckoned with.
Ten times as many men subjected to the
perils of military service die from disease
as from wounds, so much depends upon
climatic conditions and the probable risk
of exposure. During the war with Spain
the companies were greatly concerned
over the situation, and many agreed TO
let the additional charge remain as a lien
against the policy instead of exacting ad-
vance payment of the extra premium.
Their experience in that instance was
highly satisfactory, owing to the light
mortality actually encountered and the
cessation of hostilities before there was
general exposure to the seventies of a
tropical summer
In England the companies faced a SINH
lar problem and demanded the additional
premium on the ground that the insur-
ance contract should be construed as a
business proposition, and not in the light
of a patriotic attempt to protect those
whose lives were imperilled at the ex-
perse of policy-holders not similarly ex-
posed. The companies were criticised for
a time for their ''unfeeling attitude but
later on, when the death lists were COM
piled, it was found that the calculations
were not far astray, and that the costs
of carrying the risks had been really in
excess Of the provisions made.
While the war-risk proposition as re-
CARDS military service in China may in
volve greater dangers than any encoun-
tered in wars of recent years, it is hardly
likely that the American companies will
be asked to assume the liability for any
large number of po1icy-holders. The COM
panies can ask about what they please
for the hazard, bringing the rate to pro-
hibitive proportions in instances where
the exposure seems specially dangerous.
A representative of large American COM
pany doing business in China, said: ''Of
course, policy-holders in China can de-
mand that we assume the war-risk liza
biity upon payment of the extra rate. !
lates that such liability shall be covered |
by the contract of insurance upon COM
pliance with its conditions as regards the |
increased premium. But the extent of the |
charge Is for the actuaries to determine, |
and I do not know as they have been |
asked. as yet to give the subject serious |
consideration. The war-risk privilege. |
however, would only be extended to per-
sons already insured, for under no cir
would we write new business
in China today.
1--WE shall not appeal to the govern
ment to protect our interests in China, as
we have a representative on the spot
who is conversant with our requirements, |
and will do everything necessary in our
behalf. We have no real estate holdings,
and own. nothing that can be rem owed
over night. Our business has been con-
Quoted on the principle of quick remit
-ances,' so that few funds are allowed
I
China is considerable, it has been for the
most part restricted to special lines, be-
,ause of our unwillingness to risk very
much in a hazardous country. Policies
here are made payable in dollars, Mexi-
IAN silver or pounds sterling, according
to contract. Cinnamon pay the highest
rate in the world; no other nation is
charged so much for life insurance"