Peninsula enterprise. [volume] (Accomac, Va.) 1881-1965, 1900-11-10
LIVES RECKONED IN CASH.
Great Disasters Affect Life Insurance
Companies but Little.

Companies but Little.
The Galveston disaster, which cost
about 5000 lives and millions In prop
erty damage. will have practically no
effect on the business Of life insurance
companies. The Johnstown flood hadn't
any, though the companies paid several
hundred claims as result of the wip-
ing out Of the town and the lives Of
many Of it's citizens. Even the Span
ish-American war had little effect. This
is due to the great law of average. In
the war Of death on life Galveston and
Johnstown are mere flea bites.
None of the companies knows the eX-
act amount Of its loss from the Calves
ton flood yet, but that doesn't matter.
The claims will come in at intervals
perhaps for years, as this mans or
that mans relatives. failing to hear
from him, discover that he Is dead and
that he had an insurance policy and
forthwith demand a settlement with
the insurance company. The cost to
the companies of the loss of life at Gal
weston can be approximately gagged
however, and the estimate will err
rather against the companies than In
their favor.
There is held throughout the United
States about $15,OO0,0OO,000 In insur-
ance, Of which about S7,0O0,0OO,OOO Is
Industrial insurance-that Is. insurance
issued among the industrial classes in
policies of small amounts-the premi-
ums on which are collected weekly or
monthly. In the 100000 Of popula-
ton this country contains about 10000
900 are rated as insurable, and of the
other 100000 about % per cent per-
haps are actually insured.
The deaths at Galveston numbered
roughly 5000 In a population Of about
10000. Reckoning one person In seven
as insurable and % per cent OF these
as insured. there will be about 10 poll
c,es to be paid by the Insurance compa-
MES on Galveston victims. The average
amount Of an insurance policy in city
like Galveston is reckOned at about
$1,000. The total loss to the life insur-
ance companies will be something I'M
der $3.50, 900. a large sum Of itself, but
n small one when compared with the
millions handled by the companies.
1t may be much less. because, as an
insurance man pointed out, persons
whose lives are insured for large
amounts usually live In houses which
are comparatively unlikely to tumble
down upon them even in such gale as
Galveston experienced, and conse-
uuently most of the policies falling due
would be industrial policies for small
amounts.
In the sum of life and death great
fire, a food. town wiped out a city
devastated. war even. any Of these Is
a drop In the bucket In life insurance.
The great law of average covers all. SO
many men killed by bullets. so many
the less die of disease. So farreaching
is the rule that one at least of the big
companies. whose business stretches
out across half Of the civilized world,
did not Increase It's rates On the policies
of men who enlisted In the Spanish
American war
Disease In It's many forms is the one
foe of the life insurance companies.
Consumption alone accounts for one
fourth Of the deaths on which policies
are paid. and nine diseases are held re-
sponsible for nearly 60 per cent OF the
total deaths on the companies books.
so that the fire and food. the wplng
out of populous city like Buffalo or
Syracuse. counts with the men who
reckon human lives in dollars ana
cents as OF much smaller Importance
than a new disease or a few per cent
increase in the mortality due to tuber'
culosis. pneumonia or typhoid or
small increase in the suicide rate
New York Sun.