Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1902-07-17
ENSURES ANYTHING
FROM KINGS LIFE TO A TOOTH
LLoYD's TAKES ALL RISKS.
THE CORONATION DELAY
rTis Costly But Edwards Death Would
Involve Thousands More - The
Many Things Insured Include Jum-
DO and the Gate Receipts for Crick-
ct and Football Games.

When the fact Of King Edward I
illness became known last Monday
the underwriters at Lloyd's took in
surance on his life for six days at the
rate of 80 per cent. To insure The
kings life till the end Of July they
charged 80 per cent.
Of course, no physician acting fol
the underwriters had examined the
king as he lay in bed in Buckingham
palace. The underwriters had nc
means of knowing the kings chances
of survival apart from comparing the
newspaper reports with such intorma
ton as they could obtain themselves
1t was merely gambling on the kings
life-a bet of 100 to 80 on the part OF
the insurers of the kings lasting over
that period of time.
That is Lloyd's. The underwriters
in that gigantic agency will insure
almost anything, will take any
chances, so long as the premium is
large enough to correspond with the
risks.
They had already insured against loss
many who where financially interested
in the coronation and many who were
not. They had insured stand owners.
decorators and florists. 1t is estimated
they have lost, Oh a conservative basis,
at least $l000,000 by the ceremony's
postponenent over the days set for it.
If there should be no coronation at all
they stand to lose at least half as
much again on policies covering that
risk
On the other hand, the underwriters
insured the late queens golden Jubilee
and her diamond jubilee and, as both
took place according to schedule, they
made money on the outcome. They
insured the queens life, too, for long
years before her death and made
money on that risk.
And, on the whole, the underwriters
like bookmakers, usually come out
ahead at the years end.
There is no institution in this coun-
try which does this kind of thing.
Lloyd's started it's career early in the
seventeenth century, when one Ed
ward Lloyd opened a coffee house in
Iower street His place was largely
patronized by sea captains and ship
owners, and became gradually the
Headquarters at which news of the
sea could be obtained. That is what
II did become, and the coffee-house feat
ure was gradually eliminated.
The coffee house was the scene of
many saffies and sales of ships and
cargoes. Those were war times, too.
and gradually it became the custom of
the shipowners to speculate in ships
and cargoes before their arrival.
Those of speculative habit would
subscribe their names to documents
insuring outgoing or incoming ships
against the chances of wreck or cap-
ture by the enemy, each subscriber ap-
pending to his name the amount he
was willing to risk. Thus in case of
accidents the loss was divided among
the merchants
Ii the vessel made her trip safely
the guarantOrs received a percentage
of the profit coming to the owner each
according to the risk he had taken.
And so grew up the business of under
writing in the shipping trade.
Gradually the underwriting custom
began to be applied to risks other
than marine risks. The underwriters
scattered and established offices for
themselves, and meantime Lloyd's
pushed it's other business of collecting
and disseminating marine intelligence.
But nearly 100 years after the estab-
1ishment of the old coffee house they
assembled again in rooms over the
Royal Exchange. 1t was handler to
do business where they could be to-
gether so they formed an association
which, while permitting it's members
each to take chances according to his
own views, assuming no liability for
the risk he undertook, nevertheless
did its best to insure, admitting to
membership only honest and financi-
ally sound brokers-a sort of stock ex-
change of marine brokerage.
That is what it is today Parliament
long ago held an inquest into its
methods, the association emerged from
1t victorious, and it has since been
permitted to do business as seemed to
it best.
Now the assets of the corporation.
whlch, as has been said, are in no
way pledged by the risks of it's mem
bers, are valued at 0,00G 900 at least.
Its members insure every year some
thing like $4,000 100000 worth of
property. They must deposit $4,000
or $4,000 as evidence of their finan-
cfal responsibility before being allowed
to sign policies, and they pay annual
dues. But there the responsibility of
the corporation ends.
1t is curious place. the undervrit-
ing room at Lloyd's in the RovaI Ex-
change in London. It has three rows
OF desks or boxes, at each of which
SIX persons may sit. and at these on
every worl1day the underwriters NAV
be seen signing policies and discussino
and paying claims for all sorts of queer
things.
They keep their hats on. as the
original underwriters did in the ole
coffee-house days. and in consequence
most of them are bald. But there were
only 70 subscribers to Llovd's in 1771
Now there are nearly 900
Like the old underwriters. thew are
willing to consider any old risk and +,
accent almost any at a price Their,
is still preserved among the archive.
of the institution policy on the lif,
OF Napoleon written at Lloyd's. # wa,
n tI,N