Omaha daily bee., 1902-07-27
INSURANCE.
D~emornliEins Character of Policies
on Lives of Noted PersonaGes.
Mllwaukee Wisconsin.

-
Milwaukee Wisconsin.
The English custom of insuring the lives
OF persons without their consent, which
was brought into general notice in eonnec-
ton with the preparations for the coro-
nation and the sudden illness of the king,
is undergoing discussion from an ethical
standpoint. In this country such insurance
would be impracticable, by reason Of the
lnsistence by the American companies upon
a medical examination of the person to be
insured as a condition precedent to the
granting OF a policy upon his life. In
England, however. this precaution is fire.
quently waived. Not only have English
companies sold numerous policies 20 the
general public i~nsuring the life OF the SOW
ereign, but, according to current reports,
London stock brokers were recently
granted policies on the life Of an American
citizen, J. Pierpont Morgan, on their claim
that they had an insurable interest in his
life consequent upon financial transactions
In which they and he were jointly engaged,
and which would be injuriously affected by
his death.
1t lie conceived that grave temptations to
crime might arise from the widespread
ownership OF policies contingent upon an
individuals life. As arson is believed to
D6 LIN4uCnIAy PNA AA NHS AARS1S
Of collecting insurance, so murder, it Is ar
gued, might be attempted where a similar
incentive for gain is permitted to exist.
Case and Comment, a we'll known publ
cation devoted to legal literature. says that
the origin OF insurance on the life Of a SOW
ereign was a relic OF the feudal system
the liability Of the tenant under that sys-
TEN to pay, in addition to his annual
/ tribute to the lord. a fine on the lords
death for the privilege Of continuing the
tenure. This custom, in course OF time,
came to be modified so as to require the
payment OF the fine on the death, not OF
the lord, but Of some prominent person,
such as the sovereign, whose death would
be a matter OF public knowledge. The
amount OF the hne might be a considerable
burden. Hence arose the practice on the
part Of the tenant OF taking insurance on
the life OF the sovereign or other person In
the event Of whose death the nne would
become payable. The principal thus estab-
lished has gradually extended, so that
tradesmen, under large expense in prepar-
ing for King Edwards coronation, and con-
templating the risk OF heavy loss in case
OF his failure TO survive for the ceremony,
took insurance on his life by way Of pro-
lection. The exact nature of these policies,
Case and Comment says, has not been
! clearly stated. They have been spoken OF
as insurance on the kings life. but they
have also been spoken Of as policies for the
seasons profits of the tradcsmen taking
the insurance. A copy OF one OF the poll
cies issued on the life of Mr.. Morgan last
summer. however, shows that II was a
| straight contract for the payment Of a
specific sum Of money to the insurer on
the death Of Mr.. Morgan.
The English courts, II is asserted, have
never been called upon to sustain policies
OF this kind. In effect such policies are q
wager between the company and the in
surer-a gamble pure and simple. In most
states OF the American union there Is a
| statutory provision by which an eleotor
loses his right to vote at an election II he
has a bet on the result. the presumption
being that his desire to win the bet would
influence his action in voting more than
his instinct Of patriotism. Everywhere tho
courts hold that gambling contracts are not
euforeible by suits at law. Case and Com
mept holds that where the risk assumed
by A company issuing to an insurer a policy
ON another persons life covers merely the
actual financial loss that the insurer would
suffer By reason OF the persons death, and
does not cover a certain sum Of money,
which might exceed that loss, such policies
AFFORD no inducement 10 do harm. except.
possibly. with the purpose OF giving false
proof Of losses not actually suffered. Such
contracts. on the other hand. as are re-
ported 70 be contingent on Mr.. Morgan's
death, Il rightly pronounces utterly in con-
hict with public policy. and Il observes that
when policies Of this character come before
the courts they Will certainly be con-
demned-