The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-08-09
INSURANCE NE WIS AND
NOTES

of the large companies in the West hav-
ing $S2,SlS.0l3 Of insurance in force, with |
assets of S3.Sl4507, Of which the Kentucky /
Mutual furnished SS.0lS920.25, while the Hi
nois Life furnished $755, $3.50 The company
VIII retain Office in Louisville, and will |
enter Indiana Immediately.
a variety Of policies for automobile in
surance is being offered to the English
public. The casualties insured against are
numerous and are interesting and sug-
gestive. For e5 annually the insured may
recover goo in case of death while riding.
or loss of two limbs, or s125 for loss of one
limb For damage to the car by Ara eX-
plOsion or self-ignitiOn up to e1oO or value
of the car. For claims from the Injured
public COR your friends riding with you)
GOO in one year. or e100 for one accident.
For damage arising from collision a25, and
theft UP to 500 or the value of the car
Reasonable rates are given also to the
paid driver.
The reports of the organization OF num-
erous Lloyd associations brings to mind
the recent report from London of the
suspicion that there is a vast number of
fraudulent transactions by the members of
the association there, and that an investi-
cation by the underwriters is in progress
The associations here have some big names
attached TO them. but that is not always
a guaranty of the soundness of a COM
pany, shown in the recent case of
l.. d. Garrett VS.. The Traders Fire Insur-
anCe Company, in which the court decided
that the directors must pay back money
obtained by selling stock of the company.
The directors were deceived by miSrepre-
sensations and signed false reports, yet
among their number were TO be found such
men as Levi p Morton, Howard Gould. +.
S. Sutro, Chauncey NJ Depew, William A.
Clark and Benjamin F. Tracy.
Rough Notes: THE tax statements
file with the Indiana Insurance Depart
ment show that the Mutual Life Insurance
Company of New York paid out during
the first six months of 1902. death claims
TO citizens of Indiana, Sl6O,9S9. That is a
large sum, and its significance better
be appreciated when stop to note that
! it means an average of over 81, 900 per day
| for every working day of the six months.
If the data were available showing also
| what the company returned to the State
in the way of endowments, dividends and
! expenses II would be very evident that
patrons of this and the other reputable
| companies operating in this State, having
! their offices in sister States. are returning
adequate sums for the amount taken out
In the way of premiums"
An interesting case involving the rights
of widow as beneficiary against credi-
| tors of her deceased husband was decided
last week in the Circuit Court at Terre
Haute by Judge Piety. The insurance
amounted to $4,000 and was given to Mrs.
| Kidder The right of the wife as against
creditors is not usually disputed. but this
| case was complicated by the fact that Mr..
| kidder was insOlvent before his death and
| the creditors claimed that the premiums
| were paid with their money, and that they,
| therefore, had a beneficial interest in the
| policy. The company was notified to stop
| payment of a check to Mrs. Kidder which
| ii had paid her promptly. Since Mrs. Kid
! der demanded the insurance the company.
/ the Northwestern Mutual of Milwaukee,
l. was involved in two suits. 1t petitioned for
| an interpleader, but this was not allowed
| by the court, nor were the creditors al
| lowed to be made defendants they had
| desired, but judgment was given for Mrs.
| Kidder. The company will appeal to the
Supreme Court IT'S, SO the end is s not yet while
| the foreign creditors are trying to have
| the suit removed to a federal court.
|
AS a departure from the ordinary forms
of insurance and endowment policies a
large company doing business in this State
has completed the following contract, which
presents some interesting features. The
| holder pays ten annual premiums of $500
| each. In case of death after payment of
one premium the estate of the insured will
! get $1,000 in cash and fifty 1000 gold bonds,
which run twenty years and bear interest
| of per cent, payable semi-annually. If
two premiums have been paid before death
the estate receives $4,000 in cash and the
! bonds; and so on, the cOmpany's payments
/ increasing at the rate of s.. 900 each year
| until the tenth, when the premiums cease.
| If the insured dies between the tenth ana
| twentieth years of the policy his estate
will receive $4,000 and the bonds IL he
is alive at the end of the twentieth year
he will receive $S5. 600 in cash and the $50 900
] in bonds. In case of a death claim after
| pna n
| payment Oncluding interest, of $4,000 for
| an investment of SCI, 900; or if the insured
| survives, S1S5, 600 for payments of $66 900. If
| the beneficiary Tor the insured, If he Is
| alive), prefers to take cash for the bonds
the company guarantees to pay $50 $50 cash
! for their surrender. These bonds are said
| to have market value of 135 per cent. in
| New York to-day, which, on fifty of them,
would make $67.5oO, This is certainly an
attractive form of investment.
XXX
A most important clause in insurance pol
icies is that having reference TO arbitration
in case of loss and while it is one which
should a great deal of litigation, it
often appears to produce it; and in one
phase it has received rather severe treat
ment in the hands of the judges under the
| common law and in the Interpretation of
statutes. The clause which is generally
! inserted and which is almost universally
| held valid is that which allows the arbitra-
tors to fix the amount of the loss-and in
the absence of fraud this appraisal is a
condition precedent to any right of action.
| The other kind of arbitration clause which
| is now never seen in any policy is that
| which allows arbitrators TO determine not
| only the loss but the liability of the parties
| as well. An agreement of this kind is held
valid as against public policy, in that il
Gusts the courts of their jurisdiction, but
this distinction between the two clauses
seems very thin, and of no real value; and
one would suppose that with the great num-
Der of cases which fill our courts and
cause the tedious delays of the law the
judges would welcome any arrangement
which would relieve them of their burdens
and at the same time render substantial
Justice; for if need be the award could be
set aside on the ground of fraud. as Is
done under the present clause. The point
is not likely TO come up, as no one cares
to make such an experiment, but if In
does a lawyer should not hesitate to de-
fend it, for a very good fight could be
| mt LII for il on nrincine.