Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-05-24
WHEN INSURANCE WAS NEW.
Philadelphia the Birthplace of In
demnity System in This Country.
nn IInrncr,s Weeklr

From Harpcr's Weekly.
Philadelphia, the pioneer IN 50 many
arts and industries. was also the birth
place of insurance in America. Tho
first fire insurance company was found
ed there one hundred and sixty years
ago The first life insurance policy
issued in America was written IL
Philadelphia seven years later. Be-
fore the eighteenth century was in ths
last quarter Philadelphia company
began TO insure ships and their car
goes. Nowhere else were the people
quick to foresee the possibilities
of each new line of business or 10
meet business needs the moment they
originated.
Nearly fifty fire insurance companies
have their home offices in Philadel-
phia. Their business is nationwide.
Their assets aggregate hundreds or
Philadelphia companies. all the large
United States and foreign companies
maintain offices in the city. There are
LOGS licensed insurance brokers.
The amount of fire insurance on
property in Philadelphia is about
s0I1.1ot0o. Most Of the policies are
in Philadelphia companies. More than
half the amount-about s315,eoe. 600
IS what is known as perpetual fire
insurance and Is on buildings alone.
This perpetual Insurance is a unique
feature Of this business in Fhiladel-
phia. Ii originated there more than l.
hundred years ago. and, SO Tar as Ca.
be ascertained, il is confined TO risks
OF Philadelphia companies in the state
of Pennsylvania.
Mitch of the fire insurance that runs
from year 10 year in Philadelphia IS
on the contents of buildings. Such
policies of this sort as are written on
the structures themselves are at the
rate of 10 cents per 500 per annum
on the average. Perpetual insur-
ance costs twenty times that. but ii is
all that its name implies. IL is usually
limited TO brick or stone or other
more or less fireproof structures. They
are carefully inspected before being
insured The premium which is paid
in a lump sum in advance. averages
about So per 500, but this single pay
ment is the end of the matter so far
as the assured is concerned. IL keeps
the policy In force as long as the
building that il covers is in existence
A partial loss does not reduce the
amount Of insurance. Only a total loss
paid for a single fire affects IL. The
fact that some of these policies have
been In force for more than a hundred
years speaks well for the permanently
of Philadelphia building.
The history OF fire insurance in Phil
adelphia is interesting There was not
an insured building in the city until
1852. when the first fire insurance com
pany in America was organized. \
volunteer fire department had been
formed fourteen years before that
Certain citizens Of Philadelphia.
recognizing the needs of their growing
city. met at coffee house on the
evening of March 25, 1852, and draft
ed plan for their mutual protection
against loss by fire. The 18th OF the
following April these and others who
had become interested meanwhile met
at the courthouse. There they sub
scribed to certain articles of agreement
for their own mutual security and Cor
the common security and advantage
OF their fellow citizens and others"
This document was called deed OF
settlement" and for more than one
hundred years all who took out poll
cies in the company subscribed to IL.
The first to take out a policy-the first
fire insurance risk in the western
hemisphe James Hamilton
then lieutenant governor OF the PROV
ince.
BENJAMIN Franklin headed the list
OF directors. IL was he who originated
the name and devised the seal of the
company, which was called The Phila-
delphia Contributionship for the In
surance of Houses from Loss by Fire"
The seal was four hands united. CRASH
ing one another's wrists The title
and seal have remained unchanged to
this day.