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must be regulated by circumstances. When the position of an asso. becomes hopeless, there are now three courses before it. 1. Wind up. 2. Apply to the Court to reduce the contracts, under 22nd sec. of Life Assu. Cos. Act, 1870. 3. Amalgamate. We will only add an amalg. is a marriage-without limitation as to polygamy subject to all the considerations of prudence, fitness, and financial resources, which such an event implies. The Court of Chancery, in the case of ill-assorted unions, performs the functions of the Divorce Court.
In the tables which we shall hereafter pub., we propose to include one showing all the amalg. and transfers of ins. asso. which have taken place. They number many hundreds. In the Life Assu. Cos. Act, 1870, there were the following special clauses relating to amalg. of life asso., which may have the effect of removing some of the legal impediments which have heretofore existed :
14. Where it is intended to amalg. two or more cos., or to transfer the life assu. bus. of one co. to another, the directors of any one or more of such cos. may apply to the Court, by petition, to sanction the proposed arrangement, notice of such application being pub. in the Gazette, and the Court, after hearing the directors and other persons whom it considers entitled to be heard upon the petition, may confirm the same if it is satisfied that no sufficient objection to the arrangement has been estab.
Before any such application is made to the Court, a statement of the nature of the amalg, or trans., as the case may be, together with an abstract containing the material facts embodied in the agreement or deed under which such amalg, or trans. is proposed to be effected, and copies of the actuarial or other reports upon which such agreement or deed is founded, shall be forwarded to each policy-holder of both companies in case of amalg., or to each policy-holder of the transferred co. in case of transfer, by the same being transmitted in manner provided by section 136 of the Cos. Clauses Consolidation Act, 1845, for the transmission to shareholders of notices not requiring to be served personally; and the agreement or deed under which such amalg, or trans. is effected shall be open for the inspection of the policy-holders and shareholders at the office or offices of the co, or cos. for a period of fifteen days after the issuing of the abstract herein provided.
The Court shall not sanction any amalg. or trans. in any case in which it appears to the Court that policy-holders representing one-tenth or more of the total amount assu. in any co. which it is proposed to amalg., or in any co. the bus. of which it is proposed to trans., dissent from such amalg. or trans. No co. shall amalg. with another, or trans. its bus. to another, unless such amalg. or trans. is confirmed by the Court in accordance with this section.
Provided always, that this section shall not apply in any case in which the business of any co. which is sought to be amalg. or trans, does not comprise the bus. of life assurance.
15. When an amalg. takes place between any cos., or when the bus. of one co. is trans. to another co., the combined co. or the purchasing co., as the case may be, shall, within ten days from the date of the completion of the amalg, or trans., deposit with the Board of Trade certified copies of statements of the assets and liabilities of the cos. concerned in such amalg, or trans., together with a statement of the nature and terms of the amalg. or trans., and a certified copy of the agreement or deed under which such amalg. or trans. is effected, and certified copies of the actuarial or other reports upon which such agreement or deed is founded; and the statement and agreement or deed of amalg, or trans. shall be accompanied by a declaration under the hand of the chairman of each co., and the principal managing officer of each co., that to the best of their belief every payment made or to be made to any person whatsoever on account of the said amalg. or trans. is therein fully set forth, and that no other payments beyond those set forth have been made or are to be made either in money, policies, bonds, valuable securities, or other property by or with the knowledge of any parties to the said amalg. or trans. Recent circumstances have tended to throw great distrust upon amalg. It cannot be doubted that both in the Albert and the European many of the amalg. were most ill advised, to use no more harsh term. But the real essential good of well-regulated amalg. is in no way disproved by these events. The abuse of the thing cannot enter into the argument. Thousands of families would at the present moment have been worse than uninsured, but for the judicious amalg. of the offices in which they orig. ins. with more prudently conducted and more powerful offices.
Two great lessons have come out of these recent events: one to shareholders of amalg. cos., who have on the whole fared much worse than policy-holders; this we shall discuss under DISSOLUTION of Ins. Asso. The other to policy-holders, which we shall discuss under the head of NOVATION. In the mean time the reader may turn back to ALBERT ARBITRATION; and RECONSTRUCTION will be considered under its proper head. [CONSTITUTION, LEGAL]. [OBJECTS.] [POWERS OF DIRECTORS.] AMAZON LIFE ASSU. AND LOAN CO. AND SICK BENEFIT So. "for Life and Sick Assu. Annuities, Endow. etc." This asso. was founded in 1853. It had a very imposing set of officials: The Rt. Hon. Lord Erskine was Chairman; Mr. Robert George Weir, Man. and Act.; Bethel Henry Strousberg being Consulting Act. Among the features were: "Life assu. from £5 to £5,000." "Life pol. once granted never disputed." Sums from 25. to 5s. per week in sickness to persons of both sexes from 9 to 15 years of age; from 5s. to 20s. from 15 to 55 years. "Medical advice, attendance, and medicines free." Members free immediately." 66 'Apprentice fees for children," etc., etc. The asso. passed into liq. in the following year. Order made 10th Nov. 1854. Mr. R. P. Harding, liq. An important case arose out of the formation of the So. It is known as Blackburn's case. The leading points were as follows:
A prosp. was issued by the promoters of a co. described in the prosp. as the Amazon Life Assu. and Loan Co. and Sick Benefit So. An applicant for shares in it received in answer a letter headed, Amazon Life Assu. and Loan Co., and stating that in compliance with his application shares had been allotted him. He paid the deposits, and he received a certificate of shares in the Amazon Life Assu. and Loan Co. Afterwards, and before he did anything else, he discovered that so much of the orig. scheme as related to a Sick Benefit So. had been abandoned, and he repudiated the contract. It was held that he was entitled to do so, no binding contract ever having been entered into by him. In answer to the argument that the letter of allotment being headed only Amazon Life and Loan Co. gave him notice of the change in the nature of the Co., and that when he afterwards paid the deposit he accepted shares
in the new co, it was held, that notwithstanding the omission from the letter of the words "Sick Benefit So.," he might well believe that the Co., the shares of which had been allotted, was the same as that for whose shares he had applied. He had a right to take it, and might well take it for granted that what he had applied for he had obtained, and it was incumbent on those who offered him what he had not asked for to draw his attention to that circumstance.
This decision was reversed on appeal ; add. evidence being adduced; and the Court was satisfied that when Blackburn paid his deposit he must have known what shares he was taking. AMBIGUITY, doubtfulness, double-meaning, obscurity. It seems to be a rule with the Courts where any obscurity arises in the terms or conditions of a policy of ins. to interpret against the office-on the ground prob. that as it provides the forms for its contracts, they should be rendered so clear as not to admit of more than one meaning. Some general rules have been estab. for special cases of this sort, which it will be useful to give here: It is a well-approved rule that where parties have used language which admits of two constructions, the one contrary to the apparent general intent, and the other consistent with it, the law assumes the later to be the true construction.-Chitty on Contracts.
So where the different parts of an instrument are inconsistent with each other, effect must be given to that part which is calculated to carry into effect the real intention; and that which would defeat it must be rejected. And where there are two clauses in a contract so totally repugnant to each other that they cannot stand together, the former shall be received, and the latter rejected.—Shep. Touchstone; Blackstone.
Ambiguity of language is, however, to be distinguished from unintelligibility and inaccuracy, for words cannot be said to be ambiguous, unless their signification seem doubtful and uncertain to persons of competent knowledge and skill to understand them.-Story on Contracts; Phillips on Evidence.
With regard to certain contracts, Parol Evidence is admitted under certain conditions to explain apparent inconsistencies. Policies of Ins. are of this class. [PAROL EVIDENCE.] AMENDMENT OF THE LAWS RELATING TO INs. Asso.-Of late years there have been numerous amendments in the laws relating to or affecting Ins. Asso. These will be all noted under their proper heads. It would be a great blessing if the numerous laws now relating to Ins. Asso. could be embodied in one general measure; but we see very little chance of this.
AMENTIA ; defect of intellect, partial in imbeciles, complete in idiots.
AMERICA, BRITISH INS. OFFICES TRADING IN.-The first Agency for a Brit. Ins. Office in the U.S. was estab. by the Phenix Fire in N. Y. in 1805. Agencies were opened by this Co. in other American cities about this date. That for Philadelphia was closed in 1810; that for N.Y. in 1815. The agency in Charleston, and one or two others in the Southern States, continued until the commencement of the late war, when they died out. The Phonix has still remained indirectly interested in F. bus in the U.S. by way of re-ins. contract, and may prob. contribute some £50,000 to the recent losses in Chicago. In 1851 the Albion founded a Life branch in the U.S., and transacted a considerable bus. The branch was continued until the amalg. of the bus. of that Co. with the Eagle in 1857. See EAGLE.
In 1852 the International Life (then National Loan Fund) commenced bus. in the U.S., and acquired a considerable number of pol. In 1859 the Ins. Commissioners in the State of Massachusetts made an investigation into the affairs of the Co., and declared it to be insolvent to the extent of some £200,000. Its certificates were accordingly stopped in that State and N. Y. This was the first act under the American Ins. Laws which indicated to us on this side that the said Commissioners were "live men." The deposit made in the U.S. has protected these pol. to a large extent. In 1868 the pol. were trans. to Hercules of Lond. ; in 1869 to the Prudential; and they have since been re-ins. with the Empire Mut., under arrangements conducted with great skill, and, we believe, satisfactorily to all parties.
In 1853 the British Commercial commenced bus. in the U.S., and continued it down to 1860, when its bus. in England was amalg. with the British Nation, and the affairs of the Co. became closed in America.
In the same year (1853) the Liverpool and Lond. founded a branch in the U.S. and speedily took a very influential position. For several years its managers were in some conflict with regard to the actual requirements of the U.S Ins. Law; but these have been amicably adjusted. We believe no Life bus. was trans. in the U.S. until 1859. On the 31st Dec. 1869, the financial position of the U.S. branch was as follows: Funds invested and in hand (5 dols. to £), £507,370; amount required to re-ins. Life pol. on American Experience, 44 p.c., £30,119; amount required to re-ins. ann. Fire risks at 40 p.c. of gross prems., 185, 304; ditto perpetual F. pol. 95 p.c., £47,991; outstanding claims, etc., £26,722, making total liabilities £290,137; and leaving a surplus of £217,233. The total number of Life pol. in force was 247, ins. £223,377; Fire pol. in force, net, £23,837,473. The Life income was £6,545. The Fire income was £425,152.
By the terrible fire at Chicago, which has occurred while these pages are passing through the press, this Co. is said to have incurred very considerable losses; estimates range from £700,000 down to £400,000, prob. both exaggerations of the actual facts. Whatever the losses may be, they will be punctually discharged; and the credit of the Co. will remain untarnished.
In 1854 the Colonial Life commenced bus. in the U.S., and continued the same down to 1860. In 1861 the affairs of the agency were closed.
In 1855 the Royal founded several agencies in the U.S., which were not worked as a
branch there, but each agency corresponded direct with the head office in England. The Co. took a very commanding position at an early date. It does not, like most of the other British cos., make up a special ann. statement showing the result of its American bus., but files its general bal. sheet in each State where it transacts bus. The F. bus. transacted by the Co. in the State of N. Y. for the year ending 31st December, 1869, was as follows: Amount of F. risks written during the year £3,972,118. Net prem. received £16,554 ; losses £10,354; taxes £682. The Royal is believed to lose about £20,000 by the Chicago conflagration.
About 1855 the Monarch (No. 1) F. and L. founded a branch in N. Y.; and the same was continued down to 1857, when the entire bus. of the Co. was trans. to Liverpool and London.
In 1857 the Unity Fire commenced bus. in the U.S., and continued the same down to 1862, when its entire bus. merged into Liverpool and Lond. The U.S. branch was carried on with considerable success.
In 1857, the Eagle took over the bus. of Albion, and commenced itself to carry on bus. in the U.S. It has since ceased to issue any new pol. On 31st December, 1869, the total assets of the Co. in the U.S. stood at £64,855. The pol. in force were 797, ins. £422,000. In that year 25 of its pol. had terminated, 8 by death, 12 by surrender, 3 by lapsing, and 2 by change.
In 1858 the Northern commenced bus. in the U.S. with a great deal of enterprise. It withdrew from direct bus. in 1862, very much, we believe, in consequence of the war. It still has an interest in U.S. bus. under re-insurance contracts, and suffers to the extent of some £20,000 by the recent fire at Chicago.
In 1866 the Queen commenced F. bus. in the U.S., and continues the same at the present time. The position of the branch on 31st December, 1869, was the following: Aggregate available assets £59,933; amount required to ins. outstanding risks £28,166; outstanding losses and expenses £6, 368; together £34, 515; leaving a surplus of £25,418. Amount of F. risks underwritten during the year £2,330, 153; prems. received £22,314; losses paid £9,645. The Co. is believed to have sustained no loss in Chicago.
In the same year (1866) the North British and Mercantile also founded a F. branch in the U.S., and almost at once took a commanding position. The financial position of the branch on 31st December, 1869, was as follows:-Aggregate available assets £154,777 ; aggregate liabilities, including re-ins. of all outstanding risks, £75,917; leaving a surplus of £78,860. The income of the year was £163,473; the expenditure £95,507; the amount of risks in force £10,608,458.
This Co. is believed to lose about £400,000 by the fire at Chicago. With a promptness characteristic of the management, the agents were instructed to settle all claims, and draw for the amounts at sight. The "noble telegram" was duly appreciated on the other side. In 1867 the Imperial F. opened a branch in the U.S., and at once commanded a considerable bus. The position of the branch on 31st December, 1869, was as follows:Aggregate amount of actual available assets £129.595; aggregate liabilities, including re-ins. of all outstanding risks £71,957; surplus £57,618; income of the year £117,661; expenditure £134,889. Amount of pol. in force £8,339,145, yielding in prems. £103,054. The losses of this Co. at the Chicago fire are reported to be considerable; as much as £100,000 being named. Whatever the amount, it is certain the Co. has the means of paying promptly.
In 1870 the Commercial Union opened a F. branch in the U.S., making of course the necessary deposits. It is believed the Co's. loss in connexion with the Chicago fire will not exceed 15,000.
We have mentioned that the Phenix and Northern are sufferers at Chicago through re-ins. contracts. We believe the London Assu., Lancashire, and Britannia also suffer in the same way; also various French and German offices.
AMERICA, HIST. OF INS. IN.-We propose for several reasons not to enter upon the inquiry suggested by the preceding title at this stage of the present work. Our chief reason is that the learned editor of the Ins. Monitor of N. Y.-Mr. C. C. Hine-has been for several years engaged in the preparation of a work which is to be A Hist. of Ins. in the U.S. We have only recently become aware of this fact-after the materials for our chap. had been in a great measure prepared: but we have no desire, and no intention, to trespass upon his territory. We have enough to do on our own side. We must, of necessity, make frequent reference to American actuaries, American authors, and American principles and practice. We must also present our art. on AMERICAN Mort. Tables, for the purpose of comparison with those of Gt. Brit. and the continent of Europe, as they appear in these pages. Then under the head of UNITED STATES, we can add so much upon the general hist. of Ins. there as may appear necessary for the completeness of our work. We think and hope even the "Stern Monitor" will be content with this adjustment."
AMERICA, INS. LAWS OF.-There are in the U.S. 39 States and territories having regulations affecting the conduct of home, and admission of the Cos. of other States, and foreign Cos. and the conditions of admission, etc. We cannot deal with these in any brief and intelligent manner under one general head: we therefore propose to give a very
brief outline of the leading requirements of the laws in each State and territory under its name, in alphabetical order. See ALABAMA. Our difficulty will be to keep accurately posted as we go along. We must do our best. Some of the early laws in the State of N. Y. possess points of very considerable interest. If the NATIONAL INS. CONVENTION now in session should succeed in one of its primary objects, namely, uniform action and requirements from the several States in the matter of Ins., a great good will be accomplished. AMERICAN "EXPERIENCE TABLE." See AMERICAN TABLES OF MORt. AMERICAN LIfe Assu. Mag. and Journal of ACTUARIES, founded in N. Y. in 1859, and edited by Mr. G. E. Currie. We have the work down to 1867, during which period there were very few high-class papers embodied in it: by which we mean papers from the pens of the able actuaries of which the U.S. can now boast. We have not seen the later vols. AMERICAN TABLES OF MORT.-We propose here to give some account of the several TABLES OF MORT. which have been constructed in America upon American data. There have been in the U.S., as here and elsewhere, various mort. obs. which have not resulted in Tables of Mort. These we shall give a chronological account of under UNITED STATES WIGGLESWORTH'S TABLE (1789).—In the year 1782 Prof. Edward Wigglesworth, of the Harvard University, entered upon an investigation of the early Bills of Mort. kept in various parishes in the Commonwealth of Massachusetts, some of which he states had been kept for a long course of years. These observations resulted in 1789 in the formation of "A Table showing the prob. of the duration, the decrement, and the expectation of life in the States of Massachusetts and New Hampshire, formed from 62 Bills of Mort. on the files of the American Academy of Arts and Sciences, in the year 1789." Under our art. on BILLS OF MORT. we shall give some account of these. For our present purposes it will be sufficient to state that the whole number of deaths on the bills was 4893, which happened at the following periods of life :
Upon this data he prepared his Table, showing the persons living and the decrements at each age of life, and the expectation of life at quinquennial periods only. We propose for brevity sake to reduce the whole table to the quinquennial periods:
Now this Table in this particular state would have been liable to all the objections which are justly urged against the NORTHAMPTON TABLE. The learned Professor was fully aware of this and he gives the required adjustments, as well as the reasons for them, in the following para. :
From these elements [those of the first table], the Table is formed by taking the number of deaths as the radix of calculation. This would have given the proportional number of persons living and dying at every age, from the birth to the latest extremity of life, had the ann. number of deaths been equal to the births. But by the bills it appears that the births are ann. double the deaths. Therefore the number of persons of each age as given by the Table, is less than is actually in life together, from an ann. excess of 4893 births. Consequently the expectation of life is less than just, especially at the early periods of life.
The whole number of inhabitants, according to this table, is 140,182, of which 48,183 are persons under 16 years of age, and 91,000 above 16 years of age. By the enumeration of the inhabitants of Massachusetts, the whole number of free males under 16 was 95,453, and 87,189 above 16. Therefore 35,851 persons under 16 must be added to those in the table under 16, to make the table accord with the enumeration, which will give 176,633 inhabitants, produced by an excess of 4893 ann. births. This add. will raise the expectation of a child just born from 28 15 years to 35'47 years; of a child 5 years of age from 40 87 years to 48 46 years; of a person of 10 years, from 39'23 years to 43'23 years; of a person of 15 years from 36 16 to 36'50 years. The ann. excess of 4893 births above the deaths, on a stock of 176,033 inhabitants, determines the period of duplication to be 25°30 years, etc.
This table was afterwards adopted by the Supreme Court of Massachusetts as a rule in estimating the value of Life Estates-but whether with or without the corrections which
its learned author indicated that it required does not appear. It seemed not to have been present in his mind that the table should be used for the purposes of Life Ins. [LIFE CONTINGENCIES.]
Mr. C. C. Hine, from whose "specimen sheets" we have drawn some of the above details, says:
Though the Northampton Table is notoriously faulty, the time which its experience covers, and the conditions under which it was formed, naturally suggest it for comparison with that of Massachusetts. A comparison of the two shows that at all ages under 15, the death rate of the two tables is nearly the same; from which we may infer that if the pop. of Northampton was stationary, the mort. among the Massachusetts children of that day was much less than in the English town. Above 15 the death rate of Massachusetts was greatly ahead, until middle life was reached; the result, no doubt, of the harsh New England climate on constitutions which had not sufficient strength to withstand the pulmonary and other disorders incident to a new and sparsely settled country. Above this point the selected lives which remain with constitutions estab. and inured, enjoy a degree of longevity unsurpassed on the whole by any country in Europe. But the most remarkable correspondence is that exhibited between this table of Professor Wigglesworth, and the late results of the census returns, as deduced by Mr. Meech. [See 1860.]
PENNSYLVANIA TABLE (1814).—The Pennsylvania Co. for Assu. upon Lives was founded in 1812, and very soon after its estab. computed, for its own use, Tables of the Expectation of Life, drawn from two sources, viz., (1) the reports of the Philadelphia Board of Health; (2) records of the Episcopal Church. We have not at hand any details of the exact data furnished from these sources, but we have the results, which are sufficient for our present purposes:
This Table, contrasted with some of the others, indicates the higher death-rate of American cities, as against the rural districts.
GILL'S TABLE (1842).-When the Mutual of N.Y. was in course of formation in 1842, Prof. Gill was called upon to supply a suitable table of mort. on which to base its operations as a mut. office. The way he accomplished his task was this: He took the EQUITABLE EXPERIENCE, the SWEDISH, and such other good Tables as he was familiar with, and obtained an average of their results. From that table he deduced the prems. The table was, we believe, afterwards submitted to various English actuaries, and approved. We need not pursue this table-great as have been the results flowing from its use, combined with proper management. It is our purpose only to deal with tables founded on orig. obs. KENNEDY'S TABLES (1850).-In 1852 Mr. Joseph C. G. Kennedy, who had been superintendent of the U.S. census of 1850, pub. his report on the census, including therein two tables of mort. based upon the returns of that census, for the States of Massachusetts and Maryland. Regarding these it must be noted that the records of mort. only extended over the census year; and though it is considered to have been an average year for deaths, yet the assumption that the pop. affected by so many causes of irregular movement is to be taken as stationary is one that greatly depreciates the value of any tables deduced therefrom. The mort. of Maryland, comprising a pop. of 583,034, and showing a death-rate of 1685 p.c., was considered by Mr. Kennedy to be a fair estimate of the standard of human life in the older settled States. Mr. S. Brown called attention to the fact (Assu. Mag. vol. viii. p. 187), that as to male life this table differed but little from the English Table (No. 1), while for female life it gave an expectation of from 1 to 2 years above the English Table. The other table, from the returns for Massachusetts, was also for males and females separately.
The following abstract of the above Tables, compared with the English Table (No. 1), based on the census of 1841, will be sufficient for all purposes here. The figures show the "expectation of life" at the several ages named:
There appears to have been a table of mort. deduced from the New York State Census taken in 1855; but we have never seen it, and the references we have met with are too slight o enable us to give any note of results.