Twenty Sixth Massachusetts Life Insurance Report, 1881
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State Library OF MASSACHUSETTS A. Return as Soon as Used. fcrtta V ; PUBLIC DOCUMENT. No. 9. TWENTY-SIXTH ANNUAL REPORT OF THE INSURANCE COMMISSIONER --- — -'--»- Commonioealtt) of Jllassactyusette, JANUARY 1, 1881. PART II. LIFE, CASUALTY, AND ACCIDENT INSURANCE. BOSTON: Eanto, gfarg, & C0., printer* to tjje ftommonfoealtfj, 117 Franklin Street. 1881. TABLE OF CONTENTS. [For Index to Companies, see end of Volume.] COMMISSIONER'S REPORT. Page Introductory v Companies Retired and Remaining vii The Hartford Life and Annuity vii, viii Thk National of the United States ix The Continental Life of Hartford ix An Encouraging Retrospect x Interest Rates and Standards of Reserve .... xi-xv Insurance Written, Actual and Computed Reserves, Surplus, etc xv-xviii Accident, Casualty, and Fidelity Insurance . xviii-xx Premium Notes, Deferred and Uncollected Premiums, Amounts pald for Ceased and Changed Policies, etc. xx Mutual Aid and other Beneficiary Associations . xxi Official Examinations xxii Recent Legislation xxiii Life Business of 1880 v. 1879 xxiii-xxv Statistical Tabulations, Ratios, etc xxvii-xliii Table A — Summary of Income, Expenditures, Assets, Liabili- ties, etc xxiv, xxviii Table B — Ratio of Net Assets to Computed Premium Re- serve xxiv, xxx Table C — Ratio of Real Estate and other Investments to Gross Assets xxiv, xxxii Table D — Policies Issued, Terminated, and Gained in 1880 . xxiv, xxxiv Table E — Classification of Policies and Insurance in Force . xxiv, xxxvi Table F — Claims by Death in 1880, with Ratios, etc. xxiv, xxx viii Table G — Ratio of Expenses to Mean Amount Insured . xxv, xl Table H — Massachusetts Business, 1880 xxv, xlii DETAILED STATEMENTS. Massachusetts Life Insurance Companies .... 1-24 Life Insurance Companies of other States .... 25-117 Accident and Casualty Insurance Companies . 119-131 Life and Accident Companies of other States, with Amount of Business done by Each 133-139 List ok Agents and Sub-Agents authorized to act for Life and Accident Companies 141-147 dommonwcoltl) of Jttctssacfyuaette. Insurance Department, Boston, Jan. 1, 1881. To the Honorable the Senate and House of Representatives. The volume presented herewith, Part II. of the Twenty- Sixth Annual Report of this Department, exhibits the finan- cial condition and business transactions of all Life, Casualty, and Accident Insurance Companies authorized in this Com- monwealth Dec. 31, 1880. As in the case of Companies writing fire and marine risks, the annual statements of those represented in this Part of the Report are submitted in sum- marized and detailed form, together with other information of interest and importance appertaining thereto, as the stat- utes require. Very respectfully, etc., JULIUS L. CLARKE, Insurance Commissioner. — TWENTY-SIXTH ANNUAL REPOET OF THE INSURANCE COMMISSIONER PART II. LIFE, CASUALTY, AND ACCIDENT INSURANCE. Companies Retired and Remaining. The last Report presented the statements of thirty-six Life, Casualty, and Accident Insurance Companies author- ized to transact business in Massachusetts. Three have since retired ; and, of the thirty-three remaining, twenty-seven are doing a life, and six a casualty and accident, business. With these we include the Travelers' of Hartford, in both classifi- cations, life and accident ; and, adding the Massachusetts Hospital Life, now a Trust Company, there will be found thirty-four annual statements in the following pages. The Companies retired are the Hartford Life and Annuity, ; March 7, 1881 the Phoenix Life of Hartford, Dec. 28, 1880 ; and the National Life of the United States, Dec. 11, 1880, the retirement of the Phoenix being its own voluntary act. The Hartford Life and Annuity. Mention was made in the last Report from this Depart- ment that the Hartford Life and Annuity Insurance Com- pany had been restricted to the transaction in Massachusetts of its regular life business, for which only it was admitted to the State. The restriction was compelled by its deliberate disregard of statutory requirement and obligation, particu- larly in connection with its cooperative annex, " Safety Fund Department," so called, though in many respects art- fully deceptive and less meritoriou's than the most ordinary viii REPORT OF THE cooperative scheme, and therefore in the worst sense repug- nant to the statute of 1872, chap. 325, sect. 7. In the process of evading this law, the enactment of which was the outcome of a decision of the Supreme Judicial Court (see Commonwealth v. Wetherbee, Mass. Reports, vol. 105, p. 149), the Company defiantly and boastingly pro- cured for its purpose the incorporation in this State of a branch, or agency, through which it might with impunity continue its illegal business. In this proceeding, advantage was taken of legislative generosity in granting special priv- ileges to associations, and societies organized under the laws of Massachusetts for educational, religious, charitable, and other purposes; but it was a bold assumption of privilege by the Company, never intended or even contemplated by the Legislature, and in no sense sanctioned by its enactment. Nor was the Company's course justified or palliated in the slightest degree by the subsequent investigation of its affairs before a Committee of the Connecticut Legislature, which resulted in settling nothing of practical importance, except, perhaps, that the subject-matter most involved was more of a judicial than of a legislative character. But, as the final result of its open and very manifest violation of the terms of its license and of the laws of this State, the Company's authorit}" to transact further business therein was wholly revoked. In justice to gentlemen named among the corporators of its Massachusetts Branch, and to any others, it is not supposable that all were aware of .the animus and purpose prompting the inception of this scheme. That such was the fact, personal explanations have given unqualified assurance. We need only to add, that when, in a spirit of liberality and beneficence, the Legislature extended special and important privileges and exemptions to the class of organizations re- ferred to, it was not for a moment supposed that any such advantage would be sought, or that its action would be made a cloak for the violation or evasion of other statutes. The very thought is preposterous. Were it even technically warranted, which is not the fact, then the sooner effectual modification or repeal follows, the better will it be for the protection of citizens of the Commonwealth. ! INSURANCE COMMISSIONER. ix The National of the United States. The authority of the National Life Insurance Company of the United States to transact business in Massachusetts has also ceased during the year. The reported questionable manipu- lation of its assets, in regard to which information was asked, but withheld by its officers, and the equally questionable procedure of pretended agents to frighten its policy-holders into a surrender of their claims for a fraction of their value, was a sufficient forfeiture of its right to do business. The "freezing-out " process adopted by the Company in this and other States is ojiscreditable and heartless in the extreme, and is damaging almost beyond estimate the interests of legitimate life insurance. Policy-holders have rights as well as Com- panies, and such rights are entitled to equitable recognition. But when the reasonable comities of business are ignored, and policy-holders literally robbed under cover of the flimsiest of technicalities and pretences, the provocation of distrust and condemnation should occasion no surprise. The Continental Life. In the last Report to the Legislature it was stated that the authority of the Continental Life of Hartford, Conn., to transact new business in Massachusetts had been revoked, " because of incorrect statements of its assets and liabilities, — the former having been largely overstated, and the latter considerably understated, — its actual condition showing such impairment as to compel the action reluctantly taken by this Department." Although the fullest measure of leniency and delay which propriety and courtesy could possibly warrant was extended in all good-will towards the Company, as both record and correspondence abundantly show, yet its repre- sentatives have busily promulgated the statement that the revocation was prompted by personal considerations, and that the Department has now come to see that it made a mistake It is only necessary to say that neither assertion bears the slightest shadow of truth. The revocation was demanded by law, and became all the more imperative upon the Company's own admission of incorrect returns. The treatment of its policy-holders, not a whit more justifiable than that adopted by the Knickerbocker, the Charter Oak, the National of the b x REPORT OF THE United States, the just exploded Universal Life, and some others, all of them heretofore excluded from the State at various dates, gave additional reason for retiring the Conti- nental. The only mistake, if such it can be termed, was delay in final action. An Encouraging Retrospect. It was stated in the last Report, that seven of the Life Companies from other States authorized in Massachusetts in 1853 were still occupying the field, their aggregate business having increased in amount insured from $65,984,071 at the beginning of 1853 to $666,392,463 at the commencement of 1880, — an increase of more than tenfold ; and in amount of admitted assets at corresponding dates, from $6,821,942 to $194,724,578, — an increase