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The oldest fire and marine insurance company in America (1885)
Part of the American Term Life Insurance History Project
Term Life Insurance

72A HISTORY OF THE

                         VTI.
                    LIFE BUSINESS.
THE first action had under the clause of the articles
      of association permitting Life Insurance was on 20
      January, 1794, when Messrs. Fitzsimons, Ball and
McMurtrie were appointed "a Committee to consider of a
Policy for insuring persons against Capture by Algerines,
etc."  This was at once formulated, for on 11 February
following, they insured Captain John Collet, "on his Per-
son against Algerines and other Barbary Corsairs in a
Voyage from Philadelphia to London, in the Ship George
Barclay, himself Ma.ster, Valuing himself at $5,000," the
premium on which was two per cent. On 7 March, Captain
Samuel Hubbell, of the ship Eagle, bound from Baltimore
to Oporto or Lisbon, was insured in like manner for $4,000
at five per cent.   On 13 May following, Thomas Baker,
master of the brig Hector at and from Bordeaux to Phila-
delphia for $4,000, the premium of which was five per cent.
These insurances were "declared to be made upon the
person of *  *  *  against the risque of Capture by the
Algerines or any of the Barbary Corsairs only, and it is
mutually agreed between the Parties to this Policy, that if
the said  *  *  *  should be killed in any attempts made
to defend the said Brig against the said Algerines or Cor-
sairs, or should die before or after his Captivity and before
he should be Ransomed, the Assurers shall not be bound to
     INSURANCE COMPANY OF NORTH AMERICA.   73
pay any other Sum or Sums than what may have been
expended in attempting the Ransom of the said  :!:  *  :i:"
 It was not until 9 January, 1795, that it was decided to
undertake some plan for insurances on lives, and Messrs.
Blodget, Fry and Breck were appointed a committee to
form a plan, and the same must have been put into use by
the officers without reference to the board, although the
individual applications for life policies were in each instance
passed upon by the board.  But the demand was light, for
not until 21 May, 1796, do we find the approval of the first
two life insurances, viz., on the life of John Holker from
6 June to 19 September inclusive, for 'p24,000 at one and a
half per cent., which, however, appears not to have been
accepted; and '"on the natural life of Bon Albert Briois de
Beaumez (who attained the age of Forty-one years in the
month of December now last past, and is about to sail for
India  :;:  *  :::  :;:  ), for and during the term and space
of Eighteen Calendar months'" for $5,000.  A guaranty in
this policy as to continuance of the life of the subject is
made in the following phrase: "The said President and
Directors, therefore and in consideration of Ten per cent.
to them paid, do assure, assume and promise that he the
said Bon Albert Briois dc Beaumez shall, by the permission
of Almighty God, live and continue in this natural Life for
and during said Term and space of Eighteen Calendar
months  :;:  :;:  :::  :!:."  On the 27 September following,
.'?8,000 was agreed to  be insured on  the  life of Colonel
Tousard for one year at eight per cent., "with permission
for him to go and remain in the West Indies during that
Period"; but the policy seems not to have been issued.
74                   A HISTOR Y OF THE
On 15 February, 1803, an insurance for ten thousand dollars
was agreed to "on the Life of General dc Noailles (who is
now supposed to be in the Havana) for six months at the
rate of five per cent., he being prohibited from acting as an
officer or soldier in any military expedition, or from return-
ing to the West Indies after his arrival here during the
continuance of the said Risque."  And the last we find
agreed to was on 9 April, 1804, on the life of Mr. George
Meade; but neither of these policies were issued.  The
premiums named by the company on the life applications
may have prevented in many cases acceptance of its policies,
as is shown in the cases now cited.  Mr. Hazard in respond-
ing 20 November, 1799 to the inquiries of Mr. Henry
Remsen, made on behalf of the Manhattan Company of
3STew York, as to the mode of conducting the insurance
business in its different branches, stated regarding the life
branch: "There have been but few instances of this kind,
perhaps half a dozen, in each of which we have gained the
premium.  Price's tables are those we have used, as far as
tables have been recurred to."  This branch of the business
seemed not to have survived a decade, nor was the company
induced afterwards to renew or cultivate it, and not until
the incorporation of the Pennsylvania Company for Insur-
ances on Lives and Granting Annuities in 1812 was it that
the subject of life insurance secured any development and
extension in this community.