This Insurance Company (The Amicable) is generally considered to be the first institution for the Insurance of Lives, although Life Annuities had been in practice for a long time, but a writer in Chambers’ Encyclopædia (Vol. vi., p. 175, ed. 1895) says that it did not begin life business until 1836. The same writer continues: “The earliest known Life Assurance Company was established in 1699, and called the ‘Society of Assurance for Widows and Orphans.’ This was what, now, would be called an Assessment Company. It did not guarantee a definite sum assured, in consideration of a fixed periodical premium; but, by its constitution it was to consist, when full, of 2000 members, who were to contribute 5s. each towards every death that occurred amongst the members.
“The earliest life assurance policy, of which particulars have been preserved, was made on 15th June 1583, at the ‘Office of Insurance within the Royal Exchange,’ in London. Full details of this Policy have been preserved, because it gave rise to the first authentic disputed claim. The policy was for £383, 6s. 8d., to be paid to Richard Martin, in the event of William Gybbons dying within twelve months, and the policy was underwritten by thirteen different persons who guaranteed sums of from £25 to £50 each. The premium was at the rate of 8 per cent. William Gybbons died on the 28th May 1584, and the underwriters refused to pay because he had survived twelve months of twenty-eight days each. The Commissioners appointed to determine such cases, held that the twelve months mentioned in the policy meant one full year, and they ordered the underwriters to pay. These appealed to the Court of Admiralty, which had jurisdiction in such cases, and where, in 1587, two judges upheld the decision of the Commissioners, so that, eventually, the underwriters had to pay.”
Mr Francis66 tells us of the first known fraud in Life Assurance. “About 1730, two persons resided in the then obscure suburbs of St Giles’s, one of whom was a woman of about twenty, the other, a man, whose age would have allowed him to be the woman’s father, and who was, generally understood to bear that relation. Their position hovered on the debatable ground between poverty and competence, or might even be characterised by the modern term of shabby genteel. They interfered with no one, and they encouraged no one to interfere with them. No specific personal description is recorded of them, beyond the fact that the man was tall and middle aged, bearing a semimilitary aspect, and that the woman, though young and attractive in person, was, apparently, haughty and frigid in her manner. On a sudden, at night time, the latter was taken very ill. The man sought the wife of his nearest neighbour for assistance, informing her that his daughter had been seized with sudden and great pain at the heart. They returned together, and found her in the utmost apparent agony, shrinking from the approach of all, and dreading the slightest touch. The leech was sent for; but, before he could arrive, she seemed insensible, and he only entered the room in time to see her die. The father appeared in great distress, the doctor felt her pulse, placed his hand on her heart, shook his head, as he intimated all was over, and went his way. The searchers came, for those birds of ill-omen were, then, the ordinary haunters of the death-bed, and the coffin, with its contents, was committed to the ground. Almost immediately after this, the bereaved father claimed from the underwriters some money which was insured on his daughter’s life, left the locality, and the story was forgotten.
“Not very long after, the neighbourhood of Queen Square, then a fashionable place, shook its head at the somewhat unequivocal connection that existed between one of the inmates of a house in that locality, and a lady who resided with him. The gentleman wore moustaches, and though not young, affected what was then known as the Macaroni style. The Captain, for that was the almost indefinite title he assumed, was a visitor to Ranelagh, was an habitué of the Coffee Houses; and, being an apparently wealthy person, riding good horses and keeping an attractive mistress, he attained a certain position among the mauvais sujets of the day. Like many others at that period, he was, or seemed to be, a dabbler in the funds; was frequently seen at Lloyd’s and in the Alley; lounged occasionally at Garraway’s; but appeared, more particularly, to affect the company of those who dealt in life assurances.
“His house soon became a resort for the young and thoughtless, being one of those pleasant places where the past and the future were alike lost in the present: where cards were introduced with the wine, and where, if the young bloods of the day lost their money, they were repaid by a glance of more than ordinary warmth from the goddess of the place; and to which, if they won, they returned with renewed zest. One thing was noticed, they never won from the master of the house, and there is no doubt, a large portion of the current expenses were met by the money gambled away; but, whether it were fairly, or unfairly gained, is, scarcely a doubtful question.
“A stop was soon put to these amusements. The place was too remote from the former locality, the appearance of both characters was too much changed to be identified; or, in these two might have been traced the strangers of that obscure suburb, where, as daughter, the woman was supposed to die; and, as father, the man had wept and raved over her remains. And a similar scene was, once more, to be acted. The lady was taken as suddenly ill as before; the same spasms at the heart seemed to convulse her frame; and, again, the man hung over her in apparent agony. Physicians were sent for in haste; only one arrived in time to see her, once more, imitate the appearance of death; whilst the others, satisfied that life had fled, took their fees, ‘shook solemnly their powdered wigs,’ and departed. This mystery, for it is evident there was some conspiracy, or collusion, is partially solved when it is said that many thousands were claimed and received, by the gallant captain from various underwriters, merchants and companies with whom he had assured the life of the lady.
“But the hero of this tradition was a consummate actor; and, though his career is unknown for a long period after this, yet it is highly probable that he carried out his nefarious projects in schemes which are difficult to trace. There is little doubt, however, that the soi-disant captain of Queen Square was one and the same person who, as a merchant, a few years later, appeared daily on the commercial walks of Liverpool; where, deep in the mysteries of corn and cotton, a constant attendant at church, a subscriber to local charities, and a giver of good dinners, he soon became much respected by those who dealt with him in business, or visited him in social life. The hospitalities of his house were gracefully dispensed by a lady who passed as his niece; and, for a time, nothing seemed to disturb the tenour of his way. At length it became whispered in the world of commerce, that his speculations were not so successful as usual; and a long series of misfortunes, as asserted by him, gave a sanction to the whisper. It soon became advisable for him to borrow money, and this he could only do on the security of property belonging to his niece. To do so, it was necessary to insure their lives for about £2000. This was easy enough, as Liverpool, no less than London, was ready to assure anything which promised profit, and, as the affair was regular, no one hesitated. A certain amount of secrecy was necessary for the sake of his credit; and, availing himself of this, he assured on the life of the niece £2000, with, at least, ten different merchants and underwriters in London and elsewhere. The game was once more in his own hands, and the same play was once more acted. The lady was taken ill, the doctor was called in, and found her suffering from convulsions. He administered a specific, and retired. In the night he was again hastily summoned, but arrived too late. The patient was declared to be beyond his skill; and the next morning it became known to all Liverpool that she had died suddenly. A decorous grief was evinced by the chief mourner. There was no haste made in forwarding the funeral; the lady lay almost in state, so numerous were the friends who called to see the last of her they had visited; the searchers did their hideous office gently, for they were, perhaps, largely bribed: the physician certified that she had died of a complaint he could scarcely name, and the grave received the Coffin. The merchant retained his position in Liverpool, and bore himself with a decent dignity; made no immediate application for the money; scarcely even alluded to the assurances which were due, and, when they were named, exhibited an appearance of almost indifference. He had, however, selected his victims with skill. They were safe men, and, from them, he duly received the money which was assured on the life of his niece.
“From this period he seemed to decline in health, expressed a loathing for the place where he had once been so happy; change of air was prescribed, and he left the men whom he had deceived, chuckling at the success of his infamous scheme.”
Nowadays, everything insurable can be insured; you can be compensated for accidents; if your plate glass windows are broken, if hail spoils your crops, or if your cattle die; the fidelity of your servants can be guaranteed: in fact, this field of permissible gambling is fully covered – whilst betting on horse racing rears its head unchecked, stock jobbers thrive, bucket shops multiply, and so do their victims.