Connecticut Indemnity Association - Waterbury, Connecticut 1893

Beautiful certificate from the Connecticut Indemnity Association issued in 1893. This historic document was printed by J.Ottman Banknote Company and has an ornate border around it with a vignette of the Connecticut State Seal and an eagle. This item has the signatures of the Company's President, Lewis A. Platt and Secretary, E. A. Wright and is over 114 years old. The certificate was issued to V. L. Sawyer and is endorsed by him on the verso.


Certificate Vignette

History from the Town and city od Waterbury, Connecticut in 1895:

THE CONNECTICUT INDEMNITY ASSOCIATION.

As we have seen, there are a dozen or more life insurance companies represented in the city whose headquarters are outside of the city and the state. There is one company, however, which belongs to Waterbury in a special manner, having originated here, and having been always under the control of Waterbury men. It accordingly calls for special recognition in our history.

The Connecticut Indemnity association was organized October 30, 1883, as "a voluntary life, health and accident association," by Victory L. Sawyer, Frederick M. Cannon, M. D., John S. Purdy and John H. Guernsey. In the by-laws it was provided that the organization should have its principal office in Waterbury, and that the management should be under the direction of from five to ten trustees who should be members of the company. In the original scheme, no policy was to be issued which would guarantee more than $200 in the event of death, or more than $20 a week in case of sickness or accident.

The first executive committee consisted of V. L. Sawyer, president, J. S. Purdy, secretary, and J. H. Guernsey. The first quaterly statement, made on February 4, 1884, showed that the whole number of applications thus far written was thirty-one, that the amount of cash received from all sources was $185.98, and that the disbursements were $180.89, leaving a balance of $5.09. Over against this may be placed the statement for the quarter ending August I, 1894 :

Receipts, . . . . . , , . . , $ 60,182.08

Disbursements, . . . . . . . . . 23,342.94

Balance of cash on hand, . . . . 70,571.16

Total assets, . , . . . . . . . .274,358.23

Net surplus, . , . . . . . , . . 261,608.23

On June 6, 1884, the association increased the number of its trustees and began to issue policies whose maximum amount was $2000. On November 3, the first annual meeting was held, and the following officers were elected :

President. V. L. Sawyer,

Vice-president, Emas Smith.

Secretary, E. A. Wright.

Treasurer, J. H. Guernsey.

Medical director, F. M. Cannon, M.D.

Superintendent of agencies, J. H. Guernsey.

Executive Committee, Irving H. Coe, C. H. Bronson, William Shannon (in addition to the president and secretary).

Up to this time the funds for carrying on the business had been provided by contributions from the managers, and the association had acted independently of the Insurance department. But on May 4, 1885, action was taken looking toward organizing the association as a joint-stock company. In January, 1877. application was made to the legislature for a charter; the charter was granted, and was accepted by the association on April 14. It provided for a maximum capital of $250,000, one-fifth of which was required to be paid in (to be held intact for the exclusive benefit of policy holders) before the company could commence business. The asso. ciation had little difficulty in securing the required capital, and from this time onward its growth and prosperity became marked.

Four years later (December, 1890)) having meantime taken its place among life insurance companies as a progressive and popular institution, it applied to the legislature for permission to increase its capital stock to $5oo,ooo. The application met with vigorous opposition before the legislative committee, but was granted by a vote almost unanimous in both houses of the legislature. At the annual meeting of the stockholders on January 16, 1894, the following officers and directors were elected, all of whom had previously been in some way identified with the company:

President. Lewis A. Platt.

Vice-presidents, Henry L. Wade; J. H. Guernsey.

Secretary. Colonel J. B. Doherty.

General Treasurer, H. W. Lake.

Treasurer of reserve funds, A. bi. Blakesley.

biedical director, T. L. Axtelle, M. D.

Board of Directors, L. A. Platt, H. L. Wade, J. B. Doherty, V. L. Sawyer, H: W. Lake, E. A. Judd, A. M. Blakesley, D. E. Sprague, F. B. Rice.

In April, Messrs. Sawyer and Guernsey made a contract with the company as general managers of its agency department. The first office of the Connecticut Indemnity association was at No. 4 Irving block, from which it removed, in July, 1884, to rooms 4 and 5 in Commercia1 block.

In 1893 its headquarters became established in a suite of rooms on the second floor of the Platt block on East Main street.

The organization occupies a field that is in some respects distinctive. It combines the reliable factors of the legal-reserve system of the "old line" companies and the assessment system of the co-operative companies, avoiding excessive accumulation of assets on the one hand and the uncertainties of voluntary contributions on the other. A11 assets of the c o m p a n y , including its capital stock, are by the terms of its charter, made liable to its policy holders for the payment of its policy contracts. Premiums are based on the experience of the legal reserve companies, with a reasonable loading for accumulation-the accumulations belonging to policy holders and being returned to them equitably in case of their withdrawal, in cash or paid-up insurance. The association thus offers the advantages of both the mutual and the stock companies--mutuality being guaranteed by a division of the profits among the policy holders, and security by the amplitude of the capital stock.

The association has a membership (1894) of about 5000 policy holders, with insurance in force of more than six million dollars. It has identified with it as stockholders some of the strong financial men of Waterbury.

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