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The Observer
Rockford, Illinois
April 28, 1961     The Observer
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April 28, 1961

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FArm tZ THE OBSERVER FRIDAY, APRIL 28, 1961 THEOLOGY FOR EVERY MAN | Insurance of one kind or another is almost inescapable in this life. While insurance may provide some material security, it often is a source of some moral difficulties. The Jollowiv9 commentary was prepared at St. John's Se)M- nary, Brighton, Mass in respo,~se to a member of questions arising in connection with insurance arrangements. It is re- pri~ted from Hze Boston Pilot. Q. HOW DO PROBLEMS OF INSURANCE ENTER INTO THE APPLICATION OF THE FUNDAMENTAL PRINCIPLES OF MORAL THEOLOGY? A. Insurance of all kinds is considered by moral theologians as governed by the principles of contractual agreement. The contract of insurance is known as an aleatory contract, that is, one which depends on an uncertain event or contingency. Unlike a conditional contract, the validity of which is depend- ent upon the realization of a future event, the aleatory con- tract is valid from the moment of its completion, the occur- rence or non-occurrence of the future event being merely the factor which determines the extent to which the contract is to be fulfilled. THE OBJECT OF THE CONTRACT of insurance is protec- tion against an uncertain loss. Men are exposed to the danger of material loss in many areas of their activity. When these losses run into large amounts, individuals are unable to sus- tain them. Moreover, it is not advantageous for society as a whole to have crippling material losses sus",ained by indivi- duals or lesser groups. The principle of pooling risks and co- operative bearing of losses has produced the modern insurance company. The contract of insurance is thus recognized as es- sentially acceptable on moral grounds. It requires only to be brought into conformity with the general principles which determine the morality of all contracts, and with the particular principles which govern aleatory contracts. Q. WHAT MORAL PRINCIPLES GOVERN THE CONTRACT OF INSURANCE IN GENERAL? A. The moral principles which govern insurance are first of all those which are implied in the very nature of every contractual agreement. A contract is an act of consent, ex- ternally manifested, whereby two or more persons agree on doing something which involves an obligation in at least one of the parties. A contract becomes binding only when both parties have externally manifested their consent. Mere internal consent is not sufficient, for the mutual agreement which is Christ to the Country ,t ,It th C y Ch' e ountr to rlst Were it not for the life that the Creator put in the seed, the farmer might as well plant pebbles. So impressed are we with our satellites, skyscrapers and wide-screen TV that we, as a nation, are in danger of forgetting that all comes through God. History proves, over and over again, the nation that forgets God eventually destroys itself. The apartment dweller is as dependent upon the soil and God's soil-borne gifts as is the farmer. The National Catholic Rural Life Conference is the spokesman for each of us in all matters relating to the soil and the people cn it. NCRLC is the official work of the Church for the spiritual and material welfare of the rural family: farm, ranch, small-town, suburban. Through its triple-barrelled approach of Prayer, Study and Action, NCRLC is retu'rning the liturgy to the soil from which it sprang; NCRLC is returning Christ to the country, the e0untry to Christ. Be you farmer or banker, suburbanite or corporation head, you need I CRLC and NCRLC needs you. Enroll now. Receive countless spiritual benefits. Get CATHOLIC RURAL LIFE, the only Christian rural magazine. Send $5 to our Diocesan Rural Life Director or to National Catholic Rural Life Conference 3801 Grand Ave. Des Mo;nes 12, h, an oath, there is an added obligation of religion either to state the truth or to fulfill the terms of the contract. The following particular points, applicable to all forms of insuranee, may be noted: (1) THE UNCERTAINTY WHICH IS ESSENTIAL to the contract of insurance must exist in the minds of both the insurer and the insured. In other words, neither party to the eontraet should have an advantage over the other in possessing certain knowledge about the risk with which the contract is concern- ed. Otherwise one party would be deceiving the other Thus a person who has certain knowledge that a building in which he has an insurable interest will be destroyed by fire on a certain date would be dishonest in applying for a contract of insurance which, in the mind of the other party to the contract, would contemnlate only the ordinary risks of /'ire. (2) THE RATE OF INSURANCE must be in proportion to the value of the thing insured and the danger that the loss will be sustained. Evidently only a conjectural estimate of the just price of insurance protection will be possible at the time the contract is made. Nevertheless, computations based on statistics compiled from past experiences make it possible to estimate with surprising accuracy the risks involved in'in- surance. The just price of insurance protection will be estimat- ed On this basis according to the same principles which deter- mine the just price in other forms of buying and selling. (3) THOSE WHO APPLY FOR INSURANCE must make honest declaration of the value of the thing to be insured and of all the circumstances which pertain to the risk involved. If some significant fact is fraudulently concealed, the insurer is morally justified in challenging the right of the insured to receive payment. Insurance companies often waive, or yield, their right of defense in cases of this kind: but unless they do so, the insured who enter the contract fraudulently are mor- ally bound to make restitution for payments which they have illicitly received. (4) THOSE WHO RECEIVE INSURANCE protection must exercise ordinary diligence in guarding against the dangers which are the object of the contract. It is obvious that a person is guilty of injustice if he deliberately causes the damage against which he is insured, e.g by burning insured property. A person is likewise guilty of injustice if he fails to prevent damage to insured property when he could easily do so, or when he interferes with others who are able and willing to protect his property. Again, a person is guilty of injustice if he seeks and receives compensation for damage which did not actually occur, or for damage greater than that which actually occurred. In ell such cases those guilty are usually bound to make restitution to the insurance company.' No injustice is committed, however, if a claim of damage is exaggerated in order that the amount of real damage may be gained. Nor is there any injustice in accepting a settlement m excess of the actual amount of the damage, provided no fraudulent means were used to get the settlement. : (5) THE INSURANCE COMPANY must have sufficient re- sources to pay all claims that may be made against it It is not necessary, of course, that the company have assets to the amount of all possible claims; this would be impossible and would be inconsistent with the nature of insurance as an alea- tory contract. It is necessary only that assets be available to the amount of claims which are likely to be presented accord- ing to carefully compiled statistics. Young Matrons t .$ Droner Dance [ Woman's league will Jaold a pot- luck dinner dance Saturday,| April 29, at the polish Falcon's | Athletic club, 126 15th Ave. The,NEW ROOFS ov~r old with evening will start with a social,colorful, weather.tight hour at 6:30 followed by the pot-Jl HI-GRADE asphalt shingles. luck dinner I ,| FREE INSPECTION Perry Long s Orchestra will IREASONABLE ESTIMATES provide music for dancing from 9 to 12. Co-chairmen for t h e Convenient Bank event are Mrs. Robert PflugerFinancing and Mrs. Don Leber. O t h e r60 Months to Pay committee members include Mrs. Charles Beffa, Jr Mrs.WO 2-1817 Don Howell, Mr~ ~ Carl Muel- haupt and Mrs, Richard Pflu- get. ::::::::~:~ ::::::::::::::::::::::::::::::::: ::5~:~)x~:.x~e. *x~x.:>~:~+:e:.:. Say You Saw It in THE OBSERVER EKL ROOFING--SIDING 515 Toner Ave. ROCKFORD QUALITY BUILT HOMES 3 bedrooms, 20 x 12 driftwood paneled family room, 2 car garage, built in caloric kitchen. Plas- tered walls -- Hardwood floors -- full basement. We will finance. SENKEL BROS. 3515 AUBURN OFF. W 4-7885 ROCKFORD MODEL TR 7-2046 MONDAY THROUGH FRIDAY 9:30 A.M. I A Fast.Moving And Fascinating New Game. VIDEO VILLAGE WREX.TV l:hannel 13 I DIAL WO Come to Arthur Murray's now and be all set for the next big d~nee ! Arthur Murray invites you to accept a FREE Hour Trial Lesson. If your dancing is poor and old- fashioned, your vacation is bound to be a failure. So come in to Arthur Murray's now and learn his quick and easy way to become a sought. after partner. You'll find knowing how to dance well will give 7o12 confidence, make meeting pcopi~ easier. I/nroll now! 310 Mulberry Ires mul Mm.s, lhmtm 1,temm, Reckferd, III. resulting from personal negligence would lead to general hard- ship. IN SOME CASES, HOWEVER, insurance companies are justified in refusing to pay damages when the risk involved is increased by any means within the knowledge or control of the insured. Thus a person's heirs are normally entitled to' collect his life insurance; but when he dies as a result of a serious illness which existed at the time the insurance was taken out and which can be shown to have been fraudulently concealed, the insurance company is justified in withholding payment and the decision of the courts in their favor must be accepted by the heirs as final. On the other hand, a per- son's contract of life insurance is not invalidated by the later discovery of an illness which was unknown at the time the insurance was taken out and not discovered by the examining physieians. Any such contingency as this enters into the risk which the insurance company agrees to assume. Q. WHAT ARE THE OBLIGATIONS OF THOSE WHO APPLY FOR UNEMPLOYMENT BENEFITS ACCORDING TO THE PROVISIONS OF THE STATE UNEMPLOYMENT SE- CURITY LAWS? A. Unemployment benefits are provided as a form of insur- ance which the state undertakes to make available on a wide scale for the protection of society. Although there is no strict contractual agreement between the state and individual citi- zens in this matter, the principles which have been indicated above will be generally applicable. APPLICANTS FOR UNEMPLOYMENT security benefits are bound in conscience to observe the requirements of the law as they are presented and interpreted by authorized public officials. It is morally wrong to make deceitful statements as a means of evading the restrictions of the law. It is wrong like- wise to make vague or misleading statements which are with- in the limits of objective truth, but which would have the ef- fect of persuading responsible officials to make concessions which they could not make if the facts were presented clearly. It is wrong to make an equivocal statement or a mental reser- vation to one who has a right to know the truth and who asks questions which pertain to the proper field of investigation. WHEN, FOR EXAMPLE, a person who makes a statement to the effect that he is actively seeking work, is available for work and capable of work, is morally blameworthy if he has actually turned down offers of employmen~ which come with- in the requirements of the law and claims to be unemployed. Again, a person who is receiving eompensation beyond the amount allowed by law for those who are unemployed is mor- ally wrong in making deceitful statements about his income as he applies for unemployment insurance. Again, a person is not acting morally if he feigns illness as a reason for not accepting employment which is available and for which he is capable, as a means of getting unemployment benefits, Physi- cians who make false or misleading statements in favor of their patients who fraudulently seek unemployment benefits are guilty of sin by co-operating in injustice. IT SHOULD BE INSISTED upon that false statements can never be justified as a means of gaining unemployment bene- fits, no matter how urgent the reasons may seem which would suggest the suspension of the provisions of the law. The law as it stands must be presumed to be reasonable and just unless the contrary is conclusively proved. Those who are responsible for the implementing of the law should have discretionary powers which would enable them to deal with exceptional situations which the general provisions of the law do not envision They should not be expected, how- ever, to exceed their authority, and any attempts made to lead them into doing so by deceit or misrepresentation must be con- demned as morally unjust VIOLATIONS OF SOCIAL JUSTICE in this field cause ser- ious harm to the community as a whole. Ultimately those who would benefit from fair and reasonable administration of the employment security law will themselves be the losers if the abuses which are created by dishonest claims lead to cur- tailment of benefits which the state could and should be in a position to make available. LIBRARY IS BUILT ON THE BIBLE--A large stone Bible stand located near the entrance of the newly completed library of St. Catherine's College, in St. Paul, is symbolic of the idea that the library was built on the principle that the Bible is the foundation of all learning. Inspecting the Bible stand is Father William J. Dunne, associate secretary of the National Catholic Educational Association. He delivered the keynote address at the national biennial conference of the Sisters of St. Joseph of Carondolet, held at St. Catherine's. Sister Mary William, the college's principal, conducted the library tour. Realtors :r,sites in all paris YOU CAN'T I BEAT THESE I Like The Dew On The I Water Lily--Spring Fresh 1021 St. Andrews Way in| 428 Dawson Ave.- Brick Guilford Country Club,Colonial -- 3 Bedroom Estates. 3 Bedrooms ~,Low Twenties. 1 baths, basement;,1532 Deborah ---- 3 Bed- FHA Terms. Only $21,900J room -- Ranch -- Open. --Your Host, Dale,Beam Ceiling -- Family! Room -- High Teens. Burton, WO 8-6650. | I 402 PoHs Ave -- Young Byron, IlL Route 2. FHA J Brick Ranch -- 3 Bed- Appraised for $12,150 J room -- Gas Heat -- 2- in town. Will Sellfor,Car Garage --- Sell or $12,150. Must be seen,Trade for LarDer Home. sharp, 1 ]/2 story bungo-,SUBURBAN LIVING -- /owi built-ins, aluminum,8515 Charles Street Rd. siding large lot many I 4 Acres of fruit and " many extras. Value plus I shade trees surround this --Your Host, Helen |BUrdwoWO 8-7089.5 jl iib(i ~brick colOnial hOme" Howard Johnson EX 9-3771 ~~11 . ~ Donn Anderson WO $-1918 Russ Brown WO 8-0408 S0N Now please coil -0964 WO 8-0408 / RUSSELL F. BROWN 1238 Broadway & ASSOCIATES Montie Smith WO 3-5626 Dale Burton WO 8-6650 Jim Wore TR 7-6927 Jim Richardson WO 4-3497 Helene Burd WO S-7089 WE SELL HOMES OVER $1,300,000 SALES SO FAR THIS YEAR . . The reason is simple--- WE'RE HOME FINDERS -- So tell us your "family facts" -- then LET US SHOW YOU ev- ery home ovaffable to you --- your family--your pocket hook. . . Here are ofew recent soles, from every "established neighborhood" in Rockford. MAY WE SERVE YOU, TOO??? SOLD 606 Woodlawn Ave. SOLO 2209 CameUo Ct. SOLD 421 Reynolds St. SOLD 2510 Wisconsin Rd. SOLD 3228 HuHman Bird. SOLD 4001 Crestvlew Dr. SOLD 3506 Burrmont Rd. SOLD 1634 Comp. Ave. SOLD 2616 Brighton Rd. SOLD 3015 Ruth St. SOLD 1919 Ridgelond Rd. $O~n 3239 Dortmouth Dr. SOLD 1925 S. 5th St. SOLD 3210 Highcrest Rd. SOLD 3 Johns Wood Dr. SOLD 1923 Douglas St. SOLD 308 N. Highland Ave. SOLD 416 Brown ,~,ve. WE SELL HOMES STORE with APARTMENT upstairs on Broadway. This is a good brick build- ing with store lease until April 1962 with option to renew for two years. Good rental area. Let us show it to you! Call Realtors WO 8-9805 Mabel Haynes Evenings WO ~4-5413 | JACKSON- KEYE AGENCY, INC. MORTGAGES --- LOANS LOAN CORRESPONDENT FOR METROPOLITAN LIFE INSURANCE CO. MODERATE INTEREST RATES LONG TERM WOodland 3-9646 325 EAST STATE STREET ROCKFORD LOTS CAMPUS HILLS Snbdivision . . . Lo- cated west of North Main street entering Campus Dr 1o new Boylan high sehool All lois fully im- proved to include sewer, water, gas, street curbs, gutters. Call us now. Downtown Roekford Rental . . . Excellent busi- ness corner 90% location--Approx. 3000 Ft. Incl. basement. Immed. Occupancy, Large Window Dis- play. ZIENER AGENCY Rockford Trust Bldg. WO 5-8781 Eves. WO 2-3813 MOVING TO OR FROM ROCKFORD AREA Inter-City Real Estate Referral Service is set up to help the man on the move. Relocating doesn't have to be ex- pensive end time-consuming. If you're on the move . . . let us help you both ways. It's a service that can mean so much to you and your family. Why not call today. BOB REALTORS REALTY WO 8-5791 123 7TH ST. These Rock~oral Real. tors Are Pledged To Protect Your Best ht- terests. They Are Fully Quali/ied' and Bound by a Strict Code o/ Ethics. Call on Them. i i 618 Rockford Trust Bldg. WO 8-0408 ST. PETER'S Price slashed. Church Street north of Auburn. Attractive two bed- room bungalow w i t h dining room, fireplace, glassed porch and two car garge. Near bus, schools, and shopping. Only $13,900. Call Ted Ingrassia ( E v e s. or Sun. WO 8-4400). BOYLAN HIGH AREA Nine excellent lots on paved street w i t h sewer and water all set for you to start build- ing Priced $3300-- $5000. (On Owen Center Road one mile North of Heisted) ST.BER~ADETTE'S PARISH A well ba!anced community of homes valued from $25,000, tO $50,000. Half ecre or larger. Homesites priced from $2,750 ond up, many wooded.Club plan with swimming pool, c~ub house, 10 acres of parks among oak end hickorys. St. Berna- de~te~ school car VooI. I CARRICO & WILGUS, 'll NEWS TOWER WO 4-7829