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Updated: June 28, 2025
Private and non-profit hospital and medical insurance plans are already in the field, soundly based on the experience and initiative of the people in their various communities. A limited Government reinsurance service would permit the private and non-profit insurance companies to offer broader protection to more of the many families which want and should have it.
Under it the Federal Government will neither dominate nor direct, but serve as a helpful partner. Within this framework, the program can be broad in scope. My recommendations will include a Federal health reinsurance service to encourage the development of more and better voluntary health insurance coverage by private organizations.
So far as appeared this Reinsurance Treaty probably had suggested the wording of the analogous formula which the Chancellor was proposing to myself.
Otto Bartels with something more than his customary stolidity, proved to read, stripped of all superfluous verbiage, substantially as follows: "The managing director of the Karlsruhe, in accordance with the conditions of the contract, hereby gives six months' notice of the termination of the reinsurance arrangements now existing between the Karlsruhe and the Guardian."
With an initial capital of $300 million, it will offer up to $1.5 billion per airline for passenger and third party war and terror risks. These lose their value partly or wholly in the event of a disaster. The money raised underwrites a reinsurance or a primary insurance contract. This did not contribute to the bonds' transparency or popularity.
And so the Imperial Reinsurance Company of Stettin, with assets nearly twice as great as the once lamented Karlsruhe, agreed to pay as much commission to the Guardian as the Karlsruhe paid, on an almost equally liberal form of agreement.
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