The New Zealand Government Life Insurance Department was opened in 1869 and started issuing its own stamps in 1891. Up until that time The Insurance Office, in common with other Government services, had enjoyed franking privileges, paying an annual amount to the Post and Telegraph Department to cover the cost of postage on its correspondence.
The decision to issue the stamps was the result of a dispute between the two Departments regarding the calculation of postage costs. The matter was referred to an arbitrator but the Insurance Department insisted on paying future postage costs by the purchase of postage stamps.
To ensure that these stamps were only used for their intended purpose, they had to have a very distinctive design. Since the symbol of the Insurance Department was a lighthouse, all Government Life Insurance Department stamp designs have featured lighthouses. In the rays of the lighthouse are the words "State Security" and the letters "V R" are shown in the background, behind the lighthouse. So actually this was more like a personalised stamp, being issued by the Post Office but only used by the Insurance Office.
The stamps were designed by WB Hudson (Life Insurance Department) and J F Rogers (Government Printing Office) and engraved by A E Cousins. The plates were then made at the Government Printing Office. The following values were issued: ½d, 1d, 2d, 3d, 6d and 1/- (1s).
The first issue was perf 12 x 11½ and was issued on rather poor quality paper in which the watermark has a 4mm gap between the NZ and star. This paper was also used for the Second Side-face Issue and often collectors referrer to it as the insurance paper. You will notice the poor quality of these stamps below with faults like colour variance, poorly centred stamps and ragged perforations.