The New York herald., 1869-03-15


dreds Of well-dressed Of very talkative habits
possessing the suaoier In nsodo whose pockets are
wen filed with pamphlets setting forth the immense
advantages to be obtained by nsuring In the partic
ular company which they have the honor to repre-
sent, whose rates are the lowest, whose assets are
the largest already amounting TO something less
than fifty millions, and whose annual dividends will
put any one on the sure road to wealth. And not
in this city only but in almost every town and VII
lage Of the United States. these coporteurs OF life
insurance have become SO common that in many
places it IL said that the boys In the streets are heard
singing
Iwant 10 he an agent
And with the agents stsnd
policy in prospect
.aafei And premium hand.
And the public cannot help noticing also that every
year litter Of life insurance companies under
goes brief period OF CESSATION and then suddenly
emerges into notice with its requisite capital OF
$00O00 all paid in, with it's long list OF directors
and officers and with new and original plans OF in
surance which are confidently asserted to be great
Improvement upon anything which has preceded 1t,
and that papers and magazines devoted mainly TO
the subject OF life insurance are doing thriving
business. Now, how the thing is done, and especially
HOW LIFR INSURANCE COMPANIES ARE STARTED,
sery 70 bsr great many Dqs W. w ths ma MSa
have 1aled 10 mercantile life or In unfortunate
speculatiOns and nave managed to save few thou
sands out Of the wreck Of their fortunes and are
anxious to start anew In life and they look upon
life insurance az q new field where q harvest OF
greenbacks may be reaped There are some agents
TOO, who, AFTER q successful career in man.
aging general agency, are ambitious to have
their before the public officers OF the Great
Get-emall and Take-eml-in Life Insurance Company,
with y comfortable salary Of few thousands. which
will AFFORD them q handsome support through life.
One hundred thousand dollars must he sub
Hcrbed and paid In to the insurance department at
Albany; for MI. Burnes, the superintendent, insists
upon this important preliminary ~ security that
the heirs or the insured will not be cheated out OF
inst 0uQg through acknowledgements and 6nai n
s0lvelcy. When this il accomplished and few
thousands more are raised TO meet the current ex-
pcnses OF the company and plan Of insurance and
tables Of rates have been adopted an elegant office
is opened on Broadway, fitted up with costly ONCE
derous blank books for recording policies and ac.
counts, with clerks, boOkkeepers and Office boys,
the machine is ready for operation. new life H.
surance company, like new mercantile firm or
newspaper, is always an experiment Its Officers
and It's name are scarcely known outside or very
small clique. and 1t has to come IN competition with
companies whose agents are IN every city and State
and whose assets are reck0ned from ten TO twenty
i've millions. This Is uphill work. but 1t Is ordeal
must have the applications Tor insurance. ana
to get them it must have solicitors and agents at any
price The agents q tne older and wei established
past history and successful prestige, and conse-
quently pay only moderate comm ;ssion on pre-
NUNS received-are waylaid and offered q higher
rate Of commission to work for the new company.
n s Infancy q Insurance ss oa,s the highest cGn
or forty per cent and even more IN case Of broker
age, is often paid by new companies. But there u
mt must stp Se issued se new Company must make good
snow the rst two or three years at any price. and
as, Ss me s xss y uyP q
companies show that during the first two years the
commissions and once expenses have averaged from
g e sn q s y
mortality experienced Dy company during the
first five year OF its existence Is usually very small
premiums are based and this Is owing 20 the strict
ness OF the medical examination. Some OF the most
prosperous companies In this city owe their
great success during the frst two three years to
the superior tact. energy and suavty OF their presid
ing officers, who were smart enough to pick out the
best agents In some OF the Older companies and by
vices to themselves; and this practice whether fair
and honorable or not Is very common.
t AGENTS AND SOLICITORS.
first class agent Is prize 10 any life insurance
company. As q natural result, such men
and know their own value. There are but few
men who naturally adapted 70 soliciting life In
surance. There are hundreds VI men who are
tempted by the high commissions offered and the
success which few persons meet with TO try the
business, ont after an experience OF few weeks
months they give n up and turn their attention 70
something else. frequires man OF peculiar tact
aud conversational powers 10 convince person
who In in sound health and scepcal on the subject
OF life insurance that II would be for his advantage
company which the solicitor represents Is the only
one Tor him 20 insure In. Many persons who try
soliciting get dsgusied because often happens that
not one out OF ten whom tney approach Will listen 10
the subject, and there are many who will put the
solicitor Oh With some excuse trumped up for
the occasion, just to get rid OF MN: AS
general rule solicitors have no regular
training beforehand for this business; they do not
understand the techncalities OF IL, and thev are
often bothered and disconnected wnen oo,ecsons
thoy blunder along a few weeks boring everybody
Unfortunately getting little announcement, and,
finally, give II up IN disgust IL Is the experiences OF
about ali agents shat not more than one out Of
four or fivc men who commence soicitlng insurance
ever succeeds and II e also well known to life Insur-
ance companies that there are many men who are
30 ignorant tnat they can scarcely write their own
names or make out an application legbly, yet who
make first rate solicitors, Tor they have o certain
tact and perseverance,, and what IL vulgariy called
scheekr which enables them to succeed where others
faii. But there are men whose peculiar talent 1ts
them for soliciting life insurance, and VINO are In the
receipt Of handsome incomes. so many new life instr
ancc companies are starting up that good solicitors
are comparatively rare, and, as general rule no
natural adaptabty TO this vocation than he
IL placed in the position OF state agent,
where lie mas an unlimited field TO work IN
aud employ subordnates under him. The usual coni-
missions paid 10 general agents Is from twenty TO
thirty per cent ON nrst premlunis ana from hve 70
seven and half per cen on renewals In the ndnus
ot successful agent the business increases rapidly
every year. aud there some agents IN tnis coun
try who have worked up business which brings
them in an income OF Sl5 900 TO $4,000 year. IL
requires long aud perseverig enOft 70 90 tns put
when once accomplished u y ree rom all tue ulsas-
men are subject ard 1t may be regarded as one or
the most reliable occupations which n man can be
rHE cosr OF LIFE INSURANCE..
From what has already been said some OF our
readers may infer that the expenses oi ile insurance
companies are 40 great that Il Is losing game to
iusllre-that TOO great ratio OF the receipts from
premiums goes to ll the pockets OF the Oncers ana
agents Tbe statistics Uf the annual reports OF the
commissioner for Massachusetts, show tnat the av-
craue expense OF life insurance policy through life
Is only about eight per cent OF tue premiums while
Ilre insurance companies which do an agency bush
ness pay at least fifteen per cent or their
premiums to agents. suppose president OF q
life insurance company. after long aud successful
career has by hrs constant energy and watchIulness
raised the assets OF company from zero 10 ten or
twenty millions land there are several such instances
in tins city n II an extravagant estimate OF MS
services 10 regard them a. worth nom $4,000 to
$4,000 year. The same amount Of talent and IN
dustry in the legal or medical profession 10 well
or better rewarded The care ana responsibility OF
building up such an immense business, OF properly
investing such immense sums and collecting the in
terest due from them, the proper supervision OF an
army Of agents, clerks and solicitors; the payment
s.~xs .usgxs4 n no = a.