The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1891-02-28
Queer INSURANCE.
The Metropolitan Accepts a
Mans Premium Until He
Becomes Ill and Then
Cancels His Policy.
STEPHEN EIRICH'S EXPERIENCE.
lie Is a Pensioner Of the LorlIlards'
and DR.. Gordon Will See He
Gets His Rights.

The industrial branch of the Metropoli-
tan Life Insurance Company of New
York, which is located at No. 3s Mont
: gomery street, under the superintendency
of Thomas Williams. IS prominent
party in a transaction which needs a
more explicit explanation than that fur
by Mr.. Williams this morning.
Stephen Erich, who is an old pensioned
employe of p. Lorillard g. Co., living at
No. 251 Morgan street, about two years
ago was opportuned by one of the agents
OF the company to take out a policy on
his life. Erich looked upon this as a
good way of providing for respectable
burial. and he took out policy for $50.
upon which he paid premium of fifteen
cents week
The company has rule that where the
amount of the policy is over 500 the ap-
plicant must be passed upon by one Of the
company's regular physicians, but where
the amount is under 500 then the
statement of the agent that the applicant
IS good risk is sufficient. This leaves
the agent wide latitude. which a wide
awake, energetic caavasser is sure to
traverse thoroughly. As Eirich's policy
was under 500 the agent pronounced him
desirable risk and the policy was issued. !.
The agent whose name appears upon
Eirich's book and who receipted for many
OF the premiums is William Corning of
No. EOS Erie street. Erich paid the pre-
Iuiums regularly for over two years. the
first being receipted for on January q,
1882 On February Is his book became
mislald, and new one receipted up to
date was issued to him upon mis- payi ng
two cents. IL was also discovered that
the same wideawake agent had had the
policy issued in the name of Stephen
Cusick, aud the error was corrected.
THE PREMIUMS REFUSED.
On February 9, the agent went to Err
ichs house, and finding him i'll and ap-
pearing in a dangerous condition, refused
10 receive the premium. Afterward q
representative of the company called
upon Erich and offered to pay him all the
premiums ne had paid, which amounted
To Sl6 35, on condition he would release
the company from all claims he might
have against them.
Icalled uDon Mr. Williams, the SUPER
intendent Of the Jersey City branch. this
morning and asked him why it was that
his agent had refused TO accept the prem
, iuIns and had offered to pay back the
money! already paid by Erich. Mr.. Will
Jams prefaced his remarks With protes-
tation that his company did not want to
do any thing unfair, but upon learu-
ing that Erich was i'll it had
sent one of its doctors around TO examine
him, who found him wreck, aud gave 1t
as his opinion that he was snch when be
was insured. Under those conditions
the company considered that the policy
had been secured by misrepresentation,
and 1t was warranted in revoking IL, but
in order that it might not appear to be
doing Mr.. Erich an injustice the COM
pany was willing to pay him back the
premium he had paid.
Mr.. WILLIAMS STATEMENT.
When asked why the company did not
ascertain Eirich's wrecked condition at
the time it insured him, Mr.. Williams
said that they did not examine applicants
for insurance when tie policy was under
$500 but took the agents word for his
condition. He could not see, however,
why the acceptance of the risk after being &
passed byhis agent. should debar him from
pleading misrepresentation now. After
some further conversation upon the hon
est intentions OF his company Mr.. Will
liams said that he believed from the state
ment of his agent that some one repre-
sented Erich at the time the agent ac-
cepted him.
DIR. L. j. Gorden has taken hold of the
matter for Erich, and he declares that
he will definitely ascertain If these New
York companies can come over here. in
sure man. and accept his premium for
two years without question, and then,
as soon as the man becomes apparently
seriously i'll, cancel the policy on any
grounds thev may deem fit. He
went to the Office this morning and ten
dered the amount of premiums, which
the agent refused to take. TO Mr.. Will
Jams, but that gentleman refused to take
them also. 1t would not be strange if one
of the first visits of the new Commission
or of Insurance as soon as he is appointed
by Governor Albeit would be 10 Jersey
City. At any rate, the Metropolitan
Company will be afforded an opportun ity
of having the sanction or disapproval oi
the courts placed upon its manner of do
ing business, as DR.. Gorden says there Is
principle involved in this case and he
proposes to see it viudicated.