New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-07
INSURANCE on TIE ASSESSMENT PL1N.
METHODS OF TIE HOME BENEFIT SOCIETY
WIDOWS DISAPPOINTMENT.

METHODS OF TIE HOME BENEFIT SOCIETY
\ WIDOWS DISAPPOINTMENT.
one OF the life insurance companies doing business
on the "asesment7 plan IS The Home Benefit Society,
whose central Office Is at No. 161 Broadway. II claims
TO have issued over 10000 900 of Insurance, and TO
have paid over 81 100000 in losses John COlard.
tailor who lived at No. 80 Third ave-. BUohlyn held
IL 900 certificate I'm THIS company lie died recently
from pneumonia. leaving wife and boy. The certiG-
cate i'm the Home Benefit Society about all the
DOOR man lad TO bequeath 10 them. When the widow
appled for the money, expecting 70 be able TO open
little store with her husbands insurance money she
was amazed to learn that the policy, after adjust
ments would produce only 1913 20. Not under
standing the process OF adjustment" Mrs. COad
went to her family physician, Dr. +. H. BARLEY, Of
No Of Iafayetteave., for advice DR.. BARLEY wrote
to the company for explanation, and in due time
received a reply signed by George W. GOdwad. sec
retaryo The official wrote that, lowing b. the un-
urecedented mortality that has occurred during the
last few months, and especially in the bimOnthy
perod that Mrs. Conad's husband died
in. the assessment call which IS issued
every two months to rplenish the mOruar
und dd not realize enough to Day IN full all accru.d
| death-clams; therefore, said claims were paid pro
rata ON the. basis of the amount of each certificate
secretary G0dward inclosed a list Of deaths
which occurred in John C0llards "period," including
his own. which headed the list. This is the way the
| d" pro rata Of the Home Benefit Society worked
| Certificate No. 3,571 for $1,000, sealed down to
1918 7O No. 2Gj, $780, SG2 "a; No. 4,214. $1,000,
~ .5Os SO: No. 1000, $1,000 S3l3 20; No. 4,610,
$4,000. S627 40; No. 5o02, $1,000, 1927 40; No.
4sG1 g. OOO sG27 40; total issued $4,000; amount
realized by the policy holders, s4,14O -. The sec
retary closed BY calling attention to section on the
,ace Of the certificate which he said gave ths company
the right 10 pro rata" the claims when the amount
realized proved insufficient to pay in full.
To a reporter yesterday DR.. BARLEY confirmed the
statements made Collars attention. the Doctor said.
had never been called 10 the pro rata clause, and no
died I'm the full belief that he had 81 900 TO ath
to his wife and child. The agents. Dr. hartley added
who 20 about soliciting for these small assessment
companies deceive the poor people hey pretend 10 In
sure. The company now claims that 10 has offered
Mrs COilard all tldt she Is entitled TO-
At the Office Of the company Assistant secretary
Wilson explained that when running under the ordinary
as sessmcnt plan people began t. complain OF " ire-
duent assessments 80 they organized "A system
and levied murtuary assessment bi-mOnthiy. II too
many die during the bmOnthl- perld TO pay the face
value 4 their certificates the assessments for tha
period divided up pro rata among thr bcncicarcs
j. society organized In 1881. and ha- 1,5O0
members. lis capital is derived wholly from IS
scssments. Mrs. COllari has not yet accepted tho
s3l3 offered her and has been advised t. bring suit
against the company ana expose It's methods