Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-01-22
NEGLIGENT LIFE-POLIcY HOLDERS.
When They May BE Reinstated After Fall
ure to Pay the Premium.

A short time ago young man who had
for several years paid premiums on a life
insurance policy, allowed II to lapse.
Having been very busy when he re-
ceiyed his notice he had put it aside
and had then forgotten oil about IT,
His policy was of the semi-tontlne order,
saws the New York Sun-that Is, after
paving premiums for twenty years ne
would receive the face value OF the poll
cy. plus the dividends earned oy lapes on
the part of others in the same class, and
also the interest on the money. lie had
looked upon it az an investment Tor the
future. and he was greatly distressed TO
learn that after having paid IN several
hundred dollars he had through sheer care
lessness lost il all. When he discovered 1t
the premium was two weeks overdue. lie
had no idea that he could he relnstated.
but he thought he would try. 30 ne went
to one of the officers or the company anu
told him his trouble A..
"No. / have been unusually WELL" said
the young man.
The official looked at him for moment:
"Pll see what can be DONE" he said
finally. "Come with me-"
He led the way into O private once
where man sat reading behind desk.
The insurance man leaned over the desk
and talked in a low voice TO tho man seat
ed there. After a few minutes he turned
and beckoned to the young man.
Mr.. -" he SAID, this Is DR.. Jones;
He has charge of such cases as yours and
will do what he can for you"
With this he withdrew. and DIR. Jones
asked his visitor to sit down. He placed
chair in front or his own, so that he
could look directly into the face OF the
young man. The latter noticed that the
Doctor was very agreeable-looking
man. with q soft, black beard and
sparkling black eyes. A rather mocking
smile fitted from his lips to the wrinkles
under his eyes. He had soft, pleasant
voice, and slow way or talking. The
young man felt that with all his agreeable
qualities he was in the habit OF studying
people critically, and that he was delib-
erately forming judgment as to his own
character all the while he was talking IN
the pleasantest manner.
"Why did you let your policy lapse? :"
asked the Doctor, smiling good naturedly.
~ had been very busy and mlSlaid my
notice." was the reply.
How has your health been 2"
81 have been very we'll"
"You haven't had even a headache"
"None that / can recall"
The Doctor rocked slowly in his chair,
cycling the young man intently, but still
pleasantly. The latter began to get ner-
vous. and felt guilty of ell sorts of things,
when the Doctor ended his suspense by
saying:
swell, don't think it will be necessary
to examine you again. | will see that you
are reinstated, and if you will wait few
minutes you will be able to pay your pre-
MUM and get your receipt"
HOLDERS WHO LAPSE.
The renewal department in some Of the
big insurance companies Is kept busy all
the year by policy-holders who, ike this
young man, forget to pay their premiums
when due. In several of the biggest COM
panies this branch of the business is large
enough to require the services OF large
force of clerks, and is divided into depart
ments. The local business is compare
lively small, but the domestic and for
eign departments are kept hard at work
Strengthening ont the mistakes and en-
tanglements of policy-holders IN different
parts of the civilized world. Policy
holders lapse for various reasons, forget
| fitness being the main cause. As most OF
the policies nowadays are in the nature of
| investments for their holders as we'll as Tor
| their heirs, the forgetful ones usually
| want TO be reinstated. The rule in one OF
| the big companies as to local lapses
| is TO reins:ate the policy holder
where the examiner is convinced that the
| lapse was not due to illness. IL the pre-
MUM is less than thirty days overdue
| the reinstatement is usually made without
subjecting the policy-holder TO another
| medical examination. If, however. there
Is any doubt III the mind OF the official
who questions him he must submit 10 an
examination by physician quite as rigid
as the first. Occasionally men who have
acquired chronic diseases since theg were
| first examined allow their policies to lapse
and they are then shut out.
Sometimes lapses are due to the financial
| disability of the policy-holders. Such q
case recently came before the renewal de-
partment of one of the big companies. A
man who held policy for $1,000 on the
| semi-tontine plan allowed it TO lapse, after
| having paid premiums for eight years. Ac-
cording to the rules his heirs would re-
ceiye all the premiums that he had paid
for three years, but he would receive
nothing. For two years nothing was
heard him, but then he applied to be rein
stated. 1t appeared that, because OF
financial reverses. he had been un-
able to meet his premiums, but his
health had remained unimpalred.i His
finances had improved again, so that
he was able to pay all back premiums
with interest. and as he passed the
medical examination satisfactorily. he was
restored TO the class III which he had
started ten years before. The others In
this class lost nothing by his reinstate-
ment, whereas ne gained greatly.
There are no written rules to renewals of
lapsed policies, and frequently they de-
pend entirely upon the discretion of the
officials. The local companies rarely go
into details of cases outside of the
city, but hold their agents responsible
for them. While there would appear to
be opportunity for fraud through collision
between the applicants forrenewals and the
agents, yet the officials here say that 1t IS
very rarely practiced. Persons who allow
their policies to lapse are seldom notified
of that fact. 1t is to their advantage to
granted when they fail TO pay the pre-
miums tina. thev have done 80 intention
ally. Occasionally statements are sent out
just before the beginning of the year to