The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1892-03-07
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NEGLIGENT LIFE POLICY HOLDERS.
When They May BE Reinstated After
Failure to Pay the Premium.

A short time ago young man who
had for several years paid premiums on
Q life insurance policy allowed it to
lapse. Having been very busy when he
received his notice, he had put it aside
and had then forgotten all about it.
His policy was of the semitontine order
that is, after paying premiums for
twenty years, he would receive the face
value of the policy, plus the dividends
earned by lapses on the part Of others
in the same class, and also the interest
on the money. He had looked upon it
as an investment for the future, and he
was greatly distressed to learn, that
after having paid in several hundred
dollars, he had through sheer careless
ness lost it all.
When he discovered it the premium
was two weeks overdue. He had no
idea that he could be reinstated, but he
thought he would try. So he went to
one of the officers of the company and
told him his trouble.
"Have you been i'll lately?" asked the
insurance man.
"No, have been unusually well"
said the young man.
The official looked at him for mo-
ment.
'Pll see what can be DONE" he said
finally. Come with me-"
He led the way into a private Office
where man sat reading behind desk.
The insurance man leaned over the desk
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seated there. After few minutes he
turned and beckoned to the young man.
"Mr. -" he said, "this is DIR. Jones.
He has charge of such cases as yours
and he will do what he can for you"
With this he withdrew, and DR.. Jones
asked his visitor to sit down. He placed
chair in front of his own, so that he
could look directly into the face of the
young man. The latter noticed that the
doctor was a very agreeable looking
man, with soft black beard and spark
ling black eyes. A rather mocking
smile fitted from his lips to the wrinkles
under his eyes. He had soft, pleasant
voice and a slow way of talking The
young man felt that with all his agree
able qualities he was in the habit of
studying people critically, and that he
was deliberately 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 ma
turedly.
81 had been very busy, and mislaid
my notice." was the reply.
Glow has your health beenP'
81 have been very well"
"You haven't had even headache?"
"None that can recall"
The doctor rocked slowly in his chair,
eying the young man intently, but still
pleasantly. The latter began to get
nervous, and felt guilty of all sorts of
things, when the doctor ended his sus-
nenSe e hT 1frdd5 51hI Un1nK 1t VIII be neces-
sary to examine you again. / viii see
that you are reinstated, and if you will
wait few minutes you will be able to
pay your premium and get your receipt"
The renewal department in some of
the big insurance companies is kept busy
all the year by policy holders who, like
this young man, forget to pay their pre-
miums when due. In several of the big
gest companies this branch of the bust
ness is large enough to require the serv-
ices of large force of clerks, and is
divided into departments. The local
business is comparatively small, but the
domestic and foreign departments are
kept hard at work Strengthening out the
mistakes and entanglements of policy
holders in different parts of the civilized
world. Policy holders lapse for various
reasons, forgetfulness being the main
cause. AS most of the policies nowadays
are in the nature of investments for
their holders as well as for their heirs,
the forgetful ones usually want to be re-
instated.
The rule in one of the big companies
as to local lapses is to reinstate the policy
holder where the examiner is convinced
that the lapse was not due to illness. If
the premium 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 in the
mind of the official who questions him,
he must submit to an examination by a
physician, quite as rigid as the first
Occasionally men who have acquired
chronic diseases since they were first
examined, allow their policies to lapse,
and they are then shut out.-New York