Cottonwood report. [volume] (Cottonwood, Idaho) 1893-1901, 1894-02-16
SALARY INSURANCE,
Is IT A BUSINESS THAT CAN
CARRIED ON lPRoFlTAsLYf

rapid progress during recent years thu
companies have been started for the NJ;
pose of writing risks on almost ever
thing under the sun. II you own
house and want protection against fri
or steam engine and want protectidb
against explosion. or plate glass wild.
dow and want protection against t,,1
small boy who throws stones, you bay l.
only to go to one of a number of con,
panies, pay your premium and CARR
away your policy.
The business of writing these risl1 /.
has been carried on SO long that il M
passed the experimental stage. The In l.
of average is maintained, and the con,
panies carrying such lines, as genera
thing, annually report good profits. N
extensive has the insurance field I'D.
come that it was almost impossible M
conceive anything further for the con-
panies to guarantee, unless it was health
and happiness. Perhaps the very latesk
thing in insurance may be step in thai
direction. Salary Insurance is some
thing entirely new. and is being ex
tensively advertised.
If it is possible to write such INSURANCE
on reasonable terms, which will protet2
the employee and enable the COMMAND
doing this business to meet it's contracts
it should become highly valuable ID
working people. If, on the other hand
it is necessary to impose such condition.
upon the insured as will leave numerous
loopholes, by which the payment of POI I
cies may be avoided, then this form al
insurance becomes valueless to any per.
son, except those who issue the policy
The stipulations under which you ma
obtain salary insurance are briefly I'd
cited below. 1t is left to the reader
judgment to decide whether it would
pay him to have his salary guaranteed
under such conditions.
The applicant for policy must give 1
complete history of himself. whether
married or single, size of his family, sal n
airy per annum, how long in service "A
employer, where employed for ten yearS
previous to making application, whether
he has chronic disease, and how muclt
time he has lost by illness during the
preceding twelve months.
The premium is fifteen dollars per an,
mum where the salary is less than 81 500
and per cent. of the salary where it ID
equal to or in excess of that sum. Tho
policy covers period of twelve month";
and guarantees the insured his salary
for six months after his discharge. 1t Il
claimed that the policy is equivalent I'd
a contract with an employer that he will
not discharge the employee except fol
cause, without giving six months notice.
The policy provides that dismissal
shall not be caused by or through A
willful act or negligence of the assJi
The assured is compelled to give ii
diate notice of dismissal. land must
every effort to obtain employmentM
ing in this the policy becomes8
When the assured has again
employment he must notify u
pany, and he will be furnisIo 8 2 o
blanks upon which to make PROD 8
claim, covering the time he wast.o 5
ployed. If he is unable to secure en-,
ployment during six months he mus
notify the company and furnish proof
of loss.
Any question as to the liability of thu
company may be referred to board d
three arbitrator, one to be selected bj
the company. one by the assured. and
these two arbitrator will select third
The decision of two of these arbitrator.
shall be binding. The policy furthei
provides that no suit shall be brought
until the expiration Of three month";
from the day of filing proofs of loss witt
the company, NOR shall such suit bs
brought at all unless the same is com
menced within six months from thu
time the right of action accrues. any
statute of limitation to the contrary not
withstanding." The company reserve:
the right to cancel the policy at any
time by refunding pro rata portion o.
the premium.
1t becomes an interesting question al
to what constitutes a willful act or neg
ligence. 1t is the experience Of thou
sands of workmen in New York thai
after they have been employed in one es
Enlistment for years perhaps new
foreman or superintendent is introduced
and the employee is discharged. He hai
done his work in manner satisfactory
to his old employer. but the new on
says he is incompetent. This is cited a
an illustration of many cases, wher'
more than the intelligence of Phila
delphia lawyer would be needed to de
eide whether the company had good ant
sufficient grounds for avoiding paymen
of the policy.
President William Nj. Richards. of tn
Fidelity and Casualty company, whel
asked his opinion regarding salary in
surance, said: IL do not like to CRITICS.
the methods of other companies, whicl
may compete with us even indirectly
but | will say that this sort of insur
ance must at present be regarded largel.
in the nature of an experiment, iol
know very well that we will insure any
thing that, under the law Of average
holds out hope of return, but W
would not write salary insurance
Judging from the conditions which tn
policy impose, | should say that the com
pany is safe enough. but | cannot Sc
where much benefit can accrue to tn
employee. Almost without exception
the class of employees who could avai
themselves of this class of insuranc
have contracts with their employers All
thus have no need for such protection
New York News