The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-12
ON GRAVEYARD PLAN
GREAT MANY COMPLAINTS MADE AT
STATE AUDITORS OFFICE.
Doings of the Prudential and Metro
politan Insurance COmpany's
Agents-Cases i'm Courts.

There Is another storm center of COM
plant rising against the industrial insur-
ance companies. Insurance Clerk Duke tof
the State Auditors Office said last even
ing that there had been eight persons in
his Office during the day to consult him
about their policies, some being in the Pru-
Dental and some in the Metropolitan COM
pany. The number eff such callers daily
for week or ten days had been from six
to ten. The commotion was stirred up by
evidence that many ignorant persons had
been induced to take policies which were
worthless being of the graveyard kind,
which are unlawful under the laws of In
diana.
1T is not the fault of the companies.
however, said Mr.. Duke, but of their
rascally agents. These men go to persons
who cannot read or write. and who believe
anything the agent tells them. Most of
them could not perhaps understand the pol
icy which strictly conforms to the law if
it were read to them. and it is easy to
make them believe that for 20 or % cents
week they can insure some relative. hus-
band, wife or mother-in-law. In one case
it was the mother-in-law, who was not even
in town at the time. The insurers had
been told that they could answer the ques-
tions and sign the policy for her, although
the policy expressly says that the assured
has read the questions and has answered
them correctly, and that this assurance
becomes part of the contract.
OF course, the insurance clerks
cannot take cognizance OF such re-
ports until they become matter of judi
cial determination. The companies are reg
uarly organized and conform to the laws
of the State. They profess to prohibit such
but how sincere they are cannot be told with
certainty except by judgment IN the
against one of the companies it would have
to settle it, or we would be authorized to
Business e until a the Judgment IS paid The
Auditor has nothing to do with these
charges of Misrepresentation until the facts
are proved in court. but people know the
Office has charge of the enforcement of
law and come in to ask about the COM
panes. We can tell them that the COM
panies are perfectly sound and able to pay
claims, and that Is all we know about 1t.
70 Kokomo I heard and wrote 300 policies.
representing to the assured that II they
paid to certain time the company's ac-
and that they would receive so much back
that the insurance would cost them hardly
more than nominal sum. j wrote TO the
company's State agent about the matter,
telling him that this would have to stop,
and he replied that the agens oad si Se
ing any authority to make such msrepre-
sensations. Some of the agents represent
to families that when the assured has paid
in $500 the whole sum will be paid back in
case no death has occurred in the mean
time If the representations made to me
by the people who call at the office are
true. / do not think that there is one pol
icy In five in these companies that is worth
the paper ii is written on"
Fannie Daily brought suit yesterday in
Justice Johnson's court against the Pru-
Dental, claiming that she was induced to
have her husband and son insured, as we'll
as herself on representations that she
could fill out the applications for the oth-
ers. When she had paid $36 she discovered
that the policies were worthless. and hence
the suit This is what is known as grave
agents who do this sort of work take care
that there are no witnesses present when
the policy is written, and hence, in a trial,
there is conflict of testimony, without
preponderance Phoebe Taylor, an aged
colored woman. who earns her frugal living
at the washtub was induced to take out
insurance of this kind and has discovered
that she loses all of the $40 paid in, unless
Justice Iockman before whom she has
brought suit gives her judgment for the
amolfnt