New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-02-22
THE DELUsIvE ASSESSMENT LIFE IN
SURANCE.

IT'S METHODS OF DECEIvING THb PUBLIC
To the Editor Of The Tribune
Cir. Soma time ago The Tribune put forth an
article the tenor of which was 10 urge that some
thing should be done. and that speedily, TO pro-
tee, the public from the abuses OF assessment ire
Insurance
sucb eIor,nS instances OF such abuses have re-
Gently been developed by tho acts Of some OF the
most prominent Of the assessment companies, or
associations" as they term themselves mat :"
seemed q fitting time TO present the suoJeot De-
fore The Tribune's large and influential constitu-
ency by victim Of assessment life insurance; ana
this is but of thousands Of such instances
II Is not necessary TO hold up TO reprobation the
particular company. for that might seem more IKE
personal resentment than disposition TO erect a
reform While there no doubt cases wherein
an assessment company may have. from years OF
a certain kind OF questionable success. attained
prestige which renders its power for mischief all
the greater the fact is that the system OF assess
nent life insurance leads all such companies 70
the same final end.
An assessment life Insurance company starts out
with persistent canvassers. issues policies at
. low rate to a comparatively young class OF people,
and for a number OF years. when the death rate
among these is naturally light things go on swim
mingly The light assessment pays the losses. ana
leaves handsome profit for the managers. inc
company by its circulars. other literature ana
advertising holds forth tho success Of its system
line companies for charging unnecessarily high
rates The prestige of the assessment company
thus obtained makes It a dangerous power ior
decelvng the people. While It's earliest pohcy-
holders are mostly young It's apparent success soon
induces persons OF more mature years 10 aVaii
themselves OF this benefccnt system OF life IN
surance at cost" The rates at which persons
enter the company are graded according TO their
respective ages the older ones of course paying
higher rates than the younger ones. Ihese rates
or assessments remain stationary for numoe'
Of years. and the idea soon obtains tnat me Iaee
al which one enters is the highest that Will ever
be charged; and that while i is an assessment
COMPANY in fact: and. indeed. the company's cir
culars and other Literature are SO framed Is 70
present the subject in that way. holding up the
cheap insurance which they are onerlng as really
Years pass under these alleged level premiums.
nSs and tbe company as
ly established the hills. But suddenly there
years the policy holders dying off faster; the
managers who are doubtless living on the fat OF
the land. find that they must nave more money OF
Now il would seem that the older poIicy-holders.
ing to their ages have really paid their share up
70 date and that they should not be borne more re
make up a deficiency. But the managers do not
that II they rase the ASSESSMENT on the younger
ones, the latter VIII drop their insurance ana takc
on right principles So the managers reason that
It is best 10 place most OF the increased assessment
on the older ones. who have reached an age when
must either pay be deprived OF life insurance
entirely; and If many OF the older ones do drop
their Insurance. the company VII be al the better
on as II has had their money and Will be no longer
liable for loss In OF their deaths 50 the oder
ones. the rates being raised 50 high that tney
which they had for years been struggling TO Keep
Up with the expectation Of providing something
0I more s a 0Ta ner o e De
Unless the legislature intervenes. tho assessment
companies will continue this process OF freezing
and then looking around for new victims 10 De
served the same way In their turn.
IN prominent assessment company whteh LOT "a a
liked rate. suddenly about TWO years ngo ad-
fanced the rate OF the older ones sharply, leaving
,ne younger ones untouched. great clamor
arose lawsuits wore commenced against the COM
pany. and the managers sent out agents 10 smooth
NE matter over: These agents IN many known
Instances assured the policy holders that this was
me last advance OF rates that would be made;
saving as one OF the excuses for placing the addi-
Z would not do 10 advance the younger ones, for
that was done they would drop their insurance.
ssnd the company would be left without means
VOW in littic two years this same company
nas advanced the rates OF the older ones again.
e e,,s une msrng no excuse except that ~ IS &c,
Previously mentioned on It's circulars no higher age
saaan sixty years for making assessments now
gives on fits circulars all ages up 10 eighty years.
hat they wiz be enen.nay frozen out anyway
quoted rate IS so high that no one could afford 10
.p eyL Though man may hnye paid n premiums
20 vice the amount OF his policy. under this sys.
YEN no Is lnhie 10 be frozen out and left without
Tho fact that such a system Of insurance pre-
ssis right In our midst; and peope Rre constantly
ssns deceived BY H. calls loudly for action ~ the
70 sgate the subject that this system Of covert
S'oery shall be stamped out: for SO long as men