The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-01-08
erts will not, lack for field Of activity
when he reaches South Africa,
FRAUDS ON LIFE INSURANCE.
A United States Judge Talks yigor-
ousIy Concerning a Recent At
tempt In That Line

United States Judge Talks Vigor-
ousIy Concerning Recent At
tempt In That Line.
The world does not yet quite believe 1t,
but 1t is nevertheless fact that one of
the very last things life insurance or
ganization ever does is to contest a death
claim The odium which attaches to the
refusal to pay any alleged death loss is
so marked; the disposition of juries and
the general public to think that the claim
ought to be settled, no matter how fraud
ulent 1t may appear, has been so well
established, and the willingness of COM
pany managers to allow many dubious
claims to pass rather than that a posi-
bly, innocent beneficiary should suffer Is
so we'll known that about everything in
the shape Of death loss is acknowl.
edged and paid.
On some rare occasion, however, the
demand is so startling in it's audacity
that the patience OF company maIl-
ayers Is unable to endure 1t, and an ap-
peal to the courts to prevent the attempt
ed mulcting results. The United States
Life Insurance Company, in the city of
New York, is the last rare case of the
worm turning in this respect. A we'll
known Chicago man applied for policy
of $4,000 in that organization early last
year. A month later the policy was sub
mitted for his acceptance, but he asked
to have it withheld for time. Mean
while he was taken fatally i'll, and while
he was dying a friend" secured the pol
icy, paid the first premium thereon, and,
after the insured man died, claimed the
$50, 600.
The United States court of appeals has
just rendered an opinion on this eXtraor-
binary performance, characterizing it in
the following terms
A man applies for an insurance on
his life for $4,000, but he declines to re-
ceive the policy, because he wants to
know something more of the company be-
fore investing! Afterwards, and before
anything more is done. he is taken down
with acute pneumonia and his chances of
life are desperate. His friend now steps
in, and, knowing all the facts in regard
to the changed condition of the assured :
pays the premium and takes delivery
of the policy to himself, the company
knowing nothing OF the assured's illness.
That day, or the day but one after, the
assured dies, as it was expected he would.
The fraud perpetrated Is something quite
appalling In the badness and boldness
of its outlines. Upon the allegations of
fact In the BILL, which are admitted to be
true, 1t stands out gross as a mountain,
open palpable' ;"
1t Is a curious fact the general public,
which will hear with hearty approval
that man attempting to swindie bank
has been detected and punished will
rarely believe that an endeavor to de-
fraud a life insurance company has ac-
tually occurred Let the old company
pay, anyway" isithe average sum of the
opinion expYessedd But when United
States judgeE talks in the foregoing Wig
orous fashion, the fair-minded reader
will conclude that attempted frauds on
life insurance are still possible, and
that thanks are due to the managers of
this particular organization for refusing
to allow the policy holders money to be
gobbled in $4,000 chunks in the manner
eSSayed