Albuquerque daily citizen. [volume] (Albuquerque, N.M.) 1895-1903, 1902-12-11
THE INSURANCE FRAUDS.
Companies Banded Together to inform
Each Other Of Suspicious APP
pIicants for Policies.

plicants for Policies.
1T is a surprise that Richardson, if
he has done all they claim, should not
have known that he would in the end
be found out. We sometimes hear of
bright, sharp persons being caught
in the commission of crimes similar
to those of which Richardson is ac-
cused. But they were not acquainted
with the insurance business"
This remark was made to an Ell Paso
Times reporter by a gentleman who
held a position for six years in the
general office of the Equitable Life
Insurance company in New York.
Finally his health failed and he was
obliged to come south. He is nov m
ployed in soliciting policies for the
New York Insurance company in this
city. Owing to the startling develop
ments in the Richardson and Mason
case, the reporter sought information
as to how the companies proceed to
investigate their cases.
81 do not care to have my name
used" answered the insurance man in
ais ~ lnQulltS, DIS IL mlSnl nuI
me in my position with the New York
company. But | can say that the COM
| panies have an intricate and compre-
hensive system of investigation which
Is almost sure to result In the detec-
ton of any fraud. In the first place
through their general boards, they
have a perfect system of cooperation
and keep each other constantly ad-
vised concerning the suspicious char
| acters or new scheme for defrauding.
1t is easier to cheat an insurance com
pany out of a half a dozen small in
surance policies than one large one.
The reason of this is that in an appli-
cation for a policy over a certain
amount more reports are required
| from different channels, and the ex.
animation is more thorough. This
amount in the Equitable is fixed at
$40, In important cases, besides
the recommendations of the appli-
cant, the reports of the local agent
and general supervising officers and
| statement of examining physicians
there are what are known as moral
investigators, whose work is done in
secret and whose identity is not known
to the others. Their duty Is to care.
fully examine into a mans financial
standing and moral habits. The OBJ.
ject Is TO definitely ascertain not only
as to an applicants ability to keep up
the payment of the heavy premiums,
but also whether he had any motive
in taking out the policy besides max
ing a suitable provision for those de
pending upon him for support. The
object of this is to guard against any
collision between the assured and the
beneficiary by which the former might
disappear and the latter collect the
policy on the reported death of a mar
still in the land of the living. Again
the family and social relations of the
insured are examined into so as to see
IL there is any danger of his being pu,
out of the way by those who would be
benefited by his death. In short, the
system of examination in cases where
large policies are taken out is so elab
crate and thorough that it is almost
impossible to deceive a life insurance
company, but still it is done. While
l was working in New York knew o.
several cases of fraud that were un
earthed. There was one case in par
ticular on which the detectives worked
for two years"