The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-09-20
NEWS AND
NOTES

makes the insurance rather uncertain and
hazardous.
Some OF the local companies are con-
plating a change in the laws regarding
deposits with the auditor Of state. which
they may ask for this winter in order to
allow them to erect buildings in the city.
They wish to deposit in lieu of securities
evidence OF ownership Of u~nincumbered, i'm
proved real estate. at such value as may
De determined by two disinterested ap-
praisers residing in the county in which
the real estate is situated: such appraisers
10 be selected by the auditor of state; and
the real estate shall not be sold or In
numbered unless securities of equal value
as required In the original act be deposit
ed with the auditor of state.
While the death rate among the holders
of large policies should be almost double
that among those whose policies are small
is an interesting question. and one that Is
OF vital moment to a life insurance COM
pany about to increase the limit of it's poll
cies. AT first sight, it might strike one that
such a difference in the death rate was
| based on mistaken information, but a brief
study of the question will show that it is
nothing extraordinary, but a natural Sc
quence or the conditions surrounding large
policy holders. In the first place, the man
VINO taxes a policy for a large amount is
a mail u OIl IIltdIS, dUu iii
Weaitny men are usually past the prime of
life, so that the majority of men taking
policies for large sums are those nearer the
age or forty than the age of twenty-five.
Oh course. this greater death rate from the
more advanced age is considered in taking
out the policy, and provided for by increas-
greater age, the death rate is still higher
among the holders of large policies. One
cause is the greater temptation to fraud;
almost all attempts to defraud the COM
panies involve large amounts, since IL is
easier to cheat one company for a large
amount than to cheat many for small sums.
Then the man with the big policy is usually
a man with large business interests, a hard
worker, and on a continual nervous strain
winch saps his energy and brings him to
the grave before the allotted time. Another
cause which is likely to cause him to die
sooner than the small policy holder is that
the wealthy mar is apt to be a high liver.
banquets and entertaining his friends,
while the poorer man necessarily leads a
frugal life. and his emotions are all upon
Likelihood OF p~rolonging his days. The rich
travels more than the average man and Is
thus exposed to more dangers and changes
resting effects of travel.
While 1t Is often acknowledged that the
agent has a hard position between the COM
pany and the insured, yet the medical ex-
aminer has a still harder position between
the agent and the company. After a lot
Of hard work the agent may find that the
applicant he has presented to the physician
is rejected, only to be accepted by the d.
rector OF a rival company; and, while ii is
to the advantage of the company to have
only safe risks, the advantage TO the agent
of having his applicant rejected is so
ephemeral that it does not appeal to him
very strongly, and he is more inclined TO
d-n the doctor than TO praise his Judg-
ment and integrity. Yet If the doctor is too
lenient in his examination the company is
dissatisfied. Often the examination will
make the applicant look undesirable on pa
per, when the man in the flesh would APP
jected by the co:apany's medical director
from a mere reading of the results of the
examination. 1t would be a good thing
for all concerned if the medical examiner
should first be an agent, so that he could
see the agents side of the question, and
use a little more leniency in his judgment.
He should always take pains to put the
applicant at his ease, and consider that he
is often In a nervous state, or may have
has impaired his physical condition tenn
porarily; and If he is an inexperienced
examiner. he should heed the suggestions
of the agent. There is considerable talk
of doing away with the medical examina-
ton altogether, and it is rather surprising
that one of the first companies to try
this arrangement is one in conservative
England. The dislike of the examination
and the number of safe risks discarded has
| led to this plan. The company requires
an extra premium for the first three years:
or If the insured wishes to pay the ordinary
premium, only one-third of the amount of
the policy will be paid If he dies during
the first year; If death occurs during the
second year two-thirds will be paid, and
after that year his estate is entitled to the
full amount at his death. The questions
i'm the application blank will include sew
eral of those usually found only in the
blank of the medical examiner.