The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1904-01-06
ice INSURANCE. INDEPENDENT
CORES SO.cALLED ESPECIAL =
CONTRACT" GAME.
Claims 1t Is a Subject for Consider
alton by the Insurance
Commissioner.

The Life Insurance Independent OF
New York, for September, 1903. con-
| tains long article on what it calls
the Special Contract or advisory
Board policy game. AS there has
been one or two agents selling these.
policies in the state during the past
| few months, it might be of interest to
I learn what the independent has to say
| about them A large cartoon is print
! ed representing the policy as a spider
web in which to catch the unsuspectlng
| prominent" citizen and the company
as the spider in the center Following
| this the independent says:
Dramatis Personae.
| The Spider-And decadent assess
ment of off color Old Line Company
| that seeks for business on the theory
| that most men are FOOLS
| The Fly-Ony prominent represen-
| tative man" on the look out for a rake
off on account of his ''infooence." In
reality. he isn't half as fly as he
thinks he is.
Time-The present.
Place--A number of states whose in
surance commissioners are asleep,
dreaming such things are not being
done or ignorant of the deceit practis-
ed.
How the Game Began.
The Special Contract or Advisory
board scheme is the result of an in
ordinate desire for rapid growth 1t
is employed by a limited number of
companies. mainly assessment. which
are either not content to grow slowly
and sOlidly, or whose policies cannot be
sold on their merits or on the merit
of the company. but must be sugar
coated with special inducements of
some sort.
Company managers who operate the
board scheme are wont to look upon
the expense fund as their personal
perquisiteS, rather than as necessary
provision for the legitimate expense of !
management Accordingly. they pro-
fess d readiness to share the fund with
a stated number of favored members
who are to cOnstotute pretended ad-
visOry board.
The attention of the prospective |
board member is secured in the first |
place by a very ancient. Weather-bea
Ell trick-an appeal to his personal |
vanity. He is representative man."
"a prominent citizen, whose name will !
attract many others. and whom the |
company is extremely anxious to Sc
cure for the sake Of his Influence"
Commonly, the agent brings a personal !
letter from some high official connect
ed with the home office which is in
tended to persuade him that the COM
pany IDEALLY does place a high value
upon his connection with the enter
prise. This puts him in proper frame
of mind to absorb the fairy tales and |
moonshine that are lavishly dealt out
the company is about to write. the
marvellous gains to accrue from lapses
the rapid accumulation of reserves and
surplus-until he can no longer doubt
the golden harvest that awaits the for
tunate members of the board He signs
an application for a big policy, pays a
big premium in cash. and settles back.
happy in the thought that at last he is
'On the inside of something
AS might be expected, the estimated
profits given out with such contracts
are wild and eXtravagant to the point
of absurdity. They vary considerab BILE
with the different companies according
o the imaginative powers of the expert
mathematical prestOdigitators who ma
the figures