Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1905-09-29
AGENTS GROW RICH.
secrets an to How New York Company
Enriches Emp1ores.

EnriChe@ EmpAOTSss
That nearly all of the first year pre-
miums on new business brought TO the
New York Life Insurance Company goes
back to the pockets of the agents was
shown during the session OF the Arm
strong investigating committee IN New
York Friday. In one year, according TO
the testimony, the total direct and lndl-
rect cost of the new insurance was III
tie less than $13,O00,000, and the first
year premiums on the same new lnsur-
ance amounted to little over Sl3,OOO,-
900. Theoretically an insurance COM
panv must not pay over so per cent OF
the first premiums.
This and many other secrets of the or
ders of life insurance were laid bare
when Inquisitor Hughes turned his In
vestigation to the "Nylic," the organiza-
ton of the company's agents and agency
directors, which, it was revealed, was
designed to give away money to New
York Life employees.
For a time Mr.. Hughes switched to the
Equitable and it's affairs, reading letter
which he had just received from Grover
Cleveland, who told what had been done
by the Ryan trustees toward mutualizing
the society. Mr.. Cleveland declared he
and his associates were we'll satisfied
with the progress of their work, although
realizing the great difficulties that were
before them.
Regarding the Nylic, Mr.. Hughes first
discovered that it is divided into two
branches and that its sole purpose is to
furnish bonuses for employees. The Nyllc
for agents provides them with money IN
excess of their earnings as solicitors and
writer's of insurance. The Nylic for
agency directors does practically the
same service for salaried agents. This
interesting institution is peculiar to the
New York Life and takes it's name from
the initial letters in the words making
up the charter name.
The Nylic has various degrees, like
other orders. The degrees run from
freshman Nylic, through first, second and
third degree Nylics to senior Nylics
There are only three senior Nylics in
the service of the New York Life. There
are 400 freshman NyIics and 504 Nylics
of the first, second and third degrees,
making a total Of GIG Nylics of the main
body.
In addition to the Nylics there are
about 5000 ordinary agents working on
commissions and getting no profit out
of the Nylic. Only the active commits
sion agent who writes as much as $780,
900 year can be Nylic. Up to a short
time ago it required only $4,000 insur-
ance work to make a man a Nylic.
The association is mighty thing for
certain agents. A senior Nylic is a man
who does not have to work at ALL All
he has to do is to draw enormous COM
missions every month on the insurance
he has written in the past. Vice Presi-
dent Buckner said a man would have
an Independent income after being a
Nylic for twenty years.
A senior Nylic gets a commission of
81 month for every $1,000 of insurance
he has written that is still in force. Up
to short time ago he got $3.50 month
per $1,000. Then, if he had $1,OOO,OOO
insurance in force, he was paid $500
a month without working. The other de-
grees of the Nylic do not give such great
advantages. A freshman Nylic gets only
% cents per month per 1000 until he
has worked five years, then he goes up
by degrees every five years. A senior
Nylic with S4,OO0,O0O insurance in force
would draw under the old plan $4,000 a
month and continue to draw this amour
until his death.