The Republican journal. [volume] (Belfast, Me.) 1829-current, 1905-11-02
LIFE INSURANCE.
Could it be Made Cheaper for the 1nsuredi

Gould it be Made Cheaper for the Insured?
The Boston Sunday Globe of Oct. 22nd
uubshed on its editorial page answers to
tM, question by Mr.. William Whitman, Di-
-4ctol in the Equitable Life Assurance So
,.aty Mr.. James F. Chase, Secretary of the
boston Life Underwriters Association and
Manager of the U. S. Life Insurance Com
,auy: Mr.. Samuel Davis, Associate Editor
4 the Insurance journal of Economics,
>l George P. Field, Secretary of the Pol
. holders Committee of the Equitable Life
>~snrance Society, and by Edward A. Wal
sel, Esq, House Chairman of the Commit
Tee or Insurance of the State Legislature,
Mr. Fields article, published under the
caption Radical Reforms Necessary" was
q, follows:
The present cost of life insurance can be
,-rg materially reduced and the solvency
The companies increased by:
Giving the pOlicy-holders reasonably
i0uest management. l do not ask for an
,olutely honest one l would be willing
.5uagers that they should not improperly
orb for themselves and their relatives
ar 10 per cent. OF my premium.
In consideration of the exOrbtant
SD trieS received, the executive officers of
companies should be required to
uiliariZe themselves with at least the
st important affairs of their company.
Or 5 not right that Mr.. McCurdy, for in
nee, drawing S150,000 salary, should be
prsed to learn that for 10 years his
upany has been running at an annual eX-
Sc of over $4,000 a private club in AL
~ for the use of the members of the
stature, or that another of the prominent
companies has run for years a large
and club in New York city, without
entries on the books of receipts or dis
r~ements on that score
The directors should be required to
for the funds Of the company as they
nd if they were personally Interested in
a- This would cut off the individual
Ii in syndicate schemes, pensions and
iners to individual directors for no
Icr rendered. and the other methods of
which seem to have become so thor
My identified with the life SYSTEM none
hich would exist for a day if it was
own money that the directors were
ING he game with.
4 reorganization and reformation of
agency methods of the companies and
consignment to oblivion of the insane
sion which all the companies have that
only thing in a company worth strug
for is size that if it is the largest it
ii be the best. AS at present cOmpen-
d the entire first premium and large
0t the second goes to the solicitor, ana
interest thereafter is slight, if anything :;
,-qupntly, he naturally induces his Gus
JEFF to take more insurance, in many cases
IL he can keep up, caring nothing if the
" itself lapSeS after his commission in
81 ceases. This method of compensa-
is due entirely to the rush for new
less, and many of the smaller, we'll
4aged companies are driven into it by the
On Of the large ones If it was reform
together and the agents compensated
smaller commission, payable on every
.mium during the life of the policy, the
''t would not only be a great economy
management, but a stability III the poll
.- which does not now exist.
he life company which will initiate and
p, out these reforms has a large and de
die business awaiting it 1t would re-
". in a sacrifice of the amount OF new
-.ne>s done for a while, ali of which
Md be for the benefit of the existing
Icy holders. If, however, the idea which
lne ut present to prevail, that the only
. uE necessary is to get rid of the grosser,
ie forms of graft which exist in com
.1y and that the other methods are all
Int, Is to predominant, the shadow of a
-5Yership in the not distant future hangs
~ them all GEO. 2. FIELD.