Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-17
President to Renew His Rec
ommendation
AS TO LIFE INSURANCE
DISCUSSION AMONG POLICY HOLD
Frs IN THIS CITY.
Questionable Methods Employed by
Agents to Prevent Payment
of Full Amount.

The announcement that the President will
renew his recommendation for federal con-
troll of life insurance companies and will
seek to have Congress place added safe
guards about such companies, for the pro-
lection of policy holders. has created con-
siderable discussion among policy-holders
of this city, we'll among representa-
tives Of the several insurance companies.
Many polcyholders are inclined to think
that while attention is being directed to-
ward the manner In which the funds of in
surance companies are invested. and meth
DDS that nave been employed at times In
depriving the policyh holders Of the full
amount Of profits that should come to them.
there is just as much need to have measures
taken in order to give added assurance that
policies will be paid when they become due
without the urging of technical reasons why
there should bs compromise on some
ground that would never have standing In
court.
Some Questionable Methods.
There are men who are quite familiar with
the methods Of insurance companies who
declare that, in many more instances than
the public Is generally aware, widows or
other beneficiaries OF the insured have OBJ
stacles put in the way of the collection OK
the face of the policies, which result in COM
promises by deducting a portion of the
amount to be paid them under threat of
law suit. 1t is understood that the highest
class Of life Insurance companies do not re-
sort to such methods, but at the same time
men who are very familiar with the opera
lions of life insurance companies say that
the public would be amazed if 1t were to
learn the reasons at times urged by agents
for reducing the face value of the policies in
making settlement. 1t Is said that In but few
cases would these reasons have any stand
ing in court, but they are. nevertheless,
potent when presented to bene1ciarieS who
have had but little business experience and
whose needs require that policies should be
settled promptly.
Policy holders who have given this matter
attention believe that it would be possible
to effectually do away with that practice If
such companies were required to make an
annual statement concerning the payment
of policies. showing the amount of the poll
cies, with the amount paid, and stating in
what cases and for what reasons PROPOSE
lions to compromise have been made by In
surance agents. Such a statement would, it
is said act as great deterrent on compa
MES inclined to pursue the course of cutting
down policies on trifling technicalties on
mere pretexts.
Effect of Published Statements.
Such published statements would result in
policies of the probability Of having his
beneficiaries held up with some sort of
proposition to compromise. 1t is said this
class of abuse has gone so far in some in
stances that policy holders have taken es-
pecial care that their beneficiares shall be
instructed to make no compromise on the
face of the policy, and to permit no reduc-
ton unless ordered by a court of law. But
such cases, 1t Is said. never go to court as
they are seldom based on any reason that
would stand before such tribunal. But
the threat of a suit is enough, 1t Is declared.
to persuade a very large proportion of the
beneficiaries to accept a reduction Of the
face of policies.
OF course. where life insurance policies
a part of estates that are settled by
executors with business experience such
difficulties. 1t is said. are seldom met. But
1t Is pointed out that in most cases such
money passes directly in the hands of some
inexperienced beneficiary
1t Is believed that the best class of life
insurance companies will be inclined to CO.
operate with those policy holders who wish
to have this feature Of governmental super
vision added to such other features as
have been suggested by Senator Dryden's
bin, which will be introduced in the Senate
early in the next session. They believe that
by making public the nature of the deal
ings OF various companies with the bene-
fictaries o. policies they will benefit the
high class companies and force those COM
panies that resort to questionable methods
to mend their ways or suffer loss Of bust
ness. AS 1t Is it is said to be impossible
for any policy holder to learn of the way
policies actually settled by companies.
except by such personal inquiry as would
prove impracticable. Proper publicity
would. 1t is declared, do more than any
thing else to protect future beneficiaries.
Senator Dryden's Bill.
When Senator Dryden's bill comes before
Congress next winter for discussion as 1t
sure to be the case, 1t IS expected 1t will
call forth very much greater interest than
when 1t was introduced in the last session.
The minds of very large class OF people
have been directed toward such insurance
abuses as have been developed during re-
cent months and the result has been that
they have not only considered statements of
wrongdoing that have been made. but they
have also considered various abuses of
power that some of the insurance COM
panies are alleged to have exercised over
their benehciarieS that have not been gone
into by the men who have carried on such
Investigations. They propose to be heard
on the subject when the insurance bill
introduced by Senator Dryden comes up
for a hearing next winter.