The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1906-07-04
INSURANCE EXAMINATION.

Editor Daily Item:
For months past the entire press Of
the country has teemed reports Of the
issappropriation Of funds by the
largest life insurance companies Of
America, and their consequent failure
to return the proportionate amount
of surplus or overpay to the policy
holders. Innumerable thousands Of
these. policy holders have already
signed away any legal claims which
they had against the companies and
consequently it would be impossible
to recover any OF the enormous sums
which have already been diverted into
other channels. The recent action Of
certain life insurance companies, no.
tahly the three largest ones, in lower
ing. the scale of fees paid to the med
zeal examiners, has awakened the
profession to a keen sense Of the in.
justice to which they have been sub
jeeted for so many years. s.
!, For instance, the fee for eXanina-
ton Of $1,000 policies has heretofore
been $500. This mas been reduced
Ito $500. It is very apparent that the
enormous business done by the COM
paaies could not have been done
without the aid Of the most reputable
members OF, the medical profession.
Yet these very examiners to whom
they are Indebted for the faithful per-
formance of their duties, are those
whose compensation they would still
further reduce. I can perhaps best
illustrate this by an example. Sever
al years ago, three applicants were
examined by the writer, each for $780,
900 policies. They were all rejected.
The remuneration received for this
was $500. was reliably Informed
that one Of the applicants who was
a notorious case of heart disease was
afterwards examined by another ply
sician and a $4,000 policy was issued
to him. That company probably lost
more through that single policy than
would have sunced to pay their en-
for one year, or if the original three
applicants had been passed they
would equalled as much perhaps as
all the fees paid to all the examiners
for one year in the whole country.
The South Carolina Medical Associa-
ton and all the county societies have
unanimously agreed to make no COM
plete examination for less than $500.
these companies are consequently OBJ
liged to employ as medical examiners,
those men who are not affiliated with
the regular medical profession, and
: these men are in no manner bound
by the restrictions by which the regu-
lar profession is held, and conse-
auently are controlled by no laws ex-
cept such as they see fit to make for
themselves It would seem that the
enormous losses which the companies
have sustained in a comparatively
brief space Of time on account Of the
less Of confidence by the public, ow-
ing to the recent disclosures, would
have impressed upon them the fact
that the public are in no humor to
tolerate any action which would not
bear the strictest investigation.
TO discharge old and experienced
examiners at this time for new and
untried medical outlaws, ought to
take away from them the last shred
of confidence which the public might
have retained If these insurance
companies persist in employing dis
honest methods, reputable practition-
ers throughout the country will in
struct their patients which companies
are the most reliable, and the others
will, of course, be obliged to go out
OF the, business. If necessary the aid
of the Attorney General will be en-
listed to do as he instructs them TO.
A great pecuniary benefit Will result
from all this to the whole South. The
sending of many millions to the North
every year has simply amounted to
a.,l open avowal of our incompetency
to properly care for that amount at
home and We have certainly had an
appalling illustration of their ability
to care for it for US. In fact the
whole world recoils in horror at the
enornaity OF the robberies which have
been nerpetrateu in the name Of the
widows and orphans. Companies are
daily being established at home SO
that the money may be used to foster
home enterprises, and for the benefit
Of the sick and needy amongst US.
The failure to return proper share
of the c,,-n111S To co MANY thousands