The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-18

cent. and nearly 20 per cent. respectively; at age 70 The Increase 10 two per
tables with our present Whole Life tables land with those Of most Of the
other Industrial compsnes) it must not be forgotten that these old tables
provide for payment Of premium during the whole of Nfe' while under or
ne" tables payment Of premiums ceases at age IS.
accordance with the rule " made retroactive this year, to hatbenehts
during the first six months and full benefits thereafter.
We have introduced into all Of these policies new features I'm the way
Of surrender values. Paid-up policies will be granted after three years in
stead of fve;eItended insurance will be granted after three years at the
policies will be in new and attractive forms. with three pages instead Of
two. in order to set forth all of the concessions. making the rights of the
policy holders SO plain that any one will be able to tell what he is entitled
to. And the whole contract will be expressed I'm the policy, doing away
entirely with the necessity ola copy Of the application, using the form in
this respect for all policies which We adopted many years ago for policies
under $500.
ORDINARY DzrAnramcA "
One Of the most striking result. Of the Armstrong Investigation was
the adoption Of provision restricting expenses for the first year ofthe life
Of the policy. And what is most interesting as we'll as complimentary to
the METROPOLITAN is the fact, which appeared in the newspaper discussion
a the I'M OF I'M adoption u M report IND Oils tnat TINS estricton
law was justified by the experience Of this Company in the matter Of ex-
pense $ shown by an analysis Of its annual reports 1t is true that this
Company kept its expenses almost within the limit prescribed by the new
statute. But the statute isa penal one and we cannot run any risk Of over
by the companies issuing parttdpstne policies. This Companv rI NOT
issue after this year any other than nom participating policies. In fact, in the
true sense Of the term W e have not issued any other for nearly fifteen
years; for, al W have often explained. the intermediate and Special Class
policies were based upon stock o a non-psrticrpatins loading and the
dividends promised, if earned, were expected to be derived from the NOR
talhy. These policies we're entirely novel and We had little experience
TO guide. us. The intermediate policies were based upon OH Industrial
table Of mortality and were designed for Industrial risks who could afford
to pay annual instead OF weekly premiums; and the mortality Of such a
class could not be foretod. The Special Class policies were for sub-sand-
ard risks a s to which the mortality could not be accurately predicted.
What We undertook to do was to pay back ia the pohcy-hoiders the gain
from such improvement in mortality over the expected a should be actu-
any experienced. A - participating policies are ased upon a higher "
socaned mutual loading out Of which dividends are expected to be earned,
" e claim that N Intermediate and Special Class policies based upon a
stock loading were in principle non-paricpatng All Of our other policies
in the Ordinary Department we're by their terms on-paricpating. The
law has justified us in the principles we adopted fifteen years ago. and
to-day the Armstrong laws and the similar ones prepared for other. States
are a vndcation Of the METROPOLITAN principles in which you have been
trained. We have now an experience of intermediate and Special Class
risks which enable us TO prepare non-paroipatng tables. The tables Of
premiums a 81 o these policies have heretofore been completely readjusted.
We think you will find them most attractive.
We realize that We shall henoefoth have more competition m nom
participating policies Other companies have announced their purpose to
restrict their issue to this form. We have therefore thought il in your
interest IS well Is our own and in the interest Of the public, which is ~
penor to both, to ue a part Of the reduction Of commission to effect son
reduction Of premium. New tables have been prepared which we think
will be attractive to customers and which therefore will be profitable
to you. In adjusting these commissions we have thought 1t only Just to e.
store to the Superintendents an interest in them which We compelled
to withdraw a few years ago and which you remember the vce-President
promised at the time to restore when we should be able to arrange il. And
we have also recognized the good work Of Assistant Superntendents by
giving them an interest in the work OF their agents. We realize that the
duties OF Superntendents and Assistants include the instruction and
training Of Industrial agents n the work Of the Ordinary Department. We
want all Of our agents to be alLaround insurance men. Our superintendent