The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1906-03-20
The Insurance
Investigation

good wind that blows nobody ill., 1t is said good
autho TIN" inIy 10000 holders OF PoeIes IN the three big
ton have terminated their policies These policies, it said
$4,000 each For the these pochoders have accepted
the surrender value of their policies that have withdrawn in cash
what they were entitled under the of policies and
without the protection OF the insurance which their policies
them As all the OF the investigation there has been
hint that any the companies mentioned perfectly solvent
this means that 100000 pohode have abandoned the protection
their families which these policies gave Among hun
dred thousand large number the aggregate have died since
terminating their policies and in such cases the families are lett worse
off than they would have BEEN by much the face of the policy
In Of cases no doubt this that families left with
protection Widows and children left absolutely dependent
with support To these there thoughts
they deprived of the protection which the insurance companies
both a5q and able give They will not be able
HYDE and NexaHder TO then, the investigation will mean nothing
but the bghtand bitterness Of profed protection destroyed
Another very large class of these panic stricken policy
holders when they recover sanity alter their panic and seek IN the
other the protection for their families which they
have thrown will find that meanwhile they have developed
tuona maades organic diseases which will forever bar them
from life insurance protection They nsured their OF
insurance binding for whatever of years their conditions
called for usually the of life But having surrendered life
insurance companies under obligations accept policy
holders again and will unless they physically sound and fit
subjects for HE insurance and then only at the advancing rates which
increasing years bring
But those died they surrendered policies
and not barred from insurance by physical conditions will
nu when they seek to become pocyholde again. that relentless
Time has been passing along They older than they when
y TOOK OUT the Pohes they SO npoVdeny surrendered and with
the advance the advance goes pace
deed with accelerated that when middle life reach
Cd and even before every year adds greatly to the cost OF insurance
SO the companies concerned theoretically they uf
liabilities because the surrender the whole
the actual value plus the whole of the accumulated profits
Therefore policy surrendered
accumulated profits to increase the accumulated profits for
sng pocyhoders But the business of company
insure carry its policies until they terminate by limitation ali
Withdrawals and surrender opposed direction
jecs of the company.
suende they often profitable to the
company and nothing else the most profitable thing
could do would be to the of its policies
But would then be insurance company be an
initiated The pocyhoders would all get what they
to under the terms Of their policies the protection
which ought to be the real every policy
Gany But the company would be destroyed
fulness an insurance company.
Hence this surrender of 100000 policies only
the individual phode an absolute loss every individual of them
with the possible exception of per cent but it is loss
10 the life insurance business itself It a disturbance of conditions
that must for long time continue hardship
will continue for long time degree to restrain and
discourage the insurance Of lives which of the most potent
factors of safety in modern society.
AS against this accumulated loss present and prospective the
investigation must show large beneficial to balance it.