The Providence news. (Providence [R.I.]) 1891-1906, 1906-01-17
To PREVENT
POLICY
TRANSFERS

New York Jan. i7.-The Equitable Life
/ Insurance companys agency managers
| for the metropolitan district have called
mittee 10 recommend a law which will
make it a misdemeanor for any agent to
induce a policyholder 10 transfer his con-
tract from one life company 10 another
They have asked further that any COM
pany which encourages it's agents I'm this
practice and accepts business written un-
! der those conditions be held guilty Of hay
ing committed misdemeanor
Twisting" for that is the name by
which the practice is known. has been en-
ga6ed IN TO a large extent by agents OF
the big companies. That was shown in
the evidence adduced before the Arm
strong committee.
Here In part Is the letter which the
board of managers Of the metropolitan
district has sent 10 the Armstrong COM
mlttee.
TO PREVENT TWISTING
''To-the Members Of the Insurance Inves-
tigating Committee:
Honorable Srs AT the regular month
~ meeting held by the board OF managers
Of the metropolitan district. city OF New
York, OF the Equitable Life Assurance So
ciety OF the United States, "A resolution
was unanimously adopted that your hon
orable committee be petitioned to draft
proposed law 10 be submitted TO the leg
isature for consideration that II be maze
a uisdemeanor for any agent or agents
of life Insurance company 10 induce
policyholder TO discontinue any existing
I ltsaAH 4
| company upon which one or more pre-
miums have been paid for the purpose
I or reinsurlng such policyholders in the
| company represented by said agent.
Further. that any company which shall
| have been proven to encourage such prac-
! tice or 10 have accepted business from it's
! representatives with knowledge that said
business was procured I'm the manner
above described shall also be held 20
! have committed misdemeanor.
We recommend that in order 10 cor
! rect. this abuse the following questions
/ be incorporated as n part OF any appli-
cation for life insurance hereafter writ
ten I'm the state OF New York
Il Is your life now insured, and IL
50, is il your intention to discontinue any
of the policies which you a present hold
| for the purpose OF replacing same with
the new policy herewith applied for?
. Did the agent soliciting this appli-
cation influence you 10 discontinue any of
your present policies?
q. Are YOU aware or the actual loss
which you will sustain by changing your
policy?
- Have YOU notified the company of
your intention 10 discontinue your policy
with view to replacing It under this
application
AT a CERTAIN LOSS.
1T is we'll that the fact be emphasized
! that any pOliCyhOlder who has paid ono
or more premiums on a contract in any
old line company Of unquestioned solvency
cannot discontinue that policy for the
purpose OF replacing It by new one
without being the loser as n result of
making such change, which is in almost
every instance unfair and inequitabe to
the policyholder
1T is further indisputahle fact that
no matter how apparently advantageous
a proposition an agent may make to in
duce a man 10 make such a change there
Is no way whereby the policyholder can
have the full benefit Of the premiums ac-
tually paid on the original policy in the
event he should discontinue same.
This practice, generally known in the
profession as twisting or switching
policies, is without doubt the most repre-
hensthle practice eXtant for Il plays upon
the credulity and the ignorance OF policy
nolders ana is prompted solely by the sell
fish purpose OF making a profit at the
expense of the assured as a result OF
bringing about such change. The rights
and interests Of the policyholder are IN
variably Of secondary Importance to the
agent advising such action
No additional dollar OF protection is
added 10 the line Of assurance which the
policyholder has for the benefit Of his de-
pendents
fg of nf
or beneficial work throughout this whole
procedure and we most respectfully beg
that YOU will give this subject OF such
vital Importance your consideration and
attention with a view 10 suggesting. II
possible some reform or some correction
or what at present constitutes so serious
an evil In life assurance.
The News Is the medium through which
bto storee oesrI.I