Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-19
Average of Commissions Paid.

Average OF commissions FatQ.
The recent investigation has shown that
although 30 or 30 per cent of the first
years premium, on policies go TO general
or local agents the average of all pre-
miums paid to agents Is not more than
10 per cent, and that Is considered only
fair compensation. Certain practices of
paying advances and other favoritisms in
the treatment OF agents will be stopped
and In most cases has already been stop
ped. 1t is contended by the critics that
all insurance companies are too anxious
TO get business and that they have of
fered too great inducements: and that the
rewards TO agents have been unjust to
policyholders. One of the ablest insur-
ance men in this city, in discussing the
question of expense in securing new busi-
ness. said;
The growth OF American life insurance
and the corresponding spread of It's benefits
are directly due to the energy and persist
ence of local solicitors And in the consider
alton of this subject, we must admit that
the laborer is always worthy Of his hire and
that in the insurance business he is doing
good work for the community as we'll as
for himself and the company he represents
That abuses have crep. into the system
is undeniable, but II Is certain that all
reputable companies will willingly cooper
ate in any feasible plan whereby the eX-
pense OF securing new business can be re-
duced without interfering with that healthy
growth which is essential to pernanence
and welfare. Any legislation which can be
so framed as to limit commissions without
doing injustice TO the agents will also be
welcome. The British companies many of
which have no solicitors. are far behind the
American companies In the volume of busi-
ness and to that extent their usefulness has
been limited. 1t is undeniably true that the
public have to be educated as to the bene-
fits OF Insurance; that the masses of the
people do not appreciate them sufficiently
! lie
would be possible for the companies to
survive without employing agents or with
out Offering inducements for securing new
business, | question whether the economy
would be justified. because we believe that
life insurance is a good thing, and a neces-
sary thing; that 1t Is the duty of every man
to provide for the future of his family. and
that IL is the duty OF the people who are
in the business to convince him that It
should be done
Question of Lower Premiums.
The same gentleman discussed the CUES
ton of reduced premiums with similar can
dor. His relations do not allow him to be
quoted He is perfectly certain that there
might be reduction OF s or o per cent in
premiums without affecting the ultimate
security OF the company. but conditions
are so liable TO change that he considers it
more prudent to decrease the cost of In
surance by increasing the dividends rather
| IMAM py CukliuS uoNh iAc W eiHiAitiSt aho lie
| is confident that the recent discipline which
| has been administered to the great COM
| panies viii convince the present manage
ment that they should regard the rights
and interests OF pollcyholders as paramount
| to every other question and that future div
| idends will be as large is consistent
with safety.
| The rates now charged by American COM
panies are a trifie lower than those of the
| French and German companies. The aver
| age premium on an ordinary life policy is
/ sued at the age of thirty-five tn the United
! States u s2SI per 81 600. The same policy