New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-22

It would be working a wrong the policyholder If
the agents Of conservative companies were de-
prived Of the right 10 break into existing monop-
olies
Tt seems TO me that q law against twisting
would be largely Of interest 10 the agents. said
member Of the committee 10 a Tribune reporter
yesterday. The cry Of the need for such law
comes from them. The average -nucyholder be
lieves that he protect himself. and he is likely
10 look closely into his contracts with the
insurance companies in the future than he has In
the past
According TO one of the advocates of twisting
II had It's birth when certain companies threw off
the garb Of conservatism and employed TO
travel the country for the sole purpose OF
placing old policies with large reserves for new
contracts The second stage came with the pay
n1ent of enormous first year commissions. bonuses
and brokerages. and the indirect encouragement OF
rebating. When the insured paid only 10 per
cent OF the first premium 100000 policies, these
advocates declare, twisting evolved to its
full completion.
II was in these years that from s1soooooo to &c.
100000 Of new 'business' was annually secured"
in this city by the potent twist OF E. 10 or Is per
cent Of the first premium This led the practice
Of changing companies every year until the medical
examiners found impairment Then the risk be
came permanent business, and twisting frac-
tons OF the first premium ended, so far that par
ticuar person was concerned
The present stage Of twisting is due to the
study which polcyholders have given life insurance
since the internal dispute IN the Equitable set them
thinking They have heard that rebate policies
are void, and that the large rebates Of the first
year will be many times made up TO the company
IN smaller dividends if the policy is continued IN
force They are looking for conservatism and
willing TO lose in premiums already paid TO obtain
it The agents Of these conservative companies
declare that they will fight any law which will de-
clare hands of forever after the first premium has
been paid
The subject is taken up in a statement prepared
by John D. Bristol. Of the Metropolitan Life In
surance Company, in which he answers tho Ques-
ton. What Constitutes Justifable 'Tw1st'9' as
follows:
The substitution for any healthy risk of a policy
panes for any policy in any racns copa9v mot
TOO Inany years IN force TO clearly Justify the
lust and rper Cbarees exSt to ia 10 K ~Gy
Just SO long there IS widely marked and con-
tnued difference IN the dividends OF companies on
perience Where the OBJECT Of one me9aFen1snt Is
mere volume and the chief efforts Of the other
management are continually put forth for the
ducuon OF the c?st Of life insurance, these differ
wise Is 70 nuke t!e absuTd statement that The cost
q slInler policies in all companies is Identical.
companies have IN hundreds Of Instances given true
histories in detail OF the cost OF these policies
ing periods Of many years. These histories show
an enormous excess Of cost in the policies Of the
these companies must face from the long contin-
ued effects Of the second and third stages Of twist
ing detailed IN this letter and the necessarily higher
cost OF their policy contracts in the future viii
JUSTIFY the twisting of thousands of nv
every way honest and honorable men. And these
men believe 10 be the noblest missionaries in
the Held OF true life insurance
Forms OF insurance other than life are beginning
TO take alarm as the demand for reform les1sIa
ton is sweeping over the country. An effort is be-
ing made to form organization OF the surety
and liability agents in the United States A call
for an initial meeting has been sent from Dem
yer, n which 1t is declared.
We must organize e we wish to protect our Gus
toners, companies and ourselves against the
obnoxious laws which Will enacted in the future
by ignorant politicians playing the galleries and
IN answer 70 the harangue of the daily papers for
national supervision OF insurance We have ma
uonal supervision OF banks which does not super
wise. We know that the politician has no regard
Tor me indiViduaI but has wonderful respect for
organization. The national association OF fire in
EuraLce agents has been able make MANY i'm
prove'nents In existing laws. and there has bean
no obnoxious legislation passed since its organ
izadon, except in Arkansas,
The report that George ". Beavers who has
been eight times Indicted for postal frauds ana
who will likely stand trial shortly ii washinR ton
was member oe the Ny1ic the ssui-secrst or
gaSization OF extremely successful agents Of tba
orK Life Insurance Company, denied
I yesterday by New-York members of that associe-
non LII beavers was for d time connected with
tae tArk ROW branch OF the company, but he re-
signed several months ago He was not with the
Nyllo order - 140