Los Angeles herald., 1906-12-29
Important Announcement
of the
Metropolitan Life Insurance Co.

What is in many respects the most in
forming and significant paper issued by
any life insurance company during the
present year has just appeared over the
signature of John R. Hegeman, president
or the Metropolitan Life. While the com
munication is addressed to the company s
agents, and is in the nature of review
and announcement covering matters
chiefly interesting to the field force, 1t
deserves attentive reading by every one
who holds or intends to secure life in
surance policy.
1t appears that the Metropolitan Life
has for some time been engaged in the
preparation of new mortality tables
based upon it's own experience. By COM
pariSon of given periods in recent years
with corresponding periods in former
years, back to 1890, the fact is established
that among the company's policyholders
there has been sufficient improvement in
mortality Chat is, smaller average Of
deaths at various ages) to warrant certain
changes affecting future premiums and
benefits, all directly in the interest of
those insured in the company. With char
acteristic thoroughness and frankness
these results and changes are specified in
minute detail not put forth as 'esti-
mates" or vague promises.
Their significance to the insuring public
is reduction in the price of insurance IN
the industrial department, and through
readjustment of rates of commissions
to agents, a reduction of premium
charged in the ordinary department.
Concerning the policies to be issued in
1907 this information is given:
"Our new policies will be found most
attractive in form and even more attrac-
tive in substance. They contain all Of
the advantages and concessions which we
can afford to give and which the public
have the right to expect. The surrender
values will be found to be generous and
take the optional forms of extended in
surance, paid-up insurance and cash.
They are the standard forms of the New
York department, the work of experts
which has legislative approval. They are
as plain to the understanding as they can
be made. We have discontinued many
ordinary life, limited payment, endow-
ment and term plans, and we have ap-
piled for permission and hope to issue III
addition three plans tSa, which the public
namely, the optional life or endowment,
unler a new name, the modified endow-
ment with life option, the guaranteed
dividend also under a new and more
descriptive name, Inc guaranteed in
creased endowment; and the reduced
premium life under its new name, life
with reduced premium after 20 years"
One noteworthy passage relates to the
companyS liberal policy of distributing
dividends and benefits not contemplated
in its contracts with policyholders.
President Hegeman asks his agents to
note that this year the company
has been disbursing the enormous sum
of about two millions of dollars in Volun-
tary dividends upon participating
| industrial policies, bringing the total
amount of unpromised dividends in twelve
| years to about ten millions of dollars to
| industrial policyholders In the form of
dividends on premiums, dividends on
death claims and increases of benefits
upon existing policies" He adds: I'VE
have been enabled to accomplish this
| work all these years by steady improve
ments in business methods, by steady ex-
| tensions of business territory, by steady
additions to insurance in force, by watch
| fulness in writing and taking care of
dnnraA
| rate, decreasing lapse rate and decreasing
| expense rate These improvements we
| have announced to you from year to year,
| but perhaps from this very fact-thelr
| failed to grasp their full significance. Yet
year by year we have told you our aim
| to reduce expenses to Improve the death
| rate, to better the policies, to distribute
| the surplus. so that each year larger
proportionate amount could be returned TO
| policyholders and smaller proportionate
| amount used In expenses"
He goes on to say that although the
| year Is not ended, the records show from
| July to date (Dec. u that the company 5
increase of Industrial business exceeded
| the increase of any previous year with
| the exception of two, that In the ordinary
| life department the business of September
| equaled that of September, 1905, while
| October and November showed large in
record breaker" Further ne says;
| Taking the last six months for com
parison-June TO November inclusive
| you wrote more ordinary than ever was
! written by the company In the eorre-
/ spending months, and exceeded 1865 by
over six millions and half and this It
must be remembered by more than 1000
Other matters discussed in the an
| nouncement are no less interesting than
those referred 10 IN this brief review, The
| tiOnal and timely contribution TO insur-
ance literature.