The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-16
SMALL POLICYHOLDERS HURT.
SCANDALS LED THEM TO GIVE UP
THEIR INSURANCE.

or Those Who Were Frightened Out OF the
Equitable 81 Per Cent. We're Insured
for 81 900 or Less Offers OF Rein
statement Are Meeting With Success.
The new management OF the Equitable
Life Assurance Society through its. efforts
to restore the policies which were allowed
to lapse in the last year has discovered
that it was the small policyholder who
suffered most from the fear inspired in the
long period of scandals.
1t has found that the agitation Of the
last year resulted in the lapsing Of 27,SS5
policies for 81 600 or under in the Equitable
Life. OF the total number of lapsed policies
in that institution "a per cent. were for
. 1900 or less. Only one policy for $25o,o 900
was allowed to lapse.
The new management of the Equitable
lie doing everything that it can to reinstate
the p~olicyholders who allowed their con-
tracts to lapse. President Paul Morton
announced recently that the society would
renew the lapsed contracts of the last year
on the same footing as they were when
discontinued, provided the premiums for
the intervening time were paid up and
the former p~olicyholders were able to pass
q satisfactory physical examination.
The management Of the Equitable re-
ports that tho response to this proposition
has been most encouraging and indicates
beyond a doubt a strengthening of con-
fderce In life insurance affairs. In the
last ten days the management of the Equi-
table has, il is said. received more than
1000 applications for reinstatement at the
home Office. Many others are applying
to the society's agents throughout the
country. On an average the applications
are coming in al the rate of 200 a day.
Commenting oil the result Of his efforts
to restore the standing OF lapsed policy.
holders, President Morton said,
My belief that the small policyholder
was the chief sufferer from the agitation
and excitement regarding life insurance
is now confirmed. The holders of policies
of s. 600 and upward are generally men Of
business experience, they recognized the
strength of the companies and were not
disturbed. but there was q great deal OF
alarm among the holders of small policies.
Through fear. Iva sed on misrepresentation
of The real facts and often on Inisrepre-
senta ton, thousands of them allowed their
policies to lapse.
Il felt that many would wish to return
after the entire solvency of the society
had been demonstrated by the report Of
the chartered accountants, and we have
made il az easy as possible for them to come
back. Everything about the society's con
dition has now been made public; all of the
assets it claims to hold with which to meet
its obligations are intact and they nave been
revalued on a conservative basis. showing
the exact conditions as they eAist at the
present moment.
1T has been clearly demonstrated that
Equitable policyholderS need have no
further apprehension but that on the con-
trarv they have every reason to be con
ndent Of the safety and value of their in
vestments with the society, Thu present
managemen of the society is determined
to conduct it's affairs for the best interests
of the policyholders and with such economy
that insurance will hereafter be furnished
at a minimum cost