New-York tribune., 1907-06-27
MUTUAL RESERVE PLAN
PAYMENT OF CLAIMS.
Mast Be Prompt, if They Are Right,
Saus President HaNnes.

AS his first official act since ne assumed the
presidency of the Mutual Reserve. Archibald G.
Haynes sent a letter TO the board Of directors
yesterday recommending new and broad poll
icy in settling death claims, as foreshadowed
exclusively in Saturdays Tribune. As the prln-
Cipal aim Of the drastic system or retfehCh-
ment started by the new management ana IN
view of the allegations that the Mutual Re-
serves former policy to death claims mas
been perhaps the heaviest blot on It's escutch-
con- insurance men regard the enunclauon OF
the new settled policy as the most far reactlii's
reform attempted in this company Tor many
years Mr Haynes closes his letter as folloWs-
II therefore recommend that this company place
itself on record from this date II is ana VIII
be the settled policy of the company. In lts con-
sderation and treatment OF death claims. 20 CON con.
slider pass upon and pay all claims at the eaI!est
practicable after their presentation resisting
none except where II clearly appears that Ihere iS
been fraud or speculation. and then only upon tAe
cIearest proof. 1t being the desire and purpose OF
the company 70 give the benefit OF every legitimate
doubt to the beneficiaries under poiic'es "'''O 4
become death claims. . a.
Il am prepared to unqualhedly recommend 10
yolr board the cutting of OF all expenses OF every
kind maintained by this company 1or the pU5p s,
of compromising or resisting the payment OF uee -.
claims EXCEPT. OF course tne oeIeie1 oEs,. T-he
which are obviously and clearly fraudulehI- nc
law win Mt no time countenanCe fraud. ana wheIe
insurance has been obtained by fraud honoraoIe
pocyholders would not wish us or any other COM
pany to use their money for the payment Oh SUCH
claims"
In the same letter President Haynes an
nOunCed that within the next Ie" "cohN' i4O -
peCted 10 be able TO make recommendations thGt
would reduce administrative expenses stili iur-
ther. ,.
The board at its meeting unanimously
ednDtsd these recommendations and passed a
resolution authorizing Mr. Haynes ito make
suCh reorganization of the claims department
and department OF revision. as in his Judgment
will best conduCe TO the carrying out or the
recommendations made by him.
Mr. HAYNES told the board of the Importance
of deciding on plans 10 obtain "a larger amount
Of new business upon carefully selected lines AT
rroper expense" adding that nothing was
more essential 10 the permanent advantage OF
policyholders.
PolicyhoIders and insurance men alike await
the practical demonstration of Mr.. Haynes's pol
icy with keen interest. Meanwhile. tho an
nouncemeut that hereafter this Will be the set
tied policy" Of the company. and the company
going on record to this effect, are regarded as
further indications that the new administration
is IN earnest 1t is said. indeed. that Mr.
HAYNES. realizing this weakness in the company.
made the institution of new claims payment
policy a condition of his acceptance OF the presl-
dency a month or two ago.
II IS estimated that the adoption OF the new
poltcv as a settled institution means an IN
creased outlay TO the company of between $780,
600 and 5000 600 n year. II is believed however,
that the decreased counsel fees and inVestiga-
tors salaries as the result of the policy ard the
general plan Of retrenChment, will moro than
compensate for this outlay. setting aside the
largely Increased business looked for as the
ultimate outcome