The Washington herald., 1909-06-20
Many Ingenious Meth
ods Used by Sharpers
to Oatwit Inspectors.
New York Law Will
Aid Detectives.

"s6 COMPANIES anu AAAC4A kRAAAAAAAA oA4NAANr
knowing that his policy will take care OF
his family Such contracts are no longer
issued by any OF the leading companies.
The last Of the large concerns that for
merly took no oficial notice OF self-de-
struction fell in line the other day From
now on every policy that it issues VIII
contain a suicide clause. Such contracts
become void provided the insured end
their own lives within year says the
New York Times.
There Is an interesting story back Of
this. Indeed. It Is possible that II It had
not been for the suicide OF a New York
bank teller several years ago at ths psy-
moment ali OF the great com
panies would now be occupying a posi-
tion on the suicide question precisely op-
posite the one they have taken.
The New York manager OF one Of the
largest four companies was IN the bank
IN which his concern required him to de-
posit its funds when a teller approached
him.
You are a fine insurance man." said
the teller in bantering mood. You have
been coming in here for three years. yet
you have never asked me 80 take out in
surance."
The manager apologized as best he
could and offered TO make proper amends
for his misconduct
AL right" said the teller, you can
write me I'd for $4,000 whole life. non
participating.
The applicant passed the medical OK
animation and the policy was issued The
manager delivered II in person. and the
teller. before paying the premium. care
fully read the contract from beginning 10
end.
4 see you have a suicide clause in
this" he said. It's not good II I kin
myself within a year"
Yes" replied the manager; that's the
way al Of our policies read However.
that wouldn't make any difference 20
you"
No: know it wouldn't" said the tel
Ter. I don't expect ever 70 commit sui
eide. but have a prejudice against a
contract Of any sort that contains the
slightest qualification I might die a nat
ural death in circumstances that would
cAEEteA EAlIA0E- anu y ~ 1AAN4AQ 7 kdA4AN
such a chance OF bringing trouble upon
my heirs when there are plenty OF other
companies that viii issue absolutely IN
conditional policies?"
The manager happened 20 know that
his company for some time had been con
sidering the advisabniJy OF eliminating
the suicide clause from al OF lts new con-
tracts. He did not know that Il had been
rra cffca1lv Gpcidn9 n do c0
I'll tell you what I'll do ne said 20
the banker. "I'n take this policy back TO
the home Office and see II they viii not
cut out the suicide clause. They may
charge you an extra premium, but II viii
not be much.
The home Office was quite willing TO
eliminate the objectionable feature. but
before 1t could do so something happened.
Exposure was a little nearer 20 the bank
er's heels than he had figured, and he
didn't have time 10 wait for the new pol
icy. Telephoning 20 his wife in Brook
lyn. he asked her 70 come over 10 New
York 10 dinner and meet a friend OF the
family from out OF town As soon as his
wife started for New York he took a car
A0A ID AOh4g H. ke-s1EAAAe A4CE Nl+ AA4E y GN s
Arrived at his home. he collected his in
surance policies, amounting 10 S6Q000. and
put them on his wife's dresser. together
with a note in which he informed her
that by the time she reached home he
would be dead. Then he went 70 Sleeps
head Bay and drowned himself, and the
rext day it was discovered that he was
an embezzler in a large sum.
a day or two after this happened. %
said an Official OF the company that was
about TO raise the bars against suicides.
A New York paper printed an editorial
On the subject that set US all 10 thinking.
The question was raised whether an in
surance company had a moral right 10
issue a policy without a suicide clause
II was argued that q man who had
wrecked his own life and saw exposure
and a long prison sentence Just ahead
might reason TO himself IKE this: I've
played the game and lost Ny family
have lost with me. I can't save myself
from disgrace nor can save my family:
but by insur.ng my life and killing my
self 1 can save my family from poverty
Up 70 this time" continued the irsur-
ance official. "our company had consid-
cred suicides purely from the actuarial
point OF view. Our records showed that
the percentage of policy holders who end
ed their lives the first year was too small
tc outweigh the advantages that might
be derived from advertising absolutely in
cOnteStable policies. But the newspaper
editorial threw a new light OF the sub
5ect. The company saw that. IN certain
circumstances. the ability to get an in
might become the deciding factor in IA
vor Of self-destruction- So the one-year
limit was retained. and now the last Of
the big companies has come over to our
side. It's not that there mas been an
alarming increase in suicides; the compa-
nies have simply realized that il Is
against public policy 10 issue a contract
that with a pistol shot can be instantly
converted into cash"
But not every man who defrauds a life
insurance company takes his own life.
Proceeding from the simple TO the COM
plex. It may be said that understatement
OF age is perhaps the most primitive sort
of fraud that policy holders practice. The
lower the age the smaller, Of course. the
annual premium. Some applicants for in
surance lie for their own benefit. but this
sort Of deception is usually practiced by
mercenary children who having exceed
iagly aged parents, see in their impending
death an opportunity to enrich them
selves. Here is a Typical case:
A claim adjuster was called 10 the home
OF Dutch family in New Jersey to make
a settlement An old woman who carried
a policy for few hundred dollars had
died Her daughter. the beneficiary was
TO conduct the negotiations.
This claim is all right" said the ad-
juster, except for the fact that the age
Is given as seventy-two I think that is
q mistake. I want some proof OF her ex-
act age"
He Was firmly infnrrnad that thara haa