The Washington times., 1917-05-04

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To the Editor of THE TIMES:
The following editorial appeared
in your issue of Sunday, April 20:
THE country owes a debt to Charlie:
F. Nesbit, commissioner of insurance
for the District OF Columbia, for his
effective protest against the scheme
of the life insurance companies tC
charge the soldiers of the country
an extra premium of 500 per thou
sand. whenever they were ordered tc
the front.
THE scheme gave the companies the
virtual right to cancel these policies
since it would have been impossible
for most soldiers to raise the extra
premium required, often on short
notice. II was not a patriotic plan
10 say the least OF ii.
THE compromise adopted applies
only to soldiers securing life insur'
ance policies after the declaration of
war and applies when mobilization
is effected. The added premium is
reduced to $3.50 a thousand"
This statement probably Tefers to
supervising insurance officials and e
committee representing the life in
| surance companies of the United
States, which met in New York on
Friday of last week, for the purpose
of endeavoring to standardize the
conditions to be placed in all life
policies governing war service.
Preceding the declaration of war
between the United States and Ger
many, there were several life insur-
ance companies that wrote insurance
for the army and navy at standard
rates, without restrictions or condi-
tions as to residence, travel, or occu-
patton from date OF issue. Such
policies, issued prior to April ;. re-
main in full force and effect, without
extra premium for war service, and
may be considered a tribute to the
wisdom and forethought of those who
filled their lamps when the oil OF
liberality was running freely.
Following the said declaration OF
war, and preceding the meeting Of
the committees referred to above,
The Travellers Insurance Company.
OF Hartford, Conn, which for ten
years or more has done a large por-
tion OF the insurance business on of
ficers OF the army and navy. attach
ed a war clause to policies giving
a free permit to engage in war ser
vice in the United States forty
eight States and Alaska, the insular
possessions and Panama, and trans
portation between these points-only
reserving the right to charge 500
per thousand per snnum on policies
issued to members or an expedition
AIRY force ordered to war service in
foreign country: which. OF course.
at the present time. means duty on
the battlefieIds of Europe. After five
years from date of policy no war
extra to be charged.
This arrangement was adopted for
the purpose OF protecting the com
pany and its polcynolders against
excessive casualticN due to war sHrv
ice. and was probably fair solution
OF the problem that now confronts
the insurance companies. One hun
dred dollars per 81 900 for war serV
ice in foreign countries may be eN
cessive. but all will agree that onC
who fights on the battlefield under
modern war conditions should pay
higher rate for insurance than one
who is engaged in a civil occupation
or remains remote from the scene Of
battle
n
the committees referred to. OF which
Mr.. Scsbit was member and who
participated in its proceedings, a ten.
tative agreement was entered int"
and recommended for adoption by all
American life companies. to the effect
that any person now engaged in the
military or naval service. or who may
subsequently, volunteer or be drafted.
be subjected to an extra premium Of
at least 1880 per thousand per an
num- to be paid Immediately on enter
ing the service or in thirty. one DAYS
thereafter. whether tho policyholdcr
was ordered to foreign territory or
remained in camp or barracks within
the continental limits OF tho United
States. AS stated above, tho minimum
extra was to he So 80 per Thousand
per annum: there was no maximum
decided upon or oven recommended.
Furthermore. as a result OF III. de
liberation Of these committees, or
which Mr.. Nesbit was a member. the
limit Of insurance on one in the mil
itary service, or who might hereafter
volunteer or he drafted. was placed nj
81 600. whereas previously the com
panies were willing to issue $4,000
on single risk.
As field representative of one of
the companies doing army and navy
business, have for ten years or
more exerted nav utmost efforts To
obtain for officers Of the army and
navy Insurance at rates that would
be satisfactory and unrestricted ~
to residence, travel and occupation
from date of issue under all circum
stances, either in peace or war. In
this cndcavor, ] believe I have met
with a measure Of success. Even af
ter the declaration Of war. and M
to the time OF the meeting of the
representing the super
visinR insurance officials and the life
insurance companies. rates and plans
were in fairly satisfactory condi-
tion, which will now he completely
upset by the action taken last Friday.
II tho recommendations made are TO
be adopted by the various life insur-
ance companies.
Judging by past results. sincerely
hope the country "ilI consider its
debt to Charles T.. Nesbit. Insurance
Commissioner OF the District OF Co
lumbia. as fully paid. and that he will
not feel called upon to be party To
any committee making further recon-
to life insurance compa-
nies in order to assist the said com
panies in solving their problems and
fixing their rates on members of the
United States army and navy
S. l.. FICkLEN.