The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1918-11-22
IT. s. TO LAUNCH GREATEST
INSURANCE co. IN WORLD

Washington, Nov. 13.-Preparation
by the government for reinsuring
the lives of soldiers and sailors on
their return have been FASTENED by
the signing of the armistice. AL
though regulations have not yet been
fully drafted, it is certain that each
of the 4,25O,O0O men in the military
or naval service now holding volun-
tary government insurance will be
permitted within five years afte,
peace is declared to convert it with
out further medical examination in
to ordinary life, Encouragement life
endowment maturing at the age OF
62 or other prescribed forms of in
surance.
At Reduced Cost.
This insurance will be arranged by
the government ard the cost is ex-
pected to be at least one-fourth less
than similar forms offered by pri-
vate agencies. The low cost will re-
suit from the fact that the govern
ment will pay all overhead admins
tration epexnses which for private
companies amounts to about II per
cent of premium rights and will save
the usual solicitation fees and in adj
dition bear the risk resulting from
the wounding Or weakening of men
while in the service. Private COM
panies would not write. insurance on
many wounded men, or their rates
would be unusually high.
Details of Plan
The government will arrange to
collect premiums monthly or for
longer periods in advance. This may
be done through postofices. The
maximum amount of insurance to be
issued probably will be $1,000 and
the maximum $4,000, with any
amount between those sums in null
tiples of $500. There will be iprovi-
sion for payments in case Of diSabili-
ty as well as death, according to
the tentative plan. The insurance
may be purchased by any soldier,
sailor Or marine, officer or enlisted
man and by women members of the
army or navy nurse corps, providing
they already hold government vo1un-
tary life insurance. About 95 per
cent of the 4,5O0,00O men in the SER
vice are covered by this insurance
which expires after they go back to
civilian life and cease paying premi-
ums. This is the system devised to
replace the old pension plan of pro-
viding for ex-soldiers and sailors.
Greatest Insurance Co. In World
Thus will be created out of the
governments emergency war insur-
ance bureau the greatest life insur-
ance institution in the world for
peace times, with more policy hold
ers and greater aggregate risks than
half dozen Of the worlds biggest
private companies combined. Out of
the experience gained may eventual
~ develop expansion of government
insurance TO old age, industrial and
other forms of insurance in the opin-
ION OF officers who studied the sub,
ject. Regulations for re-insuring re-
turning soldiers and sailors are being
framed by an advisory board to the
military and naval section of the war
risk bureau consisting of Arthur
Hunter, aetuary Of the New York
Life Insurance Co.; w. A. Fraser,
Omaha, OF the Wcodmen of the
World, and F. Robertson Jones of the
Workmens Compensation Publicity
Bureau, New York.
Other Provisions
Plans also are under consideration
Tor allowing benefciaries of men
who have died or been killed in the
service to choose between taking
monthly payments over a period Of
twenty years or to commute these
payments In a lump sum.