Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1919-10-30
N. Y. LIFE ORDERED
To SHOW CAUSE IN
METHOD PRACT|CED

Why the license of the New York
Life Insurance company to do bust
ness in Arizona should not be revoked
is the sense of an order issued by the
state corporation commission yester-
day. Hearing has been set for 10
o'clock the morning of Nov. Is. The
commission bases its contention upon
a blank an applicant fills out and a
pamphlet issued to attract prospects.
The order states: 1--WE believe that
the method of solicitation is
inimical to the public welfare and in
conflict with the provisions of the
law and that it should be
prohibited"
Following is the clause in the ap-
plication blank which prospective APP
phcants are alleged to be required to
execute and also the paragraph in the
pamphlet said to be issued by the in
surance company:
II agree as follows: l. That the
insurance h,-eby applied for shall not
take effect unless the first premium
is paid and the policy is delivered to
and received by me during my life
time and good health, and that unless
otherwise agreed in writing the policy
shall then relate back to and take eff
feet as of the date of this application.
2. That any payment made by me be-
fore delivery of the policy to, and its
receipt by me. as aforesaid shall be
binding on the company only in ac-
cordance with the terms of the COM
pany, a receipt therefor on the receipt
form which is attached to this applica-
ton and contains the terms of the
agreement under which said payment
has been made and is the only receipt
the agent is authorized to give for
such payment. 3. That only the presi-
dent, vice-president, a second vice
president, secretary or the treasury
OF the company can make, modify or
discharge contracts, or waive any of
the company's rights or requirements
and that none of these acts can be
done by the agent taking this appli-
cation"
In pamphlet issued by the said
New York Life Insurance company en-
titled Advantages of annual dividend
limited payment life policies, there
appears the following paragraph:
The cost of these advantages and
OF the greater cash value. than under
the ordinary life policy, being all laid
upon the early years of the policy, al.
lows the operation of the principle Of
compound interest to the great ad-
vantage of the injured. This, under g
2O-payment life policy, taken at any
age under Al, it is impossible ever t.
pay in premiums the face of the policy
and yet the policy is good for its fac,
in case Of death from the moment tn,
first premium is paid"
Good for Its Face"
The above quotation" the order o
the corporation commission saws. 81
VIII be observed. contains a definit,
ana positive declaration that tn
policy is good for its face in case o
death from the moment the premium
is paid. The agents of the compan-
nave made use of this promise in tn
soliciting OF business and doubles
nave secured a great deal of insuranc
thereby 1t appears, however, that il
the settlement of claims the compaD-
has elected to disregard and repudiat
this promise and that thereby it oc
cupies the position of having secure,
business by false representation"
1T is therefore ordered. that New
york Life Insurance company be, an
1t is hereby required to appeared at tn
office of the commission, at the capitc
building. in Phoenix, Arizona. at 1
o'clock a m, November IS, 1919, the
and there to show cause. if any Their
be, why its license to transact bust
ness in the state of Arizona should no
be cancelled or revoked for the rea
sons hereinbefore- stated.
/
ut is further ordered, that said Ney
York Life Insurance company sho,
cause, if any there be, why, in tn
event it is permitted to continue bust
ness in Arizona the objectional pro
visions contained in it's application
which IL requires its policy holders t
execute should not be eliminated"