Evening capital news. (Boise, Idaho) 1901-1927, 1919-05-05
Director Hyatt Issues State
ment Explaining Government
and Legal Reserve Company
Insurance.
MISTAKE IS CORRECTED
Makes it Clear That Depend
ency Does Not Have to Be
Proved By Beneficiaries
Named in Policies.

Director of Insurance w. r. Hyatt
furnishes some interesting facts re-
garding the government war risk in
surance. He reports that while his
department is not officially assigned
any duty in connection with the ad-
ministratlon OF this insurance many
citizens select 1t as bureau for in
formation concerning its application to
them and their friends, and that in
order to be of the greatest possible
self on the subject.
Much uncertainty seems to prevail
in the minds of many regarding this
insurance, and those interested should
take occasion to thoroughly post
themselves regarding their rights and
duties" said Director Hyatt. Con
siderable confusion prevails as to the
rights of beneficiaries under these poll
icies and some have gained the i'm
preston that they must prove depen-
dcncy In order to be entitled to pay
ments. This Is an erroneous impress
sion due to a. confusion of the insur-
ance and compensation provisions of
the act Of congress OF October g. 1917.
and to mistaken assumption that
the terms insurance. and 'compensa-
ton are used Interchangeable, where
as they represent entirely separate
and distinct benefits.
Insurance is payable regardless of
any dependency and q beneficiary des-
ignated in an application for govern
ment insurance is entitled to receive
the insurance in monthly installments
without proving any dependency upon
the assured.
HOW ISSUED
THE policies were originally issued
as term insurance at term rates ,eX-
piring in five years, which is the low
est form of insurance issued. and I'M
less they are now converted into one
of the other forms of insurance offered
by the government they will expire in
five years and the insured will be
without further protection and will
possibly be unable to pass the neces-
sary medical examination TO enttle
them to secure protection. In order
ito prevent this the government has
wisely extended the privilege to con-
vert these policies without further
medical examination into whole life,
limited pay life or endowment insur-
ance, and will accept the premium
payments. The least expensive Of
these policies Is the whole life, the
most expensive being the endowment,
and between the two is the limited
pay life policies.
''On the whole life form the insured
nnSt fha ic
life; on the limited pay life form for
20 or so years, as he may select, after
which his insurance will continue dur
Ing the remainder of his life, but he
will not be required to pay any more
premiums; on the endowment policies
he will pay the premium for 90 or 30
years, as he may select, Just the same
as in the case. of the limited pay life
just described; but at the end of that
period the government will pay him,
IL living, the face of the policy in
monthly installments. In the event of
his death under any of the forms de-
scribed the government will pay his
beneficiary the face of the policy in
monthly instalments.
LEGAL RESERVE COMPANIES.
"All of the legal reserve companies
have been writing all of these various
forms of policies for number of years
at but n trifle more than charged by
the government. their rates ranging
from 10 cents to 81 or IS per $1,000
more per annum, depending upon the
company and the form of policy Sc
lected. In view of the fact that the
government Is not required to pay any
a0Ant'a G SinnS pnllao
charge, and explicitly states that the
rates it quotes are net and all admin
istration expenses are born by the
government through taxation and