Evening star., 1924-07-14
INSURANCE DRIVES
PILE UP BUSINESS
Auto Protection Policies Lift
TotaIs-Heavy Demand
for Annuities Noted.
BY j. c. ROYLE.

Special Dispatch to The Star.
NEW YORK, July 14.-The June
and July drives of the life insurance
companies this year have produced
unprecedented results. The business
of the life insurance companies of the
United States has doubled in the last
ten years and the percentage Of in
crease has been more than maintained
so far in 1924. The heavy volume of
building has brought about CORE
spending increases in fire insurance,
while the increase in the use of auto
mobiles has brought a tremendously
augmented business to the theft, ac-
cident and liability men.
The practice of insuring executives
for large sums by big business con-
Germs has become more common and
/, the million dollar life policy no longer
is unusual. Now that the presidential
candidates have been named, it is
probable that policies for large sums
will be taken out on their lives by
bettorS who are preparing to risk
large sums until after the November
elections. 1t has never been the pol
icy of the political parties or their
national committees to insure candi-
dates.
Move to Dodge Taxes.
One notable development in the
insurance field in the last year has
been the increased number of annu-
ties purchased Many men of
large wealth and, beyond middle life
2re turning to this form of invest
ment, undoubtedly Is a result of the
heavy income tax payments entalled
by other investments. Annuities
paid by insurance companies are free
rom income tax until the beneficiary
hall have received in such payments
The amount which the annuity policy
costs.
In purchasing such an annuity the
buyer. of course, releases all title to
he principal, but an income tax
amount paid back to him exceeds
the cost of the policy. Many OF
these annuities are being taken out
for the joint benefit of husband and
hxed sum annually while either or
both are alive.
Group Insurance Booming.
Group insurance has been OF
extraordinary volume in the last six
months. Many large corporations
have insured their employees. and IN
ether instances men of similar occu-
nation or interests have oanoeo 70,
rether to obtain such protection. An
instance is the recent group lnsur-
nee Man worked out for employees
IN the New York stock Exchange:
whereby the employees pay part or
.he expense and the eNchanS, the
remainder.
The Improvement in the volume OF
business done by insurance COM
panies has been accompanled 'pF d
marked increase in the numpeI OF
organizations. There are but few
companies which have not doubled
their clerical forces in the last ten
years and that expansion is stlll go
, ing on.
Policies Issued to Prospects.
There are several reasons for this
besides the normal increase in the
number of policies issued one is the
habit of having policies issued to
prospects before the latter have
agreed to accept them and pay the
initial premium. Agents frequently
do this in the hope of closing a re
luctant prospect, but the cost of Is,
suing such policies, with the clerical
work necessary to cancel them when
they are returned. is large Item
in the expenses Of some concerns.
The increase in clerical employment
in the fire, accident, theft and in
demnity fields has been even more
marked than in life insurance, since
policies in companies specializing in
those forms of insurance are reWrlt-
ten far more frequently than in life
companies.
Make Enormous Investments.
The Improvement in the insurance
business has had a strong effect on
the industrial and commercial situa-
tion of the country, for the putting
out of money by insurance companies
is as important a part of their op-
\ eration as the getting in of money.
Insurance companies are buying and
selling more bonds than the banks
Of the country, and their funds in
building, real estate, bonds and other
forms of investment are instrumental
in providing capital for multitudinous
manufacturing, commercial and trade
activities.