Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-01
June INSURANCE
BUSINESS LARGE
Greatest Drive for Life Poll
cies Just Wound Up.
Sales Enormous.

Special Dispatch to The Star.
NEW YORK, July 1.-The greatest
drive for the sale of life insurance in
the history of this country has just
wound up. Not all the life insurance
companies Joined in this drive. but
agents of those companies which did
not were forced to strenuous efforts
In order to prevent competitors from
taking the business away from them
The special inducement offered by
some companies was the Willingness
to write additional insurance during
the month of June without additional
medical examinations for those al
ready holding policies In their con-
Germs.
Two decades ago such a proposal
would have been turned down by
nearly every careful insurance exc
cutive in the country. The risk would
have been considered too great. But
health protection and the mode OF
living in the United States have bet
tered to such an extent that such a
proposal is no longer regarded as even
verging on the unsafe.
Amount Can't BE Determined.
The exact amount of new life insur-
ance business written in June cannot
vet be determined Policies have been
written for a total ranging around
billion and quarter dollars. but the
premiums have not been paid on all
these, step which is necessary TO
make them effective.
In some instances these premiums
will not be paid. This Is one or the
sore spots of the insurance business.
Agents are prone to have pohcles
written on a chance rather than on a
definite assurance from the prospect:
It costs Just double as much IN cierlcai
and bookkeeping expense to write a
policy which is not accepted as 10
write one which is. In the first case
the policy not only has to be written
and entered. but il has to be Cancelled
and removed from the books. 1t is
sure. however, that more than a Dill
lion dollars of actual business was
written in the last month.
There are today. according to 1nsur.
ance men here, between IS 900 900 ana
100, 000, 900 life insurance policies IN
force in a population of approximately
liz. 900 900 people These policies as
sure to their beneficiaries the payment
Of s70.O 10000 From these figures
1t Is evident that insurance has De
come a reinsurance business rather
than a struggle to convince new
prospects of the value of insurance.
This applies to fire, accident, inert
weather and other risks as we'll as ire
Agents say that not a little OF the
new business written Is due to the In
crease in costs OF inheritance taxes.
administration costs, burial expenses
and doctors fees. The public, they
say. has commenced to realize TO
what an extent these factors cut into
the volume of an estate.
Accident and Liability Policies.
The trend toward automobile trans
portation has done wonders for the
accident. liability and theft insurance
lines. One company has on its DOCKS
automobile liability and damage in
surance totaling more than SIT ,SOO,-
600 Greatly increased attention mas
been given earthquake risks by West
ern insurance interests during the
past six months. The Santa barbara
disaster last year wakened by IN
surance and business men to the dan
ger from this source. Under pressure
from the banks the fallen building
clause is being erased from fire poll
cies covering Industrial and office
structures. This clause relieved IN.
surance companies of responsibility II
the building were destroyed as re
suit of partial or complete collapse
The word earthquake was not men
toned, but was understood as the
only probable cause. The Western
banks are now insisting this clause
he eliminated before mortgage loans
are approved This has increased pre-
miums materially.
Fire and automobile collision rates
in some sections are being sharply re.
duced. This is due to better municipal
fire protection and careful driving,
which in some districts has reduced
accidents Is to 20 per cent.