The daily worker., 1927-05-25

automatically disappear.
In order to effect this divorce it is
first necessary for him to rebel
against the "fine system" which the
Big Four" employ in paying salar
les and commissions
In ordinary insurance, that is to
say, in that form of insurance where
the premium is payable annually,
quarterly or monthly, the unit Of cal
culation is 81, 900 or multiples there
of. Thus, in referring to ordinary in
surance policies one says that the
policy is for one, two, five or ten
thousands dollars as the case may be.
Tag 1t by Profit Rate.
With industrial insurance the prem
ium is the unit. For example the rol-
icy is referred 10 as a twenty-five
cent, fifty cent or a dollar policy.
AS far as the company is concerned
the weekly premium is the unit of
Identification.
When an agent assumes a cOllec-
tion route he is not only instructed
to collect his debit and maintain
the business in force ON his books but
in order to make living wage he
must write new business, both in
dustrial and ordinary.
S2i Wages a Week
For the collection of his weekly
debit he receives u per cent of the
money collected. The average debit
or route is in the neighborhood of
5000 and the commission for the col
lection is therefore about $24 per
week
The method which the big Four"
use IL paving industrial commissions
is so harsh and cynical in its opera
ton that it IS difficult for the layman
10 understand how group Of en-
plcves could tolerate it without open
revolt.
Pas Tor New Prey.
Let us assume shat the ave~7ge
agent writes q dollar a week in rew
industrial weekly premium. AS re-
enumeration therefore the company
allows as commission 2S times the
weekly premium If the agent writes
one dollar in premium lis commits
sion is S28; if he writes g his COM
mission is $50 and 90 or
As the collection salary does not
pay the agent enough to maintain
himself and his family in a decent
manner he is compelled to solicit new
business.
Fine For Lapses.
But against this commission IS
charged all business which lapses. If
during the week that the agent wrote
one dollar in new business SOC Of old
business lapses he only receives COM
mission on the increase" Of business
on his book, which in this case would
be fifty cents. In this manner he
actually receives payment on Ealf
the work he does.
For every dollar of old weekly
premium which lapses on the agents
book he is charged $2S and this fine
is deductable from his weekly salary
Consequently, there is a remunera-
tive sword Of Damocles hanging over
his head and he must resort to all
manner Of specious devices to main
tain his business on his books.
If the premium on a weekly pay
ment policy is not paid for four weeks
it lapses and the original commits
sion paid is charged to the lapsing
agent, irrespective Of how long the
policy has been in force.
Let us take the case of fifty cent
endowment policy which has been in
force for nine years. When that pol
icy was written, the writing agent
received his Especial salary" Dur
ing the nine years the insured has
paid in 1924, because he cannot pay
any longer he forfeits this cash, and
in addition the company fines the
lapsing agent S14. Not only does the
polieyholder lose his deposits but the
agent suffers as well. The "Big
Four" play no favorites when they
swindle
Fines Total Up.
Last year the four weekly prem
ium insurance companies lapsed
nearly Ia billions of dollars in in
surance. Most of this business was
in force under three years. Allow
ing 81 Of weekly premium to each
thousand dollars of insurance this
yneaus that the gixtv odd thousand