The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-05-27

dustrial life insurance companies is a
poorly paid worker indeed. Certainly
his weekly earnings are less than
those received by the semi-skilled
worker in the factory or mill.
What he lacks in pay, the compan-
les try to make up for in tickling
his susceptibility to flattery. Medals
and honor pins are awarded him for
years "of faithful service" or for high
standards of insurance production. In
spite of the bits of bronze and nickel
which a few proudly wear the average
weekly wage is not over S35.
The system under which the indus
trial insurance agent works makes it
impossible for him to be absolutely
honest with his pohcyholders. If the
agent is overwhelmed by a surge Of
honesty he soon learns that fair-deal-
ing works to his economic disadvan-
tage.
The increase of his collection debit
through additions Of new policies is
one of the large factors upon which
depend the amount of his special sal
airy. And as he is continually being
fined for lapsed business he finds him
self in the position of a man who is
bailing out a sinking boat. He must
bail faster in order to keep afloat.
Increases Field Of Graft
The system compels the agent, if
he is to retain his job, not only to
write new policies (which under the
present economic order is sometimes
justifiable act) but he must replace
the lapsed policies with new ones be-
for he receives a dollar in salary for
his work.
When one remembers that last year
the big Four" lapsed over six mil
lion industrial policies the bailing pro-
cess must be fast one to earn a
living at it.
Must Pay Til Death.
tbs fear of lapsed policy causes
the agent to lie and misrepresent the
true facts regarding the proposed
lapsed policy. For examples, policies
issued prior to 1907 with most COM
panies have no cash surrender value.
The policy must be paid on until
death The holder of such a policy,
and there are millions of them in
force, cannot receive a dollar of his
deposits back irrespective of the des-
perate straits in which he might find
himself. In reply to questions regard
ing the advisability of maintaining
such a policy in force the agent IN
variably replies in the affirmative.
In other cases when an industrial
policy has been in force for but few
months or so and the insured feels
that he would like change to a pol
icy embodying less murderous rates,
self-interest dictates to the agent that
such a policy must not be lapsed.
In the light of such conditions his
position is not an enviable one. He
must do the company's bidding or get
out. And get out he does; so much
so that that yearly labor turnover
with the big Four" is over 500, an
unusually high rate.
Many Fail
The abolition of the "lapse and
charge" system will, of course, relieve
the agent of the embarrassing role he
now plays as scapegoat for the in
suranee plunderbund
How is this possible in the face Of
the organized opposition on the part
Of these billion dollar corporations?
First the insuring public must be
acquainted with the fact that their
mutual" companies are perpetuating
system whereby the defrauding of
the public must continue indefinitely.
Second the agents themselves must
organize into protective unions and
carry on a militant fight against the
exploitation of their members and the
defrauding Of the public.
When the forty million policyhold-
ers realize that the fight is not only
for better wages and working con-
ditions for the agent but is being
waged also for lower rates and for a
really cooperative control of the bust
ness, it will not be long before the