The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1929-12-28
The Government in Insurance

The Government IN insurance
Az 4 legacy Of the World war. the United States sun
conducts ono OF tho biggest insurance businesses III 'Ec
world. This is due to the conversion OF their wartime
insurance BY service men. The result has been 'hat
october 81 tho government had outstanding on It's vet
crans bureau insurance rolls a total OF 6i94l7 policies.
III dividends shared by tho polcyholdcrs. there has been
paid out through the bureau more than s23ooo,oOo'
The potential value OF these policies. it is announced.
is s3O56l 1877. 1863. On these policies the government mas
received. all told. a little over $427,l7i.Oo9. At .hc present
time the bureau is paying on 1896 claims, incluohA3
those arising from deaths in the war.
So successful has been this experiment that the gov
crnnncnt expects to pay out still larger dlvidenas 10 INC
policyholdcrs. 1t has proved a good venture for the gov
eminent and for the veterans. For the latter ~ mas
provided as cheap insurance as could be got anywhere.
Tho policics offered arc similar to those offered BY
commercial companies. The forms are 2O-payncnt NE
ordinary life, 3O-payment life, Cougar endowment, ~
yeor endowment. endowment at 3. ana lfeycI IL
ycrtiblc term insurance. Without any appropriations
that could be used for this purpose the government mas
never been able to conduct a selling campaign as 2 COM
mercial company would carry it on.
IN 1917 and 1919. the United States called about $780,
600 OF It's citizens to military service. The call was one
thrt carried unusual risks. Commercial companies would
not meet the extra hazard Of war without a large increase
in premiums. For practical purposes. the soldiers ana
sailors were uninsurablc, the premiums being beyond the
means OF tho enlisted men.
So tho federal government decided to provide insur-
ancc for the service men. Insurance was ISSUED Ill
cmounts up to SO 900 at a few dollars a year per thousand
The insurance was not mandatory, but officers did every
thing in their power to induce the men under their COM
mand to take advantage OF the protection.
The premiums were deducted from the pay OF inc o.
fccr5 and men. Regiments We'd with regiments ~ tHs
total Insurance taken out and division With division.
livery division had its insurance officer. and armed Win
complete information about tho government insurance
pcliccs, these officers sold" their divisions, just as the
agents OF q private insurance company sells" his clients.
rev soldiers and sailors refused to avail themselves OF
the protection thus given SO chearly. The government
paid all the costs OF administration. all tho overhead
and the term insurance granted during the war 70 me
arlny and the navy cost the government more thah
ST. 800. 100000 III excess Of the amount II received ~
premiums.
Then came tho armisticc. and the soldiers and sailors
returned to civil life. The government, however. decided
10 continue its insurance business for the benefit OF the
cx.scryice men, and the Veterans bureau worked OUT q
scientific plan for tho conversion Of the wartime Insult
ancc. There was ono difference, however. between It's
ourations in peace and It's operations in war.
In peace the insurance business was 10 be orgallizcd
In such q way that it would pay for itself, with TIC exceP-
ton that the government paid the administrative costs
otherwise, the business was put on q commercial basis
Premiums were to be sufficient to take care OF tho c.
pected mortality and reserves were to De bullt up 70
sover claims for death and disability.
Congress amended the World War veterans act III
1898. extending indefinitely the period III which applica
tious could be filed for government policies by those ell
titled to them. The privilege had expired OH july =
1927. except for new entrants into the service-that IS
men Ia the Regular Army and Navy and cadets at West
Point and Annapolis. III tho few months just bctore
the expiration Of the original time limit, more tlaa
so 600 ex-service men had filed applications.
Under the law as amended by congress III 1923, the IN
surance rights Of the cx-service man are clearly defined
He can choose among seven forms OF policies against
death or permanent total disability. re may take out 9
policy for 1000 or $4,000. or for any multiple Of $500 be-
tween those two sums. But to get insurance now. tho
e~x.aeryice man must supply satisfactory evidence OF
good health.
He cannot take out q policy larger than $4,000. Il nc
already has Q policy from the government Of $4,000 lie
can apply for enough additional insurance to bring Inc
total to the 10000 maximum. The final requirement
Is that he must have served III the military or naval
! forces Of the United States between April lG, 1917, and
Juy 2, 1921.