Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-02
Local Superintendent Attacks
"TWisters" in Address Be-
fore Underwriters.
DEPL ORES STIMULATION
OF WELL KNOWN NAMES
Gays Remedy Should Be Devised to
Stop Practice in Public
Interest.
BY EDWARD C. STONE.

fwisterS'' Of life insurance policies,
Herbert L. Davis, superintendent of in
surance in the District, is seeking bet
ter protection for all policyholders in
Washington.
In an address before the managers
section Of the District Underwriters
Association Mr.. Davis discussed various
forms Of refined deviltry' in the insur-
ance business and urged the fullest pos
sible cooperation in the prevention of
losses. In attacking life insurance
"twisters" he said:
Many INSCRIPTIONS ways and means
are adopted in various jurisdictions in
cident to twisting life insurance pol
1cieS, combined with various forms of
refined deviltry. A twister indulging in
these pernicious practices, wherein he
endeavors to disSatisfy a policyholder
in company which early attained and
is steAdfastly maintaining high stand
ards, has only one purpoSe-perSonal
profit or gain by his deliberate misrep-
reservations The twister aims to dis
satisfy polieyholder with his present
protection in order that policy of an
other company may be substituted in
lieu OF a policy Of established value.
Policyholders Sufferers.
Twisting Is frequently accompanied
by innuendoes against the company in
which the policyholder is insured. It
is one of the most reprehensible acts
OF which an agent may be guilty. The
agent who adopts such methods of max
ing sales OF insurance should have no
standing among reputable insurance
men.
The policyholder is the one who
ultimately suffers the greatest loss If
he submits to his policies being twisted.
Every honest, straightforward life in
surance man knows that every person
insured in a safe and sound company
should be encouraged to keep his policy
In full force and effect. primarily for
the following reasons:
Because the premiums are based on
the age at the time protection was
procured, and the same protection can
not be had at as low a cost at a
materially later date because of in
creased age.
"a definite financial value attaches
to the premiums already paid. a
holder may lose by dropping the
original policy.
He may be unable to pass the
requisite medical examination for the
insurance that is being offered by the
tWister. # any change Is desired or
required in his protection, the policy
holder will find that the company
which originally insured him is his best
friend and protector.
Would Avoid Heavy Losses.
'Let me suggest that you gentlemen
take up the matter of forewarning your
policyholders against the professional
twister. He will first endeavor to dis
satisfy your clients and policyholders.
Ask your policyholders to carefully ana
lyZe the salient points and encourage
them to submit to the agency directors
Of the respective companies in which
they may have insurance all outstand-
ing features presented by the twister.
Also encourage your policyholder5 and
clients to come directly to you,
stressing the point that no Intermediary
ID needful. Almost irreparable loss
WOULD be avoided if policyholderS would
take this course of action Immediately
npon being approached by twister.
There Is another subject which is
Of vital interest. I refer to the prac-
tice Of unauthorized persons, firms, cor
porations and associations Stimulating
the company names OF insurance COM
panieS that have established reputa-
lions for honor and integrity. With
the entire world to choose from, it
6GGInS bLldL t1tc dPpAOPAAooAOAA va NOAA~
pany names, either identical or SO de-
ceptively similar as to mislead the
public, should be remedied.
Pirating of Names Scored.
UNFORTUNATELY the Federal trade
mark acts do not protect insurance
companies In their company names, in
surance companies being designated as
service corportionS' in distinction to
As-,a- 70 nfN q aH
selling merchandise in interstate COM
nerce. However, this situation needs
effective treatment, and it is hoped that
each and every agent will give that
subject thoughtful consideration with
the view of strengthening the hands Of
those who are DESTROYS of preventing a
continuance of the practice of diverting
insurance business through misrepre-
Sentation, combined with fraudulent In
tent, in pirating insurance company
names" Mr.. Davis concluded.
Financial District Notes.
Bertram Chesternan, president OF
the Morris Plan Bank of Washington,
Is due back at his desk tomorrow after
. two-month tour of Europe.
The recent Treasury offering Of $780,
900 900 in 91-day bills resulted in APP
plications for more than 1921 ,000, 900
6I1u LIlG Va pOoSOVVSVOVs
Directors of McCrory Stores Corpora
ton declared the regular quarterly divi-
dend of SO cents per share on the COM
mon and class B common stocks, pay
able September to hslders OF record
August 20.
The American Security & Trust Co.
now plans to move into its elaborate
new banking quarters early in Septem-
Der, Labor day being the date set in or
der to prevent any Interruption to bust
ness. Remodeling of the present bank
will be started at that time.