The Washington times., 1931-06-03
P0LICYHOLDERS
WARNED Of
'TWSTER'
White -CoIlared Bandit PreyS
on Ignorance OF Insurance
Owner, Hiding in Secrecy
BY FRANK F. LOOMS

BY FRANK +. LOOM1S
Part Of a recent report of tn
Chicago Better Business Burea
that will interest not only insui
ance men, but all life insuranc
policy holders follows:
"The protection life inSur.
ance provides is not duplicated
In any way. Before one con-
siders investments of any kind
the basic protection offered by
life insurance is advocated by
bankers, economists and other
intelligent men.
The amount of life inSur.
ance in this country is increas.
ing by billions annually. The
ever-inCreaSing general interest
in life insurance has attracted
to the profession of life insur-
ance selling many serious
minded men and women who
see in the selling of life in
surance an opportunity of rem.
dering real service as we'll as
engaging in a profitable vOca-
GiOn.
Reserves Explained
Life insurance reserves is
the accumulation, at interest,
Of the net premiums from
which the cost of insurance is
deducted annually. IT is the
factor which has made level
premium life inSurane possible.
These reserves constitute a
sinking fund and belong at all
times to the pOlicyhOlder.
Another type Of person has
been attracted to the field of
life insuranCe-and while this
class Is relatively small it has
and is doing financial injury to
many individuals now insured.
This class is known in insurace
circles as "twisterS."
"The twiSter' never works for
the insured. Regardless of his
assurances to his victim to the
contrary, the twister Is inter.
ested in himself only and the
profit he makes from any deal.
"His first request is to an
Slyze the policies held by his
victim. His interest in the
policies is primarily In the re-
serves and how he can manipu.
late them to his own financial
advantage. In q life insurance
contract, the insured usually
requires ascertainabIe property
rights.
White COlIared Bandit
"The cash surrender value
(which is the reServeS) as well
Is paid up insurance value and
perhaps other interests under
the policy increase or fluctuate
with the age Of the policy.
"The twister by misrepre-
sentatiOn, by withholding per
tinent information, by faulty
comparison or by other decep-
tiOn, and by depending on the
fact that most people have lit
tie knowledge Of the fundamen.
tails Of insurance, usually pre-
sentS an analysis Of his victims
present insurance supplemented
by . plan calling for liquida-
tiOn or cashing in Of existing
pOliCieS-WhiCh, depending on
the age and type Of policy,
varies in amount, and further
supplemented by q program for
new insurance in another com.
pany.
"The twister is, in fact, a
white cOllared bandit who
s0licitS and obtains the con-
fidence Of his client, turning it
to his own profit at a distinct
loss to his client. .%
"TwiSters get their pay in
one Of two ways. Always they
get the commission from the
new insurance. Some, who
are unusually greedy, supple
ment this by extracting from
the insured q percentage Of the
cash surrender values received
from the policies which are
dropped.
Badge Is Secrecy
"The badge of the twister is
his desire for secrecy - his
warning that his proposition
not be discussed with the com.
panies who sold the insurance
which is to be dropped.
"NO reputable life insurance
company will knowingly accept
business from a twiSter. ANY
proposition calling for an ex-
change Of policies should bear
mp under the most careful
scrutiny and examination and
should be submitted to COM
petent authoritative sources for
inspection before being acted
upon"
The benefits of group insur
ance are being increaSingl!
recognized by American industr!
as shown in the comparison O.
group death claims paid by ont
Of our large life insurance com
panies over the years. In tn,
less than 20 years that the plal
of group insurance has been il
existence the amount of tn
average claim has increased morC
than $1,000.