The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-06
COOLIDGE ON
S|DEL|NES IN
100000 SUIT
st. Louis Insurance Man to
Ask Balm of Company,
Despite Apology.
TESTS TERM POLICIES
Salesman Fights for Right
to Sell Replacement
Life Risk.

By Scripps-HoiOGrd Newspaper Alliance
ST. LOUIS, April 6. - Calvin
Coolidge's apology and his $4,000
check will not halt the plans Of
Lewis B. Tebbetts, st. Louis insur-
ance man, to justify in the courts
his advocacy of term" insurance to
replace present ordinary life and
endowment policies.
Tebbetts. through his lawyer,
Thursday is scheduled to open for
maliy his suit against the New York
Life Insurance Company. Coolidge's
employer, in Coolidge's home town
of Northampton, Mass, by filing
bill of complaint asking 100000
damages.
In consequence of Coolidge's
apology for his radio speech on
"twister" insurance statesmen, which
TebbettS took to apply to him, al
though he was not named, the suit
will be modified to eliminate the
former President as defendant.
Summons were made on both Cool
idge and the company after the
speech.
Knew Nothing of Controversy
Il had no knowledge of the con-
troversy relating to the plan of in
surance you are advocating" Coo
lidge said in his letter. In his radio
speech of last October, which led
to the filing of the original suit,
Coolidge was quoted as saying:
Beware of the so-callled 'twister'
and 'abstractor' or any agent who
offers to save money for you by re-
placing your policy in another
company"
AS far as Tebbetts is concerned,
however, the insurance controversy
is fight against the present poll
cieS of insurance companies. He
has filed a number of other law
suits which explain his contention.
One suit, against the Lincoln Ma
tional Life Insurance Company, FIT.
Wayne, Ind, for which he was a
sub-agent until 1929, charges that
company with refusing to write
more than $1,0O0,000 in "emanci-
pator" policies, form of term in
surance," which Tebbetts had sold.
Cheaper Form of Insurance
Term insurance" is cheaper than
other forms, because it carries no
investment or endowment feature.
Tebbetts asked $4,000 damages
and $4,000 alleged commissions on
these sales.
In 1880, the following year, he
brought suit against thirty-one in
Surance companies operating in ST.
Louis, asking 100000 damages, and
charging the companies rejected
business offered by him.
His contention, as brought out
in pamphlets cited in this suit, was
that term policies and annuity pol
icies were separately more desirable
than the endowment policies, which
combine features of protection and
investment.
He asserted also that the United
States Chamber of Commerce in
Surance committee joined in the at
tack upon him, through a bulletin
entitled Shall I Exchange My Old
Life Insurance for New?" He did
not name the chamber as defend
ant.
UphOlds His Practices
Stratford L. Morton, st. Louis in
surance man, in statement, denied
allegations of this suit, asserting
that committee Of insurance men,
after investigation, found TebbettS'
methods of selling, rather than the
term insurance" policies he pro-
posed, were Objectionable.
Then Tebbetts filed another suit
against seven insurance companies,
asking 100000 damages and alleg-
ing they caused him to lose his
means of livelihood through brand
ing him a "twiSter."
His contention on So-called twist
ing" is that it is not unethical to
persuade policy holders to exchange
old policies for new ones, provided
there is no misrepresentation.
Glad to Aid Coolidge
The state insurance department
has a rule against twisting" but
in the case of Ray Prewitt last year,
in which misrepresentation was not
involved, Circuit Judge Stillwell of
Cole county directed that his Ii
cense be restored. This virtually
overturned the rule in cases not
involving misrepresentation.
AS to Coolidge's radio talk, Teb-
belts said the ex-PreSident'S action
is justification for me-" He said
he understood Coolidge had nothing
to do with writing of the speech.
II was glad to let him off be-
cause he had been President and be-
cause he wrote me such a gentle
manly letter" Tebbetts said But
I'll go ahead against the company
on the merits of the thing"