Evening star., 1934-07-08
INSURANCE BODY
AIDS MANY HERE
{. R. A. Bureau Assists 343
Persons in ReinStating
Lapsed Policies.

IelleI Tolls nave Den eHdUleu W Sdi-
wage and have reinstated insurance
policies having face value of ap-
proximately $4,000, according tc
A M. Schwarz. supervisor of this
phase of the boards activities.
"Only bona -fide clients on the Dis
trictS relief rolls are entitled 10 this
service" Schwarz declared. ''our prob
lem being to fit or adjust the insur-
ance problems of the client to his
budget needs. In numerous instances
we have been able to save policies
that were in arrears. In other cases.
through the cooperation of the in
surance companies, we have been able
to effect settlements to defray burial
and hospital expenses for policy
holders who thought their policies
had lapsed and were worthless"
Definite Need Filled.
This service for needy persons was
inaugurated about four years ago by
Edwin G. Eklund, director of the Lite
Insurance Adjustment Bureau OF New
York. and was made possible through
the efforts of the three companies
writing the bulk of the industrial in
surance policies. Relief agencies in
all metropolitan centerS are now
utilizing the facilities of the bureau
and, according to Elwood Street, di-
rector of Public Welfare, it fills a
long-felt need in the District of Co.
lumbia.
Schwarz joined the Board of Pub
lie Welfare following many years ex-
perience in actuarial work for various
insurance companies and is recog
niZed authority on insurance as it
affects family relationships. He is a
native of Dayton, Ohio, and has re-
sided in the District for seven years.
Many interesting problems come
into our office daily" Schwarz stated,
leach presenting a different story,
though all tell Of misfortunes that
have befallen the client. In nearly
every case the loss of a job and sub
Sequent hardshipS have resulted IN the
failure to meet premium payments.
Through ignorance or failure to realize
that something could be salvaged in
the way of paid-up insurance or cash
surrender clauses, the policy-holder
neglects to protect his interests, thus
our work.
Typical Case Is Cited.
"As a case in point" Schwarz con-
tinued, I'VE recently were instrument
tai in securing relief for a family in
the Southeast who had lost a child,
but had no money for burial expenses.
Upon investigation it was discovered
that several policies were held by the
family, but that in every instance they
had lapsed beyond the reinstatement
period
However, through the cooperation
of the company, we were able to have
the accrued values of the various
policies computed. Considering the
stress of circumstances in this par
ticular case, the company waived the
clause voiding the policies and per-
mitted a cash settlement. With this
money the family was able to pur-
chase a lot in local cemetery and
bury the child"
Another client in the Southwest
presented an entirely different prob
lem," Schwarz related, when follow
ing a severe illness of several months
he was unable to return to his job
with local firm. Forced to seek re-
lief from the Board of Welfare he
explained that his employer had
taken out a group insurance policy
covering him several years before, but
payments on this policy, as well as
other smaller policies, were all in
arrears.
Settlement Arranged.
after contracting his former en-
ployer and the insurance company we
arranged settlement under the group
policy that netted the client $500. His
former employer agreed TO advance
him $50 for immediate necessities and
pay the remainder over a period of
three months, pending his settlement
with the insurance company"
Another case concerned head
waiter at a local restaurant who was
forced on the relief rolls following
the loss of his job. He had a policy
that lapSed for a period of two and
a half years. but he brought it in
with the hope that he might recover
something or get the insurance re-
instated.
1t was found that the policy had
cash surrender value of S18658, or a
paid-up insurance value of approx
mately S225. AS the client was
urgently in need of funds, he accepted
the cash settlement, which was OBJ
tained and distributed as follows:
500 was placed as a survival account
in bank so that funds would be
available for burial expenses; $40 was
used to reinState his Wife'S policy and
pay the premiums for some time in
advance, and the S76.58 remaining
was used to pay pressing debts and
for purchasing proper clothes that
would allow him to seek his former
position as head waiter.
Home Saved by Deal.
One client who had received aid
from the Home Owners Loan Cor
poration to prevent foreclosure of a
mortgage on his home found himself
$500 short of the $4.400 necessary for
IeIIldIlClIlR. cAdlIllIldClOIl VI dll III
surance policies in the family by the
insurance advisory bureau and an ex-
PLANTATION of the property difficulty to
the insurance company resulted in
an agreement by the company to loan
the client approximately $3.50. When
this check is received, an effort will
be made to bring the arrears on the
home down to sum where the re-
financing can be completed. The al
rangement with the insurance CON-
pany did not lessen the protection on
the family.
The advisory bureau has been able
in several instances to aid clients who
were buying their home through build
ing and loan associations, but who
were forced by economic conditions to
allow payments to lapse. Adjustments
of policies to save the home and pay
the amount in arrears, thus forestall-
-.