Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-02-17

the mail, however, there is no
way the mans commander can
screen the policy or, In most
instances. prevent him from
authorizing the Army to deduct
the premiums from his pay.
The lack of direct controls
over mail order insurance were
acknowledged by Leslie v. Dix,
chairman Of the Defense
Departments Life Insurance
Board. He said the services
have adopted roughly the same
controls over insurance sold
in the United States as is
exercised by the States (in-
surance is, In general, exempt
from Federal regulation except
in areas where no State has
jurisdiction. He added:
TITS a question Of how far
you should go in protecting
the serviceman In his own
personal affairs. In the case
Of the new inductee, we do
owe a high degree of protec-
ton and take a deep interest. :"
Mail BOmbards Officers
Defense Department reg
ulations require that enlisted
men In the lowest three ranks
must be counseled before any
allotment for life insurance is
authorized. This consists of
general advice on insurance.
The services do not favor or
recommend q particular policy
or company.
Officers stationed in this
area report that they are
bombarded with insurance So
licitations in the mail. Some
companies have run applica-
ton forms in unofficial service
publications as advertisements.
Il get three or four pieces a
week." one Air Force captain
said. 1T all goes in the waste
basket"
No complaints have come to
the attention of the services
concerning this type of mail |
solicitation. The complaints
have concerned literature sent
to the parents.
Most Of the questionable
literature that has come to the
attention of the Army has been
from newer companies in the
Southwest, an Army spokesman
said.
Some Firms Licensed
Insurance regulatory officials
in the District, Maryland and
Virginia report they have occa-
sionally received inquiries on
literature mailed to parents Of
servicemen. If asked advice,
they recommend against the
purchase Of insurance from any
company. mail order or agent,
that is not licensed to do busi-
ness within their jurisdiction.
Some Of the mail order COM
panies doing business with the
military are licensed in only a
few States. They only have to
be licensed in the States where
their headquarters are located
to do business anywhere in the I
United States. Is
Mail order insurance adver-
Using was defended by Harry {
j. Maginnis, president OF the !
Associated Third Glass Of Mail :
Users this way:
ITS the only type Of adver-
Using you go to jail for II you !
lie" He was referring to the
fact that post office regulations
carry stiff penalties for the
mailing Of fraudulent literature. !
Chief Inspector H. B. Mon ,
tague Of the post office said
that he did not know OF ANY
case Of an insurance company
using the mails to defraud its
customers" but that postal
inspectors have nothing to do
with regulating advertising.
The post office has to prove
the advertiser has mo inten-
ton Of furnishing what they
say they will furnish" he said
In order to obtain fraud con-
viction. "If we figure 1t is not
actually a scheme to defraud,
that 1t is done through ignor-
ance Of the law, we call It to
the advertisers attention, and
they voluntarily change the lit
erature."
Millions In Policies Sold
Another defense Of mail or
der insurance advertising was
given by A. Avis Layne, jr., a
local attorney representing the
Association Of Insurance Ad-
vertisers. About IL Of its IS
members rely primarily on mail
solicitations. he said. and the
association imposes rigid
standards Of honest advertising
on Its members.
How much insurance is sold
to military persons through the
mails is not known. but the
total commercial insurance
premiums paid by allotments
in one service alone (the Army
was running at an annual rate
OF S75 million last April.
This represents policies with
total face values OF several hun
dred million dollars, and this
figure is Just for companies
with more than 200 soldier ac-
counts. How much In addition
is sold TO parents is not known.
Meanwhile, the Defense De-
partment is awaiting the first
FTC action against mail order
companies. We're Just as anx-
iouS 10 end complaints (from
parents) about misrepresenta-
ton as they are" Mr.. Dix said.
Stevenson Receives
AwnPd re- pp;nnakon