Book',-^f Coipght}^"_ COPYRIGHT DEPOSIT. Industrial Life Insurance ITS HISTORY, STATISTICS AND PLANS ALSO HINTS TO INDUSTRIAL AGENTS Price, $2.00, Leather Bound 1905 THE SPECTATOR COMPANY 135 William Street, New York LIBRARY of CONGRESS Two Copies Received MAR 17 1906 ^Copyright Entry ^ CLASS (X. AXd. No. COPY B. Copyright, igos, by The Spectator Company New York PREFACE THE business of Industrial Life Insurance has grown to immense proportions in this country, and while conferring inestimable benefits upon the working classes generally, gives employment to many thousands of persons. Most of these are silent workers, who, by house-to-house visits, spread the knowledge of life insurance benefits among those who are most in need of them. The companies doing this class of business have poured millions upon millions of dollars into the laps of the working men and women of the country at the time of their greatest need, when death had visited the family and removed some loved one. The com- panies have grown in magnitude as the character of their business became better understood, until they are now classed among the most substantial and trustworthy of our financial institutions. This publication is issued with the hope that it will prove a valuable aid to the field workers in Industrial Insurance, helping them in the work of education that they are pursuing, and at the same time prove helpful and instructive to them by giving them hints and sug- gestions as to the manner of conducting their canvass for business. To new beginners the work will be found replete with hints gathered from the experience of veteran solicitors, which, if heeded, cannot fail to contribute to the success of their efforts to build up a large and profitable business. These "Hints to Agents" have heretofore been printed, with numerous others, in the columns of The Spectator, which devotes much space to the subject of Industrial Insurance. It is at the request of many superintendents and assistant superintendents that these "Hints" are published in book form for permanent preservation and reference. Hoping that the work will meet with favor at the hands of the industrial army of workers, and that it may prove of value to them, we send it forth with the cordial greetings of THE SPECTATOR COMPANY. New York, April, 1905. SUMMARY OF CONTENTS Page Relation of Life Insurance to the Business World.. 9 The First Industrial Insurance Company 13 Insurance for the Working Classes 18 Industrial vs. Ordinary Insurance 22 Various Forms of Policies 27 Insurance of Children 35 Lapsing of Policies 4i Industrial Field Workers 5^ Official Record of Industrial Companies 59 Amount Insured and Premiums 65 Industrial Policy Forms 7° Hints to Agents 79-164 Art of Canvassing. Making Collections. Some Things to Avoid. Honor Lists, etc. Assistant Superintendents and Agents. Seasons and Weather. Systematize Your Business. Starting Right. Promotion Open to All. Opportunity for Development. Individuality and Devotion to Business. How to Prevent Lapses. INDUSTRIAL LIFE INSURANCE RELATION OF LIFE INSURANCE TO THE BUSINESS WORLD If it were possible to eliminate the great system of insurance from the business world there would ensue such a financial cataclysm as has never yet been seen. There is not a department of modem Insurance industry, whether it be manufacture, an Essential n ^ Factor commerce or finance, that does not depend almost wholly upon insurance for its stability. Marine insurance, the original form of the system, protects not only the vessels which carry the goods of a nation to all parts of the world, but also the goods themselves. Fire insurance in part makes good the loss occasioned by the destructive element of fire, and in its various ramifications covers all incidental losses, such as the loss of rents on the real property destroyed, and the profits which would have accrued had there been no stoppage of business caused by fire. The various branches of miscellaneous insurance have now been extended so as to cover practically every contingency of modem business and social life, with the result that whatever cannot be predicted with absolute certainty may be insured against. By this system the fidelity of employees is guaranteed, so that any loss 10 occasioned by defalcation is made up in whole or in part ; bonds required of contractors for the faithful carrying out of their undertakings, or by the courts to insure the faithful administration of trusts, no matter what their nature, are now issued by insurance companies; the employer of labor, who is under the law held responsible for the effects of any accident happening to his work- men, while engaged in their usual vocations, whether in the factory or away from it, transfers the risk to the insurance companies for a consideration termed the premium; the merchant whose business requires the extension of credit to his customers can insure himself against any excessive losses by bad debts, and thus rest easy in the thought that no matter what misfortunes overtake his customers his profits will suffer no material diminution; losses by burglary or theft can be made good by this same system, and so it is possible to go on and enumerate the various forms of property loss all of which can be covered through the medium of an insur- ance policy. As new conditions arise, the system of insurance is found capable of adjusting itself to them so soon as an adequate amount of experience can be had, on which to base an average. Thus far reference has only been had to property losses, but the great bulk of the contributions of the inhabitants of the world for insurance is made for per- sonal protection. An accident happen- Personal j^g to an individual is as much a source Protection r ■, . ^ ■ r • • ^ • Guaranteed of loss to him as a lire occurring m his place of business, while sickness not only, in most cases, entails loss of salary, but also causes additional expense which must be met either by en- II croaching on savings or through the benefits paid under a health insurance policy. No man can afford to take upon himself the risk of loss caused by an accident, and as this fact is becoming more generally recognized the demand for personal accident insurance is steadily increasing. With one notable exception all branches of insurance provide indemnity against loss arising from unforeseen causes ; that is from causes which may or may not result in monetary loss. Fire insurance, for example, is car- ried, not because a fire is certain to occur but because it may occur. The money paid for that commodity year after year by the insured is considered a part of the necessary expenses of Uving or of business, and gives the assurance that should a loss occur more than several years' premiums will be needed to make it good. Briefly stated insurance companies gather premiums from the many to make good the losses sustained by the few. It is impossible to foretell what particular policyholder is going to suffer a loss, but it is sure that a certain pro- portion will find it necessary to call upon the companies to make good losses sustained. The one policy of insurance which is certain to be matured through the happening of the contingency insured against, is a life insurance policy. It is absolutely certain that every person must die sooner or later, and, if he is insured, the company has to pay the policy. The uncertainty in this contract relates only to the time when it shall become a claim. Of the three main branches of insurance, Hfe insurance, although now the most important, was about the last to have its importance fully recognized. Some- thing like a century and a half ago the first attempt was 12 made to insure lives on a scientific basis, and although the system has since been brought to a high state of perfection, it is worth noting that its foundation prin- ciples have never been changed, and all attempts to write life insurance in violation of those principles have resulted in failure. For about a century after the first real life insurance company had been formed the plan had been looked upon as one suitable only for those in comparatively com- fortable circumstances, and during the whole hundred years only a very small amount of of Slow^Gn)^th business had been written. The growth of the system was extremely slow, owing in large measure to the prejudice existing in the mind of the public against receiving any money indem- nity on the death of a near relative, even though that relative was the head of the family and responsible for its support. It took several generations for this view to be modified, and every agent knows that it exists to some extent to-day, although comparatively little argument is now required to offset it. If this was the case with the more enlightened portion of the general public, it would scarcely be surprising to find a similar feeling prevailing among the poorer classes. On the contrary, however, there seems to have prevailed from the earliest ages of civilized nations and peoples a desire to make some provision for, at least, the burial expenses of the artisan class. This may have had its origin in the respect for the dead inculcated as far back as the days of the early Romans, and which was partic- ularly noticeable among the peoples of Anglo-Saxon origin. In order that the dead might be decently interred 13 the Guilds, which flourished in the Middle Ages, laid particular stress upon the obligations which the members owed each other in this respect. When the Guilds were broken up and their members dispersed in the time of Henry VIII. there sprung into existence a number of Friendly Societies and burial clubs, whose objects were to carry out the more important functions fulfilled by the Guilds, that of burying the dead. Their plans, as far as any record of them exist, were of the crudest, and it was not until the system of life insurance, as introduced in the eighteenth century, had proved itself capable of making absolute provision for the families of deceased policyholders, that an attempt was made to apply its principles to the insuring of the working classes in amounts sufficient to provide funeral benefits. The first company to thus extend the benefits of life insurance on scientific principles to the working or indus- trial classes took the name of the Industrial and General, and was incorporated in the year 1849. The First Indus- Five years later the company was taken trial Insurance . . t^ -, • 1 a ^ Company over by the Prudential Assurance Cor- poration of England, and the great system of industrial insurance has been built up by the efforts and example of that corporation, so that its influence is now felt for good in nearly all the civilized countries of the world, although it has reached its highest point of perfection in English speaking countries. During the fifty years in which the Prudential of England has been practicing this plan its operations have increased to such an extent that it now has upwards of fifteen millions of industrial policies in force, and as it has confined its operations to the British Isles, it is able to 14 claim that it has one in every three of the population insured with it. In the United States the system of industrial insur- ance is of comparatively recent origin, but its growth has been on a par with the phenomenal development of the so-called ordinary life insurance companies, some of which lead the world in the magnitude of their trans- actions. Although several companies had been incor- porated in the United States during the first half of the nineteenth century to transact the business of life insurance, little real headway was made until the estab- lishment of the Mutual Life Insurance Company of New York in the year 1843. The companies previously organized either confined their transactions to particular classes, or operated other lines of business which seemed to give more chances of profit than life insurance. Following the example set by the English companies the business here was restricted to the form calling for annual, semi-annual and quarterly premiums on contracts for one thousand dollars and upwards. No effort was made for some years to provide insurance for the working classes, the very ones which stood most in need of it in order to avoid the ignominy of a pauper . burial. Owing to the fact that they Schemes for were not provided for in the scheme Workmen's In- operated by the life insurance companies SUir3.IlC6 the workingmen themselves undertook to supply the deficiency by forming co- operative societies, the idea being to provide a burial fund on the death of a member by calls for small amounts upon those living. These societies were of the crudest form and, so far from achieving the object sought, 15 became more of a menace to the general public through ^ their numerous failures, causing their members to become objects of public charity during illness and at death causing their families to become public charges. The value of industrial insurance as practiced in England, dating from a time only five years after the establishment of the first real American life insurance company, was very slow in obtaining recognition in this country. It is not to be understood that the need for life insurance among the poorer classes was not recognized by those interested in the general subject. More than one attempt was made to put into effect a scheme of life insurance calling for small amounts of premium at short intervals which would give workingmen a chance to provide absolutely secure insurance payable at death. One company as far back as 1847 offered a life insurance contract to be paid for in weekly premiums of twenty- five or fifty cents, but the plan was not popular and was speedily abandoned. In the light of the development of the weekly premium business since that time, this early failure may be laid to the fact that no provision was made for the collection of premiums each week, the insured evidently having been expected to call at the company's office with them. tC During the twenty years which followed this attempt ^ " to meet the insurance needs of the working classes for insurance the level-premium companies neglected the subject almost entirely, due no doubt to the fact that the problems of their own business, and the education of the public to its benefits required their undivided attention. As has been stated, the solving of the problem was left to the initiative of the workingmen themselves, i6 with but slight assistance from those familiar with the principles of life insurance. In the early fifties there was an attempt made to establish so-called health insur- ance companies with a view of furnishing weekly pay- ments to those disabled by sickness, coupled with a small funeral benefit in the event of death. These companies, being based on unscientific theories, did not succeed in impresvsing the public with their worth and soon disappeared, leaving their members to regret the money they had put into them. Meanwhile the imperative need of extending the benefits of the life insurance system to the masses had come to be clearly recognized, and with the boom which life insurance companies enjoyed follow- Attempts to Float j^g the close of the civil war the subject Industrial Com- . . . . ^ panics received more and more attention at the hands of those whose duties brought them in contact with life insurance. Commencing with the year 1868 efforts were made to establish life insurance companies especially for the benefit of the working classes, the cities of New York, Chicago and New Orleans being the homes of actual incorporations of this char- acter. None of these efforts however, met with any success, and the names of the companies are now but memories. It seems strange, at this time, that but little effort had been made up to the year 1868 to understand the workings of the English exponent of industrial insurance, the Prudential Assurance Corporation, and that its main feature, the payment of weekly premiums by house-to-house collection had been entirely over- looked. The idea of those who had endeavored to provide some scheme of insurance for the masses seems 17 to have been that what was wanted was cheap insur- ance, and working on that idea, nothing but failure was possible, in the same way that all plans of providing cheap insurance have since failed, to the extreme dis- appointment of those who have put their faith in them. Although efforts to establish insurance companies for the purpose of providing life insurance for the masses were renewed from time to time, nothing could be accom- plished until the essential fact was grasped that the masses must have the contracts taken to their homes or places of business and the premiums collected at the same places week by week. Singularly enough this plan was first accepted in the United States by persons outside the insurance business. In the year 1869 and subsequent years some of the regular life insurance companies entered into arrangements with outside organizations, whereby they agreed to furnish insurance to the members of such organizations at regular rates on acceptable lives. The first arrangement of this kind was made with a German society of Cincinnati, which undertook to collect from its members weekly premiums for the insurance furnished and to pay the life insurance company on a quarterly basis. Under this plan the company received neither more nor less than the regular quarterly premium, nor did it have aught to do with the collection of the premiums from the individual members. The society was a soliciting and collecting agency, while the insurance company stood in the same position to it as though it had insured the employees of a large estab- lishment, and looked to the proprietors of the establish- ment for the payment of the premium at stated intervals through the year. \ i8 INSURANCE FOR THE WORKING CLASSES In the year 187 1 there was pubhshed a paper on the subject of industrial insurance by Henry Harben, of the Prudential, of London, which served to revive interest in the subject in the United States. The paper, while ostensibly a history of the Prudential itself, went so thoroughly into the subject that it evoked the earnest attention of life insurance managers on both sides of the Atlantic. Correspondence was had with Mr. Harben on the subject by parties in the United States, and that gentleman went so far as to frame an act under which the plan could be operated and furnished the necessary forms and schedules. From that time Official Recogni- on an active propaganda was carried on f JTAhe WwMng^ looking to the establishment of a com- Classes pany which would do for the working classes of the United States what the Prudential was doing for those of England. Various plans were devised and offered to the public, meeting with apparent success for a time, but were subsequently abandoned, either because they complicated the question or failed to take cognizance of the fact that insurance for the family was demanded, in such amounts as could be purchased by a small proportion of the weekly wages of the head of the family. By the year 1874 the continued growth of the Prudential, of London, had attracted such attention that the Insurance Commissioner of Massachusetts, Hon. Julius L. Clarke, felt it incumbent upon him to 19 direct the attention of the legislature of his State to the subject through the medium of his annual report. Among other things he said: — "The term (industrial insurance) is applied with sufficient appropriateness to insurance for small amounts, supposed to be particularly adapted to the wants of persons of small means, who are engaged in various industrial pursuits. * * * Though it does not, like the old Friendly Societies, guarantee allowances in sick- ness, yet, like them it adjusts the amount of insurance to the premium paid; that is to say, instead of naming certain sums as the premiums for which it will insure the payment of ten, a hundred, or a thousand pounds at death, it offers certain amounts of insurance in return for the payment of small fixed sums each week ; such as one penny, two-pence, three-pence or four-pence, as the case may be. Like the Friendly Societies, also, the company sends its collectors from house to house and collects the premiums weekly. ****** One of the objections made to the company's mode of doing business is, that it grants insurance on the lives of young children. This was the prac- tice of the Friendly Societies, and in regard to them, also, the objection was urged that the practice held out inducements to infanticide. The managers of the Friendly Societies contended in reply, that the character of poor people is not such as entitles the objection to weight, and for the credit of human nature it is hoped they were right. They maintained further, that even if the danger existed, which they denied, it might be amply guarded against by requiring proper medical examina- tions and certificates. The contract of life insurance being unlike that covering a fire or marine risk, a con- tract of indemnity, it is not absolutely necessary that the interest in the life insured should be of a pecuniary nature. The parental relation in itself is all that is required to support the contract. Were a pecuniary 20 interest requisite, life insurance might still be properly invoked to provide against extraordinary expenses forced upon a poor man by sickness or death in his family, as well as to compensate him for the loss of aid and assist- ance derived from the services of the child. In addition to explaining the system of industrial insurance in its relation to the families of the industrial classes, as given above, Mr. Clarke also took up some of the objections which had been urged against it on the ground of heavy expenses. In this connection he said: It has also been stated that the rates charged by the Prudential upon its small policies are unreasonably high in proportion to those usually charged upon policies of large amounts. * * * It is unnecessary for our purpose to examine in detail the Company's mode of doing business, for if the prices it charges are out of proportion to the benefits it confers, the proper ratio will ere long be established by competition. As insurance commissioner for several years, Mr. Clarke had cause to note the distress caused by the failure of numerous organizations which had set out to furnish cheap insurance to the poorer classes. Accord- ingly he laid stress on the importance of companies transacting industrial insurance having ample financial strength, for the reason that The number of persons whose happiness is staked upon the solvency of institutions of the latter class is larger, and they are persons whose situation is such that the distress produced by disappointment is more cruel. The thorough exposition of the industrial insurance plan given by a person of official standing, and so emphatically endorsed by him, seemed the last step necessary to put into action the forces requisite for the 21 complete adoption of the system on lines similar to those followed for nearly a quarter of a Working Qasses century previously in England. In the agitation which preceded the adoption of the system in the United States it had gradually come to be recognized that what the working classes desired \. was, first, absolute safety; second, small weekly pre- miums; third, the collection of those premiums as they became due by representatives of the company; and fourth, insurance for all the family from the child of one year to the old person of seventy. Insurance policies with premiums payable monthly were unsuitable, because they involved the carrying of them to the office of the company, in addition to a heavier drain upon the wage earner's resources through inability to lay by a certain vSum of money each week ; cheap insurance had been tried and found wanting, because the distress caused by disappointment was much greater among this class; the regular life insurance companies, while willing, perhaps, to arrange their premium payments to meet in part the requirements of this class, did not offer all that was needed inasmuch as they did not accept risks upon the lives of children. One of the economic causes leading up to the actual ' launching of the industrial insurance system in the United States, as that system is now understood, was the absolute need of insurance protection for the family caused by prevailing epidemics of infectious diseases, by a high death rate from consumption, and an inor- dinate mortality among children in the early seventies, Statistics for ten of the principal cities of the country during the period 1870-4 show a death rate of twenty-six 22 in the thousand, while children under five years of age represented forty-eight per cent, of the mortality rate. The extent of misery and want caused by this heavy death rate cannot be measured, but it can fairly be deduced from the bare statement of fact that life insur- ance for the family had become an imperative necessity, so that a provision could be made for a certain sum in the event of the death of the father, the mother or the child. As an indication of the relief industrial insurance has afforded the tax-paying public, it may be stated here that the pauper burial rate has shown a steady diminution since the working classes have been enabled, by small weekly payments, to provide a burial fund for each and every member of the family. In the years 1870-4 the pauper burials averaged about twenty per ten thousand of population ; from 1881-5 the rate in eighteen cities was 18.5 while in 1897-01 the rate dropped to 12.9. While the industrial companies can- not claim all the credit for this decided drop in the average — more prosperous times for the working classes having some effect upon it — yet those in a position to know realize that the proceeds of an industrial policy have been instrumental in thousands of cases in prevent- ing the ignominy of a burial in Potter's field. Compared with ordinary life insurance there is no difference in the foundation principles of industrial or weekly -premium insurance. Under both plans a recog- nized mortality table is essential for the cTdSarv ^^ proper establishment of adequate rates ; both recognize that the increased cost of the later years of life must be provided for by an excess of premiums collected in the early years, and conse- 23 quently both systems make provision for the creation of reserve funds so as to insure the absolute payment of every dollar of insurance carried. The main differences in the two systems lie in the methods of operation, the age of the person insured being always considered in the adjustment of the premiums, and these can best be summarized as follows: THE INDUSTRIAL PLAN Premiums Payable weekly. Premiums Collected by agents of the company who call at the home of the insured. Amounts $15 to $500 on a sin- gle policy. Amounts Amounts of insurance adjusted to unit pre- mium. Amounts Certain amounts of insurance can be pur- chased for a pre- mium of five cents or multiples thereof. Every member of the family can be insured for small premium. THE ORDINARY PLAN Payable annually, semi-annually or quarterly. Payable at the office of the company by the insured, either in person or by mail. $500 to $250,000 on a single policy. Premium is adjusted to amount. Amount is in round numbers, usually in multiples of $1,000. As a rule only the adults, and frequently only the head of the family, are insured for a proportionately large amount. From the above summary it can readily be seen that the weekly premium plan necessarily entails a consider 24 ably higher ratio of expense than the ordinary plan. With premiums payable weekly there are fifty-two chances of the policy lapsing as against at the most four under the ordinary plan, and if the insured were to be left to themselves to carry the premiums to the office of the company the lapse ratio would render it impossible to carry on the business. With the ordinary companies the duties of the agent so far as any particular policy is concerned may be said to end with the delivery of the policy and the payment of the first premium, as after that the insured deals directly with the company, remitting his premiums as they become due to the head or branch offices as directed. The agent of the industrial company must keep in constant touch with his policyholders, or>ce their applications are secured, by calling each week in the year for the necessary premium, watching for any possible addition to the amount of insurance that changed circumstances may warrant, and even taking to them the amount called for by the policy when death occurs. The company must be duly compensated for all this service, as also for the necessary expenses of those field-workers set over him, in addition to the home ofiice employees where the minutest detail of millions of policies in force must be attended to. The development of the weekly premium business in the United States has been of surpassing interest. It is scarcely more than a quarter of a century since the system first took root, yet to-day there Marvellous De- ^re upwards of fifteen million industrial velopment of the ,. , . . ,, -, i r .1 Business policies m lorce on the books 01 the several companies, under which they are obligated to pay upwards of $2,000,000,000. Over 25 one million policies a year are being added to this vast total, and there seems at present no limit to the future growth of the business, for the companies are assiduously cultivating every corner of the field in which they operate, so that no individual capable of being insured shall be omitted from their canvass. Some idea of the possible growth of the business may be obtained from the results achieved in one State of the Union. New Jersey is the home of one of the larger industrial com- panies and consequently has had closer attention than most other States. As a result, with a population of approximately 1,900,000, there are in force 1,550,000 industrial policies, representing an estimated insured population of over one million persons. The city of Newark, one of the leading manufacturing centres of the country, shows up much better than this, for with a population of 250,000, there are upwards of 275,000 policies in force, indicating that over four-fifths of the population is insured in industrial companies. In spite of this magnificent showing the canvass for new business in that State is as active as ever, each year showing a larger number of policies in force. What has been accomplished in one State is an indication of what can be accomplished elsewhere. As an official of an industrial company remarked in a review of the growth of this business. It is not going too far to anticipate the time, cer- tainly within another quarter of a century, when the results obtained in New Jersey will be general for the country at large, and when of the industrially insurable population of the cities, four-fifths will be policyholders in industrial companies. Thus far the business has been 26 largely confined to the cities, but by degrees the opera- tions of district managers have been extended to the rural and agricultural sections indicating possibilities of development and growth in a new direction and in a new field. Even among the more prosperous elements of our population our statistics indicate that among trades and in the professions there are many to whom an indus- trial policy is a safeguard against an hour of need. Those who have studied the remarkable growth of the business in the past quarter of a century, and particu- larly during the last decade, will readily agree that the foregoing is no fanciful, overdrawn sketch, but a simple plain statement of what may be expected. Every indication points to a continued growth in greater pro- portion than in past years, especially so as the great masses of the population are now fairly familiar with the system and its benefits. The steady increase of ten per cent, in the population from one census to another alone affords a vast number of new insurants for these companies, nor must it be forgotten that the second generation is now coming forward to claim the benefits of industrial insurance which their parents were the first to take advantage of. With this class the work of the industrial agent is much simplified as they have already, in many instances, seen the practical operation of the system in the payment of benefits at death exemplified among their own immediate relatives. 27 VARIOUS FORMS OF POLICIES The early industrial policies presented for the con- sideration of the public in this country were framed in an endeavor to meet what was supposed to be the needs of the working classes through a pro- disability as well vision for disability by sickness, old age, vided for and death. That is, they provided for a weekly indemnity during sickness, for an annuity in old age, and a burial fund at death. Pro- vision was also made for a burial fund at death for children, no child being accepted, however, until it had passed its first birthday. The sickness insurance feature v was speedily discontinued as experience demonstrated that it could not be carried on without charging a rate practically prohibitive to the working classes, a condition which even at this day confronts the companies endeav- oring to write health policies at a practically uniform rate for all ages. The annuity feature, too, failed to meet with any considerable amount of approval, inas- much as the amounts required to be paid to procure an independence in old age were beyond the means of those it was desired to interest. The infantile and adult burial funds therefore became the important parts of the business, and the other branches are now obsolete. In keeping with the policies of the ordinary com- panies the first industrial policies were hedged about with restrictions, most of which have since been removed. 28 One of the first forms of contract covering only the death benefit provided for its forfeiture: "If the said person shall, without the written consent of the said company endorsed hereon, go beyond the settled limits of the United States, or the British Prov- inces, in North America; or if the said person shall die by the hands of justice or by suicide, whether sane or insane, or in consequence of the use of intoxicating drinks, opiates or narcotics; or of being engaged in any unlawful act." The same policy also provided that: "The person insured under this policy shall not, without the written consent of the company, enter into any military or naval service (except the militia, when not in actual service), or engage in the manufacture of gunpowder, fire-works, or other explosive substances, or in submarine operations." All these restrictions have now been swept away, and, once issued, the policies are practically subject only to the one condition of the payment of premium. During the Spanish-American War the industrial companies waived their right of consent to engagement in military and naval service and paid all claims arising from death in such service with the same promptness as under ordinary circumstances. In order that the full benefit of the industrial policy might be availed of when most needed, one of the car- dinal principles embodied in the early announcement of the plan was the prompt payment of me^ o*f cfaims claims. The poHcies from the start set forth that the company would pay the amount due upon satisfactory proof of the decease of the 29 insured. At that time the ordinary companies reserved to themselves the right to withhold payment of the claim for the space of thirty, sixty and in some cases, ninety days after receipt of proofs of death. To the industrial classes such a restriction would have been intolerable, inasmuch as in the event of a death occurring in the family the need of an immediate sum in cash is impera- tive. Accordingly the wisdom of immediate payment of claims was seen to be an advantage not only to the insured but to the companies as well, as it gave their representatives an opportunity to afford a practical illustration of the benefits of a policy in an industrial company. The ordinary policyholders were also the gainers by this departure, for the example of the indus- trial companies was quickly followed, and now practically every life insurance company in the country makes it a point of paying its claims immediately on receipt of satisfactory proof of death. As the business of the industrial companies extended, and their methods became simpler, the prompt payment of claims was facilitated by allowing the superintendents to pay all cases on which there were no complications,' without referring the matter to the home office, so that in a large majority of cases the amount of the claim is in the hands of the beneficiaries before the funeral services are arranged for. It should be clearly understood that while the system of industrial insurance had been practised in England for a generation before its introduction into the United States, there were grave difficulties in the way of trans- planting it bodily to this country. Conditions among the working classes differed materially in the two 30 countries, so that it was necessary for the companies to proceed cautiously and gain their own experience before attempting to offer any benefits other than the payment of the policy. For this reason the original policies were absolutely forfeitable in event of lapse, no matter how many years the premiums had been regularly paid thereon. As the business gradually developed and experience accumulated it was found that some return could be made to those who, after payment of premiums for several years, were forced to give up their policies, and accordingly in 1892 it was announced that a paid- up policy would be granted in the event Paid-up Qf ii^Q lapse of a policy on which pre- Allowed miums had been paid for five or more years. This feature was incorporated in the form of contract then issued, and was made retroactive so as to apply to all existing contracts. In this connection let it be said that nearly every improve- ment made in their contracts, or concessions granted thereon by industrial companies have been voluntarily extended to all existing policies, so that no new privilege has been granted to new members at the expense of those who preceded them in the ranks. In this respect the industrial companies have set an example which the ordinary companies have failed, in most cases, to follow. Subsequently the paid-up option was extended to those who lapsed after the completion of three years' payments, so that now the principle of non -forfeiture has become firmly established in industrial insurance practice. Besides the voluntary adoption of the non-forfeiture principle, the industrial companies have from time to time adopted a long list of concessions, which can best 31 be stimmed up in the remarks made by the president of one of the companies as follows: Among the first important innovations was the granting of paid-up policies, applicable to all adult insurances in force. To encourage these the company ruled that the agents should in their compensation T .- J not be charged with policies lapsed in Concessions order to obtain paid-up policies. Sub- sequently, when the first panic struck the business, and mills and factories were closed, general business was prostrated and the industrial classes throughout the country were deprived of employment, lapses in large numbers supervened. To meet the hardship thus imposed upon the policyholder, so soon as good times began to dawn, we offered to reinstate in full, immediate benefit, all the lapsed policies through- out the country, a year old, the forfeiture of which had been produced by the pressure of hard times; further, to all whose policies were five years old who had been forced to drop out by stress of circumstance, a paid-up policy was offered, without restriction; or in lieu, a new policy without medical examination, in full im- mediate benefit, and without the payment of a penny in arrears. * * * Jn the several periods of indus- trial depression since, like liberality has been promptly extended. Later the paid-up privileges were extended and following this a material increase was made in the amount of these paid-up insurances. And later still a valuable concession to prevent lapses has been made. Whenever a policy lapses after being five years in force, the home office addresses a personal letter to the holder offering him the option of (i) a paid-up policy according to the company's rules; or (2) the whole reserve on his policy to be credited in payment of weekly premiums as far as it will go on a new policy, in full immediate benefit, for an amount which his old rate of premium will purchase at present age, without medical examina- 32 tion and with privilege of continuance at the expiration of this extension of his insurance. Again, the pul- monary and consumption clause — under which death from these causes, within the first year of the policy, produced but half the amount otherwise payable — was eliminated, and the elimination was made retro- active, i.e., applicable to all the policies in force. The form of policies was greatly improved by omitting the warranty in the applications for policies not large enough in amount to call for regular medical examina- tions. The whole contract was contained in the policy itself, which was avoided only in case of the insured having had a disease not mentioned in the blank space provided in the policy. And to protect the holder from the consequence of oversight or misunderstanding, he was given the right within two weeks after receiving his policy, to return the same and take back the prerniums paid. Next, increased benefits were granted on infan- tile policies — at some ages doubling the insurance — with no increase of premium, and this was also made retro- active as to old, existing policies. * * * At the end of 1896, although under no legal obligation by contract or precedent to pay a dollar, a dividend was declared and this practice has been followed annually since. * * * During the recent war with Spain the industrial insured could enter the military or naval service of the United States without restriction and without extra cost. This applied alike to policies outstanding when hostil- ities were declared, irrespective of whether or no the policies contained a war clause, and to all policies issued or revived during the continuance of the war. The internal revenue tax was also paid by the company and not charged against the individual policyholder. In other words, the war made no difference whatever in the relations of the assured to the company, either as to freedom of action or to the cost of the insurance. Finally all our industrial policies now provide that if their terms are not satisfactory to the assured, or if 33 the conditions are not accepted and agreed to, the policy may, within two weeks, be returned to the company, and all the premiums paid will be refunded. This gives an opportunity to correct misunderstandings, if any, and to obviate future causes of just complaint. When the magnitude of the industrial business is considered it can be readily seen that the above con- cessions, together with others not covered in this sum- mary, have cost the companies large sums of money. A reasonable estimate covering the period from 1892 when the first concession, that of paid-up policies, was made, down to the end of 1904, is that some ten million dollars have been awarded to the policyholders over and above the amounts contemplated in their contracts. In addition to the concessions named Increased Liber- ^s applicable to old policies, the con- ality to Policy- ^ f^. , ^- ^ ^- -1 holders tracts have, from time to time, under- gone certain modifications resulting in increased liberality to the insured. Thus the death benefits have from time to time been increased, and most companies now make provision for an increase in the amount payable at death after the policy has been in force a given number of years. Originally industrial policies were all non-participating, but policy- holders are now admitted to a share in the accumu- lated surplus, the method of division varying with the different companies. One company pays a cash divi- dend equal to ten weeks' premiums at the end of every fifth year of the policy ; another pays dividends at the end of fifteen years and every fifth year thereafter^ the amount being equitably computed according to the contribution made to the surplus in the period ; some of 34 these dividends have reached as high as two years' premiums ; a third declares a dividend at the end of five years and annually thereafter, while a fourth declares dividends at the end of each five years of the policy's existence. These dividends form a great inducement to the insured to continue their policies in force and thus help to reduce the lapse ratio. Cash surrender values are also provided for by some of the companies, although they are not likely to be availed of to any large extent, owing to the comparative ease with which the premiums are paid after years of systematic pay- ment. It is not felt that it is proper to encourage the surrender of industrial policies as they are essentially for protection purposes, and every effort is made on the part of the company to keep them in force. 35 INSURANCE OF CHILDREN The tremendous amount of good accomplished by industrial insurance has been generally recognized by all interested in the amelioration of the conditions sur- rounding the working classes, and particularly the tenement -house dwellers in our large cites. From time to time, however, some misguided workers have attacked the system on the ground that it tends to lavish and extravagant funerals, and they incidently drag in the high cost of the protection furnished, entirely ignoring the fact that agents have to be employed to collect premiums every week in the year, instead of the policy- holders sending the amount due to the office, once, twice or four times a year, as is the case with ordinary insurance. Fortunately for the companies, it has required little effort to disprove these charges, as they have been able to show that the average industrial claim does little more than provide the necessary expenses of a funeral and pay the bills incurred by reason of the prolonged sickness which often precedes death among that section of the population. The most rabid attacks however, have been made on that part Infantile ^^ ^-^^ system which furnishes a funeral benefit on the lives of children from the age of one year up. Both here and in England the charge has repeatedly been made that children of tender years have been done to death by their parents or others, for the sake of the few dollars of insurance on their 36 lives. Parliamentary investigations in England and in- quiries set on foot by our own State legislatures have completely disproved these assertions, and have resulted in establishing the fact that in not one single instance has insurance been the motive for such neglect of chil- dren as led to their death. On the other hand the mass of testimony produced clearly showed that insured children were on the whole better cared for than those upon whom no insurance was carried. In the United States the question has been investigated by the legis- latures of New York, Massachusetts, Ohio, Tennessee, Colorado and other States, and only in Colorado has a law been passed prohibiting the insurance of children under ten years of age. The action taken by the legis- lature of that State is not believed to be the true feeling of the people of the State, and the Insurance Depart- ment has repeatedly urged the repeal of the bill. When it was passed those most interested in it were not given a chance to be heard and the whole method of its passage savored of "snap judgment." One of the lower courts declared the measure unconstitutional, but no effort was made to carry the matter to a higher court for adjudication. The argument presented before the com- mittee succinctly sums up the right of parents to insure their children as follows: — It may be asserted that a parent has no insurable interest in the life of a child. We contend that the industrial classes have the moral and legal right to insure their children, for it is well-known that these children contribute to the support of their families at very early ages, so early, in fact, that in New York, Connecticut, and other States laws have been passed making thirteen the minimum age at which children should be emiployed Z1 in manufacturing establishments. Meanwhile, they are supported, educated, and taught a trade in that view. There is a just and reasonable expectation of advan- tage or benefit from the continuance of their lives, and it logically follows that a proper justification inheres in the parent to protect that benefit while his child is insur- able, and before sickness, accident, or other causes interpose. As to its legality, the highest tribunal in the land, the Supreme Court of the United States, has gone farther than is here indicated by announcing that "it is not necessary that the expectation of advantage or benefit should be always capable of pecuniary estimation, for a parent has an insurable interest in the life of his child, a child in the life of his parent, a husband in the life of his wife, and the wife in the life of her husband." In Warnock vs. Davis, U. S. S. C, it was held that "the natural affection in cases of this kind is considered as more powerful, as operating more efficaciously to protect the life of the insured than any other considera- tion." From the very inception of the business of industrial insurance in the United States the companies have been particularly careful in safeguarding this particular branch. In England it is possible to obtain insurance on the life of a child from the date of Fund Barely birth, but United States companies Suffiaent for '\x2cs[^ always refused to issue a policy Expenses until the child was one year old. The first infantile policy was issued for a premium of three cents per week, and provided an amount of insurance ranging from ten dollars at age one to sixty dollars at age twelve. Subsequently it was found that the workingman needed more than the sums already provide^ to pay funeral expenses, and a five 38 cent policy was issued with benefits ranging from fifteen to one hundred and fifteen dollars, which has since been increased to seventeen dollars at age one, after the policy has been in force one year, to one hundred and twenty dollars at age ten. Later on the companies per- mitted the payment of a ten cent premium on the lives of children, but under no circumstances will more than that amount be accepted, either in one or more companies where the child is under twelve years of age. The policies also distinctly provide that no claim will be paid unless insured is over one year of age at date of policy. With such elaborate precautions thrown around the insuring of children, the argument that such practice encourages neglect of insured children to such an extent that they die, falls to the ground. The experience of the companies has shown that the death rate among insured children is below that of children in the general population, indicating that those insured are in reality better cared for than the uninsured. The amount of insurance on a child's life being limited, not only by the contract, but by agreement between the companies that in no case shall more than ten cents a week be collected, there is available at death in the large majority of cases a sum barely sufficient to pay the funeral expenses and such incidental costs as pertain to the last illness. Perhaps no feature of the industrial insurance system has been so well thrashed out as this, and it is a source of satisfaction to know that the com- panies have so successfully established the legitimacy and propriety of the practice of insuring children. Several states have recognized it by legal enactments, specifying the amounts of insurance that may not be 39 exceeded on the life of a child as follows : — ^between the ages of one and two years $30 ; two and three years $34 ; three and four years $40 ; four and five years $48 ; five and six years $58; six and seven years $140; seven and eight years $168; eight and nine years $200; nine and ten years $240; ten and eleven years $300; eleven and twelve years $380; twelve and thirteen years $460. A few of the states have deemed it necessary to pass statutes providing that insurance companies generally should make no distinction between persons of white and colored origin as regards rates of not°Sought^^^ premium or other advantage. Such statutes have utterly failed to serve their purpose, inasmuch as the experience of the com- panies has conclusively proved that colored persons show a much higher rate of mortality than white persons of equal ages. Industrial companies, as a rule, do not make special efforts to insure colored people, and their agents are instructed not to solicit that class of business in states where the anti-discriminating statutes are in effect. In the Southern States, where no such statutes are in force, some colored business is written at rates somewhat higher than for white persons, but even there no special effort is made in this direction. As a matter of fact the rate of mortality is so high among the negro population, and especially so among colored children, that the business cannot be conducted profitably with- out reducing the amount payable at death for a five cent weekly premium to a comparatively small figure. If the companies were to seek for such business in those Northern States where discrimination is forbidden, they would work an injustice to their white policyholders, 40 who would be forced to make up from their contributiors the excessive mortality of the colored members of the companies. This statute is one of those ill advised pieces of legislation enacted in a sentimental spirit without regard to its feasibility. While the companies must accept colored risks when offered they do not solicit them and are not allowed to make any effort to get them on terms which would make the business safe. 41 LAPSING OF POLICIES A common fallacy in connection with industrial life insurance is that enormous profits are made out of lapses. The tremendous volume of new policies issued each year is pointed out and con- Question^^ trasted with the number of policies reported in the annual statements of the companies to the insurance departments as having been terminated by lapse, and the deduction is drawn that all the lapsed policies have contributed something in the way of premiums to the companies which the latter confiscate and thus make a profit. In the first place the term lapsed, as applied to industrial policies does not mean exactly the same thing' as in the case of ordinary policies. For actuarial purposes the company records consider every policy applied for as issued, whether a single week's premium has been paid on it or not. Each week the home office receives from its numerous superintendents' offices all over the country the applications which the agents have secured during the preceding week If these applications are satis- factory to the medical department the policies are issued and sent to the superintendents for delivery by the agents who procured the applications. These agents have, in actual practice, four weeks in which to deliver the policy and secure the first payment thereon. At the end of that period those policies which have not been paid for are reported to the home office and marked 42 as having terminated by lapse. In the case of an ordinary policy the agent usually has sixty days in which to deliver the contract, and should he not succeed in doing so he returns it to the home office where it is recorded as having been "not taken" instead of having lapsed. The several companies engaged in the indus- trial business have reiterated over and over the claim that so far from lapses being a source of profit to the company, they are an actual loss, and if not checked by every possible means are likely to seriously affect the safety of the institutions. It is pointed out that an industrial policy takes about two years to pay for the cost of putting it on the books and as most of the lapses occur in the first policy year the chances of big profits are less than nil. Ever since the business obtained a foothold in the United States the efforts of the managers have been particularly directed to the problem of keep- ing down the lapse rate. The head of one company in referring to this question went into it very fully as follows: The truth is the companies wish there were no lapses ; they would like to have all the business they ever wrote remain in force, and they have done everything that thought and ingenuity can devise The Companies ^q g^^p them. The method of compen- sating agents, in nearly all the com- panies, strikes at the very root of this matter. The heaviest charge, as in all life insurance, is the agent's first commission for procuring the business. He is then paid a collecting fee based upon the actual amount of premiums turned in. But his first and largest com- mission is not based (except qualifiedly as will follow) upon the amount of business he introduces; if it were there would be a manifest inclination to be willing to see 43 it lapse, that it might be rewritten and another com- mission obtained and this procedure be repeated to the detriment of the company. This commission is only paid upon increase — ^upon the growth, or increase, of his premiums from week to week. For illustration: if his total premiums on new business secured within a given week are one dollar and the lapsed premiums on business previously written are fifty cents, he is not paid on the dollar of business introduced, but on the difference or increase, of fifty cents. This plan also works, as is obvious, as something of a safeguard against a poor quality of business — a business obtained by any means that make against its permanency and persistency. The more rapid its waste, the more frequent and irksome the burden upon the agent. When the thoughtless or the ignorant, therefore, charge the companies, as some have recklessly done, with the encouragement of for- feitures, they utter a monstrous untruth. They affirm that gain arises from lapses, — contending that the com- panies turn into surplus the reserves on forfeited policies theretofore charged up as a liability. This presupposes that the reserves have been earned before being thus converted. Suppose, for simplicity and clearness that we define a reserve as a sum necessary to keep a premium level — the too much charged in the earlier years of a policy to offset the too little charged in later years. In one of the legislative investigations it was shown from the books of one of the largest companies that at the end of the first year industrial policies showed a loss of 290 per cent, of their reserve — that the second year they had made up only twenty-five per cent, of the reserve liability — the third year they had made up but fifty-two per cent — and that it was the fourth year before the company ^ made its reserve liability, let alone any profit. The '■ records of our business show that, of the business issued on a given date, over seventy per cent, is lapsed during ; the three years next succeeding. Of these lapses more than one-half occur during the first three months of the 44 policy, and six-sevenths during the first year of the policy. Can anything but a dead loss be figured on these lapses? Let us look at some of the obvious reasons. First, there are fifty-two opportunities in the year for the lapsing of an industrial policy — as the premiums are payable weekly, as against one, two, or at the most four temptations a year (premiums being paid annually, semi-annually, or quarterly) in the ordinary companies. Next consider the differences in the people, pecuniarily and otherwise, among whom these respective forms of insurance are done. Further, bear in mind the nature of the lapse. In the ordinary company it is permanent — the policyholder going out being apt to stay out ; if he take up other insurance, he is persuaded into some other company; if he is dissatisfied with dividends, or other cause, he applies for a paid-up, or a surrender value, and (whether he get it or not) he withdraws and ends his relation as to that company. The industrial policy- holder on the contrary, goes out and comes back. He lapses and re-enters. A shutting down of the mill, a fire, a strike, his discharge, the failure of an employer — a hundred things conspire to cut off his resources. He exhausts his grace, and, if for the time being, he is unable to go on, applies for a paid-up (if he is entitled to it) and stops. Regaining employment he comes back, and all his family with him. Another disturbance, and the same result follows. Starting afresh, or reviving his former policies (all of which counted as lapses), he again rejoins the ranks of the insured. Any comparison of the lapses, therefore, in the two forms of business, is wholly irrelevant. The industrial insurer is one generally dependent upon daily or weekly wages. The occurrences as to nature and number affecting each we have barely hinted at. In times of business disturbances mills shut down, trade is suspended, employers fail. Where hundreds or even thousands of employers may be thus affected, 45 tens and hundreds of thousands of the employed, the country over, are deprived of work and wages. A fire in a large refinery threw twenty -five hundred men out of employment in one night. It made no difference in the scale of expenditure to the half-dozen men who owned it — none whatever. It did, however, to the families of the workmen. The former collected their fire insurance and went on and rebuilt. The latter waited — ^many of them — till the rebuilding was done and they could go to work again. To sum up, there is no force to the contention that the companies profit by lapses, but everything against it ; and it is only fair to expect that the nominal ratio of lapses in industrial insurance should appear large, for it results from natural causes, only partly preventable. The president of another company in testifying before a legislative committee on the subject of indus- trial insurance referred to the lapse question in the following terms: Of the policies issued in one year, fifty per cent, lapsed the first year; sixteen per cent, lapsed during the second year; five per cent, lapsed in the third year; three per cent, lapsed the fourth year, and thereafter about two per cent, lapsed each year. It pSa^yToss ^^quires no argument to prove that to the Company "^^^ companies do everythmg possible to keep these policies upon their books, and especially in the earlier years of the policy life. In the first place it is an injury to the field staff to have the policies lapse. The very method of compensating agents and superintendents is such that a lapse means to them a pecuniary loss and they naturally strive as best they can to keep the policies in force. In the second place the companies lose money by lapses. They pay out more money for the business than they receive for several years. It is therefore a loss when the policies go off the 46 books. In the third place, the lapsing of policies is inimical to the interests of the company, for the reason that bad lives remain and the good ones go out. There is therefore constantly going on, in event of lapsing, an adverse selection, and hence the companies use every legitimate effort to keep the business upon their books. The greatest loss is during the first policy year and the highest per cent, of lapses during that year occurs at the expiration of six weeks. The agent, by the rule of the company, is allowed four weeks in which he may carry the policy without presenting it for lapse after premiums have ceased to be paid so as to give the policy holder a chance to pay up if he will. Then there is another week taken by the company at the home office in which to do the clerical work of lapsing the policy upon its books. The agents invariably take the four weeks allowed them, because they want to keep the policy on the books and they hold it as long as the rule of the company permits. This accounts for five weeks of the policy life during which no premium is paid and as the largest per cent, of lapses during the first policy year occurs at the expiration of six weeks from the issue of the policy, it follows that but a single weekly premium has been paid thereon at time of lapse. But, further, if we run through the whole year and take the average lapse, we find by the same rule above stated, that the average payment upon the policies which lapse during the first year is but four weeks premiums. In other words, the average premium paid in by policy- holders who lapse their policy during the first year of issue is for four weeks only. While it is true that the company has received but four weeks' premiums upon such business, it is the fact also that it has had to carry the risk for eight weeks on account of the four weeks allowed the agent before lapsing, and should a policy- holder die within that period, under the practice of the companies the loss would have to be paid. Thus the companies incur a great loss not only in the manner 47 described by reason of these lapses, but the risk of the insurance which it carries during the year and upon which it receives but a small amount of premiums. That the companies do not look upon lapses as a source of profit, but rather as a distirct loss, is shown by the strenuous efforts constantly being made to prevent policyholders from allowing their policies to drop. One of the most important tests to which an industrial agent is subject relates to his ability to hold the business on his books. If he fails to show increase in a given period an investigation is made of his debit to see if he is at fault, either in laxity of making his collections or in procuring a poor quality of business, and if the blame is his, the company loses no time in dispensing with his services. While the industrial companies offer the advantages of their system to the poor and laboring classes they exercise a judicious discretion in avoiding the shiftless and more ignorant classes. They do not work in the slums, because they have found out that even five cents a week insurance has its limitations so far as the residents of those sections of our large cities are concerned, and the business secured under such circumstances never pays for its cost. Persistent paying business is the only kind these companies desire and the agents are constantly being reminded that "the business that stays is the business that pays. "J No policyholder is allowed to drop his insurance until every effort has been made to induce him to keep it and all possible aid is extended to relieve him should circumstances render it impossible for him to maintain regular payments. In the first place the policyholder is allowed four weeks of grace for the payment of the 48 premium and during that time he can pay as few premiums as may be necessary to keep him within the limit. After the poUcy has been actually lapsed the matter is still kept in mind and inducements held out to bring the former insured back into the fold. Among these inducements may be mentioned, first, Offers to Rein- ^n offer to rewrite the insurance, state Lapsed r ■,-, Policyholders where the lapse occurs after one full year's premiums had been paid, in full immediate benefit instead of making the insured wait another whole year before the full benefit is payable in event of death; second, a lapsed policy having been in force for five years the holder may either take a paid up policy or the company will credit the whole reserve on the policy to the payment of weekly premiums as far as it will go upon a new policy, in full immediate benefit, for an amount which his old rate of premium will purchase at present age, without medical examina- tion and with privilege of continuance at the expiration of this extension of his insurance; third, policies having been one full year in force and showing arrears amount- ing to thirteen weeks may be revived in full immediate benefit and the company will accept a policy lien, with- out interest, for the whole amount of arrears, if necessary, or for such part as policyholders are unable to pay at the time of applying for revival. These concessions, none of which were incorporated in the original indus- trial policies, have been the means of saving many thousands of policies and have convinced the public that the sole interest of the companies was to keep the business on their books in order that the policyholders 49 might have the full benefit of the insurance for which they had paid. Had there been a profit in lapses, and had the companies not been managed with a view to giving the policyholders every possible benefit which their experence justified, these liberal concessions would not in all probability have been made. The premium in industrial insurance, as has already been mentioned, is not adjusted to the amount insured, as is the case with ordinary insurance, but the amount of insurance is adjusted to the weekly Premium and premium, the latter having a minimum Reserve Com- r n ^ ny, ^ ^ ■ putations o^ ^ve cents, ihe amount of insur- ance which can be supplied at five cents a week at the younger ages was originally computed according to data contained in Farr's English Life Tables, No. 3, but has since been modified on the basis of the experience accu- mulated by the industrial companies. These policies, for valuation purposes, are considered as term poli- cies until age ten is attained, when they become ordinary life policies and are valued accordingly. In examining the table of benefits granted under infantile policies it will be noted that the benefits increase from year to year until the maximum amount payable is reached at age ten. This increase in benefits is feasible on account of the rapid decline in the rate of mortality after the first year or so of life, and explains at the same time the fact that reserves are not needed to maintain the policies in force, as at most of the years from one to twelve there would be negative values shown. On adult policies the premiums for office use, commonly known as net premiums, are calculated by a so standard table of mortality, with a heavy loading to provide for the expenses of the business, which it needs no further demonstration to prove are much higher for retail insurance, as industrial insurance is, than for wholesale or ordinary insurance. In calculating the reserves on such policies as come under the classification of adult, the general practice is to credit no reserve at the end of the first year and thereafter to take the terminal reserve at the end of each year, instead of the mean reserve, as is done with ordinary policies. Only one insurance department varies from this rule and calls upon the companies to maintain reserves on industrial adult policies from their inception, an allowance being made, however, on account of the heavy lapse rate in the first and second years. As the three principal companies operate in that State the effect is to compel them to report to other States an extra reserve over and above the actual requirements. Inasmuch as this adds to the strength of the companies financially, there can be no complaint from the policyholders on the ground that there is not a sufficient amount reserved to insure the absolute payment of every contract. SI INDUSTRIAL FIELD WORKERS As may well be imagined the system requires the minutest attention to detail and calls for the employ- ment of a very large number of persons, not only in the field but in the office. The territory Forces^^ covered by the several industrial com- panies is divided into districts, each in charge of a superintendent. Under the superintendents are the assistant superintendents, each in charge of a number of agents, who constitute the collecting force for the regular collection of premiums each week and who also by active canvassing procure the new business. The duty of the industrial agent as defined by the manual of instructions is: first, to devote the first part of each week to the collection of premiums on policies already issued, and second, to faithfully canvass for new business. In other words the agent is required to devote each working day of every week to the prosecution of his agency work, to the end that a substantial and steady increase may be made by him. Every Monday morning the agent starts out on the collection of premiums recorded in his debit book. From street to street, from house to house and from floor to floor he goes, meeting some member of the family insured, taking the dimes or nickels and recording the amounts in the policyholder's receipt book as well as in his own book. At the time a policy is issued the policyholder is supplied with a premium 52 receipt book, in which every payment made must be entered by the agent. Where more than one member of a family living in the same house is insured, the one receipt book answers for all, a record being kept on the first page of the numbers of the policies covered by the book. In the course of his collecting the agent takes pains to inquire as to any new families that may have moved into the house or neighborhood, as well as to the prospects of the families insured, with a view to securing new applications or increasing the amounts already insured. A most important part of his work consists in urging the necessity of keeping the policy premiums paid well in advance, so that should mis- fortune of any kind overtake the family there will be some weeks' payments already provided for and thus aid in preventing lapses. The companies set a standard of collections which the agents are expected to adhere to as closely as possible, usually ninety-eight per cent of the debit. The debit representing the amount of money the agent is charged to collect on the policies recorded in his collecting book, if that amounts to one hundred dollars a week say, he is expected to collect at least ninety-eight dollars. Having completed his collections, which in most cases should be out of the way by Thursday morning, the agent devotes the rest of the week to canvassing for new business. In the course of his collecting tours he has introduced the subject to a number of people and now devotes his energies to closing with them. In this work he knows no limitations of hours. There is a father to be seen who works some distance from his home and can only be got at on his return at night. His mind may have 53 been prepared by the representations of the mother, but he needs convincing and the agent gives up his time cheerfully to explain all the benefits of industrial insurance. When the applications are secured efforts are made to collect as many weeks' premiums in advance as possible, thereby putting the policies in immediate force, subject only to the approval of the medical department. The applications are then turned over to the assistant superintendent, who examines them care- fully to see that all the questions have been properly answered and arranges for the doctor to examine the applicant, if necessary under the rules, or at least to have the risk medically inspected. At first the medical examinations were only required in cases where the premiums were above the general average, but now every risk assumed is either medically examined or inspected, the latter process applying in the case of children more particularly. The assistant superintendent is charged with the supervision of a number of agents, usually about eight, and has to see that they do their work in a manner calculated to advance the interests of luperintend°nt the company. From time to time he inspects the debit of each agent, checking the policyholders' receipt books with the agent's collecting book, at the same time observing if the busi- ness being written is of the right quality. If the agent has been showing too high a proportion of lapses, or falling behind in his collections the assistant exerts, his energies to help him and get him in the way of be- coming a good producer. Should his efforts not meet with success in this direction, it then becomes his duty^. 54 after consultation with the superintendent, to take up the agency and transfer it to another man. An im- portant part of the work of the assistant superintendent lies in assisting an agent to close business. His experi- ence as an agent, for in the industrial field all must come up from the ranks, enables him to meet the argu- ments of those the agent is endeavoring to insure and in a majority of cases to procure their signatures. In short he is an instructor of the men under him as well as an inspector of the work being accomplished. In the payment of death claims the assistant sees that the claim papers are properly filled out, and in many cases pays the claim on securing the proper release. The returns of every agent in his assistancy each week are revised by him before being sent to the home office, so that there may be no occasion for their return as imperfect or erroneous. Under present conditions the assistant spends some time in soliciting for ordinary insurance, and the more perfectly he has trained his agents, the more time he can devote to that branch. The man directly in charge of a district is the super- intendent. By diligent and successful work as an agent he rose to an assistancy, where he had opportunities of displaying his powers as a handler of Superintendent ^^^' ^^^ ^°^ g^^^ ^^^^ ^^ ^^^^ position he was next promoted to the superinten- dency of a district. In this position he is the direct Tepresentative of the company, and is held responsible for the conduct of his staff, numbering in some cases as many as one hundred persons. The company expects him to make a steady increase in business, to see that his agents' accounts are kept in accordance with the com- pany's rules and to devote any spare time he may have to the pushing of the ordinary branch. A successful superintendent combines the qualities of a general with those of a diplomat, for he must be capable of getting the best results from his staff of assistants and agents and also be able to keep the policyholders in his district satisfied with the company and its contracts. At the home office the business of the field force is handled through division managers, to whom are assigned a number of districts in specific sections of the country. These managers keep close watch of the returns from their fields and from time to time make visits to partic- ular districts to encourage the superintendents and to stir up those who show a tendency to fall behind. The clerical work necessary in the issuing of policies and keeping the accounts of the thousands of agents, assis- tants and superintendents is also in their charge. The agents of an industrial company are compen- sated by a percentage on their collections and also by a percentage on the increase made each week. The col- lection commission is termed ordinary Compensation of salary, and the commission on increase the Field Force special salary. Usually fifteen per cent, is paid each week on the amount col- lected, while on increase, fifteen times the increase is paid. Thus an agent having a debit of say one hundred dollars a week, and collecting ninety-eight, would receive an ordinary salary for that week of $14.70. If he wrote one dollar in new premiums, and had to lapse on business previously in force, fifty cents, his debit would show an increase of fifty cents, entitling him to special salary amounting to $7.50. Besides his com- 56 pensation as outlined above, he is paid a commission on any ordinary business he may write in the same manner as ordinary agents. The assistant superintendent is employed on a salary which is added to each week by an allowance on the total increase made by the agents working under him. The superintendent is also paid a weekly salary and at the end of each year of service the salary is increased by the total increase in debit made by the district in the twelve months, divided by fifty -two. Thus if a new superintendent starts with a salary of forty dollars a week, and during his first year of service his district increases its weekly debit from say two thousand dollars to $2,208, the increase of $208 divided by fifty -two would make four dollars to be added to his weekly salary for the second year, bringing it up to forty- four dollars. Both assistants and superintendents are also paid a commission on ordinary business written by them personally as well as a slight commission on the business of that nature produced by their staffs. Industrial insurance has now established itself firmly in the United States and proved itself capable of adaptation to conditions as they arise. In the early days the financial and industrial con- Ord^nairField ditions were such as to call for an ele- mentary form of life insurance with absolute security as the first consideration. As the subject became understood there arose a demand for a policy of five hundred dollars from the higher element of the industrial population, and as the insurance edu- cation of the public proceeded the companies were practically forced to open ordinary branches. Although it is less than twenty years ago since these branches were 57 opened, the three industrial companies which transact ninety -five per cent, of the business in this country now have some three quarters of a milHon ordinary policies in force insuring about $850,000,000. It is estimated that at least one-half this sum represents ordinary insur- ance on the lives of wage earners, or persons in positions practically outside the field of the solicitor for the exclu- sively ordinary companies. The benefits which industrial insurance has con- ferred on the community, entirely apart from the amounts disbursed in death claims and other payments, cannot be measured by dollars and cents. It is best summed up perhaps in the following extract from a lecture delivered before the insurance class of Yale University by the president of one of the leading com- panies : If there is any one thing that "social classes owe to each other" it is that all shall aim and work to diminish the needless suffering and unnecessary burdens of those for whose well-being and future protection we are individually or socially responsible. The evidence is conclusive that the mass of our population is engaged in a heroic struggle to escape from poverty to relative economic and social freedom, and whatever contributes toward this much -to-be-desired end is certainly deserving of sympathetic consideration. In industrial insurance we have a most valuable aid in this determination for social betterment on a large scale, and the evidence is conclusive that a vast amount of direct and indirect good is accomplished by this elementary but effective form of thrift. During the almost thirty years since industrial insurance has been in active operation in this country, gradual but constant progress has been made toward a higher degree of social efficiency, so that we may hopefully look forward and anticipate a time when 58 this form of insurance will be indeed a social institution of universal utility, in every respect a far-reaching power for good, directly to the people and indirectly to the nation. The evidence warrants the conclusion that industrial insurance makes first for private wealth and second for public wealth, as well as directly and indirectly for the all important aim and end of a higher degree of security for the industrial population of this land 59 OFFICIAL RECORD OF INDUSTRIAL COMPANIES The insurance departments of the United States take notice of industrial insurance as a distinct branch of life insurance, dating from the year Figures of 1876. The companies now engaged the Business '. , r ^ 1 ^.t, ^ in it number fourteen, several others having gone out of existence or transferred their risks to other organizations during the past twenty-nine years. INDUSTRIAL INSURANCE IN THE UNITED STATES, 1876 TO 1904 INCLUSIVE. The following table shows the four principal items of business of the companies transacting industrial insurance, year by year, since this class of business was commenced. The Baltimore, the Colonial the Columbian National, the Metropohtan, the Prudential the John Hancock, the Life Insurance Company of Virginia' and the Western & Southern also transact ordmary life insurance business, and the columns of premiums received and losses paid include those branches, while the columns of insurance written and in force include only their industrial business : Baltimore Life, Baltimore, Md. Insurance Written. Insurance in Force. Premiums Received. Losses Paid. Year. Number. Amount. 1904 1903 1902 1901 1900 1899 1898 $4,548,840 4,969,152 5,723.118 5.774,038 5,354,140 4,486,212 4,451,355 103,965 105,587 100,292 100,714 92,310 86,061 76,974 $7,977,954 7.770,477 7,133.760 6,529.913 5,642.853 5,038,963 4.251.905 $592,777 596,472 565,871 544,309 523.785 467,880 421,496 $108,545 96,731 71.345 68,429 54.921 47,599 39,879 6o Colonial, Jersey City, N. J. 1903. 1904. 1903. 1902. Insurance Written. Insurance in Force. Premiums Received. Losses Year. Number. Amount. Paid. 1904 1903 1902 1901 1900 1899 1898 $8,784,984 7,122,800 6,454.644 5,211,301 4,209,047 4,042,526 2,719.798 83,690 70,076 55,597 43,520 34,674 27,697 10,623 $9,781,317 8,028,103 6,149,410 4,668,763 3,650,629 2,854,075 1,423,482 $454,807 364,588 282,093 203,454 152,501 85,252 23,626 $115,554 86,85s 69,871 50,676 39.501 15,900 4,221 Columbian National, Boston. 1904 1903 1902 $9,468,216 4,813,941 759,640 40,397 18,756 4.275 $5,532,978 2,630,959 615.316 Contentnea Life, Wilson, N. C. $43,980 798 $22,360 $1,283 Equitable Industrial, Washington, D. C. $1,690,736 1,665,414 . 1,334.923 25.522 23.304 20,401 $2,960,212 2,692,699 2.325.483 $107,358 95.425 58,252 $5 $34,599 24,401 16,458 Home, Wilmington, Del. 1903 1902 I90I 1900 $284,400 1,104,223 1,417.440 1,551,079 12,948 12,842 12,132 5,146 $1,691,809 1,448,963 1,450,393 920,980 $49,043 48,487 27,770 18,523 $14,954 15,867 8.633 6,063 Immediate Benefit , Baltimore, Md. 1904 $1,233,420 15,002 $1,210,675 $71,432 $18,086 1903 391,268 10,703 705,128 58,857 16,245 1902 421,318 7.587 509.131 54,996 14,253 1901 441.309 7,201 406,849 44,760 14,314 1900 139.535 5. 131 228,512 43,763 14,004 1899 1,102,618 4,481 195,802 43,693 11,241 1898 1,488,774 13.651 1,006,704 62,483 19.991 1897 1,520,337 11,843 845.954 38,282 11.073 6i John Hancock, Boston, Mass. Insurance Written. Insurance in Force. Premiums Received. Losses Paid. Year Number. Amount. 1904 1903 1902 1901 1900 1899 1898 1897 1896 1895 1894 1893 1892 1891 1890 1889 1888 1887 1886 1885 1884 1883 1882 1881 1880 1879 $61,840,600 57,444.640 68,137,409 57.928,751 52,060,760 44.358,633 37,936,626 35.959.176 36,871,080 41,905,652 33,146,067 34.571.979 29,326,680 25.374.745 23.083,151 18,239,650 15.953.123 13.334.392 10,748,152 7.055.933 4.752,613 4,085,489 3,718,902 2,931,860 5,483,431 I. 275. 918 1,474.399 1,395.779 1,312,630 1,223,500 1,152,444 1,069,197 956,382 899,418 835,351 771,972 681,802 607,150 556,435 476,612 402,147 320,264 256,574 203,467 148,850 107,872 80,629 63,625 48,568 36,012 30,702 9,327 $233,069,767 216,375,960 200,294,696 177,597,439 159,893,856 141,609,904 124,923,200 115.750,709 105,640,047 95,640,574 82,876,338 73.043.678 65,428,121 54.516,514 45.772,709 36,365.419 29,943.052 23,802,502 17.805,910 T2, 600, 935 8,940,275 6,730,902 5,096,488 3,787,230 3,139,018 951,000 $13,622,350 12,389,529 10,914,984 9,595,301 8,252,341 7,209,290 6,512,804 5,773,144 5.217.207 4,638,040 3,862,056 3,444.313 2,914.498 2,387.701 2,002,644 1,616,585 1,317,374 1,031,845 815,750 647.143 547.058 472,242 415,537 346,887 336,198 294,043 $3,971,330 3,642,681 2,964,953 2,819.624 2,554.90s 2,193.573 1,874,01s 1,684,027 1,643.708 1,428,921 1,213,607 1,116,124 1,005,507 932.488 711,688 596,510 473.843 357,002 306,938 221,266 206,460 175.438 194.053 161,606 172,570 162,141 Life Insurance Company of Virginia, Richmond, Va. 1904 1903 1902 1901 1900 1899 1898 1897 1896 189s 1894 1893 1892 1891 1890 1889 1888 1887 $11,788,596 358,541 11,906,867 331,452 12,437.338 302,839 10,785,037 266,685 9,102,616 237,283 8,968,321 219,679 12,318,555 194,951 9,212,261 165,660 10,613,052 149,672 9,256,579 116,814 8,140,705 99,618 6,998,569 75,130 6,272,217 69,527 4,940,820 51,491 3,000,115 32,927 3,314,876 21,271 2,619,276 * 15,193 * 1,250,000 * 10,500 537,710,901 34,503,483 30,303,815 26,906,073 23,239,844 20,246,656 18,373,119 15,264,250 13,778,199 11.053.039 9,647,707 6,643,061 6,230,224 4,520,424 3,589.720 2,536,280 1,076,377 * 850,000 $1,680,411 1.509,463 1,338,518 1,151,213 1,087,272 937,901 852,028 752,215 712,932 591,381 551,794 546,151 475,520 395,191 234,547 151,571 127,049 99.556 $512,105 434,204 392,997 373.419 370,429 308,259 252,025 214.273 222,987 162,663 160,003 154.529 120,496 102,742 88,795 61,697 39,291 60,589 * Partly estimated. 62 Metropolitan, ^ Ew York, N. Y. Insurance Insurance IN Force. Premiums Losses Year. Written. Number. Amount. Received. Paid. 1904 $305,258,155 7,614,729 $1,127,889,229 $50,808,924 $14,826,976 1903 297,968,863 7.187,345 1.059,875,827 45,656,961 12 907,617 1902 312,990,338 6,698,291 981,676,306 39.653.725 11,320,967 1901 296,606,312 6,008,662 881,491,451 34,705,186 10,704,747 1900 264,737,682 5,327.067 768,977,676 31,210,356 9,785.624 1899 253.396,620 4.855.756 688,629,175 26,591,651 8,575.134 1898 210,508,694 4.317,274 591,427,272 23.372.770 7,691,943 1897 232,264,188 4,028,722 534,343,756 21,402,966 6,990,866 1896 169,820,543 3.643,569 454,068,004 19,306,196 6,963,256 1895 175.905,407 3,458,846 416,062,194 18,336,918 6,580,390 1894 294,270,451 3.559.165 423,514.171 16,827,016 5,747,823 1893 150,057,703 2,932,064 343.917.746 14,361,214 5,535,120 1892 127,222,470 2,715,414 305,451,576 12,514,078 4.898,382 1891 94,927,488 2,278,487 254,939,881 10,830,373 4.408,379 1890 100,852,802 2,096,595 231,115,440 9.390,927 3,746,478 1889 92,726,883 1,849,113 200,829,929 8,342,945 3,042,818 1888 91,242,946 1,632,642 176,533,142 6,810,110 2,550,105 1887 84,059,118 1.345,125 147,758,287 5.618,767 2,098,936 1886 72,783,721 1,066,875 119,560,339 4,438,096 1,566,514 1885 57,819.912 829,833 91,234,252 3,414,524 1,279,645 1884 59.505.421 670,999 71,965,635 2,811,816 970,590 1883 52,505,697 526,042 56,536,325 1,975,703 631.639 1882 36,822,169 335,789 34,679.307 1,246,515 369,314 1881 24,469,300 190,348 17,894,620 859,057 268,811 i88o 20,728,700 110,193 9,103,870 568,204 200,805 1879 523,539 5.143 516,618 432,560 144.421 Mutual OF Baltii kioRE, Baltimore, Mi ). 1904 $2,016,918 35.730 $3,559,495 $207,443 $84,075 1903 1,815,548 32,162 3,095,453 188,158 74.508 1902 1,684,671 28,093 2,641,356 165,322 57.119 1901 1,322,112 23,981 2,206,081 147,363 59,097 1900 1,217,455 20,855 1,872,030 128,201 43.822 1899 300,572 17.574 1,526,787 124,502 52,243 1898 1,454,344 19,015 1,479,364 119,286 44.355 1897 1,148,486 14,746 1,049,638 101,676 43.410 1896 550,013 8,155 621,108 93,471 32,192 1895 495,226 5,999 541,308 85,493 34,423 1894 387.993 4.340 446,501 73.225 31.792 1893 602,196 2,028 243,010 68.565 25.643 1892 440,989 2,856 391,856 62,691 21,493 Providei vTCE Life, Providence, R. I. 1904 $108,450 2,012 $301,600 $5,173 $3,225 1903 586,320 5,509 761,18s ir,6io 2,163 1902 548,840 4,818 654,378 8,107 1,824 1901 514,319 3,683 517,168 6,864 2,164 1900 301,270 1. 913 310,711 3.604 1,215 1899 524,886 663 224,886 1,406 308 63 Prudential, Newark, N J- Insurance Insurance IN Force. Premiums Losses Year. Written. Number. Amount. Received. Paid. 1904 $202,524,911 5,642,335 $675,992,239 $41,155,697 $11,258,506 1903 190,386,294 5,176,456 613,935,910 36,028,402 9,812,458 1902 184,327,303 4,692,182 550,464,265 31,138,718 8,096,719 1901 191,712,877 4,290,539 498,127,133 26,681,757 7,411,428 1900 182,270,423 3,908,622 448,596,996 22,559,354 6,207,418 1899 165,760,248 3,406,189 389,039,257 19,028,792 5,420,758 1898 121,080,784 2,924,526 333,992,200 16,139,452 4,749,885 1897 112,371,379 2,658,700 303,770,952 14,551,868 4,342,562 1896 108,223,712 2,437,251 279,030,638 13,329,644 4.158,831 1895 124,374,407 2,330,741 268,414,100 11,892,766 3,846,754 1894 205,128,243 2,256,014 259,840,927 10,890,302 3.191,175 1893 128,208,941 1,941,533 218,199,566 9,084,844 2,893.708 1892 92,677,524 1,653,465 184,306,206 7,525,844 2,518,567 1891 72,966,176 1,360,383 150,758,907 6,413,283 2,079,669 1890 95,674,484 1,228,332 135,084,498 5,636,876 1,749,714 1889 73,576,853 1,099,312 117,357,415 4,442,833 1,327,856 1888 58,214,981 850,064 92,418,854 3,659,495 1,096,234 1887 60,202,194 736,909 81,694,088 2,942,257 853,819 1886 49,142,316 548,433 59,328,627 2,114,296 593,273 188s 28,860,882 422,671 40,266,445 1,468,955 418,622 1884 24,892,268 324,794 28,545,189 1,127,738 322,382 1883 20,426,140 273,917 23,053,935 828,911 222,083 1882 11,541,210 196,007 15,738,973 571,595 157,705 1881 9,688,362 133,582 10,959,948 402,947 III, 508 1880 8,555,904 87,462 7,347,892 250,958 57.256 1879 3,157,352 43,715 3,866,913 121,560 23.013 1878 1,785,696 22,808 2,027,888 59,817 11,338 1877 967,932 11,226 1,030,655 28,517 S.296 1876 727,168 4,816 443,072 14,495 1.958 Western and Southern, Cincinnati, O. 1904 $14,830,110 227,624 $24,600,187 $1,249,945 $354666 1903 14,161,533 209,623 22,223,035 1,113,699 295,369 1902 12,948,340 184,686 19,643,480 917,337 221.284 1901 10,878,524 155,096 16,426,534 722,605 203,896 1900 10,070,944 131,132 13,618,878 614,301 150,642 1899 8,370,729 117,545 10,881,961 508,900 122,494 1898 7,256,666 91,589 8,392,902 397,687 96,448 1897 4,980,043 71,301 6,619,653 320,996 79,169 1896 4,290,332 62,747 5,724,728 298,686 79,060 1895 4,573,492 56,960 5,294,381 246,807 69,087 1894 6,178,914 46,362 4,374,675 227,392 52,456 1893 3,830,862 41,296 3,691,843 183,415 44,336 1892 2,522,842 30,472 2,707,366 140,564 39.539 1891 2,661,930 24,638 2,329,936 101,397 26,944 1890 2,620,328 16,926 2,000,073 70,327 19.233 1889 2,505,945 11,348 1,537,430 43,518 10,837 1888 1,698,748 6,237 889,073 14,359 1.107 64 Aggregates. A (U _• S'S Insurance Insurance in Force. Premiums Losses Year. 2 Written. Number. Amount. Received. Paid. $ $ $ $ 1904. . 14 624,422,316 15,637,692 2,132,300,723 110,006,643 31,302,626 1903. . IS 596,510,565 14,600,502 1,977,185,534 98,063,490 27,408,191 1902. . IS 610,968,819 13,444,753 1,806,454,742 85,146,410 23,243.657 1901 . . 15 S98,593.825 12,333,459 1,640,398,546 74,660,060 22,003,402 1900. . 18 566,037,936 11,215,531 1,468,474,534 65,962,426 19,607,808 1899. . 17 519,796,085 10,048,808 1,292,812,402 56,159,889 17,023,48s 1898. . 14 422,164,810 8,794.178 1,109,526,870 48,776,246 14,971,238 1897. . 12 415,338,614 8,000,636 995,545,736 43,619,310 13.526,315 1896. . II 360,852,458 7,375,688 886,484,869 40,058,701 13.420,336 1895. . II 380,832,362 6,943,769 819,521,573 37,008,536 12,398,782 1894. • 12 573.279,943 6,847,892 802,016,133 32,253,881 10,635,602 1893. . II 344,361,223 5,748,195 661,568,502 28,311,386 9,955.865 1892. . 10 276,893,923 5,118,897 582,710,309 24.352,900 8,847,322 1891. . 9 218,138,800 4,302,427 481,060,716 20,654,980 7,725.328 1890. . 9 242,250,959 3,875.102 428,037,245 17.647.036 6,423,341 1889. . 8 201,787.017 3,352,708 364,483,382 14,760,691 5,086,233 1888. . 7 161,260,335 2,788,000 302,033,066 11,939.540 4,162,745 1887. . 4 158,845,704 2,296,001 254,104,877 9,692,425 3,370,346 1886. . 3 132,674,189 1,764,158 196,694,876 7,368,142 2,466,725 1885. . 3 93.736,727 1,360,376 144,101,632 5,530,622 1,919.533 1884. . 3 89,150,302 1,076,422 108,451,099 4,486,612 1,499.432 1883. . 3 77,017,326 863,584 86,321,162 3,276,856 1,029,160 1882.. 3 52,082,281 580,364 55,514,768 2,233,647 721,072 1881.. 3 37,089,522 359,942 32,641,798 1,608,891 541,92s 1880. . 3 34,768,035 228,357 19,590,780 1. 155.360 430,631 1879. . 3 4,956,809 58,185 5,334,531 548.163 329,575 1878. . I 1,785,696 22,808 2,027,888 59.817 11.338 1877. . I 967,932 11,226 1,030,655 28,517 5. 296 1876. . I 727,168 4,816 443.072 14.495 1.958 Totals. 7,797,291,727 845.385,672 260,069,267 6s AMOUNT INSURED AND PREMIUMS In the following tables the sum insured for each five cents of weekly premium is shown on both adult and infantile policies. Also the weekly premiums charged on policies of $500 each running for the whole term of life. AMOUNT INSURED FOR FIVE CENTS PER WEEK — WHOLE LIFE s H M 5 * ■-13 C (D •d 1 .a 3.2 .29 .29 .30 .31 • 32 .33 .34 • 35 .36 >>a cu •37 .38 .40 .41 .43 .44 .46 .48 .49 43 44 45 46 47 48 49 50 51 3.2 .51 • 53 .56 • 58 .61 .63 .66 ,69 .72 52. 53 • 54^ 55^ 56. 57^ 58. 59^ 60. 3.2 ►> 4) .76 • 79 .83 • 87 .91 .96 1 .00 i^os I . II 67 LIFE INSURANCE COMPANY OF VIRGINIA WEEKLY PREMIUMS FOR EVEN $500 WHOLE LIFE POLICIES Age. Pre- mium Age. Pre- mium Age. Pre- mium Age. Pre- mium Age. Pre- mium 18 19 20 21 22 23 24 25 26 .27 .28 .29 .30 .31 .31 • 32 .33 .34 27 28 29 30 31 32 33 34 35 • 35 .35 .36 .37 .38 .39 .40 .41 .43 36... 37. .. 38... 39. .. 40. .. 41. .. 42. .. 43- •• 44- •• • .44 • -45 . .47 . .48 • .50 • .52 • .53 ■ .55 • .57 45. .. 46... 47. .. 48... 49- •• 50. .. 51 52. .. 53- •• • 59 .62 .64 .67 .70 • 73 .76 .79 .82 54 55 S6.... 57 58.... 59 60 .86 .90 .95 .99 1.04 1 . 10 I.I5 PRUDENTIAL INSURANCE COMPANY WEEKLY PREMIUMS FOR EVEN $500 WHOLE LIFE POLICIES* Age. Pre- mium Age. Pre- mium Age. Pre- mium Age. Pre- mium Age. Pre- mium 18 19 20 21 22 23 24 $ .27 .28 .29 .30 .30 • 31 • 32 25 26 27 28 29 30 31 $ 33 34 35 35 36 37 38 32. .. 33- •• 34. • ■ 35. .. 36... 37. •• 38... $ ■ .39 • .40 • -42 ■ -42 - .44 . .45 . .46 39. .. 40. .. 41. .. 42. .. 43- •• 44- •• 45. •• $ . .48 . .50 . .51 . .53 . .56 . .57 . .60 46.... 47 48.... 49 ... • 50 $ .61 .64 .66 .68 .71 * Also for Colonial. In the case of the company given hereunder all policies mature as endowments if the insured survives the age of seventy -nine years, while in the event of death the amount payable is as indicated by the note at the head of the table. The amounts given are for a weekly premium of ten cents, but policies are issued at higher premiums, in multiples of five up to sixty cents, their issue being restricted by ages as follows: — 15 cents 68 beginning at age of twelve; 20 cents at age of thirteen ; 25 cents at age of fifteen; 30 cents at age of seventeen; 35 cents at age of eighteen; 40 cents at age of nineteen; 45 cents at age of twenty; 50 and 55 cents at age of twenty-one; 60 cents at age of twenty -two. The sums insured for the higher premium are proportionate to those given in the table. Thus a fifteen cent premium will provide one and one-half times the amount shown for ten cents, a twenty cent premium twice the amount, etc. METROPOLITAN LIFE INSURANCE COMPANY INCREASING LIFE AND ENDOWMENT TABLE OF BENEFITS Under this table the amount of insurance for the first three years appears in the column headed "minimum amount." Each year thereafter the insurance is increased by an amount equal to ten times the weekly premium. The "max- imum amount" is paid to the insured in case he survives the age of 79 years. 10 Cents. 10 Cents. 10 Cents. 10 Cents. >< ft tM §2 C5 S IRTHDA Min. mount. < Si < 4J SB < a < pq < < >< !>^ >* >^ >H Sa PS t)S '0 TJ -B tS ^ $ $ $ $ $ $ $ $ $ $ $ $ 2.. . , i6 20 24 30 34 40 48 58 no 160 200 240 3-. i8 22 28 34 40 48 58 102 ISO 200 240 4-. 20 20 32 40 48 58 94 140 200 240 5.. 22 28 36 48 58 86 130 190 240 6.. 24 32 44 58 78 120 180 240 7.. 28 38 52 70 no 170 240 8.. 32 44 70 100 160 240 . . . . . . . . . 9-. 40 56 100 150 240 • ■ • • • • On each anniversary of the policy, after the insured reaches twelve years of age, there will be added to the maximum amount named in the above table, one dollar. The endowment periods and the amounts payable at the end of such periods are as follows: Policies issued at age 2 mature in 47 years for $276 278 280 283 286 290 297 304 "3 48 ' 4 ' 49 S 51 " 6 ' 53 " 7 ' 56 ' 8 ' 62 " " " 9 ' 68 70 INDUSTRIAL POLICY FORMS The following are samples of the industrial policies issued. While but three forms are given they cover the contracts in general use. JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY Weekly Premium Life Policy. — First Dividend Period, 5 Years The John Hancock Mutual Life Insurance Company, of Boston, Mass., in consideration of the statements and agreements in the application herefor, which are hereby referred to, and as warranties made a part of this contract, and of the premium of ten cents to be paid at or before noon on Wednesday of each week during the lifetime of Richard T. Roe, the insured here- under, agrees to pay the amount named in the schedule below, subject to the following conditions and provisions and those recited on the back hereof, which are made a part of this contract. In the event of the decease of the insured while this policy is in force, pay- ment of the amount due hereunder will be made within twenty-four hours after satisfactory proof of death, to the beneficiary, if living, last nominated, whether in the proposal herefor or in any written amendment thereof filed with and approved by the company; but the company may make payment to the execu- tor or administrator of said insured, or to any relative by blood or connection by marriage, or to any other person in the judgment of said company equitably entitled to the same by reason of having incurred expense in any way on behalf of the insured for burial, or for any other purpose; and the receipt of any such person shall be conclusive evidence that payment has been properly made, and shall discharge the company from liability under this policy. Schedule Above Referred To This policy is in immediate benefit from its date as stated inlthis schedule. Full amount of this policy, $n8. This policy shall become void on failure to pay any of said premiums when due, but should the death occur within four weeks after such failure, the amount due hereunder will be paid. This grace in payment of claim is not to be con- sidered a waiver of the payment of the premiums on Wednesday of each week in advance. This policy will be entitled to cash surrender values as provided by the laws of Massachusetts. Executed and delivered at Boston, on March i, 190S. 71 Conditions and Provisions Referred to on the Other Side of This Policy No person except the president or secretary is authorized to make, alteror discharge contracts or waive forfeitures; no superintendent, assistant superin- tendent, collector or agent, is authorized to receive any premium more than four weeks in arrears, and no payment of premium shall be valid unless entered m the premium receipt book at the time of payment, by the agent authorized to receive the same. Should the agent fail to call, the premiums must be imme- diately brought or sent to the district office or to the home office oi the company in Boston, as failure of the agent to collect premiums will not relieve the poUcy- holder from the duty of duly making payment. If any statement or answer in the application for this policy, which applica- tion is hereby referred to and made a part hereof, is in any respect untrue; or if any assignment hereof is made; then this policy ^shall be void. This policy shall be void unless all policies previously issued by this company on the life of the insured, and in force at time of death are duly endorsed by the president or secretary, with permission to hold this policy in addition to those of prior issue; and the company shall not be presumed or held to know of the existence of any previous application, or the issue of any prior policy, and the. issue of this policy shall not be deemed a waiver of this condition.^ The company shall not be liable for any loss under this policy unless the said insured shall be alive and in good and sound health at noon of the date hereof. This policy and the premium receipt book must be dehvered to the company when claim is made. No suit shall be brought against the company vmder this pohcy unless such suit is commenced within two years from the time when the right of action 3iCCrU.GS If this policy shall be held in force for three full years, and endorsement as above recited shall have been made on all prior policies, it shall then be incon- testable, except for non-payment of premium or misstatement _ of age. In case of misstatement of age, however, no greater sum will be paid hereunder than the amount which the premiums paid would have pvirchased for the true age at the rate in use at the date of this policy. If all the weekly premiums shall have been paid, there will be declared a dividend on this policy at the end of the fifth year from its date, and thereafter such dividend as may be annually apportioned by the company. The assured is hereby notified that, by virtue of this policy, he is a member of the John Hancock Mutual Life Insurance Company, and that the annual meetings of said company are hoi den at its home office, on the second Monday of February, in each year, at twelve o'clock noon. Warranties in Application I declare and warrant that the representations and answers made herein are complete, strictly correct and true; that the several questions were duly asked, and that the answers given by me are truly recorded as above; that they shall form the basis and become part of the contract of insurance; that I made no other or different answers or repres^-i'stations; that any false or untrue answers shall render the policy null and void; and that said policy shall not be binding upon the company unless at noon upon its date I shall be alive and in good and sound health' hereby accepting, for any person who shall have interest in said policy, the company's determination and apportionment of dividends and method of distribution thereof. The right is reserved to the insured to change the beneficiary from time to time, by written notice to and subject to the approval of the company, but payment upon presentation of the policy and the premium receipt book shall be in full satisfaction of claim. METROPOLITAN LIFE INSURANCE COMPANY Industrial Policy — Increasing Life and Endowment Weekly Premium, Ten Cents. Age 35 Schedule Referred to Below Number of Policy. Name of Insured. John Doe. Age^Next Birthday. 3 5 Years. Weekly Premium. I o cents. Amount of insurance payable in the event of death after one year, $104. One-fourth only of this sum payable if death occur within six calendar months from date; one-half only if death occur after six calendar months and within one year ; and the full amount only if death occur after one year. After three years the above amount will be increased as provided below. Name of beneficiary and relationship to the insured, Jane Doe, wife. In consideration of the statements in the printed and written application for this policy, a copy of which is hereto annexed, all of which are hereby made warranties and part of this contract, and of the payment of the premium mentioned in the schedule above, on or before each Monday, The Metropolitan Life Insur- ance Company doth hereby agree, subject to the conditions herein, to pay as an endowment, to the insured named above, on the anniversary of this policy, next after he or she shall have passed the age of seventy-nine years, upon surrender of this policy and all receipt books, one hundred and forty-six dollars; which sum includes the guaranteed dividends provided for below, and doth further agree, subject to the conditions aforesaid, if the insured shall die prior to the date of the maturity of the endow- ment, to pay upon receipt of proofs of the death of the insured made in the manner, to the extent and upon the blanks required herein, and upon surrender of this policy and all receipt books, the amount stipulated in said schedule. Provided, however, that no obligation is assumed by the company prior to the date hereof, nor unless on said date the insured is alive and in sound health. In case of such prior death of the insured the company may pay the amount due under this policy to either the benefi- ciary named above or to the executor or administrator, husband or wife, or any relative by blood of the insured, and the produc- tion of a receipt signed by either of them shall be conclusive evidence that all claims under this policy have been satisfied. After this policy shall have been in force for three years, there will be added on each anniversary of its date, while it shall be kept in force, to the n amount of insurance named in the scliedule ab9ve, as a guaranteed dividend, a sum equal to ten weeks' premiums hereon, which additional sum will be pay- able at the same time and in the same manner as the original amount of the policy; namely, at death or at the end of the endowment term. If this policy is or shall become void, all premiums paid shall be forfeited to the Company. If the age of the insured is not correctly stated herein, no greater amount will be paid than the premium hereon would have purchased at the true age. No suit shall be brought against the company after one year from the date of the death of the insured. If any suit be commenced after one year.the lapse of time shall be conclusive evidence against any claim, the provisions of any and all statutes of limitation to the contrary, notwithstanding. If this policy be assigned or otherwise parted with, or if any erasure or alteration be made herein, except by endorsement signed by the secretary; or if any premium shall not be paid when due, this policy shall be void. And it is agreed that the foregoing provision which voids the policy in case any premium shall be overdue, shall not be considered in any respect waived by any act of grace by the company in acceptance of overdue premiums upon this or any other policy. This policy is void if any of the statements or war- ranties in the application for this policy be not true; or if any policy on the life of the insured has been issued by this company and is in force at the date hereof, unless this policy contains an endorsement signed by the secretary that such prior policy may be in force. The company shall not be presumed or held to know of the existence of any previous policy, and in such case the issue of this policy shall not be deemed a waiver of this condition. Agents (which term includes superintendents and assistant superintendents) are not authorized and have no power to make, alter or discharge contracts, waive forfeitures, or receive premiums on policies in arrears more than four weeks, or to receipt for the same in the receipt book, and all such arrears given to an agent shall be at the risk of those who pay them and shall not be credited upon the policy, whether entered in the receipt book or not. Proofs of death under this policy shall be made upon blanks to be furnished by the company and shall contain answers to each question propounded to the claimant, physicians, and other persons, and shall contain the record, evidence and verdict of the Coroner's inquest, if any be held. _ All the contents of such proofs of death shall be evidence of the facts therein stated in behalf of, but not against the company. In witness whereof, the said Metropolitan Life Insurance Company has, by its president and secretary, signed and delivered^ this policy. Please read your policy and premium receipt book. Wherever in this policy the words "the instired" are used, reference is thereby made to the person upon whose life the policy is issued. Note. — Please read the rules, regulations, etc., in your premium receipt book. The neglect of a collector to call will not be deemed an excuse for non-payment. If the collector does not call, bring or send your premiums to the home office in New York, or to the company's branch office, the address of which appears on the cover of your premium, receipt book. You will not pay the agent, nor any other person connected with the company, for prepara- tion of claim papers in case of death. If you change your residence, imme- diately notify the branch office. Address all communications to the Metro- politan Life Insurance Company, New York City, and invariably give number of policy and name of agent. Privileges and Concessions to Policyholders Option to Surrender^ Within Two Weeks. — If the terms of this policy are not satisfactory or if its conditions are not accepted and agreed to, the policy may be surrendered for cancellation at the office of the Superintendent of the district (his address appears on the premium receipt book covering this policy), within two weeks from the date hereof; and if so surrendered •withm said period, the premiums paid hereon will be refunded. Incontestability. — ^This policy shall be incontestable after two years, except for fraud or misstatement of age. Grace Period. — Should the death of the insured occur while any premium 74 is in arrears not exceeding four weeks, the company will nevertheless pay the policy, subject to its conditions. Revival.— Should this policy become void in consequence of non-payment of premium, it may be revived, if not more than fifty-two premiums are due, upon payment of all arrears and the presentation of evidence satisfactory to the company of the sound health of the insured. Change of Beneficiary.— Subject to_ the approval of the company, the insured may at any time during the continuance of this policy, provided the policy is not then assigned, change the beneficiary or beneficiaries, by written notice to the company at its home office, accompanied by this policy, such change to take effect on the endorsement of the same on the policy by the com- pany. After endorsement the policy will be returned. Paid-up Policy. — Upon surrender of this policy and all receipt books , after said policy shall have been in force five years and the full premiums for said period shall have been paid, and within six months after anypremium is due and unpaid, the company will issue, upon written application made upon blanks furnished by the company, a paid-up policy, upon which no further premiurns shall be required, for such proportion of the_ amount of this policy at the time application for paid-up policy is made (in even dollars) as the number of completed quarter-years for which weekly premiums have been paid bears to the total number of quarter-years covered by the endow- ment term. Warranties in Application I agree that this application has been made, prepared and written by myself or my own proper agent, and that inasmuch as only the officers at the home office of the company in the city of New York have authority to determine whether or not a policy shall issue upon any application, and as they act on the written statements, answers, warranties and agreements herein made, no statements, promises, or information made or given by or to the person soliciting or taking this application for a policy, or by or to any person, shall be binding on the company or in any manner affect its rights, unless such statements, promises or information be reduced to writing and presented to the officers of the company at the home office. And I further declare, warrant and agree that the representations and answers made above are strictly correct and wholly true, that they shall form the basis and become part of the contract of insurance, if one be issued, and that any untrue answers will render the policy null and void, and that said contract shall not be binding upon the company unless upon its date and delivery the insured be aUveand in sound health. I hereby waive the provisions of Section 88 of Chapter 690 of the Laws of New York passed May 18, 1892, known as the Insurance Law ,_ and I expressly agree that the provisions of the policy for the issuance of paid-up insurance are accepted in substitution for and in waiver of any law of any State relating to the lapse or forfeiture of policies of life insurance. I also waive the pro- visions of Section 834 of the Code of Civil Procedure of the State of New York, and of similar provisions in the laws of other States; and I expressly agree and stipulate that in any suit on the policy herein applied for, any physician who has attended or may hereafter attend me may disclose any information acquired by him in any wise affecting the declarations and warranties_ herein made. I further agree that in any suit evidence of all acts, declarations or admissions of the insured, done or made subsequent to the date of the policy^ shall be competent and admitted as proof. 75 THE PRUDENTIAL INSURANCE COMPANY Industrial Policy. Whole Life. Age 35. The Prudential Insurance Company of America hereby insures the life of the person herein designated as the insured, and agrees to pay the benefit stipulated in the following schedule, subject to the conditions, privileges and provisions contained on the second and third pages hereof, which are hereby made a part of this contract. Schedule Name of Insured Richard Roberts. Age next Birthday, 35 Years. Benefit if Insured is not less than 10 years of age next Birthday, $118. Weekly Premium 10 cents. If the insured shall die within six calendar months from the date hereof, the company will pay only one-fourth of this sum. If the insured shall die after six months and within one year from the date hereof the company will pay only one-half of this sum. Ajfter one year from its date the policy will be in force for the ftdl amount, Table of Benefits if Insured is Less Than Ten Years of Age Next Birth- day, FOR A Weekly Premium of Ten Cents Benefit Payable if Policy Has Been in Force for Less than three months More than 3 months but less than 6 months . More than 6 months but less than 9 months . More than 9 months but less than i year One Year Two Years Three " Four " Five " Six " Seven " Eight " Age Next Birthday at Date of Policy. 16 20 24 30 34 40 48 58 no 160 200 240 18 22 28 34 40 48 S8 102 ISO 200 240 20 26 32 40 48 58 94 140 200 240 36 48 58 86 130 190 240 24 32 44 58 78 120 180 240 28 38 52 70 no 170 240 32 44 70 100 160 240 40 S6 100 ISO 240 One-half the above amounts will be ijaid for a weekly premium of 5 cents. Special Notice. — No claim will be paid unless insured is over one year of age at date of policy. 76 Conditions This insurance is granted in consideration of the weekly premium herein- before stated, which shall be paid to the company or to its authorized represen- tative, on or before every Monday during the continuance of this contract. The amount of benefit provided in the schedtde on the first page hereof, and any additions thereto, shall be paid by the company at its home office in the city of Newark, New Jersey, unto the executors, administrators or assigns of the insured, unless settlement shall be made as provided in article second under the head of "provisions," below, immediately upon acceptance of satis- factory proof of the death of the insured during the continuance of this policy. Privileges If this policy is continued in force, it will become entitled to an additional benefit, cash dividends and a cash surrender value, as follows: After Five Years — Additional Benefit. — If the insured shall die after five years from the date hereof, the company will pay, in addition to the benefit herein jjrovided an amount to be determined from the tables of additional benefits issued by the company for the year in which death occurs. After Fifteen Years — Cash Dividends. — At the end of fifteen years from the date hereof, and at the end of each fifth year thereafter, this policy, if in force, will be credited with a dividend from the surplus apportioned by the company to policies of the same class, payable in cash to the insured, unless payment shall be made as provided in article second under the head of "pro- visions," below. After Twenty Years — Cash Surrender Value. — At the end of twenty years from the date hereof or at the end of any fifth year thereafter, the com- pany will pay to the insured as a cash surrender value for this policy the amount fixed by the following table, provided this policy is legally surrendered to the company within three months after the end of said twenty years or of any fifth year thereafter. Cash Surrender Value At End of Twenty Years or of Any Fifth Year Thereafter if Policy is Continued in Force The amounts in the following table are based on a weekly premium of ten cents. If the weekly premium on this policy is other than ten cents, the amounts in this table will be changed proportionately. For example, if this policy is subject to a premium of five cents per week, the cash surrender value will be one-half the amount in this table. If the premium is twenty cents per week, the cash surrender value will be double the amount in this table, and so on. n W rt W to to Wo 2: . SO M •Si W«^ W to 53 to W $ $ $ $ $ $ $ $ $ $ 2 17.00 26.00 36.00 49.00 63.00 37 39.00 50.00 60.00 70.00 79.00 3 19.00 28.00 39.00 51.00 66.00 38 39.00 50.00 60.00 70.00 79.00 4 20.00 30.00 41.00 54.00 69.00 39 39.00 49.00 60.00 69.00 78.00 S 22.00. 32.00 44.00 57.00 72.00 40 38.00 49.00 59.00 68.00 76.00 6 24.00 34.00 46.00 60.00 76.00 41 38.00 49.00 59.00 67.00 75.00 7 26.00 36.00 49.00 63.00 79-00 42 38.00 48.00 57. 00 66.00 73.00 8 28.00 39.00 51.00 66.00 82.00 43 38.00 47.00 56.00 64.00 71.00 9 30.00 41.00 54.00 69.00 86.00 44 38.00 47.00 56.00 64.00 71.00 lO 32.00 44.00 57.00 72.00 89.00 45 37.00 46.00 54. 00 62.00 69.00 II 33.00 44.00 58.00 72.00 91.00 46 37.00 46.00 54.00 61.00 68.00 13 33.00 45.00 58.00 72.00 92.00 47 36.00 45.00 52.00 59.00 66.00 13 33-00 45.00 58.00 72.00 92.00 48 36.00 44.00 52.00 59.00 65.00 14 33.00 45.00 58.00 72.00 91.00 49 36.00 44.00 51.00 58.00 64.00 IS 33.00 45. 00 58.00 72.00 90.00 50 35.00 42.00 49.00 56.00 61.00 i6 33.00 45.00 58.00 72.00 90.00 SI 35.00 42.00 49.00 55. 00 60.00 17 33.00 45.00 58.00 72.00 87.00 52 33.00 40.00 47.00 53.00 58.00 i8 33.00 45.00 58.00 72.00 87.00 S3 33.00 40.00 46.00 52.00 56.00 19 33.00 45.00 58.00 72.00 87.00 54 32.00 39.00 45. 00 51.00 55.00 30 33.00 45.00 58.00 72.00 87.00 55 31.00 37.00 43.00 48.00 52.00 31 33.00 45.00 58.00 72.00 87.00 S6 30.00 37.00 42.00 47.00 23 34.00 46.00 59.00 73.00 87.00 57 30.00 36.00 41.00 46.00 23 34.00 46.00 59.00 73.00 87.00 S8 29.00 35.00 40.00 45.00 24 35.00 47.00 60.00 73.00 87.00 59 27.00 33.00 38.00 42.00 25 35.00 47.00 60.00 73.00 87.00 60 27.00 32.00 37.00 40.00 26 3S.OO 47.00 60.00 73.00 ,86.00 61 26.00 31.00 36.00 27 36.00 48.00 60.00 73.00 86.00 62 25.00 30.00 35. 00 .... 28 37.00 49.00 61.00 74.00 86.00 63 24.00 29.00 33.00 29 37.00 49.00 61.00 74.00 86.00 64 24.00 28.00 32.00 30 37.00 49.00 61.00 74.00 85.00 65 23.00 27.00 30.00 31 38.00 50.00 62.00 74.00 85.00 66 22.00 26.00 32 38.00 50.00 62.00 74.00 85.00 67 22.00 26.00 • . . . 33 38.00 50.00 62.00 73.00 84.00 68 22.00 25.00 .... 34 38.00 50.00 61.00 72.00 82.00 69 21.00 24.00 35 39.00 50.00 61.00 72.00 82.00 70 '20.00 23.00 36 39.00 50.00 61.00 72.00 81.00 Note. — To the cash surrender value, as above, if applied for, will be added the cash dividend for the corresponding five-year (Uvidend period, if such dividend has not already been paid before this policy is legally surrendered to the company. Table of cash values after forty years wiU be furnished on application. Or, IP This Policy is Lapsed After Three Years — Paid-up Policy. — If this policy shall become forfeited for the non-payment of any premium^ after having been in force three full years, and the insured shall be over thirteen years of age at date of such forfeiture, the company will grant a non -participating paid-up l5e policy in accordance with chapter 356 of the Laws of 1895 of the State of New Jersey. 78 Provisions I St. Preliminary Provision. — No claim will be paid on this policy in case of the death of the insured before the date hereof, nor unless on said date the insured was alive and in sound health. 2nd. Facility of Payment. — The company may make any payment provided for in this policy to any relative by blood or connection by marriage of the insured, or to any other person appearing to said company to be equitably entitled to the same by reason of having incurred expense in any way on behalf of the insured, for his or her burial or for any other purpose, and the production by the company of a receipt signed by any or either of said persons or of other sufficient proof of such payment to any or either of them shall be conclusive evidence that such benefits have been paid to the person or persons entitled thereto, and that all claims under this policy have beenfully satisfied. 3rd. Policy When Void. — This policy shall be void if there is in force upon the life of the insured an industrial policy previously issued by this company, unless the policy first issued contains an endorsement, signed by the president or secretary, authorizing this policy to be in force at the same time: or if any of the representations upon which this policy is granted are not true; or if the said weekly premium shall not be paid according to the terms hereof; or if the person insured is under twelve years of age next birthday and is now or may hereafter be insured while under such age in this or any other company, and the total premiums on such insurances shall exceed ten cents per week. If for any cause this policy be or become void, all prerniums paid thereon shall be forfeited to the company except as provided herein. 4th. Payment of Premiums. — All premiums are payable at the home office of the company, but may be paid to an authorized representative of the company; but payments to be recognized by the company must be entered at the time of payment in the premium receipt book belonging with this policy. If for any reason the premium is not called for when due, by an authorized representative of the company, it shall be the duty of the policyholder, before said premium shall be in arrears four weeks, to bring or send said premium to the home office of the company or to one of its district offices. 5th. Period of Grace. — Should the insured die while the premium on this policy is in arrears for a period not exceeding four weeks, the company will pay the benefits provided herein, subject to the conditions of the policy. 6th. Revival of Policy. — ^^If this policy is lapsed for non-payment of premium, it will be revived within one year from the date of lapse upon pay- ment of all arrears, provided evidence of the insurability of the insured satis- factory to the company be furnished. 7th. Alterations and Waivers. — No person, except the president, one of the vice-presidents, the secretary, the assistant secretary or the actuary of the company, can alter this contract or waive any condition, privilege or provision thereof. 8th. Limitation. — No suit on this policy shall be maintainable against the company unless brought within one year next after the date of death of the insured. Qth. Incontestability. — If the insured shall die one or more years after the date hereof, and if all due premiums shall have been paid, and full proof of death given to the company within one year next after the death of the insured, this policy shall be incontestable. loth. Misstatement of Age. — The benefits provided in this policy may be adjusted for misstatement of age. Special Privilege This policy, if not satisfactory to the insured, may be surrendered within two weeks after its date at the office of the superintendent whose name appears on the premium receipt book accompanying this policy, and the premiums paid thereon will be returned to the insured. 79 HINTS TO AGENTS OBTAINING APPLICATIONS If you are writing applications in a family it is better to get a number at a small amount each than one or two at a large o „ -r. • amount. Business secured in the former bmall Premiums 1^1 ,-, ^ -, 1 • , way lasts longer on the books and m the end pays better; the small premiums are much more likely to be kept in force than the large premium is. It is always advis- ^ , able to secure advance payments on all Payments industrial applications. Among other rea- sons, it makes the payment of future pre- miums surer, because it accustoms the people to the fact that the insurance is something to be paid for. Don't forget also, that the first application that you secure in a family is only the entering wedge, so to speak, so after you the Wedffe have secured your application arrange with the family to collect the premium in the early part of the week, and select for this purpose a day which will give you the most time to canvass for more business in the family. If you use proper business methods there is no reason why every application you write should not be followed by others from the same family. No one will ever question that the important thing in the industrial business is the actual securing of the signed application and the first premium. Everything else is merely preliminary to this or exists as a result of this. Yet The Signature many assistant superintendents do not take T . the slightest pains to instruct their agents regarding that very important detail. Many men work the business nicely up to the point of securing the signed application, and in that they fail. Assistants should give especial instruction to their agents on this point, par- ticularly to new men. A method employed by one agent is to have the application in hand, to ask casual questions regard- 8o ing age and occupation, etc., and to jot down these answers on the application blank — then when he thinks the subject is about ripe, he simply asks for a signature on the application already filled out, thus saving time and preventing the pro- spective applicant from changing his mind. After the applica- tion is signed he begins to talk "first premium." Of course you know that securing the application is only half the battle. No business is really written until it is placed. In placing the policy you should properly Placing Your explain all its good features to the purchaser. If you don't, some more enterprising agent of some other company will come along and explain it according to his own fashion and you will be one policy the less in your debit. Don't let any one get ahead of you in these particulars. This is a subject which is often brought to the attention of district managers. How shall the inevitable death lapse be offset? Some men appear to have no difficulty whatever in securing plenty of new business on death New Business_ lapses, while others complain that when they on Death Claims ^ , , . , ^ \ pay the claims they are never successiul in persuading the family to take more insurance. It is probably their own fault, for there is certainly no time more appropriate to mention the mission and benefits of life insurance than that when an example has just been given through the payment of a claim. The fault lies principally in the spirit in which the subject is approached. Promptness in paying the claim, cour- tesy and consideration to the bereaved, tact in approaching the subject, all should be exercised, and there is no reason then why the agent should not come back with a number of applica- tions, if he wants them, as a result of his enterprise. A word about canvassing for ordinary business on your industrial debit. Have you tried it? Don't you know that a great many of the heads of the families whom you have insured and are insuring in the industrial department Canvassing for are eligible for some form of ordinary insur- Ordinary on ^^^^ .pj^-g -g ^^^ ^^-^ ^^^^ ^^^ -^ -g equally Industrial Debits ■, r ^^ • ^ \ ^ i_ true and fully as important to remember that in all probability these people hold little or no life insur- 8i ance save what you have secured for them, and they only need to be told that they can secure an ordinary policy for $1000 or $2000 at a nominally low rate to look upon the plan with favor. Some industrial men have done so well in this respect that they have developed a fine line of ordinary, paying well in renewal commissions and adding very materially to their incomes. There is certainly no reason in the world why any industrial man of average ability should not be able to place a good amount of ordinary business every year. Suppose you think this over. 82 THE ART OF CANVASSING Do you know what "straight canvassing" means? It means something more than "canvassing" — something more than filling in your day by attending to a few back calls. It . , means "straight ahead" canvassing from C^vassing ^^^^^ o'clock in the morning until your working day is done — canvassing under system with well-defined plan. It means having your mind made up as to where you are going to work for the day, and then adhering closely to that plan, allowing nothing to interfere or deter you. You never can tell just where the business is going to be found — it may be in the very house you feel disposed to skip. The writer remembers a whole morning on a hot day in August on a broiling Philadelphia street canvassed from door to door without apparent result. No business obtained, nothing but discourage- ^, ,^. . ment and disappointment to show for the The Virtue in . , .t' u ^ ^ ■ a the Unexpected ^o^^i^g s work, he was about to give up and go back to the office when he observed a small unpretentious brick house presenting no promise of business. He entered with the customary story and came out the richer by an application which not only repaid him for the morning's efforts, but actually made it possible to secure on back calls some business from those who had refused it on the first visit. You never know where the business is coming from. There is not now, there never has been, nor will there ever be, as long as human nature remains as it is, any real substitute for that method of canvassing for industrial insurance which _. . ^ contemplates ringing door bells and preaching Ringing Door ., ^ . . ,.? f ^^ , ,^ ■ggjjg ** the gospel of life insurance on the weekly payment plan continually to the great masses of the people who have not heard, or if they have heard, have 83 not heeded. That is the only real common-sense way to get right down to the heart of the subject of canvassing, and the earnest, ambitious agent who wants to spend his time to the best advantage will tell you so. Ring door bells if you expect a successful career in industrial life insurance! "If you hear an agent say that he's canvassed fifty or sixty houses to-day," remarks a superintendent of a progressive and successful district, "you can make up your mind that he hasn t canvassed one of them properly. Industrial No "Rapid insurance can't be obtained in that rapid ^^9*11 ^^' transit way. It is the agent who goes slowly, canvassing every house properly, missing none, who writes the business and gets the back calls. Thorough- ness in canvassing is as im^portant as in every other branch of the work. In fact it is the work which has to be done over again by somebody else which keeps many an otherwise progressive agent from succeeding. When you leave a house be sure you have covered the ground so thoroughly that no one can get any more out of it by following in your footsteps." One experienced superintendent puts the matter in this original way: "I love the straight canvass better than any other part of the business of industrial insurance work." It's a pleasure to meet people who are prej- p, ^ ^ 6 udiced against the business or those people who have little or no knowledge of it, and to work to convince them that it is a great beneficence and, more than all, that it is a necessity for them without which they can- not afford to live. The best people in any community are always ready to hear a man talk on any business which he thoroughly understands. So you see the necessity of learning the business so well that there will be no phase of it which can by any pos- sibility arise upon which you will not be well grounded. Tact is a necessary quailty in straight canvassing. lact m Tact is necessary in order to secure the audience; it is necessary in order to know how to properly broach the subject of life insurance. It tells when the talk has proceeded long enough and when you take up your hat.^But to the persistent straight canvasser who 84 uses tact the door of success is always halfway open and only needs another little push to open it wide for his admittance. Years ago, when the business of life insurance upon the industrial plan was first introduced in America, there was nothing else but straight canvassing. Then no well-organized, well- advertised company was back of every agent, Nothing but as it is to-day, helping him to success at every Straight Canvass- ^^^^^ ^^^ ^^^^^ ^^^^ ^^ ^-^^ ^^^ j^^^j ^^ ^e fought out by men who had the courage of their convictions, men who were not afraid to champion a new idea when they thought it was a good one. It was everlasting ringing of door bells in those days, for straight canvassing was the rule. Nothing else was thought of. No debits sufficient to support an agent existed. All was virgin soil, and the years have been spent in cultivating it. To-day straight canvassing remains just as it was then the only method by which to command complete successs in the industrial business. No matter how earnest and energetic may be your endeavors, unless you are, by straight Business canvassing, carrying your story into homes where you have never been before, and into families where the advantages and blessings of industrial insurance are unknown, you are not availing yourself of the only means you have of spreading your debit in new territory, and thus preventing what might well be called the "dry rot of inactivity." There is urgent necessity in every industral district for more "door to door" canvassing — every superintendent will agree in this — the only way to find the people who are not insured is by courteously and persistently ringing inorougn ^-^^ door bells. A great deal of tact is required to "straight canvass" properly — to know how to secure the audience — to realize when you have said enough — to waste no time and yet to avoid a superficial canvass — for, remember, that one house properly and thoroughly canvassed will bring better returns than a dozen "skimmed over," and in this, as in all other matters in this vast business, it is well to have a clearly defined system to follow. Of course you must develop your own plan, but here are some suggestions: 85 Death claims paid should always be utilized in canvassing to their fullest extent. Some superintendents issue a weekly statement, showing claims and dividends paid in the district during the preceding week, and the agents Hefp Canvassing i^imediately proceed to canvass thoroughly the neighborhood in which such payments were made. This is an excellent plan when properly worked* and seldom fails to bring increase. Most experienced agents always carry with them plenty of the most attractive literature issued by their company, advertis- ing cards, or any little novelty which will serve to bring them ._ . into the house — for the great art in straight canvassing is to get into the house. You can talk to much better effect in the parlor than on the front steps ! An excellent plan is to secure the names of the inmates before you ring the bell, and, if possible, the number of insurable people. Then you can go "loaded for b'ar," so to speak, and it will be your own fault if you come away empty handed. Because you have been turned down once in canvassing in a certain house or section, don't let that disturb you nor prevent your attempting it again. Every man has the right liT A T\ >> "^o change his mind. Every one has the privilege of altering his opinions it he nnds that they are antiquated or unwise. So that it is frequently a very good plan, indeed, to take a list of prospective applicants previously canvassed without success and work them over care- fully. The results will generally repay you for the trouble. You can do it at very little waste of time, because you have already introduced the subject. It is always the last blow that drives the nail home. The End of all soliciting is new business, and the end of all new business is increase and nothing else. Don't be misled by the thought of a big issue week after week if it is going to be followed, later on, by a correspondingly Alwavs ^^^ lapse ratio. The end of all endeavor is "increase" — the quality of being a little farther ahead to-day than you were yesterday. That is the only progress, that counts a day lost that doesn't show some gain in results, whatever those results may be. So therefore, 86 if you are a new agent, do not cultivate the idea that your mission is to spread the blessed gospel of life insurance and be a walking encyclopaedia of the life insurance business — that is your privilege, it is true, but it's not your business, which consists of just two things, the getting of new business and keeping in force the old. The other features of the business are purely incidental, and apart from the main issue, which never, during business hours, should be lost sight of. I have seen men forget this, and their home offices have had to "call them down" on this very point — good business men, possessing judgment, tact and ability, and fine educators, but not producers. Don't forget that's what your superintendent needs andmusthave — producers. Men talk of the courage displayed on the battle-field and at other times when spirit and brawn are sorely tried, but they don't know what it means to ring the door bell of a strange house and inquire about life insurance. That The Courage takes courage of the deep-dyed order; the 2, ,1 S,. courage of the true, determined man who, Bell Ringer . , , , . , . . without the spirit or enthusiasm which comes with the crowd, quietly makes up his mind to get the best of the difficulties which lie in his path and succeed through sur- mounting them. Did you ever start out in the morning with a little list in your hand, determined to call on every name it contained? How far down the list have you gone? Did you ever commence it? That's the difficult part, and yet that is what straight canvassing means — it's "straight ahead" canvass- ing. It means forcing yourself, in spite of doubts and fears and misgivings, to make the calls you had intended to make — to ring the door bells of the houses, one after another, which were on that list of yours. It isn't an easy thing, that's true, but it is the test of your will power and courage. You will find, after you are in the house, it's far easier than it seemed outside. If possible, always preface your little talk in a strange house by the gift of some little souvenir or advertising novelty, which is usually furnished by the companies for this Novelties^ purpose. This places you on a proper footing and if the article is accepted the "prospect" is bound in politeness to lend an ear to your story ; and having 87 thus your opportunity, it is your own fault if you fail to interest and convince. There was a man knocking the other day. Of course, there was a bell on the door, but this man was evidently in a hurry; he didn't stop to ring the bell, but, the door being unlatched, he walked in and commenced to knock, and, The Man ^^ course, he knocked on the inside of the Who Knocks , ^ ' ^ r. ^ t, 4. a door. So we came to see what he wanted, and, being inside already, we couldn't shut the door in his face, even if we wanted to, and we couldn't very well turn him out- doors without listening to his story, because, you see, when he heard us coming he had closed the door, but from the inside, mind you. There are some agents who are, figiiratively speak- ing, always getting on the inside before they ask any questions, and it's a mighty good habit, and one which usually pans out successful men. Not standing around cooling your heels on the doorstep of the proposition, but walking right up to it in a self-possessed, masterly manner, as if it and all the world beside belong to you; that's the manner that makes for success in this business. In straight canvassing one of the most difficult points, and one requiring the greatest tact and judgment, is that of obtaining the interview with the proper person in the house. Among the homes of the well-to-do it is The^"One to particularly difficult oftentimes to obtain ®^ the first interview with the head of the house or the mother of the family you are trying to insure. In such cases it is often well to secure from a neighbor the name of the person whom you intend to canvass, so that in making your call you may ask for that person by name. This, with a judi- cious and liberal use of canvassing material, such as calendars, cards, advertising novelties, etc., of all descriptions, will do much to secure you the interview which you want. If word is sent that it is impossible to see you on that occasion, send in a polite request that you be given an interview at some future time. If properly urged your request will probably result in your obtaining an appointment, even if it does not result, as it frequently will, in your obtaining an interview right away — to save time. You will often meet people who tell you that they are not quite ready, but when they are they will send around. Don't take any stock in that, nor wait for him to send. The in- comprehensible thing about life insurance is The Business that as much as the public needs life insurance t th A^^nt ^* sends for the agent so rarely that when it does a suspicion is always aroused as to the character of the risk. To get business you must work for it — it will never come to you. In canvassing it is always well to set a mark for every day's attainments. Make up your mind to have a certain number of applications every day. One or two at least j^ ^^^ over and above your lapses for that day. Then stick closely to it each day until you reach that mark. That will insure your special salary every week, and that is what you want. Special salary every week — to have it one week and not the next is demoralizing to the agent and unsatisfactory to the com- Collections P^ny. Don't forget your two apphcations clear a day. Bear in mind that no matter how large your new business issue, nor how small your lapse rate, unless you are making the collections — you are not giving your company a profitable agency. Here is where you and your assistant should combine efforts if your record in this respect is not satisfactory. There is no reason when general business con- ■ ditions are as favorable as they are at present, why any agent should not average from 98 to 100 per cent on large debits and exceed 100 per cent on smaller ones. Be systematic in calling on the insured. Call at as nearly as possible the same hour on the same policyholders each week. Collect a few weeks in advance on every policy on which it is possible and above all things carry no System and fictitious balances of high arrears. D n't Advance Fay- collect on policies already in advance simply ments ^ . ^ . . -^ ^1 -X to make your balance appear small. But bring up your arrears. Bring them all into advance payments and you will have satisfied policyholders and a satisfied company back of you, few lapses and a good- sized special salary voucher each week. 89 A mistake which new agents frequently make in canvassing is in talking too much. Not quantity but quality of talk counts. Don't give the impression that you have "lots of words you never used yet" ready to spring Miich ^ °° °^^ ^^ ^ moment's notice. It is interesting talk which wins — not how much you say, but whether what you say is applicable to the particular situa- tion. Is it going to help to influence the prospect to give you his application — that is the important thing. Study human nature. Learn to avoid subjects of an unpleasant nature or subjects which divert the mind of the prospect from the business at hand until the application is obtained. So much has been said about the "advantage of a wide circle of acquaintance" in this business, and of the possibilities open to a person who has many friends, that it might be well right here to put in a word or two for the T r,.i,^^„ man who doesn't bother his friends, but who and Others _ .,.,,. . , dives right m, head foremost, into the sea of straight canvassing, determined to "sink or swim." The fact is that the business is very demoralizing when you simply try to "work" your friends and acquaintances, the circle of whom is, of course, more or less limited. A large circle of friends is not apt to help a man so very much, unless they are business friends whom he has made through canvassing. After all, it is the man who gets off of his debit and goes into the fresh new fields in canvassing who increases his list of available prospects — not the one who continues week after week to bore an over-indulgent friend who does not intend to give you an application, and never did, but is too polite to say so. Success in canvassing for life insurance requires a large man's size edition of "self-confidence." Don't let anything scare you. Not appearances, for industrial insurance is carried in palace and cottage. Not the "cold shoulder," for it needs r, t* /-I ^j insurance just as much as the warm one. Self-Confidence n.T ^ ^i .« ^^ „ r ^^ . -, r ^-^ i Not the wrath of the head of the house, for you have ever ready the "soft answer" to turn it away. Have confidence in yourself and your own abilities and the battle is half won. 90 The Call for "Increase." — There is continually an urgent necessity for door to door canvass. Increase should not be depended upon from homes in which the agent already has premiums, because in a great many instances Don't Overload, .1. •.- £ ^ j. ^ • Seek New Fields writmg of a five or ten cent mcrease on a policy that has been in force several years is the means of loading too much premium in that house — in a good many cases not only the lapse of the increase, but of the original policy also follows. Hence, it should be stated as a positive rule that all debits should be covered thoroughly and as quickly as possible for collections, so that the greatest amount of time possible may be devoted to the canvassing of people not insured — the persistent and continued ringing of door-bells. Of course the advantages of straight canvassing in this way are manifold — not the least advantage being that every new policyholder you secure should be made a lasting active advertisement for your company and yourself. Where Is the Business? — It is strange that men will often hunt the longest for that which lies at their feet. There is a story of a man who spent his youth in the Uu^ness ose pursuit of happiness which forever eluded him, until, in old age, after life had been wasted, he found it in his home. Just so in life insurance — your field is your own locality — your own block; your nearest neighbor first and after him the next one, and so on. "Where is business to be obtained?" asks the new agents who, seeing the field apparently so entirely filled, wonders where he shall begin to make his work effective. Well, you _^, , _ . don't have to look far for it. It is right Where to Begin , , r. ■.. . at your very door — often with your nearest friends. Don't imagine that the field is entirely covered, nor that your neighbor's field is better than your own. It is not. The best field is the nearest. "Method" and "system" are essential in the industrial business. One of the important things is a record of all "back calls " with sufficient explanatory memoranda to clearly identify 1- p 11 ^^^ case when it is necessary. "Back calls" should be followed up religiously at the time appointed in your previous interview. Many a prospect who 91 did not want insurance when you first talked to him on the subject, may have changed his mind by this time. Don't give a case up while you know he is insurable and has the money to pay his premiums. Constant dropping wears away the stone, and continual application is bound to bring results. How many agents with debits appreciate the value of a real house-to-house, straight canvass? Many think they can secure » T • n-ff enough business directly from their debits. Your Debit ^^ ^^ ^ great mistake to confine yourself to such narrow possibilities. There is more business outside of your debit than there is on it. Canvassing in entirely fresh fields is the method which develops the agent's capacity, and increases his salary voucher. Don't get the "brown-stone shivers" when you run across a particularly imposing residence in the course of your day's ^ - _. canvassing. Don't pass it by. There's as Oak versus Pine ^ -, ■ ^ ^ ,-,■-, much business, and often more, behind the granite front and doors of paneled oak, as there is in the less pretentious cottage. Only it takes a little more tact some- times to get it. A good many failures among industrial agents may be traced directly to the lack of proper instruction by their assistant superintendents. An assistant should be an educator as well . . as a manager, and a leader in all progressive Canvassing movements as well as a director of his men. The assistant who can go from house to house with his men, writing business with them, noting and comment- ing upon their shortcomings, and showing them by example, as well as precept, the proper method to obtain business and to keep it, approaches very nearly the ideal of a successful assist- ant. An insurance agent who just failed of having that amount of persistence which wins success tells this one on himself: He had found his way somehow into a factory, and had been canvassing among the employees for some "Sitting Next" time without result, and, after interviewing five or six, left without obtaining anything more substantial than a few back calls. On one of these he 92 found a worker in metals, who, as it happened, had been the last one interviewed on the occasion of his first visit, "You didn't wait here quite long enough," he said to the agent, "when you were here before. Brown, the man sitting over there on the next bench, heard that you $3000 and were in here, and wondered why you hadn't G^Tltl ^^^^^ ti'ied to see him. He was interested in life insurance, and your presence here reminded him of it. He made application two days ago for $3000 to the first agent who broached the subject to him. I guess you could have had that if you had seen him." May be that agent wasn't hot! The fact of the matter is, you don't know how close you may be to a profitable case if you only will keep on working. That agent, it is evident, lost a $3000 case just because he hadn't canvassed far enough. Had he gone on to the "next man" the commission that went to another agent would have gone to him. You never know whether the "next man" may not be just the man you are looking for. It's going to be the "next man" some day. May be to-day's the day. The time was, and not so very long ago either, when industrial agents could confidently look forward to the time when, with a debit of $100 to $150, he could expect to live well on his com- missions for collecting or ordinary salary, A ^°ia 6 while the hustle for new business need not be and a Big Salary Voucher niade so vital nor absorbing. This condition has been changed very largely, however. Debits of this size are rare, and very properly so, for the posses- sion of a very large debit predisposes its possessor to an idle life. The man with the big debit finds little time to canvass. But the most successful agents nowadays are those who have small debits, and sometimes no debit at all — straight canvassers, pure and simple. Do not, therefore, be discouraged if your debit is not as large as agents' debits used to be, or as that of someone else. Spend your extra time in canvassing, and your new business, both industrial and ordinary, will pay yoti far better than the collection of the premiums alone will ever do. Most people don't know what they really need when it comes to life insurance. Then, too, they lack decision. You must be 93 "long " on decision, and make up their minds for them. For, to make them think as you think is the essential A Matter of ^^^ ^^ canvassing. Anyone can canvass pros- Decision p^^^g ^^^ ^^^ determined to be insured, but who are only waiting to choose their company; that requires no wonderful art. The science of canvassing comes in, however, when you nin across the people who are opposed to life insurance ; those wives who would rather see the money go into some other channel; those husbands who don't see why they need provide for an indefinite contingency in the future; for those parents who see no necessity for protecting themselves and the remainder of the family against the financial loss caused by the death of their little one. Opposition should only inspire endeavor, not deaden it. There is no doubt that straight canvassing is the keynote of success in industrial life insurance. Is is by far the easiest part of the work and the agent who straight canvasses week after week prefers canvassing to collecting, especially Easier to Talk because of the large remuneration it affords. from the Inside ^j^^ ^^^ ^f straight canvassing is to gain an of the Door entrance into the house, because the agent who gets into the house is far more liable to write business than the agent who fails to do so. A good plan is to secure the name of the family living in the house before canvassing it, and wherever it is possible to do so the number of persons living therein who are insurable. When, after ringing the doorbell, a lady comes to the door, the agent will thus be able to address her by name; asking, for instance, "Is this Mrs. So-and-So?" Then the chances are that, thinking the agent must know something of the family, he will be invited to step inside. Now once this much has been accomphshed the rest is usually fair sailing, and he must needs be a very indifferent soHcitor, indeed, who leaves such a case without at least securing a prospect for future business. This may sound somewhat trivial, but it's plain common sense. Every industrial agent knows how difficult it often is to start the acquaintanceship which leads to business. After business has been obtained in one house it is then an easier matter to secure the names of those Hving in adjoining houses. So that the same operation may be repeated. It is the word spoken at the right time which counts. That 94 brilliant bit of repartee which you think of the day after the dinner is over is not going to give any satisfaction nor increase your celebrity as a local wit. It is the word t fh^^^^* Word spoken in season which brings the results. So, Rieht Time ^^ soliciting for life insurance, recollect that there is a right time to broach the subject — a right time to present your "little story " — a right time to clinch the argument by the application. There is where tact comes in — the knowledge of what is the right time and of what should be said just then. Some men need to be "jollied," some bullied, but the majority of business is won by honest, sound, earnest talk, "straight" from the shoulder — at the right time. There is the danger, on the other hand, of indulging in too much talking. It is frequently a weakness with new agents. The temptation to say it all, or try to, the first time. Don't go into every detail, nor produce so much oratory A Ton of ^jj^^ yQ^ confuse and bewilder the prospect. Ounce of Wit Don't forget that time is valuable, and can not be wasted, with profit, on words which do not bring results. A few strong, telling arguments for your com- pany, and the particular policy you are attempting to sell, are much more effective. They give the prospect an opportunity to think himself. It is not your desire to hypnotize him, but to lead him out of the paths of antagonism, or, more frequently, indifference to your line of thought. This can be accomplished more surely by the establishment of a friendly relation — an active and enthusiastic interest on your part, and a thorough confidence in you, on his part. You will find the moderate plan more effective than the use of too great flow of language. Not long ago a salesman who had just entered the employ of a leading New York merchant was sent out upon the road on his initial trip. He started off full of enthusiasm and hope, but . strange to relate, after six weeks of work he p " ^ awoke to the fact that he had failed to sell a dollar's worth of goods. While personally creating a good impression and making many friends, he had been unsuccessful in securing any business. Back to the office he came, downcast in spirit, expecting anything but the warm, 95 pleasant reception which the acute old merchant gave him as he grasped the despondent salesman by the hand and listened to his story. "Never mind," he said, "you pack up your valise and start right over the same ground again and don't show up for six weeks more — then come and tell me what you've done." And the old gentleman was right, for before the time mentioned had expired, more than $20,000 had been received in orders from the very persons who had previously turned him down. And so in our business — re-canvassing pays — pick out from the list of those you have canvassed recently a few of the more promising names, even if they did refuse you before; the answer is not always going to be the same way. There is no question that the man who writes the greatest number of industrial applications is the man who talks to the greatest number of insurable people. In other words, the main point is to enlarge the circle of your business and^"Hopefuls" acquaintanceship by canvassing so that you will continually have a long list on hand of both "back calls and hopefuls." Nothing is more discouraging to the canvasser, and especially to the beginner, than the failure which is almost sure to be the only reward for some of his efforts. There are bound to be some on the Hst whose business you are not going to get. The larger your list, therefore, the smaller the proportion of failures and the greater will be your success. Don't forget, also, that power comes from experience and practice, and that the greater your experience, the more Power of g^^^ interviews you have within the limits of the twenty-four hours, the greater the chances for your success. It is sometimes astonishing to note the power which experience of this kind gives. It is the true secret, if any there be, of the success of the greatest underwriters. Of course, you must not expect to accomplish everything all at once. The power to separate the individual from his money, and supply him with your commodity in its place, is not gained in a day, or anything like it. Like the hammer "^f^ Wni**^^ which works out the finished horseshoe from the bar of iron, patiently and slowly, yet forcibly and decidedly, the work is done, your success accom- 96 plished. It is not at all likely that you will secure many appli- cations on the first visit. Sometimes they come that way, but, after all, the business that is going to count in your success is the business that you have had to work hard for — that has neces- sitated many calls, and that, frequently, has given the least promise at first. After all, it is largely a question of who has the greater pertinacity and will power, your prospect or your- self — that is, -assuming that he is insurable and financially able to meet his premiums — and the man who sums up the greater of these characteristics is the man who will "win out" at the end. Right here comes into use your "back call" book. Are you keeping that little book as you ought to? Is it a faithful and accurate record of the business which you have failed thus far _, .r . , -r^ , to close, but which you have interested to the The Little Back .. r << n- • m^ t*. ua. a. u Call Book pomt oi callmg agam ? It ought to be, and, being kept up to date, should be a constant guide and help to the agent in making and keeping his appoint- ments. In this connection it is well to be reminded right here that night calls are among the most important factors in any industrial agent's success. The reason for this is found in the fact that frequently in canvassing in the daytime you will find it impossible or unwise to write any business in the absence of the husband and bread-winner, from whom, after all, the premiums «r 11 A ,1 • ^"^^st come. It is one of the worst plans in the Evening" ^^^ world to attempt to force matters whep you find that it is desirable to wait for this reason until evening. Take note of the fact in your "back call" book, and by all means call around in the evening at time appointed. See and consult the head of the family, and secure the application. 97 MAKING COLLECTIONS In the Fall a call goes out to the field for "high collections," "bring up the percentage of collections for December," and so on. Here is where assistant superintendents have a splendid opportunity to show their willingness to co- Non-D^ers operate with their companies by instructing their agents to lapse all non-paying business, even though not quite up to the limit in arrears. If it is not "paying" business, get it off the books — it doesn't belong there, and only shows a fictitious increase for special salary. With these policies lapsed, as they should be, your collections will be splendid. Of course, no business should be lapsed which there is any chance of saving, but there is always a certain amount of business upon which it is impossible to collect any further premiums, and this business should be lapsed. Assist- ant superintendents can do no better work than to see that their agents adhere strictly to this principle, while it will, of course, be far better for the agent himself in the end. There are many suggestions which might be offered to agents in connection with the important matter of collections. A great deal of the responsibility for a poor or excellent record in the matter of collections lies with the assistant Collections superintendent. This matter is one which Affent ^® ^^^ very largely control — he can and should insist on large collections, and he should assist in obtaining them by counsel and by practical work among and with his men. 98 In the first place, it should be the aim of every agent when- ever he writes new business to collect as much th* a' Tc tion °^ ^^^ application as possible — this gives the applicant a live interest in the policy, insures his taking it when delivered, and heightens the probability of his continuing it in force. It is an art to be a good collector. The art of separating people from their money is, after all, the most important of all arts. No business can be operated without it, and straight canvassing isn't the "only pebble," as the Collecting boys say. The cultivation of perfection in this art is very important and requires a great deal of thought and energy. In the first place, make up your mind never to leave the house until you have obtained the money. Politely, but firmly, insist upon its payment. Take no excuses, and do not offer to pay the money yourself "this week." You are not a charitable institution. Select a certain time to call upon each policyholder. What is the best day? TVi "R f n Monday preferably, before the week's money has been spent. If you have a large debit, of course, you cannot make all your collections on that day, but whatever time is selected should be adhered to religiously, and any tendency on the part of the policyholder to "put off " should be promptly checked. In that way only can collections be systematically and properly made and good returns sent in each week. Talking about collections, don't forget the simple, yet impor- tant fact that good collections mean low lapses. It seems to be hard to bring some men to the realization of the fact that people . who pay do not lapse. Good collections not Even successful canvassers who cannot collect soon get discouraged, and when they see business slipping away from them they want to go, too. This is just the time, of course, when the assistant should step in and show him how to make extra collections, and send him on his way rejoicing. The size, success and progress of your company ; its standing in the field of life insurance are measured, first of all, not by the 99 amount of business written, but by the size of its yearly cash ,, , T income. Now, that income, at least that Yearly Income ^ ^r -^ i,- i, • j j part oi it which is premium income, depends upon one thing, and that is the amount which you manage to collect from your debit during the course of the year. This is the vital part of the business — the active the Business piilse whose throbs indicate plainly the con- dition of the organization back of it. There- fore, as upon the amount of the collections depends the very life of the company, no wonder they make so great a point of this branch of the work. Advance Payments may be called the "Insurance of Insur- ance." The man whose policy is paid for several weeks in advance need never fear anything happening which will deprive ^,^, , him of his protection or make it necessary for The lustird.nce ... of Insurance" ^^^^ ^^ discontinue his premium. For instance, the man whose policy is paid four weeks in advance has actually eight weeks' leeway, or grace period, during which no premiums need be paid, before his policy could be reported for lapse. So, you see, in the event of any reverse or occurrence preventing his making payments, he would still have eight weeks in which to raise the money to keep his policy in force. This works better for the agent, for it prevents lapse, and for the insured, for it secures his protection. 100 SOME THINGS TO AVOID A story is told of a popular young entertainer who once was called upon to give his repertoire of recitations and imitations at a private insane asylum. The audience was very attentive, .^ , . and at the close of the performance one gentle- Delusions J • r J J ^t, man arose, and coming forward, grasped the entertainer by the hand, thanking him for the pleasure he had given those who had heard him. "Now," he continued, "you know I'm not really crazy, myself; of course they all say that, but really there's nothing the matter with me; I'm only serving out my term. I'm really all right now, and could go home any time, but I've decided to serve out my term." The young man expressed his appreciation of the gentleman's remarks, and asked him to call upon him when he should come back to New York. The inmate said he would be delighted to do so. "But," he added, "have you apiece of toast in your pocket? " "Why," asked the entertainer, "don't they feed you ^^d t'h*^^* properly? " "Oh, yes," responded the other. Poached Egg "They feed me all right, but you see I'm a poached egg, and if I could only get a piece of toast to lie down on I could get just the rest I've been looking for." You see that poor fellow had a delusion. There are 'some agents who are laboring under the delusions that they are doing all the work they can, and are making all kinds of progress, when they are really doing nothing of the sort — under a delusion. Then there are the agents who are spending half their time on old prospects, all worked out, where there is not the slightest prospect of striking "pay dirt." More cases of "delusion." There's the agent who refuses to straight canvass, because he believes he can get rich quicker . , another way. More delusions. Avoid them; quick Agent " ^^^^^ ^° ^^^^^ straight, to have good judg- ment, to exercise it wisely, so that your results may show it, that your records may be clear, clean and creditable. lOI and you'll find that the time you have wasted heretofore in unprofitable work, which hasn't paid any dividend, will be spent now in more lucrative forms of work. Not avoiding work because it is hard, but doing the class of work which brings the greatest returns, no matter just in what form it may develop. Of course, the agent will be met by all sorts of arguments, left by all sorts of other agents, with those whom you are solic- iting, and many of them will deal with the marvelous progress of this company, or the tremendous increases "Other Fellow" iiiade by that company, but don't go into that ; keep your eye on the fact that you are selling life insurance for only one company — your own — and the less you say about others the better. Certainly you are not called upon to "talk them down," nor to go into details regarding their statements. You are called upon, however, to talk your own company up, and to show the advantages and benefits of its policies — not the shortcomings of others. You will find that nothing at all is gained by harsh criticism or picking flaws in other people's contracts; show up, rather, the superiority of your own. It is in this way only that you can win the respect of those with whom you will come in business relations. If there is one form of mental dissipation worse than another it is the practice of many life insurance agents in spending hours- of time, in going over in public and with each other all the har- rowing details of the case they didn't write — the case they could write, but didn't. The friend who promised Business ^^ ^^^ word of honor as a gentleman to give them the application, but who forgot and gave it to some one else. All these stories are told not to enter- tain the hearer, but to relieve the tortured feelings of the dis- appointed story-teller himself. And of all the discouraging, nerve-breaking practices this is one of the worst. Avoid it. It's a time waster; tell of your successes, if you like, but let your failures go. No one likes to hear of them nor respects you the more for them. The business you have placed, not the business you came "pretty near writing," is the only thing that counts. Many agents find it comparatively easy to obtain prospects. They can cultivate their friendships and go through all the 102 preliminary work of canvassing, but when it conies right down p, . p to the practical and essential work of " closing up" the case they find it a very different matter. The remedy for this lies principally in devoting more time to the case in question. Avoid treating your cases super- ficially. Finish your work on every prospect — after your ■r. . T .^ application has been taken. Do not lose Easy to Lose it , r , ■, , -,. , track of the prospect until the medical examination has been made, and even then there is often opportunity for your prospect to slip away from you unless you are very attentive. Therefore, do not neglect your pros- pects. Not until the money has actually been paid and the policy issued and accepted is your business perfectly secure, and best of all — collect your premium in advance. Excessive arrears come from breaking your company's rule regarding lapses. If you will adhere strictly to this rule, lapsing every policy as your rules provide, refusing steadfastly < ^° carry other people's policies for them, Excessive Arrears i^^''^^^^ ^^ inducing them to carry them them- selves. If you will be attentive and careful in these respects, you will be in no danger from excess arrears, which discourage the worker and keep him in a continual condition of worry, knowing as he does that "they all come home to roost." There is no greater fallacy in the business which the indus- trial agent has to contend with than that which makes him withhold reporting certain policies for lapse when due, on the ground that the policyholder has promised Com^pany's mles P^y"^^^* ^^^ that the agent will make enemies of them if he lapses. This has led to the accumulation of more excess arrears and involved more agents in trouble than any other single feature of the business. The fact of the matter is that when a policy is four weeks in arrears it should be lapsed, no matter what promises you may get. If the premiums are not forthcoming in Lapse all business ^ month they will usually not be any nearer our wee s m paid in six or eight weeks, and when the arrears . inevitable lapse does come, by inspection, if not before, from your pocket will have to come the amount to 103 make good the deficiency. The fa.lt lies, not -'^h the'^^^"*;^ in this case, but simply that the agent has been afraid to lap^, perhaps, because the charge therefor would ^^°^ ^^ ^^^ into decrease for the week, or because he did not desire to oflend the policyholder who has promised him the money if the first is the reason there is. of course, no excuse for his failure in obeying the rules of the -°»P-'^y =^f J^ullary policy instead of attempting to conceal it so ^^at special salary may be drawn. On the other hand, if the reason be the agents desire not to offend the poUcyholder, he is wrong; for the very people for whom you are holding the policy or whose premiums vou are prying for them, will be the first to condemn your Ltion « ftl criticized. Better be on the safe and sensible side and lapse all policies four weeks in arrears. TuTt a word or two about them. It is to be supposed that verjfew fndeed, industrial agents ever start with the idea o allowing their debits to get into such a -^f ^'^ ^^^^^^^^^^^ arrears will accumulate on it or their accounts Deficiencies ^^ become so muddled that somebody from the home office will have to bring them up with a round turn. TetZtis the unpleasant predicament in which many a wel - meanrn ' but injudicious agent finds himself after a few nionths "perhaps indeed even weeks, of work. How does it come :;out? Certainly not intentionally, but --f^ becau Ae agent has not been careful to live up closely to the rules laid '"There'fitfoTnds of ruts; first, the kind that a man makes for himself, and then there is the rut which others make for him We are, perhaps, most used to consider a rut as a for him. w ^P^^^ ^^^^ ^^^^ ^^ continual and heavy Keep out of your ^ravehng of the same kind of vehicles m the own track ^^^^ direction. But, after all, the ruts that a man finds are by no means so deep or so hard to get out of IZ ™ts which a man makes for himself as he goes his ordi- r»rv accustomed way, and of all these, none are more fearful thS thoseTwhich many an industrial agent has accustomed Wrse5f to travel. Antiquated, out-of-date -fods"^ can- vassing, of keeping accounts of prospects and business, 104 keeping track of collections — all these are "ruts" — the spirit which keeps a man pegging away at an old worn-out theory for obtaining business, instead of getting right out and hustling for it. All these are "ruts," And the difficulty with the "'rut" is that the longer one travels in it the deeper it gets, until one is unable to see over the sides at all, and it becomes a narrow and biased line of life which prevents real progress and makes almost impossible that broad education in the business which is necessary to a complete success. Avoid ruts. Don't be afraid of adopting new ideas. The brightest men are con- tinually availing themselves of the most advanced ideas. In canvassing different people employ different methods. Some men never think of soliciting insurance among personal friends, others strive to extend their circle of acquaintance for that very purpose. Then again some agents Get a plan and -^ ^ ^ . . . ^ . ^ then work it ^^^ very successful m canvassing among per- sons of a certain occupation — such as, for example, carpenters or masons. Endless are the plans in operation, but there is, after all, no "short cut" to success in canvassing for insurance. This is something which your experience must determine for you — the particular method which you may find most effective in bringing in the applica- tions — but no matter what plan you decide upon, the only way to make it successful is to apply it intelligently, earnestly and energetically. The practice of "twisting," or urging a policyholder to give up his policy in one company so as to take one in yours, is an evil one, and none the less so because it happens to refer to industrial business. Of course, there are t«x ^ .. „ agents who think it necessary to do this very thing in order to get business, but, after all, it doesn't pay. If from no other motive than that, it should not be continued. Just see how it works. Here is a family holding, say, three industrial policies, and you suggest that, "in view of the fact that your company is offering such superior inducements," etc., etc., he consider these and let the old ones drop. Of course, you say nothing about paid-up insurance or dividend, or any other privileges to which the age 105 of the policy may have entitled them. You simply urge that the policies be dropped and those issued by your company taken in place. This is done, and what is the result? It is only a short time before the agent of the other company calls; tells his former policyholders what they have missed in sur- rendering their policies in this manner, and offers to reinstate them on easy terms. Of course, they are likely to be more valuable at that time than the new ones, which now are dropped in turn, and thus the war continues. An agent can do no better work for himself than to allow competing business which has been in force some years to remain in force, only adding such additional sums upon the same life as the conditions will war- rant. This kind of business will stick best and bring better returns in the end. The steeple-chaser must take all the fences — no going around one and taking the next. He must take the jumps as they come, for if he doesn't he is disqualified. So with the industrial agent. When difficulties and ■p obstacles arise in the path, don't be afraid of them. Don't balk and try to go around them — leap over them — take the jump and you'll land on the other side ready and anxious for the next. It is surprising how much a man loses if he doesn't follow this timitv EsSme course. Every difficult case allowed to go by the board, every doubtful case lost, every wavering policy allowed to lapse cost you just so much in energy, thought and time expended without result, to say noth- ing of the loss of momentum which you suffer. You cannot afford to let a single chance escape, on the plea that there are plenty more to come — that particular opportunity will never return, nor will the next one be handled with the confidence and power which success with the first would have given you. Success is not a matter of sudden growth ; it consists of never letting an opportunity escape — of taking advantage of each chance, of seizing each occasion as it comes and turning it into profit. Thus by gradual and continual Success ^ aggregations is the edifice of success at length built up. In no other way will it be perma- nent and lasting. io6 Of course the "has been" is everywhere, and particularly in the field of life insurance. This is because the field is so easily entered, and many men continually start in it who by reason of failure to succeed at first drop out to fill the ranks "Hsfs^B^ens" °^ *^^ "^^^ beens." These men are the ones, of course, who continually throw dis- credit upon the business. Their influence upon beginners it very injurious. It engenders discouragement and failure just at the time when the new agent needs all his courage and nerve. Have nothing to do in a business way with the "has been." Get your inspiration and advice from your assistant or super- intendent, or at least from those agents who have themselves been successful. The advice and experience of the failures in any business are not worth having. The failure sees things from his own especial standpoint only. He forgets the great field of opportunity which lies just beyond his unsatisfactory experience. He never has talked anything but defeat, so he is quite sure there is no such thing as success. We don't disparage the "back call;" they are a useful institution; there's money in them — something profitable for rainy-day canvassing. A book full of back calls is a list of "special salary futurities," as somebody has Back call expressed it. No, the back call is all right. Books— How ^^^ ^£^gj. ^^^ -^.g ^. ^ ^^^^ ^^Yl, isn't it?— to Keep inem . r ■, • , .1 i • a prospect for future business — not the busi- ness itself. You'll find it pretty hard to pay the butcher with them, I'm afraid, and it's doubtful if the conductor will accept the back call book for fare, be it ever so full of gilded promises. The back-call book is good just to the extent that you are able to endorse across the names it contains, "policy issued," and the best time to commence doing that is now. A good way to increase the value and practical service of the back-call book is to place opposite each name the amount of weekly premium you can reasonably expect to secure from the prospect. In this way you accustom yourself to think of the records therein as having a hard cash significance to you, and not a mere "habitation and a name." Then secure from each 107 prospect the amount of business you have entered in the book, and you make it of some practical value. No practice is more fatal to the ultimate success of any agent than rebating. It saps away the very mainspring and inspi- ration of the agent's work, for it takes all the profit of the . work away from it. The disadvantage arises ebating ^^^^ ^^^ ^^^^ ^^^^ ^^^ rebater always relies upon his renewal interest to bring him his profits; but the insured, through a curious freak in human nature, values only those things in life insurance that he pays for — if he has two policies, one of which has cost him his good money to obtain, and the other obtained on a rebating proposition. It is not diffi- cult to guess which is going to be given up when the pinch comes. So the rebater finds continually that lapses are cutting his renewal interest down to a minimum figure, cutting his profit down correspondingly. Your rebater is generally a poor man in consequence. Industrial men, in writing ordinary, will do well to take a decided stand on this important question. The writer's experience has been that rebating is as unnecessary as it is demoralizing. You will never lose any business by refusing to rebate. Antagonism is always easier to overcome than indifference. The man who is solid against life insurance, who talks down your company and its practices, who raises two objections to every argument which you advance is, after Antagonism, all, much easier to deal with than the man CanvasSn^^ ^^^ ^^° ^^ ^° sluggishly indifferent to his interests and the interests of those who are dependent upon him that he will allow you to talk for an hour without eliciting any appreciable response. But both kinds, as well as many others, are continually met with in canvassing. Don't let either of them scare you, for you should never forget that in selling industrial insurance you are canvassing for an article tried and tested by the experience of years, which has met successfully every criticism and contention which the jealous or the unprogressive mind could invent. The system itself stands to-day higher than ever, a wonderful example of the power for good which exists in the dime and the dollar. If io8 you can't sell industrial insurance the fault is not in the policy, nor with your company. Search yourself! There is no royal road to success in life insurance. The man who has started in with the idea that he is going to win success in the agency field or promotion to an assistancy without TO- T* 1 T. J work has sadly miscalculated. The industrial No Royal Road , . , -^ , Dusmess demands common sense, tact and perseverance, together with hard work. Special talent is not necessary, but ordinary business judgment, combined with industry, is essential, and the possessor of these qualifications who also knows how to "stick " has his success Business already assured. Not upon outside conditions but upon your own determination depends your business career in the industrial field. There is plenty of business right around you — find it! Don't be discouraged if your first month's efforts have not yielded you quite what you expected. You are gaining a valu- able experience, and every policy written should be made the stepping stone to another. Try to keep your book of "prospects" full — remember that the longer your list of "prospects" and "back calls" the greater the average chances of your writing business. The greater your ^-j^q difficulties which you are experiencing ■DrosDects the x- o better vour ^^^ ^^^ particularly novel. Your assistant prospects ^^^ your superintendent had the same diffi- culties to encounter, but they had the pluck to overcome them. You should certainly have it too! Never forget for one moment that you are in the business to stay — to make a success of it. Not as a temporary make- v , • J. c^j. shift — "until something better turns up"! You're in to Stay ^ . , f , . , .. Bring to your work the highest attributes and best energies of mind, heart and hand, and your weekly salary voucher will soon tell the story of your success to your expectant family. "Stick to business" is a motto'which every industrial man e.. , . -o • should paste in his hat, and fix forever indel- Stick to Business .... ^ . . . „„ ' , ^ , • ibly m his brain. Stick to business — you have no time to waste on other people who don't stick to theirs. 109 A good business man never allows his capital to become impaired. He may suffer inroads upon his interest earnings. He may allow his dividends to be consumed in outside invest- ments, but if he is an acute business man CapS5— Time ^® ^^^^ ^^^* *° ^^^ death any proposition which contemplates the impairment, however slight, of any portion of his working capital. That he guards because the very existence of his business, in a sense, depends upon it. Your time is your capital. Everything which inter- feres in any way during business hours between you and the business of the company you represent is an No time to waste, impairment of your capital. Every idle dis- but plenty • . . • to spend cussion on a street corner is a wanton waste of yoiur capital, Ever)^ useless argument with a rival agent is a waste of capital — don't do it. You are after business, and your hours are too precious to be used where they will do no good. You have no time to waste. On the other hand, remember that though you have no time to waste you have it to spend when the Also some to investment promises to be a good one. One invest on • i,- t, -4. i, ^ accuracy ^^^ ^^ which it may be very properly spent and with profit is in the care and attention of the details of your business. Time properly spent in looking after the details is not time wasted — it is time gained. There are many ways in which time may thus be spent to good advantage. The application — take time to complete it before forwarding it to the office. To start right we must have a correct appli- cation, because the application is the basis of the contract. See that every question is answered properly, and the answer to none omitted. They are all important and essential ques- tions, although you may not think so. Take time at intervals to check up your collection book with your life and lapse registers. This will prevent the accumula- p. . ., tion of arrears without your knowledge, and prevents that weight of tribulation and woe which inevitably follow the discovery of excess arrears upon your book. Look after the details. no There is another detail of your business which is of the utmost importance and one to which it is not only the duty, but the sound policy of every agent to give ^ close attention — the matter of courtesy and politeness to policyholders. Nothing pays larger returns on small investments than politeness. Policyholders and pros- pective policyholders appreciate courtesy in an agent, and in the long run the polite agent will secure and keep the greatest amount of business, other things being equal. And that brings us to another thought. The duty of an agent when collecting is not merely to collect his premium and run. Courtesy to the policyholder directs that you present him, when it is practicable, with whatever may be Attention to ng-^ a^jj interesting about your company. Pa^^s^^°^^^^^ New Hterature just pubhshed, which you think will interest him. New features of the busi- ness just developed, which you think it will advance his interests to know. Not only politeness but good business acumen direct that you should do this. Policyholders appreciate this atten- tion, and it helps to place all — policyholder, company and agent — on a better footing together, and all this works for "more business" — some time. Ill HONOR LISTS, ETC. The large industrial companies, at a considerable outlay of trouble and expense, publish and circulate, from week to week, "Honor Lists" of the leaders in every department of field and H L' t agency work. Do you ever stop to realize what it means to have your name on these lists? A great deal more, you may be sure, than merely the honor and satisfaction of having your name in print — though that is a great incentive, we must admit. It Is your name , , , , , , , on them"!* means that you are among the successful — whether you be an agent, assistant or super- intendent; that as a business producer you are demonstrating your ability and thereby are helping to build up, year after year, the power and fame of the organization with which you are identified. As a field worker, therefore, it should be your constant aim to see your name on these published "Lists of Leaders," and it should be your pride to see that your name is kept well up toward the top and in a better position each stav listed month. You will find, if you try it, that not only can this be done but the effort required to get "listed," to stay "listed" and to advance upon this ladder of fame will give you a creditable record which may win you rewards and promotion. "Not every one can be a leader! " did you say? Very true; but some can, some will, and the thing for you to worry about is not what the other fellow is going to do, but just about yourself. Are you doing your best? Are you working a leader ^ ^^^^ ^^^ ^^^ strength of body and of brain, with enthusiasm and determination to win the prize yourself? If you are, then you will come pretty near gaining it, and let the man who is just above you on the list do 112 his own worrying. There's room enough for you there if you will only push yourself to the top. An excellent plan is to select some feature of the business and make up your mind to excel in that particular. Suppose you decide that you will secure a larger amount of new business than any other agent in the district during a Excel in one certain period of time — say three months — particular ^^ ^-^^^ ^^^ ^-^^ obtain the highest percentage of collections, the greatest number of revivals, the smallest arrears, or the least lapses. The variety is large to choose from. Your experience will suggest which is the most available, but having started, persevere until you have secured for yourself the reputation and position which you covet. Its results will be felt in your increased income, and very likely, your selection to fill a higher position in the future. For it should never be forgotten by the agent, that in that large and somewhat vague combination of forces, business machinery and originative genius called the "Home Office," there are those whose eyes are constantly Home Office upon the field. They are scanning the records Constantly ^^^j^ constant and minute attention to find VT atcninfif for Merit that "pearl of great price," a competent man. The opportunities for promotion are many, but it is only the man who has shown his fitness for it in con- ducting his agency who will be selected to fill the assistant's chair. And this should be an inspiration to every ambitious agent, for here ambition never lacks opportunity nor merit its reward. There is everything in training. Some men go through life half trained, half prepared for the struggles which are sure to come to them. Is it any wonder that there are so many unsuc- cessful people in the world? No business tverytning m demands more insistently a proper training in order to succeed than does life insurance. A certain kind of education is necessary — a knowledge of your business — a thorough knowledge. The industrial field numbers among its workers men of every grade — college men, university men, men who received their education at the common schools, men who might be said to have received no education at all, 113 and each grade has its representatives among the successful, but you cannot find one man among all those who are making a success of industrial life insurance to-day who has not a thorough working knowledge of his business in all its principal phases. This may be thought a sweeping statement, but it is true, because without that knowledge no permanent success can be gained. "To him who hath shall be given" is another way of saying "nothing succeeds like success." People like to deal with successful men. There is nothing strange about that. You do _ ,, , , not feel exactly like intrusting your important Don't be a tramp , . „ • ■, ■, ^ r business affairs to the hands of a tramp or to those whom you suspect to be incompetent in business mat- ters. The successful life agent who has a reputation for writing large amounts of insurance inspires confidence, creates power, gains ability, breadth and experience with every new case. He has no difficulty in securing audiences, nor in influencing them in the right direction, which, after all, is the most impor- tant. 114 ASSISTANT SUPERINTENDENTS AND AGENTS There are some agents in this business who would rather spend ten cents carfare every day than give up five cents worth _ . of business — ^not because there is any profit Xr3.iisi6rs in a debit scattered all over the city, but from a natural short-sightedness. The concentration of debit will greatly facilitate the work of both assistant and agent, saving . time and money and permitting both to be of Debit better known in a given locality than they could possibly become by any other means; for it is not the extent of territory covered, but the thoroughness with which it is covered, which counts in this business. For that reason a few policies located some distance Concentration of away from the main body of the debit are ^^ J^^t^^r,^^^ apt to be more of a loss to an agent than a and energies ^ . ^ , „ brings Success gain for him. Concentrate your mind and all your faculties to this business, keep your business within a limited area and you will be successful. Industrial insurance is intended to reach the poor, of course, as well as those in comfortable circumstances, but it is not intended to reach the indolent, shiftless, nor the worthless poor, who are insured and lapsed and insured Avoid the ^j^^j lapsed again by agent after agent who is Unin^umble careless of anything beyond the special salary of to-day, and who gives no thought toward his success of to-morrow. These people are the bane of the insurance business, and superintendents and assistants should use all their powers of prevention to protect their company from the evil effects of this kind of business. It makes more discontent, causes more discouragement and induces more finals than any other single course in the business, and the "5 efforts of assistants can be directed in no better nor more profitable a channel than by refusing to allow such business to be written. Back of every final there is a cause, an influence, which has been working some discontent or dissatisfaction. Now, finals insure lapses and lapses bring failure. So the assistant super- intendent who is having many finals will do Finals ^lapses ^^ ^ investigate each case with a deter- — failure . . ^ ° . , . . ^ ^i i_ ^ mmation to find out just what is at the bot- tom of each agent's decision to leave the service. One thing is sure, men do not give up positions which are bringing them good incomes with fair chances of promotion, unless some other occupation offers higher remuneration for their services. As, however, it is usually the case that the busi- ness to which the ex- agent has transferred his allegiance usually fails to offer as favorable prospects as this business does, the natural conclusion is, of course, that he has not been making the success financially in industrial insur- ance that he should have been, and this, upon examination, nearly always turns out to be the case. Half-paid men are not going to be productive men in a busi- ness sense ; but there is no reason why every agent in this business should not be a well-paid man, for it all rests upon his own exertions; but, first of all, it rests with the "^"TEd^^^^^t'on assistant superintendent to see that those exertions are properly applied. Lack of training kills more men, figuratively speaking, than lack of ability. Most men have the ability to succeed. What they need are the inspiration and the education, both of which can and should be furnished by the assistant superintendent. This is, of course, a matter of education and experience. And how much in the way of direction and counsel the super- intendent and assistant can do in this line for their agents, if _, ,. . , they will! Never send a raw agent out can- Starting Agents -". . .. -L, 1 -Z r\f vassmg alone, if you can help it. Ui course, circumstances may make it necessary at times, and then the assistant should go over each case with the new agent, very carefully giving him the result of his wider knowledge and ii6 experience. It is well, also, for the assistant to call in the evening with the agent upon prospects which the latter has found it impossible to close. He will then obtain some practical _> . . lessons in the art of properly presenting the subject of insurance. He will see how easily it can be accomplished when one has the tact of doing it just the right way, and it will be very unusual if one or more appli- cations are not obtained as a result of the evening's work. After a week or so of such tuition, the agent is well fitted to start out for himself and by himself with prospect of success. One of the most important factors in the success or failure of an assistancy is the character and calibre of the men whom the assistant obtains to fill out his staff. Upon his ability to -0-1, surround himself with the right kind of men Class Men depends his success or failure as an assistant. In selecting agents, therefore, too much care cannot be used. In the first place get good men — men who are at present employed at some other line. If they are making a success now, they will be all the more apt to make a complete success in industrial insurance. With few exceptions, men who have made a failure in everything they have undertaken are not going to be successful in this line. Show men the advan- tages which come to successful agents and assistants in this business, the possibilities before them, what Live, Aiobitious, others have accomplished, and what they Wanted i^^-y. if they will, and you will not find it so difiicult to get the right kind of men inter- ested as you may have supposed. For, after all, this is no place for sluggards, failures and "beats," but for live, earnest men, men with ambition, with determination and energy, who are capable of discovering an opportunity, or grasping it and turn- ing it to their advantage. Everybody who is not a "has been " living in the memory of great deeds, accomplished (?) in a generation that is no more, possesses some sort of an ambition to excel. To most men that . ,„ , .. ambition takes on a vague, uncertain form, or an "iser" ^^ which some future success is desired, the nature of which is not quite certain ; the time not yet quite settled. Only one thing sure, that ultimate sue- 117 cess is wanted, and that life will not be at all complete without it. Most industrial men find themselves possessed of an ambition of this sort. It is a laudable ambition, certainly, but one thing should be remembered — success, to be real, must be practical, and to be practical must include some portion in the present. It is the present, therefore, ■oresent that should be made to contribute — the pres- ent day which should register your advance. Are you better off in knowledge, experience and power to-day than you were yesterday? Has your percentage of collections improved this week? Is your issue larger than it was last week? Is your account in better shape? Those are the questions which you should ask yourself. If you can truthfully give an affirm- ative answer, then you are really living in the present, as you should do, and each day brings nearer another success, which some future "to-day" will hold in store for you. ii8 SEASONS AND WEATHER It is a very noticeable fact that the successful men in the industrial field are those who make a good record during the first few months of the year. They commence early; they don't „ , wait until the fall and winter season for the Commence early , ^ ^ ^i_ • , • t^. • • -.. i bulk of their business. It is a grave mistake to do this. The spring and summer months are splendid indus- trial increase producers, and they should be made to return their full quota of the year's increase; then when the canvass com- mences for the close of the year's business you will be just so much better equipped. This is the season when the agent who is looking to find "any old excuse" for not producing results will tell you that "it's summer time; nothing doing; better not worry yourself about new business until fall," and the like. ine gooa o ^^ p^^^. ^^ attention to him, particularly if you are the "young man" in the business. There is business in the summer time, just as well as later in the year, if you will take the trouble to look for it. The man who wants business will always find it if he goes where business is, and that is in the homes and in the stores and factories — not on the street corners or hotel corridors. It's never difficult to find some excuse for not getting it, though a good excuse is harder to find than the business usually. Make up your mind that you are going to make the summer months produce just a certain number of new applications a week, and you'll find them, never fear, just as readily as in November. Enthusiasm at 92 in the shade seems a little incongruous, yet the best workers keep it up just the same. As a matter of fact, the summer is one of the best times of the year in which to talk about life insurance. It is the season Enthusiasm and ^ friends invite you to "sit on the the Hot Waves . ^ \ „ a • ■ ■ \u • 1 front stoop and join m the social evening hour, with a glass of something cool and comforting to chase 119 dull care away. What better opportunity, when conversation wanes, than to lead the thoughts to the consideration of the j^ wonderful business of life insurance and Canvassinp- some of the absorbingly interesting details regarding the industrial end of it? Follow that up by a personal application to the needs of your auditor. It may take the place of some of the calls you have been obliged to miss in the daytime. And now what of these stormy days in which it is too rainy or muddy to do any straight canvassing, when you look out of the office window upon a street empty of traffic and a sidewalk free of the customary crowd except now and Wisdom then a solitary umbrella? Of course, com- mon sense would tell that these are not the days to make straight canvassing in, but the careful agent has prepared for just such days a list of prospects and back calls, selected with discrimination. These are people upon whom he can call and whom he will find as ready and glad to have some one break in upon the dreariness of the day even if the subject of conversation be life insurance. Such a Hst as this should be prepared from the material provided by the previous week's canvass, and if properly used, should prove a very prolific means of securing business on days too unpleasant to use in other ways. You can on these occasions make your calls a little longer than otherwise without fear of giving offense. You can't always canvass on rainy days, however. Strang- ers do not always care to have an insurance agent calling on those days ; but if you have first made the acquaintance of your . prospect and can call upon him or her as by Business previous appointment, in a back call or other- wise, you have laid the foundation of an opportunity which may prove very valuable when the rainy day comes around and you are wondering where to go to make business. Don't forget that on rainy days the woman of the . house who stays at home has probably found "dropping in" ^* ^^ ^^^^ ^ ^^^ ^^ ^^"^ have, and your call may serve to brighten tip a gloomy after- noon, even if you do talk business. Many of the best agents 120 claim that for this very reason they can do more business on a rainy day than a clear one. Did you ever think of the amount of time you have lost in complaining about rainy days? Of the times you have come back to the office discouraged because you thought it was too muddy and unpleasant to go around tracking Rainy iJay ^^ people's front stoops? Of the days you have started out with the best intentions, but have given up in the middle of the day because it rained? Well, if you haven't, you're a very exceptional man. Most of us have. When the rainy days come, remember that some of your policyholders will be home — just the time to see them. Just the time to collect those old arrears. Just the time to write up that ordinary they have been talking about so long. The debit is a splendid thing to get acquainted with^yoSr Dlwt ^'^^ °^ ^^^^^ ^^^^- Suppose you try it the next dull, rainy day that comes. Don't hang around the office. No business there. But go out on your debit, even if you don't want to do any new canvassing, and it will be a strange thing if you don't bring home something for your trouble. In the office it's the man who constantly watches the clock lest he may inadvertently overstep the hour of closing and work a few moments beyond the time required. In the field it's the man who works with his eye on his Value oi lime watch, so that he may not spend any more time in canvassing than his assistant demands of him. In either case it's fatal to progress, and no surer method can ever be employed to retard advancement in any business or profession. Don't be afraid of giving up your time to your business — it frequently demands evening work, and often that's the most fruitful. Throw yourself into it with enthusiasm and spirit — determined to obtain the results you are working for. Don't let the time you make use of enter into the question — it's ultimate success you're after — and she's a jealous mistress If you are an alive, wide-awake, up-to-date agent, you should never have any time on your hands — time that you 121 can't use, that is. It's a spare half hour that counts for success or failure in every line of business, as well The ^are ^g ^^ ^^j. q^^. Now, how are you going to Half-Hour prevent it; how so arrange that you can utilize those half-hours to advantage all the time? By just keeping your prospect book full. Be broad-minded enough to beHeve that success is coming to you just in the proportion in which you impress your own individuality and the merits of your company upon others — the greater the number of those others the greater the scope of your One Case in success. Remember the general agent who Twenty found by actual count that he insured every prospect in twenty. That was for ordinary, of course. Think where he would have been without persistence and a big book of prospects to work from. In industrial the proportion is by no means so large and the chances better. Get before the biggest public you can command. As an industrial agent your time is, in a sense, very much at your own disposal. That is to say, there is no one standing over you with a set of rules and a time card to which you are expected to rigidly adhere. If you waste All Hours Are ^-^^ ^^ one will know it— until the results of Business Hours ^^^^ ^^^^,^ ^^^^ ^^^ .^ ^^^^^ ^.^1 ^^ ^^ one to tell you when to stop your day's work but your own sense of duty. Success, however, demands that you give to your business as many hours a day as you would give to your own business if you had one. Be loyal to your company — do not divide your time and energies with any other business. Under no circumstances can you succeed if you do so, for only by the concentration of your powers is great success possible. Remem- ber that "this is the only business and all hours belong to it." There is probably no habit which has been more effectual in injuring the prospects of many an industrial agent who gave promise of complete success than that of unpunctuaUty. Every ,, agent should make it a point to plan for him- Be " On Time ^^^^ where he shall commence his canvassing for the day, and then make it his inflexible rule to be at that particular house at the hour specified in the morning. At this time in the year it will frequently be convenient to call at 122 half-past seven, and at least not later than eight o'clock. This should certainly be done in the case of the first morning call on collection days. In making collections during the day care should be taken to maintain a certain schedule of time, so that regu- larity will prevail. For if you accustom Mrs. Smith to having you call for your weekly collection at ten o'clock S^f P^?^®^ on Tuesday, and fail to come until noon one Not Calhng , -^ ' ^ , ^, ^ ,, c -^u t, • week, you may find that Mrs. Smith, havmg waited for you and believing you not coming, has spent the money, and tells you that you will have to wait until next pay- day. Not a good excuse, perhaps, but that's the way the arrears begin, nevertheless. Promptness and regularity in all such matters will establish your reputation, and make you a gainer, financially, as well as in other directions. A scheme for getting business worked by an enterprising and successful young industrial worker deserves recording. In this plan the agent practically secures the co-operation of his policyholders. As the agent is collecting Getting_a^Line on^Q^ his debit he always makes it a point to find out whether any new families have moved into the vicinity. He gets as full particulars as possible, ascertains whether any of the policyholders are acquainted with the newcomers, and if so, secures through the acquaintance, a letter of introduction, or, better still, a Seemg the personal introduction, which places him Strangers f ,. , -, r • tt .1 immediately upon a good footing. He then goes into the subject with the family at some length, tells them of the number of policyholders on his debit within the vicinity, explains the features of the system, and dwells upon its popu- larity among the neighbors. In this way he is sure to enlist the interest of the stranger, and eventually, if not at once, can, as a rule, secure his business. Of course, this is only a detail in a complete plan this agent has for securing business, but it is an important feature of the work, and one which for that reason should not be neglected. 123 SYSTEMATIZE YOUR BUSINESS System, system, system — it is as necessry to your success as assistant or agent as it is in any mercantile or professional career. System in looking after details so e va u that while none will be neglected too much valuable time will not be given them. System in canvassing to obtain the greatest results from each visit to the particular locality. System particularly in looking after "prospects." Every agent should have with him at all times, convenient for handy reference, a "prospect The "Prosoect ' r- ^ Book" book." Most of the companies furnish them to their agents, we believe, containing infor- mation as to name age and occupation of the prospect, amount of insurance already carried, etc., together with memoranda of all engagements. These should be kept strictly — the prospect should be informed that you propose to call upon him at the exact day and hour agreed upon and he ADDointments should be given to understand that you expect him to treat you with equal consideration. This principle, carried out, will create for you a reputation for promptness in fulfilling business engagements which will some time be very valuable to you in dealing with businesss men. Men of sound business principles and habits like to deal with other men similarly inclined and especially in matters financial. Here is where reputation is valuable to a man. There are a great many beginners who, when they see the multitude of details which must all be mastered in the business of industrial life insurance, are appalled at the prospect. And yet it is not difficult to master them. Nor How to Master {g {^ difficult to secure the results when you the Industrial . .• •- t^ • . i >^ • Details systematize it. For -instance, don t mix up canvassing and collecting. That doesn't mean that you should never take nor solicit an application 124 when on your collecting trips, but it does mean that you should spend the first part of the week in making your collections, and complete them as early as possible, so that you can send in your account at once and be ready to devote as much of the week as possible to an uninterrupted, diligent and faithful canvass for new business. No man who works on these lines and who concentrates his efforts at the particular point of attack will fail of success sooner or later, and the length of time depends entirely upon the amount of energy you throw into the work and the methods you employ in working. The agent should have a regular time for calling upon his policyholders each week. This time should be rigidly adhered to, and calls made promptly. If the money is not forthcoming, politely, but firmly, insist upon the payment on^ T^mf^^"^^*^^ ^"^^ ^^^^- ^ ^^^^^^ display of strength of character is often all that is needed to correct what otherwise might soon become a chronic case of "bad pay." Sometimes it may be a good thing to read to the delinquent policyholder the clause in the policies in which the arrangement for payment of premiums is contained. The majority of people, however, like a "hustler," and if they find that an agent regards his time as important — has none to waste, but is sure to call at such an hour of a certain day every week, it will only be a short time The World Likes . / - r, ■^^^, u ^ a a the Hustler before they will have books and money ready and waiting for him, so that he will not have to wait for policyholders to "hunt them up." Then, too, the day selected should be as early as possible in the week. In fact, as large a proportion' of the debit as possible should be collected during Monday, so that the rest of the week may be devoted to straight canvassing. Accuracy in making collections is essential. Mistakes should be carefully avoided in entering premiums collected from policyholders in the premium receipt book. A careless agent is apt to make much trouble in this Avoid Errors in ,• •• x u- •D , ^ . way — sometimes arousing a suspicion of his accuracy in the minds of policyholders, and subjecting him to an open criticism which will be very annoying to himself, and which reflects injuriously upon his superior 125 officers and the company. No agent can afford to be either careless or inaccurate. No agent should attempt to call on any policyholder to collect premiums without bringing his collection book with him. The amount collected should be entered immediately in the premium receipt book and then in the collec- Always Carry -^ion book as soon as payment is made. This Book ^°^^®*^*^^^ should be done in the presence of the pohcy- holder, so that the latter can see that the amount paid has been properly credited, and thus future dis- putes will be avoided. In this way he will create confidence in the minds of policyholders on his debit, and confidence begets business every time. There is a place for everything and for everybody in this world, except for the man who won't do his share of work. There is certainly no place for the shirker in industrial insurance. The man who tries to keep his position as th^ Shiriier^ agent or assistant by living off of his debit, or depending upon the services of his agents, will find that the avenues of promotion are closed to him, and even what present success he might have lasts but a short time. The world always yields to the man who works, and through constantly working onward with the goal in view of carrying through whatever you are undertaking you will soon gain that momentum which will bear you on to bigger things. Don't Tx. _ look so far ahead that you neglect the present. ^ ^ Work for the present, and by working for the present thus mould your future along the lines of your ambition. It's well to aim high, but your present target is agency success. Not a superin tendency. Hit your target, don't shoot over it. Now and then you will hear an especially attractive story of some highly successful life insurance canvasser who is writing his hundreds of thousands every year, and, no doubt, have envied the man what you have termed his An "Eighteen- "luck" or his inborn "genius" for obtaining •x^j. applications. Believe not a word of it! The big writer is, first, last and always the big worker. There is no genius for writing life insurance. Some 126 men may be brighter than others, it is true, but the business comes not to the bright ones. At least, not because they are bright. It comes to the earnest, steady, determined ones — the men who put a full day's work into a day, who are not TVi n » "W t ^^^^i^ o^ ^ proposition because it entails some work, but who welcome the work because of the training and development it brings. After all, have you ever considered a very important fact, that the biggest good which comes from any work is not the accomplishment of the work itself, but the self development it gives? Yet that is so. Ask any authority upon physical training if that is not the case in his domain. Between the assistant and his agents there is a community of interest and there should be a perfect harmony of purpose and practical co-operation. Don't get the idea that your _,_ , ^ ,, assistant is "down on you" and that you Work together . ^ ^ ^ ^ -u can t do your work properly because he doesn't give you proper assistance, with the strongest evidence that this is the case, because you must remember that he has every reason to be very attentive to your interests. His suc- cess depends upon yours. He has every incentive to advance your prospects and your productive power, for in doing this he is advancing his own interests. Only by the fullest co-opera- tion with each other can agent and assistant be successful, and the sooner this is made a part of your code the sooner suc- cess will come to you. The writer happened to be in the office of a local super- intendent the other day when a matter came up involving a good deal of thought and careful work, and necessitating the exercise of considerable tact in its accom- plishment. "Assistant Blank," said the super- intendent, "is the very man to do this properly. If I have anything which requires careful, thorough handling, he is the man I always select." What a reputation to have! Out of a staff of sixty to eighty men he was the one selected, because he was thorough. And he will be the one selected right along until he is selected by the company to fill a vacant superinten- dency somewhere, for that is the kind of men they are looking for constantly — men who will be thorough — of whom the super- 127 intendent is sure, not part of the time, but all the time. Strive to have that reputation. Be thorough in everything you under- take, whether it be a collection or an inspection, or whatever it may chance to be, so that your superintendent may learn to rely absolutely upon you. It pays The industrial business is a business made up of small things, which in the aggregate amount to big things — but each single thing, be it a five-cent policy or what, while a small thing, -_.... is the one important thing to the person who Little Nothinp-s '^ behind it. Carefulness and watchfulness of his interests in that case means his trust and confidence, his influence and power of recommendation exerted in your behalf. No man on your books but has, at least, one friend — probably many. There is no reason why, if you treat him right, that friend should not be yours, too. Hence, there is not one case of the many on your debit in which politeness, absolute honesty of purpose and action, and perfectly fair treatment will not be a paying investment, and will bring you some day a full return. Tact has been variously defined. If you possess it, it is not at all important that you should know how to define it. It is knowing how long to talk, also knowing when to stop talking. fp . It is knowing what to say to Brown's wife, who is in favor of life insurance, and to Brown who doesn't believe in it. It is the ability to make him look at the question from your point of view without telling him he is doing so. It is securing his application after he has told you he has no use for insurance companies. Tact is necessary. It usually comes with experience, after a man finds that he must possess it to succeed, and it may be developed if you haven't got it. I was sitting in the office of a leading industrial superinten- dent not long ago when a successful-looking, rather loudly dressed individual came in, sat down in the chair nearest his desk and began to talk. He was dissatisfied Two Visitors — about something — that was apparent — ^he Anotner kicked and complained and argued until I wondered when the superintendent would lose his patience. The latter treated him very coldly, I observed, 128 granted none of his requests, and the man left angry and dis- concerted. He had no sooner closed the door after him with a bang when it was opened quietly by a small but determined- looking man in black who spoke earnestly and respectfully to the superintendent, evidently asking for advice and counsel, which I could see the latter was very cheerfully and gladly giving. "I'm always glad when P comes in," said the superintendent afterward, "he is such a sound, earnest, intelli- gent man, new to the business, but with the qualifications of a very successful agent. He comes to me frequently for advice, which he invariably follows, and he is already growing to be one of the leaders of our district. The first man is a great trial. He was one of the most successful agents we had here, but it turned his head, and his time now, while in the office, is spent in complaints, kicks and criticisms. I'm nearly done with him, for his days of usefulness are nearly over if he doesn't change his tactics." Which man was the welcome visitor? Which will be the most successful eventually? Which is the super- intendent more likely to help? Which one will get the biggest special salary voucher? Which is more likely to receive pro- motion first? One of the mistakes frequently made by beginners in this business lies in the belief that so long as the special salary comes, it doesn't make much difference whether it comes all in one week of the month, and none in the others, bpecia^alary ^^ ^^ ^^^ q^j^^j. ^a,y. Experience has shown this to be a great mistake. Every agent should so arrange his canvassing that a fair amount of new business will be shown each week, instead of a large amount during one week and none the next. The continuance of special salary, week after week, in fair amount, is what event- ually works out to the agent's advantage. The business lasts longer, and agent and company are better satisfied when they see the results coming in with regularity. System in canvassing will do much toward bringing about this result. Collecting money and canvassing afternoons or calling on a certain definite number of families every day — anything, in fact, which will help to bring about regularity in business results. 129 STARTING RIGHT A good start in any business or profession is half the battle of success. In industrial insurance the good start implies proper instruction and initiation by assistant superintendents. Many a man who might have been a successful Ti^rn nded ^ industrial man has been spoiled by improper or incomplete instruction. The first thing which should be done by the assistant instructing the new agent, after the main details of the business have been mas- tered, should be in connection with canvassing. Canvassing to the beginner is sure to be a difficulty of seemingly alarming proportions. The idea of collecting is, perhaps, attractive, the care of the necessary details is not irksome, btit the necessity for straight canvassing usually sinks deep into the spirit of the new agent and he will be apt to do anything to get out of it. When " Mile- a- Minute Murphy" made his famous record on the Long Island Railroad, it will be remembered that he was paced by a railroad train for the entire distance. He set for ^, ^ himself a task to be accomplished and a mark to guide him in its accomplishment. That mark was, in his case, a railroad train running at the rate of sixty miles an hour. While never for an instant forgetting the ultimate purpose of his ride, he kept close to his pacer, the mark which he had set for himself. In can- betting a mark vassing for industrial insurance, pace your- for achievement i r tr i , • ■, ■ self. Make up a certain task — a certain amount which you must obtain each day. While some pos- sessing remarkable ability may far exceed this limit, still a mark of one application a day is a good one if you will strictly live y .. up to it. Not just two applications on Mon- dav d^y> but at least one every day. This forced regularity cannot but be very beneficial. Try it and you will be surprised to find how much business you 130 will secure each week, and how quickly your debit will grow — one application every day, at least. Can you do better than this? Good ;^ but at least do as well. Don't proceed upon the assumption that after a policy has once been landed high and dry in your debit that it is solid, and that you can neglect it and devote all your attention to new business. Every policyholder, no matter S^Bu^nes^s^^^ ^°^ ^^^^^' ^®^^^' ^^^ should be encouraged in feeling, that he is a part of the company which issues it, and that he is entitled to all the consideration and attention that is coming to him. Some agents will visit a house, collect the premiums and walk out without a word to the people who have paid — at least, without a word on business — and this will happen week after week. How do you expect good collections, small lapses and some amount of new business written on debit when this is the practice ? Not a word about the latest case of dividends or claims paid in that locality or some person of local prominence recently eeping insured, or one of the hundred and one pot boiling" ' things which interest the policyholder and bind him to the company which has issued him his policy. Bear this in mind, sociability and good temper, without garrulity or freedom, and coupled with an eye to business every time, will help to get and keep more business than you know — unless you're trying it. As a life insurance man it is well for you to pay as much attention as you can to the social side of your life. Not that you should depend upon your society to contribute directly to your business, but there is a way to enter icqualntJn^e^ship ^^^° ^^^ personal and social life of your patrons, so that you will be familiar with their circumstances and conditions — can tell about how much they are worth; how much insurance they carry, and how much more they can afford to carry. How many children are in the family, and their ages if insurable. All these little details are of importance when it comes to the question of life insurance. An extended social acquaintanceship will not hurt you either, any more than it does the doctor, the lawyer or other pro- fessional man whose capital is his time and energy. 131 The old adage, "The best advertisement is a pleased cus- tomer," is all right, as far as it goes, but it should be remembered that though the pleased customer raay wear a smile of content- ment a half a block wide, unless he brings it Facts alone to public notice, its value as an advertising SLT& not Advertisements ^^^^^^ i^ nil. The fact is that if you have secured a pleased customer by the prompt payment of a claim or a dividend, you want to take that man gently by the hand and lead him out to tell his friends about it. It is not the existence of news regarding a fact, but the popular dissemination of that news which constitutes advertising. Get ,. . an acknowledgment of the claim or dividend alone-" payment, some practical and appropriate testimonial to the satisfaction which exists, and then use it thoroughly and efficiently in your canvassing wherever that name is known and has weight. In that way you can make the pleased customer become a real help and assistance to you in your business, and his name and patronage can be used as a talisman to open many doors which otherwise might be opened with difficulty. Perhaps that is what you thought when you saw one of your fellow-workers elevated the other day to the important position of assistant superintendent, and perhaps, too, you Promotion said, "Well, that's just his luck " — or, "Jones Accidents of always was a favorite with the superinten- Fortune dent." Well, perhaps he was, but do you know what made him a favorite? He was a worker first of all — he was a successful canvasser — he knew and obeyed the rules of the company regarding lapses and arrears — he took pains with his accounts — he had few mistakes — ^his collections were «T f h' T V" ^P ^° ^^^ standard week after week, his special salary account was heavy — ^his assist- ant never had any trouble in inspecting his debit. In short, he was a careful, hard-working, conscientious, painstaking agent, who devoted himself to his business, and was successful, and that is the reason he was a favorite in the superintendent's office, and why he was promoted when the opportunity came. The same opportunity will come to you. Will your superinten- 132 dent be able to recommend you for promotion for the same reasons as he did the other? It is always timely to urge upon every agent and assistant the necessity for preparation, for the managers of your company are constantly looking around for competent men to fill new assistancies and superin tendencies, to extend for Promotion territory, to cover more thoroughly territory already opened. Good men are in great demand. Are you considered a "good man"? It's your own fault if you are not, and if so you don't want to lose any time, but just set to and work. It will be your own fault, indeed, if your head fails to stick up above the surface. The opportunities are here — plenty of them. Those who know see scores of opportunities for promotion every day, but not enough men to take advantage of them. Are you going to be one? If so, this is the time to commence. The successful agent of to-day is he who spent yesterday in preparation. The wise agent of to-day is making himself familiar with all manner of things which pertain to his business; he is studying up the forms and policies of his company and of competing companies; he is, in fact, spending all his time in preparing himself for the work of to-morrow. And there is really no end to it. All work of to-day is, and should be, preparation for the work of to-morrow, if you wish to make it so, and every application you take, or every conversation you have on the subject of insurance should make it easier to sell the next. This is one of the very few lines of business in which favo- ritism, acquaintanceship, "pull" or influence has no perma- nent place. Here promotion depends upon two things, and these only — character and record. This is Pull not "in it*' th P sh °^^ °^ *^^ very encouraging facts about the system of industrial insurance — it is too important, and the interests involved are too vital to be intrusted to the care of the unsteady or the inexperienced. You may be practically certain, therefore, that if your record warrants it .and you have no blemishes on your reputation, your advance- ment will be assured. The positions of superintendent and lassistant superintendent are never filled by those who have had 133 no experience, they are invariably taken from the ranks. This should be your case, too. Remember that the home office is constantly looking for chances to promote. Why not give them the opportunity? 134 PROMOTION OPEN TO ALL Very frequently some agent, and more frequently it is a new agent who doesn't know all of the ropes, sits down at the great long table in the superintendent's office, reserved for agents, and ruminates something in this wise: Hom^^Office^^ "What's the use of doing all this hustling? Here I work like the old fool I am to get my collections in early, just so I can have the rest of the week for what? Canvassing — well, did I get anything for it? Not much — only three ten-cent applications! What's the use of working so hard, anyhow? Nobody knows or cares about me, or what I do — way off here in this little one-horse town," etc., etc., etc., "ad infinitum, ad nauseam." No greater mistake could be made, and yet it is one which new men, particularly, and older men, too, sometimes, sorry to say, are apt to make, in thinking that their efforts are not known and their endeavors to succeed are not, therefore, appreciated in the big home office, which they, perhaps, have never seen, and which seems ^, _ . _- so far away from what may be the somewhat The Eye IS on You ,. .^ . r^i.- ^^ t^ limited scene of their own efforts. J^or no matter what or who or where you are, the home office has its eye on you, and just as personally as though everything you did and said almost were reported to them individually. This is done by means of the very complex organization — the field and home office whose interests and dealings are so interlaced with each other that each is a part of the other and _,,, ^ ^. . materially affects it. Now in the home office What this means , , , , . . . are clerks whose business it is, as you may know, to scan closely, from week to week, the records of each individual agent in the field, and from this study of accounts, 135 records, applications, reports from him and reports concerning him, they are enabled to formulate very accurate knowledge indeed, not only of the results you are accomphshing, but of your very ability in every direction, and of your personal character and habits. Thus they are enabled to know definitely, from time to time, who is worthy of promotion, who is entitled to better position and wider responsibilities and broader scope for action. And this is true of each agent, no matter how humble or how remote. He has an individual account at the home office in which all things are recorded; he is treated as an individual and not as a cog in a big machine alone. Thus does the industrial agent obtain an advantage even over his brother — the ordinary canvasser. No wonder that the field is so full of active, live, energetic young business men, who find this occupation both profitable and congenial. Resolute Purpose seems to accomplish about everything worth accomplishing in this world, for when it comes right down to practical life, it is the man who has the will who always finds the way. It is said of General Grant, The Will and rather, he says it of himself, that on his the Way ^ . *^ , first campaign as a young commander, he was attempting to find a certain opposing force, but feared to come upon them, lest the results might be disastrous. He learned after awhile that while he had been chasing his opponent with fear and trembling in his heart, the latter, with more fear, had been running away — and he then began to appreciate that "although he might have been afraid, the other fellow was a heap sight more scared of him." So it is with the resolute man. He may be full of fear and misgivings and doubts, but the resolute courage dominates — pervades — in such a way that the world doesn't know the fear, but only "P^ld Ft" recognizes the determination and the resolu- tion and rewards them. In fact, as a rule a little resolution on your part will likely make the other fellow run away — it gives him a bad case of "cold feet," for he realizes that he has a fight on his hands, and the majority of the world are not fighters. The question is often asked, "What is the most valuable trait of character to win success in life insurance?" Well, 136 that's a pretty hard one, because there are so many features which contribute to a man's success; but They Don't Side "by far the most important, perhaps, is the. Express Trains Quality of directness — the singleness of pur- pose which permits no interruptions nor dis- turbing influences to interfere with the one purpose — to secure an application for insurance. Such men can't be side-tracked — they know what they want and are determined to get it, and they never give up until they do get it. That is the kind of character which wins the battle every time where the insurance agent is concerned. Don't allow anything to distract you from the object of your visit, which is first, last and always to write insurance. Particularly should this be remembered when can- vassing in families — it is only the man with the single purpose who wins. "The worst kind of vice," says somebody, "is advice." He must have meant that officiousness which insists upon putting its hand into other people's plans and attempting to color them --. , . , . continually by the bias of their own narrow- Vice and Advice , , %p. ,, ^. ..rr mmdedness. The old sporting maxim, If you have a good thing, keep it to yourself," had a very good foundation in wisdom. A "good thing" ceases to be a good thing when everybody knows of it. Not because the thing itself is changed, but because another person is sure to color and in- fluence your plans more or less, when, probably, your peculiar method of viewing them and acting upon them was the chief reason for their success. Therefore do not talk over all your plans of campaigning with other agents. Act upon them your- self, and then talk about the results, if there are any results. If there have been no results none knows of it but yourself. Loquaciousness gains nothing for itself but a bad reputation. An insurance agent, they say, should be a "good talker." So he should, but he should be a "good" talker, not a long talker — a talker whose talk is to the purpose — whose remarks carry weight because they have something in them worth remember- ing. In that sense he is indeed a good talker — the proper insurance agent — and one whose words are valued because they are worth something; not regarded with indifference because they are too cheap and worthless. 137 When in trouble, when times seem to be hard with you, and you seem to be making little headway, don't consult some ex-agent, who, because of laziness or inabiUty, has been unable to make a living in the industrial business, Headqi^"r*s° ^"^ ^h°' "^e every "calamity howler," is bound to be in evidence on just such occasions, but consult your assistant or superintendent, some- one who has had experience in the business and who has been successful in it. His advice will be much more likely to help you over the difficulty than that of the man who failed. Follow the successful men, not the failures. After knowledge, persistence. Make up your mind that you will secure the application that you are after, that you will not come away without it, that you will let nothing discourage you, but that only one thing will make you give last^n?lv^At\t"" ^P *^^ chase, and that is the signature on the dotted line. Be persistent in canvassing for life insurance. Make up your mind to write the application, and don't "change your mind" until you have done it. Pertinacity is a very different thing from pugnacity, and people admire and respect it more. You all know the story of the industrial agent who, driven from the front door by the ^ p. _ angry matron, came arotmd immediately to " the back door, and met her coming back brandishing her victorious broom in the air, and whose perti- nacity was rewarded, as it deserved to be, by an application. True or not, and no doubt it is true, it tells the lesson — that as long as a person is insurable and is financially able to pay the premiums on a policy you should not give up the case as a lost one. Some time or other he is bound to be brought into the fold if you keep after him long enough. There is always a fascinating quality about the man who never knows when he's defeated — who never gives up under any circumstances to defeat or despair. His energy is an inspiration and incentive to others. His very belief in Never Knew j^ig own success is the surest sign in the world When He Was Licked" ^''^^^ ^* ^^ coming to him. He never gives up because he recognizes in what others would call "failure" only another incident which will serve to teach 138 him a few lessons. He profits from his own experience and never commits the same mistake a second time. How can you keep a man hke that down? You can't when he's in the life insurance business — ^his influence is felt at once and con- tinually in the district in which he is placed and, as it happens, he doesn't remain unknown to fortune or to fame for long. There are plenty of places for men of that calibre. The only business that pays is unquestionably the business that stays, and the man who writes up a great quantity of new business without giving thought to its quality is building up an edifice without a proper foundation. The O alitv' ^^ ^' ^^^stion which every agent should ask him- self is "how much of the business I am now putting on the books will survive the first year ? ' ' Remember the profit to agent, company and the policyholder all comes as a result of longevity of business. Business "getters" who are not at the same time business "builders" are not a profitable asset in any district or assistancy. The superintendent or assistant who has the best interests of his company at heart and his own permanent success will take every measure necessary to make sure that the business produced by his agents is of the required quality. Permanence in business means permanence in income, and the agent who understands this never complains about "non-results." ^K 139 OPPORTUNITY FOR DEVELOPMENT This is a great and far-reaching business, and one of the chief merits which it possesses is that the opportunities it presents for development are practically limitless. At least they are limited only by the individual capacity and tt-D- >> merit of the agent, assistant or superintendent. This being so, how important it is that every man should learn, as soon as he can, how best to develop those abilities, so that he may rank, not with the small and unpro- ductive men, but among the biggest, broadest, most successful men in the business. And how is this going to be accomplished? Well, in a dozen different ways, but, first of all, by living the broadest kind of life which your conditions permit, and even a little broader than you at first feel able to stand, possibly. Later on will come the strength and ability that you need to meet "big" men on their own footing, and meeting them, to make business acquaintances and friendships which will event- ually prove of great value to you. You know there are two ways of paying your debts and of becoming wealthy. One is to reduce your expenditures, the other to increase income. The difficulty with the first plan is this — you can reduce and reduce again, can iwo ways 01 ssi^e an expense here and another there, but after all there will surely come a time when your reductions must be brought to an end, and then where are you? Your capacity for accumulation is necessarily limited to the amount you have thus saved; it is not elastic. You can't extend it very much, and you have the discomfort and privation of having to do without a great many things which add pleasure and comfort to life. After all, this way doesn't appear to possess very much that is attractive, and while an economical course is urged for every industrial worker, it should not be pushed to the extreme of penury or stinginess. 140 Increasing your income is a problem, and yet not so much of a problem as it appears while you are engaged in a business in which your progress all depends upon yourself. Your ability to write ordinary, for example, depends increasing i our jg^j-ggiy -^pon the kind of friends you have been making, whether they have been business men or laborers, for no matter how many of the poorer classes are on your industrial book, you must remember that very little ordinary will come from them. It is from the more well-to-do, the prosperous and prospering business men, clerks, mechanics and better class of workmen. Choose your friends, therefore, from the class in which you are likely to transact ordinary business. Live up to your opportunities, broaden yourself out and make your efforts count in a large way instead of a small way, and your income will follow. In the industrial field every opportunity in the world is given a man to develop all that he has in him worth cultivating. Not only is the new agent given every advantage which comes from careful supervision, but the companies Thorough Tram- -j^g-g^ ^pQj^ ^-^^ ^^^^ thorough training of new men by both assistant and superintendent. In fact, so pronounced is this provision that if a new agent should complain to his home office that he was not receiving an adequate training in the principles and practices of the business, or if an agent claims that his failure has been due to insufficient training, from assistant or superintendent, these claims are made the subject of rigid inquiry, and, if substantiated, the companies, method of showing their displeasure with the delinquent field officer is prompt and vigorous. With the existence of this sort of spirit you can see why it is that new men are encouraged to take the ardent hold of the business which they do, and that their ambition is stimulated and enterprise awakened by the knowledge that, at last, they have found an occupation in which success is never a matter of luck, but purely a measure of personal merit and applied energy. No wonder the business of industrial life insurance is bringing in new recruits every week ! There is an inspiration in the example of the man who is never discouraged, whom defeat cannot master, failure dis- 141 hearten nor obstacles deter. No matter where circumstance throws him, up again he jumps with a bound, Hearted ^^^^^^^ ^^^^^ *° ^^^^ ^^^ battle anew, and with fresh zeal to win success from adverse fortune. Don't get discouraged. Be not of the "chicken hearted." Is your increase hard to get? Canvass one hour more a day — are the lapses heavy? — keep your business in force by high collections. Does promotion seem slow in coming? — perhaps you have not yet made the record that shall entitle you to promotion. Rest assured that as soon as you do, you will hear from your home office, which is too anxious to obtain good men to neglect you, if your record is deserving of attention. Therefore, do not let any of these things discourage you, or make you desire to leave the business, though it may not so far have proven profitable. There is plenty of gold in the mine if you will learn the art of digging. Life teems with opportunity. The industrial field is full of it. No occupation ever possessed greater opportunities nor more of them. # Every new policyholder secured is an oppor- tunity for scores of fothers. It is not oppor- Every Policy- tunity that men lack, but the faculty of seeing less^Ch^n ^f ^" ^^ ^^^^ ^* comes, and the quick perception to Prospects grasp it and turn it to account. You never hear the successful agent complaining about lack of opportunity — he will tell you of many chances you have missed, and a peculiar thing, too, it is, that the same oppor- tunity never comes twice. Something like it, perhaps another just as good, but not the same. That never comes again — that is why it is so important to utilize it to the best advantage when it does come. The time when that wealthy mill owner was ready to sign the application, and you found you had no application blank in your pocket, out you went to get one, but when you came back his office was closed, and he had gone — and the next time you found he had gone on a long trip — and was not expected to return for two weeks. And at the end of two weeks how differently he received you. No more the glad hand of welcome — the friendly smile and confidential tone. Another matter is engrossing his attention now, and life insur- 142 ance — well. It's a sad picture, isn't it? Label it the "lost opportunity " — but avoid it in your own case by being prepared for all emergencies. What the other man does, is or wants to be is not of any vital importance to you. The important thing is, what are you doing? If you are waiting for anything to turn up, through which you are going to have a successful Turning Things j., remember Garfield's remark that Up "Things don't turn up in this world unless somebody turns them up." If you expect anything to turn up which will bring in profitable results to you the initial force must proceed from yourself, else there will be no turning up, we fear, m your neighborhood. Don't look too much at the other man, therefore, Study your own debit. Work out your own methods — remember the great principles of success in an industrial agency are increase, low lapses and high collections — work these out for yourself, and if you are successful in this respect, the other man will not worry you very much. In canvassing it often requires nice judgment to discrim- inate between the various excuses offered for not insuring — to detect the real from the false — the excuse which has reason back of it, and the excuse which is merely ^ intended to gain time. With the latter persist in your canvass and your pressure to immediate action. With genuine excuses of little time, etc. — wait for a more favor- able time, and your tact and delicacy will no doubt be appre- ciated. A successful agent was asked, some time ago, whether he did not find that his calling opened many opportunities for making money which would not ordinarily come to the usual business. "No," he answered. "If a man d H'^ L^^st ^ ^^^ write life insurance and will only stick to his business the opportunities for making money in that way are so large that no man need go outside of his business to find them." It is another example of the shoe- maker sticking to his last. If you can write business, and there is no reason why you should not, the opportunities for success lie right in your own hand. Stick to it, don't dissipate your energies — the man who scatters is lost. Concentrate your 143 entire work upon the business you have in hand, whether it be industrial or ordinary, and the results will soon be evident. Somebody has said that the great advantage of American life lay in the fact that no limit was placed upon progression. For example, when one is created a "baron" in England it exalts him but a step — he is immediately No Limit to classified and labeled and placed upon his Endeavor particular shelf — a little better than a com- moner; not so good as an earl or duke. But here, when we say "American citizen" we have said all. It embraces the very greatest heights to which one can climb. Just so when we say "successful American business man." We can give no higher encomium from a practical and worldly viewpoint. That is in the power of every industrial worker to become. He is engaged in a business the possibilities of which know no limits, whose field is boundless, whose opportunities have not begun to be exhausted. What an opening for ambitious and energetic young men, and how many there are who are availing themselves of it. Once in a while, but very seldom now, an agent comes for- ward with the proposition which he believes to be unique, that the field is smaller now than it used to be, that competition has killed all profit, that everybody worth The Calamity insuring is insured, that if he had only been ow er ear y ^^ ^-^^ business years ago, and so on. What a tale of woe it is! Why, the chances for the industrial worker were never so great in the United States as they are at present. The increase in population in the last twenty-five years has been three times the increase in insurance policies during the same time. It is ten times easier to sell industrial insurance now than it was fifteen years ago, as any old insurance man will tell you. The more liberal policy, the extended knowledge of the system, the original and enter- prising methods adopted by the companies to advertise the business, all help the agent infinitely, and he may well be grateful that the paths have been opened by the pioneers, years ago, and that he is living and working in the business now instead of in that time not a quarter century since, 144 when prejudice and distrust had to be overcome, and industrial insurance was largely a matter of experiment. If every man in the employ of the industrial insurance companies were each and every week during the year to bring in a moderate amount of new business, there would be written, without any pyrotechnics or loud acclaim. The Non-Pro- an. amount of Hfe insurance which would ^^The^wheef^ simply astonish the whole world of under- writers. The bane of the business is the non-producer, he is the drag on the wheel, the man who pulls down the district in every laudable ambition, and, worse than all, whose influence is seldom anything else but demoralizing to the rest of the staff who are brought into contact with him. For that reason, the thing for the superintendent or assistant to do is to devote his energies to that non-producer, until he is either made a good productive agent, or else drummed out of the service. And there are plenty of them. Every district has one or more, usually more; their name is legion, but the superintendent or assistant can point at them all right, and he is the man to fix right before you can expect to have complete success in your district, no matter how many good workers you have. The organization of a great life insurance company is much like a great engine. Each part has its proper place and function, and it must be in its place and properly perform that function to obtain success. There is no other success The great than this — to do the work, whatever it naay Mechanism of a ^ ^^^ ^^^^ ^ ^^^ ^.^^^ ^-^^ ^^^^ result. Life Conipany ' "^ So when each part works according to the plan of the builder, there is success for the organization as a whole, and it will make a success of its work, whatever that may be. With this very importantf difference, however, that with the machine, the part once fashioned cannot be changed; it remains in the same position, performing the function for which it was designed. In the organization, there is progression, the development of one part into a higher, more important! one ; the progression from a primary position to an eminent one, all of which goes to show that if you are fortunate enough to be 145 connected with one of the big industrial organizations be glad of it, and set all your energies to that development which makes for progression, and that demonstration of your ability which is sure of its reward. The question is often asked whether an industrial agent or assistant has the time to spare to enter into local poHtics. Whether it is, in fact, advisable for him to attempt to take any active part in political affairs. Of course Getting into ^j^^^^ -g ^^ question whatever that any occu- Pohtics pations which interfere with the performance of the regular duties connected with the industrial business should be avoided. For this reason, of course, it would be improper for him to attempt to occupy any pubHc office which would take up time which should be devoted to his business. On the other hand, it is certainly very proper, indeed, that he should take some interest, more or less active, in the poUtical affairs of his district and county, and use his influence con- tinually in the cause of good government. Then, too, the acquaintanceship and reputation coming from a known credit- able position on public affairs is frequently of great value to the industrial worker. On the whole, it would seem to be wise to say, "Take just as active a part in poHtical hfe as your time and the best interests of your business will allow, but taking care not to make political enmities which may reflect upon your success in your chosen profession." Do you know what the trouble is with a. great many agents who attempt to distribute the hterature supphed by their companies? They haven't read it themselves, are not famiUar with it, and cannot talk with any certainty or Read your own conviction. It is not enough to leave the literature literature in the house; it should be properly marked at the paragraph you wish read, and it should be supplemented by a few convincing but brief remarks of an explanatory character, so that you make sure that your pros- pect is going to read and understand what you want him to. The correct use of Hterature can be made very effectual, but in no way can money and energy be more easily wasted. Use the literature you have intelHgently and carefully, yet literally, and it will help you to results. 146 Do you fully realize what it is that constitutes the difference between clerks and business men? Now the latter may be a salaried man just as the clerk is, for the difference lies not so much in their work or the method of compen- vs^^Cle^k sation as it does in their respective methods of self-conduct. The clerk does the line of work mapped out for him by another. He may do it well, but the business man makes it his point to see, not only that the work itself is done well, but that the enterprise, so far as his connection with it goes, is of a "paying" nature. That is, he concerns himself with the problem of making his end of the business a profitable or dividend-paying end. That is what the industrial man, be he agent, assistant or superintendent, should do. Consider the problem of making your agency, for instance, a profitable one for the company, for just to the extent that you do this you make it a profitable one for yourself. Make your agency — your business — make it a profitable busi- ness for the company as you conduct it, and the result will be not only increased remuneration and material success, but the creation of a dignity and substantiality which will inevitably place you upon a higher plane. Have you ever noticed that, taking the world as you find it, the successful man is the good natured, genial man? "Oh, well," you say, "it's easy enough to be good natured when you're successful. I'd be genial enough if I Success and making money!" Now, hold on a Good Nature r . ■, , 1 1 • minute, fnend; perhaps you are lookmg at this through the wrong end of the glass. If you will stop to think a minute — perhaps it is just because these men are good natured and pleasant that they become successful — it's so! "Laugh and the world laughs with you," but it hates a sour face. It leaves him distinctly alone and will have none of him. In our business the genial, pleasant-faced man has a far better chance than his gloomy or despondent brother. Don't let the world know by your face whether you are making a success of the busi- ness or not. They are not interested in your failures, but they will be influenced by your enthusiasm and energy ; they will be warmed and made friendly by your good nature and heartiness. 147 The air of success which the successful agent carries with him inspires and enthuses those with whom he deals. Let it be said: "I Hke to have that industrial agent, Mr. Blank, call — he Hghts up the house Hke a ray of sunshine and makes it pleasant for everybody." That makes for business now and to-morrow; therefore, though your pocket be empty, frown not, but smile that it may be presently filled. There probably never existed a business in which a more close and intimate knowledge of the people with whom the busi- ness is conducted, the public who are its patrons and policy- holders, is created with the staff of agents r«t^?*VS?^i^+-^«o and assistants who conduct it, than in that Lordial Relations , , . , • i i rr^, of insurance on the industrial plan, ihe weekly calls of the agent, the frequent visits of the assistant into the homes of the people, create an intimate relation between them which is decidedly unique, and it forms one of the strong- est powers for good and the extension of business interests which lie in the hands of industrial insurance managers. The agent and assistant knows personally and is well known by the individuals in the houses in which he canvasses. He is fre- quently called upon to give advice ; the benefit of his judgment or his deeper experience in business affairs is often asked. Right here lies an excellent opportunity. Every agent and assistant, particularly in the rural districts, has opportunity to be of much service in this and kindred ways to the families with whom he conducts his business. This does not mean that he should give up his valuable time for their service; but it does mean that he should establish and maintain the most friendly and cordial relations with them, for by doing this not only is he cementing the business which already exists, but paving the way for many new applications, with them or with their friends. One of the most valuable assets a man can have in this business is a reputation for good business methods and fair dealing. Of course, there has grown among people the general impression that the average life insurance Developing ..-^^ ^^ ^^^ ^^^ ^^^^ ^^^^^ ^le gets his old Business ,,_,.. T ^ a money. This impression you want to do all in your power to correct, and especially regarding such per- 148 sons as you may secure as ordinary policyholders. Let them feel that your interest extends far beyond the mere writing of the application and securing the premium. Call upon them now and then; keep track of their financial condition, etc. Per- haps they will be ready to increase their insurance before long. You want to be there on the spot when that time comes. In fact, show by your attention that you are treating them as a client, not as a "good thing,"and that your interests and theirs are identical — permanent and lasting. The industrial agent should learn to do what every salesman in any other line of business has to do in order to be successful — learn to "size-up" his customer. With the physician, a ^ . jj wrong diagnosis means wrong treatment and the Case failure ; with the life insurance agent, a wrong diagnosis means a wrong line of argument followed also by failure. Hence the importance of starting right. In canvassing, for instance, it is very important to know whether to work toward ordinary, intermediate or industrial. To start wrong and then change your tactics means waste of time — sometimes waste of confidence and loss of interest on the part of the prospect. Try to gauge your man; take into con- sideration his earning capacity, his income, the demands upon it, his mode of living, personal habits, etc. Some men making salaries high enough to enable them to pay for ordinary policies have expensive personal habits, which make it highly improb- able that they could save, at first at least, even enough for a quarterly premium, and would find it easier to pay weekly. Nor, on the other hand, should you fail to see and to be the first one to see when one of your industrial prospects or policy- holders has gotten beyond the reach of industrial insurance, and should be landed for an ordinary. All this and more, enters into the matter and makes a sound judgment of human nature and an accurate "start" in canvassing along the right lines imperative to real success. It's no longer necessary to go through the streets with a lantern searching for an honest man — honest men are not rare — not honesty, but good judgment, tact, decision, reliability in details as well as in large affairs are the rarer virtues for which 149 business men often have to make long and sometimes futile search. The agent who is ambitious to The Field for improve his position and make himself T^Tment^°°^ ehgible for promotion should bear this in mind. Your superintendent does not ques- tion your honesty nearly as much as he does your judgment. Develop good judgment, a habit of looking carefully after all details, the faculty of being on hand promptly when due, promptitude and reliability. Every man is assumed to be honest until he has demonstrated the contrary, but no one is given credit for sound business sense until he has shown that he possesses it. Andrew Carnegie, it will be remembered, once chose as his possible epitaph a brief and pithy statement: "Here lies a man who knew how to get around him men much more clever than he." However much one may be inclined to Builamg up a question the accuracy of this statement, it is Competent Start ^^^ ^^ ^ -^ -.r,,^ ., undoubtedly true that much of Mr. Carnegie s success, as that of many other leaders in the various walks of life, was due to the admirable foresight, judgment and wisdom displayed in the selection of the men to help him carry out his plans. The superintendent and assistant, both necessarily leaders of men whose personal success or failure depends so largely upon the success or failure of the agents of their staffs, will do well to remember this. In building up your district or assistancy it is only of the best material that the permanent and enduring structure of good business results can be erected. The "floaters" and the failures and the castaways have no place in life insurance. Make up your staff of the best sort of men you can get. Be sure they are good business men — men of good habits and some experience in business — even though they be without experience in industrial insurance. If they have character and ability the details can shortly be mastered and you will have a staff made up of good material which will bring you permanent and satisfactory results. 150 INDIVIDUALITY AND DEVOTION TO BUSINESS Did you ever stop to think how little a single individual seems to be when you take him as a part of the great crowd, and yet how strongly, in that crowd, he can make his personality felt, if he is a person of strong individuality? The One Man » x- a j • ri. rT J So it is in the rush and whirl of business. m the Crowd The single personality is forgotten unless it is strong enough to command attention. The man who asserts himself and constantly places himself in the eye of his imme- diate public may or may not be the most polite of men, as the case may be — that is a matter of personality, too — but he is apt to be the most successful of men. In selling life insurance you don't want to be like the pieman who had to be invited by Simple Simon to display his wares. You should be the first to bring the matter up. Your individuality must be brought forcibly to the front every time or you will fail to command the attention which will be given to some other agent more enterprising than yourself. If a man has the right stuff in him it doesn't seem to make much difference where he is placed, he is bound to make a success — one place seems practically as good as another, pro- viding it is not beyond his natural limitations. T ^^T~ So the man who enters the field of industrial Location insurance, whether he be experienced or not — and the chances are that he is not — if he has the right stuff in him, will succeed. Wherever he is placed — the man and not the location make the story of defeat or victory. "Do unto others as they would do unto you, but do it first," is the adaptation. The world is full of bright men who have splendid ideas left for somebody else to carry out — fine plans for their own success — never started. The art of success lies, 151 not in the plan, but in action. Ideas are common, action giiided by thought so rare that when it comes The Art of people make way for it. Doing the work Action before somebody directs you to do it is usually the best way to command a higher grade of work. The man who thinks and acts is bound to be rewarded. Be beforehand in all your plans. If there are two of you intending to canvass Mr. Brown, be sure you are the one to get there first. It is this faculty of being the early bird which attracts attention, enUsts interest and, as a rule, brings down the game. Anyway you have the privilege of a first shot at it, and that's something. There must be something unusual about a business which seems to inspire all its workers, as does the industrial insurance business, with the constant desire to excel and get results. All the successful workers, that is, and this is Industrial true not only of those who are situated in Enthusiasm a ^-^^ ^^gy cities in which the home offices Success Factor ^^ ^^^.^ companies are situated, but as well in the small towns of the far West where men have seen and understood but little of the actual workings of the great busi- ness except upon the statements of others. This shows what tremendous factors in success enthusiasm and self-confidence are. The agent who enters the home or the office with a step of confidence, brimful of his subject, enthusiastic and cheery, though poUte and gentlemanly, always will, of course, have better success than the man who acts as though he were ashamed of his occupation, or professes that it is at the best a makeshift for something better. Don't go around giving the impression that you believe yourself to be, or want others to believe you to be, a Morgan or Rockefeller in disguise, but temporarily obliged to take up the business of industrial insurance owing to a super- abundance of capitahsts in the market. Be and act as though you were proud of your business. Don't be afraid to use the word "agent." Say, in effect, but in your own lan- guage: "My name is John Brown. I am agent for the Insurance Company, and I am proud of it." That sort of bearing will create confidence and bring more business to you than that semi-apologetic trick which many agents learn. 152 There is no room in the business for men who would be only "half successful." There is plenty of room not only "near the top," but more than half the way down for any man who will ' devote himself thoroughly and entirely to Devotion to ^-^^ business, determined to throw himself heart and soul in it and to "do or die." If we only had a little more of that spirit the world would be a great deal more progressive and prosperous even than it is — certainly it is so in the world of life insurance. The men who are success- ful in a large way are the men who throw themselves into what- ever they have to do, and never rest until it is accomplished, and that is the kind of a life insurance canvasser you want to be. Put lots of enthusiasm and personal fire into your work; in other words, put lots of yourself into it, if you expect to have any effect in moving others. This is the important element of success, and counts more than the number of hours you work — the extent to which you throw your energy and your devotion of all the faculties with which you are gifted. If you do this in a large measure your success will be proportionate. Confidence in life insurance consists in putting on a "good, strong bluff," that you intend to win and then insisting on living up to it. There are so few people in this world who really know what they want that when the man comes Living Up to around who acts as if he did know, we are Your uest , ^Q take him at his word, and give him the Photograph ^ ,. - , . . ^ , , , credit for being m earnest, even though he may have been "putting on a bluff" all the time. Confidence in your own success is its first requisite. Unless you believe in yourself how can you expect others to take any stock in you or your proposition? An apologetic air is a defeat in advance. Confidence doesn't mean discourtesy. It means self-possession, determination to carry out your plans, to get a fair hearing for your proposition ; to secure your end when the hearing has been granted. An air of success will carry a man through when knowledge and experience, not backed by confidence, will leave him stranded high and dry on the shores of defeat. Life insurance is a business in which so much is done "on faith." So much because of the personal magnetism or per- 153 suasiveness of the individual agent that in it more perhaps than in any other occupation does a man's Business reputation in business count for or against Pr^f b?e him. Study the needs of your cHents — give them always the best of your experience — ^never, under any circumstances, misrepresent a line of the policy contract. Besides being dishonest, it is very poor busi- ness, for it is sure to come back to you some day. Build up a reputation for being "square" — for being what is termed "straight goods" — it pays better than brilliancy of manner without character will pay. This "business character" is a profitable thing to possess. Men will say, "Well, if Agent Brown says so, it must be so. I took my policy through him, and I've never had to regret it." Reputation is built on action. Action is founded on character. Therefore be "straight" and honest in all your business dealings, and you will soon get the reputation of being a safe man to deal with — an invaluable recommendation in all matters of a financial nature. At a banquet given recently to the superintendents and managers of a great life insurance company somebody spoke of it as being "a gathering of optimists," and there was a great deal of truth in the expression. It was ■^ilures ' indeed a gathering of men accustomed to looking on the bright side of things, for they were all the successful men of the organization, and that is one of the requisites of success. In agency work, as in all other departments of the industrial field, it always pays to cultivate this habit. No failure is so completely a failure but it has its lessons for future successes if you will only find them. The habit of taking everything at its proportionate value and looking at the little reverses which come every day in the light of "ex- perience-makers" for the future — not as failures of to-day — is one of the surest methods known to command success. Such men are never discouraged, are never phazed. No disappoint- ment or apparent failure affects their progress, because they have become accustomed to looking only for the success of everything and ignoring the failures. They have become "optimists by habit." 154 Much can be forgiven the man who is unswervingly, un- changeably loyal to his trust. How the world loves the true faithful man ! In what terms of honor and respect do they refer to him. You remember how highly President Roosevelt spoke of Chief Craig, who met his death in the recent Loyalty-Success accident in Massachusetts: "He was the Go Hand in Hand . . , . , _ , , , „^, most faithful man I ever knew. What praise could be higher? Loyalty to your company is the first great requisite for success. Of what value are ability, tact and all the other success-bringing qualities if they are not accompanied by a strong, true loyalty to your company and your work? Without it they are nothing; with it nothing can stand in the way of your success. One of the greatest faults of the business man of to-day is lack of concentration. He has a good many irons in the fire and he is so busy keeping them all hot that he doesn't get the _ ^ ^. opportunity to do any real good work with Concentration r ,-, -tr ^ ^ ^ ^ i any of them. You have two lirst-class irons — industrial and ordinary — and if you are going to keep them all at the right temperature and secure the results from any of them, you will have to watch them all very carefully. It's well for a man to have more than one iron — it keeps him from letting that one get rusty — from lack of use or spoiled from misuse. Put your eggs into two baskets if you will — two you can carry — but more you must carry on your head and they may trip and throw you. One unwavering aim has always characterized successful men. As in all other departments of active life this is true, so also is it true in industrial insurance. The man with the definite ^ ^ . ^ purpose, be he agent, assistant or super- Definite Purpose y ^^ . \ , f ,. • J • ^ \, . ^ mtendent, who makes up his mind just what he intends to do, and then pursues unwaveringly that course, has always been, and always will be, the successful man in this business. Whatever your field of industry, throw the whole strength of your nature into the work. A man without genius, but with earnestness, industry and zeal will succeed, while the more talented man is often wondering where to begin. An agent who is in dead earnest about his business, and 155 who couples with the irresistible power that determination of character gives a thorough knowledge of his business and • -n ^ faith in his work, cannot help but succeed. Eari^st '^^® district will feel his presence right away. He won't have to wait for recognition. He will soon become prominent among his fellows. The only- difficulty will be that in all probability promotion to an assist- ancy will come so soon that he will not have a chance to really demonstrate the actual possibilities of an industrial agency. For it is an actual fact, in the experience of many industrial managers, that a new man coming into the business with deter- mination and enthusiasm, who brings into play all the powers of energy, industry and thought which nature Pr(Hnotion ^^^ given him for use, often accomplishes so much in so short a space of time that before his first year's experience in agency work is complete, his capa- city for organization and supervision has been so well demon- strated he has promptly been selected to fill an assistancy — with the increased opportunities and rewards which this position offers. "An agency record of a year and then promo- tion " is by no means a rarity — but only merit wins it. The lack of "whole-heartedness" in industrial work is responsible for many failures. A man who starts industrial insurance as a makeshift, who is continually looking around „ , . , , to find employment at his trade or in some Success other line of business, might just as well make up his mind from the beginning that he is on the sure track to failure. There is no such thing in this business as success by accident. Unless you start determined to stay and determined to win there is no real success in store for you. Don't attempt any other business. If you are making such a success in the industrial business that you have plenty of spare time on your hands (although you must be a wonder if you have accomplished that, for where is the successful bticK o 1 e agent whose time hangs heavy on his hands?) if you have any time, why not devote it to that profitable and gratifying occupation, the pursuit of ordinary 156 business? Doing so, are you? Have you written $5000 this month? If you haven't, it hasn't been the productive month for you that it has been for some people! Many men do not appreciate what an important factor in successful canvassing is a neat and attractive personal appear- ance. While it is true, of course, that "clothes do not make the man," still they often make the stranger's The Value of estimate of him. In canvassing keep up the Personal r . , ^ ^., , Appearance appearance 01 prosperity as much as possible. It will pay in the end, for people do not like to deal with a hungry looking, shabbily clad solicitor. The air of prosperity is often the very forerunner of success. Set your own value high and strangers will regard you in the same manner. The first appeal is to the eye. There are two or three little things in which the industrial worker may well copy with great profit his brother, the ordinary canvasser — the successful ordinary man, of course — nobody _,, . wants to copy the other kind. Your ordinary of Bu^ness rnan, it will have been observed, if he is a successful man, is a busy man — that is to say, whether he is busy or not he always gives the impression that he is a very busy man indeed, and that his time is^by no means to be wasted. The agent should never be seen standing talking idly on street comers, and he will not be if he is a conscientious, earnest man, intent upon making the most of his opportunities. Let him preserve continually an appearance, if nothing more, of business and energy. After a time it will become habitual, and the effort to appear busy all the time will lead to your being so. People love to deal with successful men, and if you impress them as being successful they will end by helping to make you so. After all where does the advantage of a fight come in, for everybody almost acknowledges that a good honest fight for a good cause is one of the very best disciplines. Certainly Tu Tt J. j: J.-L. the advantage does not come in the possession The Best of the . ,, ^, . % r.. t, . x xr. ^ • u Argument thing fought about, for that is seldom in itself worth struggling for. No, it is not in that, but it is in two things, the principle which is involved 157 and in the effect it produces upon a man's own self, and the latter is by far the most important. The battles of life in which every man has to enter, are great character tests, they serve to develop the latent qualities of the person who is concerned — the powers and abilities of a man are developed by opposition and the exercise it engenders, just as the muscles of the athlete are developed by constant strain and exercise. Moral and intel- lectual muscles require precisely the same sort of treatment. They require opposition to bring out their good points. The industrial agent, therefore, who meets with indifference, opposition or other difficulties in the path of his progress m the business, should congratulate himself that this is so, rather than be in the least cast down by his predicament. Every time you "conquer the enemy " of indifference, of opposition to the subject of life insurance you make double progress, for not only have you made a"step in that especial case, but you have gained just that much momentum for the next case. You have gained just so much additional power, and the power to write business is the only power that you should know anything or care anything about. All your efforts should be to get it. It is not an uncommon thing at all to hear a new man ask his superintendent or assistant: "Now, in canvassing, will you tell me just what arguments I shall use in favor of insurance? " That is a question that a man need have no "Argufying" for fear about until he has to face it, and then, t7y ^'^^x "'•j, unless the query be a very intricate one, not one man out of ten, if he really believes in life insurance himself, will find any difficulty in answering it. Don't court argument in canvassing; don't begin it, and avoid it if you can; but your prospect will settle that question for you. Most men nowadays appreciate fully the value of Hfe insurance; they are willing enough to grant all that you have to say in its favor. It is the application of the theory that you find difficult — the overcoming of the inertia of the individual. The persons you are canvassing will advance the subject which will lead up to the point of argument. Let your own efforts be directed mainly to the single issue of obtaining the applica- tion of the individual you are addressing. Let the argument go — ^if it's for argument's sake. 158 HOW TO PREVENT LAPSES "How am I going to prevent lapses?" asks somebody. Well, there are several ways, but the best and the surest way is, "Don't write them! " The fact is that probably seventy- J . five per cent of the business which lapses so LaDses " ^ soon after it is written is business which should never have been put upon the books. It is business which was practically lapsed from the time the application was forwarded. Business, some of it, on which not a cent has ever really been paid in premiums. Business written "to help the agent" — friendly business — business written to get a prize — business written on the hope that when the policy is actually ready for delivery it will be accepted. It is business of that character which turns the superintendent's hair gray and makes the question of lapse prevention such an important one with all the industrial companies. Business written in this way is sure to lapse, and to lapse pretty quickly, too. If you would prevent lapses, get right down to the bottom of things and send in only first-class, honest business, and you will then be con- fronted with nothing but "honest lapses." For there are "honest lapses" — lapses caused by genuine inability to pay premiums, by desire to use the money for other purposes, by the desire to drop the insurance through some real or fancied cause for dissatisfaction, and many other reasons. Most of these you can meet by tactful argument if you start in time before the arrears become too heavy. If you are not able to save the business, ask your assistant to help you. That is one of his duties, and he will be glad to do it, for he has a financial interest in your success, as well as a friendly one. Often his work can accomplish the result ^ven after you have failed. In some districts superintendents have adopted the rule of having all policies in danger of lapsing reported on Thursday 159 of each week. The assistant superintendent then calls on the holders as soon after as possible and explains Inspecting the danger of lapsing — the loss to the policy- Business holder and the necessity for keeping pre- miums paid up. He is also in this way enabled to determine just what the cause for discontinuance of premium payment is, and he will frequently be enabled to make some suggestion or to advance some argument which will help to save the business. The advantage of this plan consists in not waiting until the policy has actually lapsed before it is inspected, but in taking those precautionary measures which will prevent it. The greatest portion of lapsed business, it is fair to say, lapses from one of two causes — either inability of the insured to continue payments, lack of money, which the agent cannot, of course, prevent, or it is due to irregularity on the part of the agent — failing to call promptly at the proper time each week, and which as a result has left the policyholder in arrears, which he found it impossible or inconvenient to cover. This, of course, the agent can and should prevent. All these things will the assistant discover on his weekly tour of inspection aforementioned, and by tactful argument and careful work he can save a large proportion of this business which is in danger of lapsing. Of course, nothing can save the business which has been improperly solicited; the business which should never have been put upon the books, and any reform in the matter of lapses by any company in any district must of necessity begin right with the original application. If these three principles were followed in every industrial office there would be little complaint from the home offices regarding the "question of lapses." I . Write only first-class business — the kind that will stay on the books — ^not "fake" business nor business Prevention ^^^ ^ spurt, but real honest business. 2. Do not write more business in any one family than that family is financially able to pay for. 3. When the business is issued do not fail to watch it care- fully and give it that systematic attention which all business demands. If you are an assistant, do not permit your agents to neglect such business. i6o Lapses have often been termed "the bane of the industrial business." Certainly, they are indeed the millstone around the neck of many an agent who otherwise might be very successful. A certain amount of lapse is to be expected, "Laoses" ^^^ ^^^ ^^^^ remains that the great majority of lapsed business could have been kept in force if proper methods had been employed, and this statement will be endorsed by many successful industrial men who have been through the same experience. Advance payments are as effectual a preventative of lapses as any plan which can be operated. The business paid in advance will not cause any trouble. It is the business which , , is constantly in arrears that turns the hair A-Q.V3_T1CP Pavments °^ ^^® industrial agent an early gray. The danger signal of "lapse" is on every week's arrears. Keep them down and insist upon advance payments. The determination to collect advance payments is half the battle. Don't go at the matter in a half-hearted way, but with the spirit and energy of conviction that the condition of advance payments is the only normal one, and you'll secure them. Nor should you be contented to secure your advance payments from those whose premiums have already been paid in advance. It is the chronic arrears which you are after. Don't forget that the fatal word "Lapse" stares you in the face from every blank column of your collection book. It is not an impossible thing to do away with the item of arrears altogether. For several years one sturdy agent in Cen- tral Pennsylvania, who had a debit of over $90, was successful in maintaining advance payments on every Arrears^ ^^ policy without one cent of arrears in all that time. Death or genuine inability to continue payments sometimes made it necessary for him to lapse business, but arrears were not allowed to accumulate on his book. His lapses were small, his career as an agent successful and his promotion rapid. He now holds an important superintendency in one of the large industrial companies, and his motto is, "Large collections and advance payments." Now and then a Httle wholesome truth "spread thick," is i6i a good thing to have. Among many agents there has grown lately a disinclination to dwell upon the sombre side of life insurance. And generally it would seem best The Earnestness go^ for the subject of death is at no time a In ir^ c cheerful one, but when a lapse is threatened, no agent should hesitate to paint in vivid and truthful colors the dangers as well as the disadvantages of being without insurance. Often this will save the business. It always should if the agent is in earnest. All the statistics of the business show that the lapse rate on industrial policies is greatest during the first year. All the superintendents know this, and most of the assistants and agents _ have heard it, and yet how few govern their Prevent First » ^ o . Year Lanses practice according to these facts. As it is true that most all the lapses occur during the first year of the policy, there is certainly no reason at all why you should simply accept this as an interesting statement of a regrettable fact and let it go at that. The thing to do is to use every ingenious method in your power to protect the business, as it were, during its infancy. Don't allow new poli- cies to get four weeks in arrears ; have them frequently inspected, and devote your energies particularly to showing to the new policyholders the folly and danger of lapsing. In this way you will create a sentiment and a habit which will tend to keep the policies in force in the future, even through adverse circum- stances, and thereby add greatly to the progress of the company and to your own profit. You know that the adherents of the germ theory claim that everything in the physical life of a human being is traceable to the existence of germs. Not only are these germs of disease, but germs of health, just as active, and if the Disease^Germs t)ody is kept in first-class physical condition the disease germs never have opportunity to get in their work, because they are promptly and regularly killed off by the health germs before they have a chance to act. Whether this be true of medical science or not, it is especially applicable to our business. Ignorance, distrust, neglect, improvidence, are some of the insidious disease germs that attack l62 the healthy policyholder and sometimes leave himi in a helpless and incurable condition. How they originate no one can tell, but come they do from somewhere, for some days you are confronted with the unwelcome and unexpected proposition that "A*s" policy, which you thought a monument of steadfast- ness, is going to lapse. You have been curtly informed that Mrs. "A" is tired of paying, or that Mr. "A" has other ways of investing his money, or there are a hundred other reasons for not paying the premium when it is due, but the fact remains that you are going to have a lapse on your hands, and whose fault is it? This is a case where the disease germ made the attack and found the body in a receptive condition. Unfortified by the accumulation of vigorous, active health germs, implanted by continued counsel and advice on the part of th^'Remedv^ the agent, the policyholder, is ready to listen to the first objection brought against his insurance, and when you attempt to talk you find it frequently too late. Does not the fault, however, lie entirely with yourself? If you display as great an interest in your policyholder after he is on the books as you did to place him there; if you take pains to go over frequently with him little matters which arise with reference to his policy or to other policies, or the general topic of life insurance, or explain to him what the company is doing to make its pohcies attractive and profitable to those who hold them; if you will take the trouble to send or bring the latest literature and the latest information regarding the company, treating him as an important, component part of the organization, you will not fail to awaken his pride in his policy, and his interest to such a degree, that he will regard his insur- ance money as a fixed and definite payment which must be made at all events, even though something else may have to suffer in consequence. The great question of lapses is one which confronts not only the great companies, but it is felt just as strongly by the individual agent — the unit in the industrial system. How to . save lapses causes many an agent sleepless ^ ^ nights and days of worry. And yet the solu- tion of this problem lies right in his own hands. In the first i63 place, go through your collection book and if you have any cases of chronic arrears sail right in and work to collect from them. Make a special effort in that particular direction until you either collect or learn that it is impossible to collect, in which case get them off your books. Now, watch that same collection book carefully and religiously every week, and wherever you find a policyholder who is becoming negligent in paying, inquire at once into the cause. You may rest assured that it is seldom real inability to pay, but probably pure neglect or the desire to use the money that week for other purposes or other reasons, all of which can be met by tact and judgment and the business saved if you are wide awake about it. Remember that all the instruction and training in the world goes for nothing unless it has as its object the practical securing of the application — follow your own methods Object of Au j„ j^ iy^_^^ i„„g ^ y„j; ^^^^ ^ ^^,j^„3_ In the ability to do this consists the real success of the industrial man. An agent should never allow a policyholder to become even one week in arrears without using every means in his power to prevent it. And you will be astonished to learn how much . you can do to keep your collections up when A^F^a ^ y^^ really go at the matter in dead earnest. If your efforts all prove unavailing, however, do not drop it there, but call in the services of your assistant; often a few words from him expressing his point of view will bring the collection and save the business from the danger of lapse. The agent who takes care first of all to put none but good business on his books, and then watches it closely, so that he may be able to check any tendency to arrears in time, and follows up with persistency any such cases which may develop, will not have to complain of a high lapse rate. The first point in favor of high collections, is that it is a sure preventative of lapses. A policy can never lapse so long as it is paid in advance. Of course it is not always possible to keep XT* 1, n 11 • ^ policy paid in advance — the time to save it £ La^es ^ then is when it is one week in arrears. The best method is to recanvass the insured and show them by apt arguments that the object for which the i64 insurance was originally taken exists more decidedly than ever — that now the insured has an interest in the policy by reason of the premiums already paid, and that each payment of pre- mium increases that interest and the value of the policy. Sometimes, in cases where several policies are held in one family, and financial circumstances may compel them to lapse, the agent should try to save some of the policies, even if he has to lapse the others — this will give him the at Least °°^^* opportunity of calling at the house every week, and the subsequent revival of the policies will be more easily accomplished. In fact all lapsed policies may with profit be followed up each week with the object of reviving them, and by thus keeping the importance of protection before lapsed poUcyholders a large proportion of revivals can be secured — provided, of course, that the business was of the right kind to begin with.