(f ) The claSsification of policies for the companies doing business in New York State showed that the whole life policies numbered 5,213,000, the endowment policies 2,399,000, all other policies, including term and irregular policies, 675,000. These do not include, of course, policies issued by industrial companies. The number of such policies in force were 30,000,000, representing a policy value of insurance of $4,000, 000,000.
9. Life insurance in Canada, accord ing to official statistics for 1915, the business of life insurance was transacted by 44 active com panies, of which 26 are Canadian, 7 British, 1 Colonial, and 10 of United States origin. During that year and the latter part of 1914, the life insurance com panies were faced with difficulties such as have never before been experienced in Canada. On the outbreak of war, they were confronted with an immediate de preciation in all classes of securities, a complete de moralization of security markets, and a prospective large increase in claims arising out of the war.
While these difficulties were recognized during the latter part of 1914, the seriousness of the conflict was perhaps not fully realized until 1915, and with the indications which the events of that year gave of a prolonged struggle and of the necessity of further Canadian contingents, the companies were forced to modify their practices in respect of the insurance of enlisted men.
Notwithstanding the difficulties arising out of the war, the total amount of policies in Canada taken dur ing 1915 was $221,119,558, which was greater than the amount taken in 1914 by $4,113,042. The respective amounts effected in 1915 were : Canadian companies, $121,033,310 ; British companies, $5,727,313, and United States companies, $94,358,935. Thus the amount taken by Canadian companies exceeded that taken by the British and Colonial and United States companies together by $20,964,562.
The total amount of life insurance in force in Can ada at the end of 1915 was $1,311,616,677, which shows an increase of $69,456,199 over that of the pre vious year, being distributed as follows:— Amount in Force Canadian companies $829,972,809 British and Colonial companies 58,087,018 United States companies 423,556,850 Total $1,311,616,677 With its population of about 8,000,000, it is gen erally conceded that Canada's people are seriously underinsured, There are in that country not less than 3,000,000 insurable men and women, mostly men. If
each were insured for $1,000, the sum of $3,000,000, 000 would be represented, whereas the companies do ing business in Canada have at present in force a little more than $1,000,000,000, covering only about one sixth of those who could and should avail themselves of the service and help of life assurance. In their effort to overcome this national disability, the life in surance companies have been somewhat hampered by the tendency of the provinces to place unduly heavy imposts upon the premiums collected within their several jurisdictions, but it is hoped that the legisla tive need may pass and that many of these tax burdens will eventually be removed. The Canadian federal government has recognized that to tax life insurance premiums is a penalty on thrift. In 1916, when fram ing legislation for the taxation of business profits, the federal government exempted the business of life insurance. The provincial governments of Canada have not yet come to that desirable point.
10. in the case of fire insurance, it will be well to consider the successive steps in order, so as to obtain a clear idea of the whole transaction. These steps are (1) the application for insurance; (2) the medical examination; (3) the preparation of the policy; (4) the delivery of the policy and collec tion of the premium; (5) the continuance of the pol icy; (6) the payment of the loss.
11. persons apply for life in surance without solicitation. Indeed, some years ago the feeling against one who applied for life insurance was so strong that it was crystallized into the saying: "If a party applies for life insurance he should be ex amined three times by a physician and then rejected." One would never apply for life insurance, it was felt, unless he knew that there was something the matter with him and that he wished very much to protect some interest by means of the insurance policy. The view, however, was undoubtedly based on a misunder standing.