Human beings do not indeed, go around expecting to die/ Life insurance, unfortunately, in its begin ning, associated itself almost entirely with death. The object of taking it was held up to the individual as a provision which he ought to make for the benefit of those whom he might leave behind; in other words, the family. So insistent was this note that the phrase "life insurance is one of those things where you must die to win," became common. This whole attitude is now passing away. We are coming to look upon the insurance of life more as a commercial transaction and, as we do so, we shall probably place it upon more solid foundation. This view is bringing into the subject an element of danger, but that danger can be guarded against, and is small compared to the large benefits which will be derived from the increased use of life insurance, because it will be regarded as a commercial transaction. In a very recent instance, a firm was sending abroad a representative to examine into certain matters in Russia and part of the com pensation offered was a life insurance policy taken out and paid for by the firm. This illustrates the modern view of the matter.
The great majority of the persons who insure their lives do so because they are solicited by the representa tive of the company. Attempts both in England and in the United States to sell insurance without solicita tion have not been very successful in comparison with the large business of companies which have employed agents to sell their policies.
12. Form of application.—If there ever was a time when the oral application for life insurance was good, it passed away long ago and only written appli cations are accepted. The essential features of an ap plication are: Name and residence of the applicant, place of business, address, date of birth; this given for the day, the month, the year, and also age at last birth day; place of birth, including town or city, state or province; country; present occupation; any contem plated change of occupation; any connection with military, naval organizations ; name of beneficiary, residence, relationship or insurable interest in the proposed life of said beneficiary. There are also such questions as : Do you wish the privilege of changing the beneficiary provided policy has not been assigned? Amount of insurance applied for, plan, premiums, how to be paid, as, annually, semi-annually or quar terly? Do you wish the privilege of waiving the pre mium in case of permanent total disability? Are any negotiations pending for any other insurance? Have you been examined for life insurance and re jected? There may be a further agreement that, after the policy is issued, one will not engage in certain extra hazardous occupations or employ ments. This includes a variety of occupations such as retailing intoxicating liquors, submarine labor, the manufacture of highly explosive substances. These
are sufficient to indicate the character.
None of these phases call for any special comment, with the exception of one or two which contain more human interest than the others. Take the ques tion of age. It has proved, in dealing with hundreds of thousands, impossible to obtain exact statistics in regard to the matter of age. People are apt to report their ages in even numbers, at certain periods of life. There is a tendency to make oneself older and per haps at a certain period, to make oneself younger without any real intention to deceive. An investiga tion into many thousands of cases, shows that the cases where the age was understated were counter balanced by those where the age was overstated; in other words, so far as payment of premiums was con cerned the companies did not seem to be losing any money. Like all other forms of insurance, the trans action is based on absolute good faith between the parties, and any misstatement made purposely would at once cause the company, on discovering it, to cease negotiations with the persons in question.
13. Medical examination.—The next step in the transaction after' the application has been re ceived, and the company decides from that evidence to go further, is to have the medical examination. The medical examiner stands to the life insur ance company in the same relation that the inspector does to the marine and fire insurance company. He is the one on whose judgment the great body of risks are written, and for this reason it is, per haps, needless to state that his ability must be unques tioned. It is not merely a knowledge of medicine as it may be taught in the schools or learned in daily practice, but a special knowledge which is acquired in the examination for the passing of the risk for pur poses of life insurance, and from a knowledge of the death claims which have originated on the lives of those who have been passed by the medical officers. In most of the companies the medical examiner's reports are divided into two parts, (1) statements to the medi cal examiner, and (2 ) the medical examiner's re marks. The first are the replies to a series of ques tions which the examiner asks. Briefly epitomized, they may be set forth as follows: Your full name. Are you married? What illnesses, diseases, etc., have you had since childhood? A statement of the physi cians who have treated you; or, whom have you con sulted in the past five years? Are you in good health? It is evident that the phrase "good health" has a variety of meanings and one may be much sub-stand ard as compared with another person and still consider himself in good health. This the examiner will check by the other information brought out during the examination.