There is no doubt that insurance companies may be divided into three classes: (1) the absolutely reliable; (2) the inferior; and (3) the reprehensible.

The first class states clearly and unequivocally under what conditions their policies are issued, and makes no attempt whatever to conceal any terms which might be objectionable to the holder.

The second class palliates much, and the wording of its policies is often confusing, if not misleading. These companies insert objectionable clauses in places where we would least expect to find them--in very small print on the back of the policy. The wording on the face of these policies is very brief and attractive to the prospective buyer. But the back of the documents contain three clauses which are an insult to honest principles of insurance.

These sections usually read something like this:

"It is left to the discretion of the Company to declare this policy expired when the holder has attained or exceeded the age of sixty-five years. The holder shall then receive the excess premium said during the current year."

In other words, the insured, who has said his premiums for a great number of years, is deprived of whatever financial protection the policy offers, just at a time when he, and perhaps his family, need this protection most. In most instances the required premiums are entirely out of proportion to the face value of the policy. But since the amount of insurance, for which the policyholder subscribed, is usually a small one, it does not pay to take the matter to court--and the company is protected by the quoted clause in any event.

One might say that the insured should have examined the policy. Legally 3speaking that is true, but where are there two out of ten policyholders who have the necessary education to detect dishonesty in these documents? Remember, these clauses are printed on the back of the policy where no honest and unsuspecting person would look for them. Of course the experienced agent will not call the attention of the prospective purchaser to such tricks. The Hick bill, which is now before the General Assembly of the State of Illin is, may contain some provisions which are not advantageous to insurance companies, but it has this excellent feature: It prohibits certain companies from writing compensation or life insurance, and makes dishonest insurance transactions impossible.

I leave it to the reader to determine to which of the above-classified companies the one in which he is insured belongs. At any event, it will be advisable, and perhaps profitable, to put the back of his policy under a microscope.

Respectfully,

Arnold Keller.