ornell University Library

Employee insurance

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CORNELL UNIVERSITY

LIBRARY

NEW YORK STATE SCHOOL
OF
INDUSTRIAL AND LABOR
RELATIONS

 

 

 

THE GIFT OF
National Association of
Corporation Training.

 

 

 

 
INDEX

Appendix ......
Illustration A—A “Master ‘Policy .
Illustration B—A Group Policy . a
Illustration C—Supplementary ‘Application for Insurance
of Additional Employes Under Group Policy. .

Tlustration D—Cessation of Individual Insurance Under
Group Policy .

Tilustration E—Individual History Cards. .

Company Plans ARE AGS
A Detroit Company .
A_ Philadelphia Company .. ry eee re rr ee
A Massachusetts Company . ehiGulae?diwiwe dee gear asie gees

Cost, Scope and Significance of Group Insurance Plans. ......
Cost . i da es Wak Sarthe es are Bae
Progress of Group Insurance ee ee eee
Scope of Group Insurance ..... 6.2... cee ee ee eee eee eee
Savings Bank Life Insurance ........... 6.20.2 esse eee
A Company Insurance Department ..........-.+ 5.0005.

Employe Insurance .... +0... eee eee eens
Is There a Need for Employe Insurance? . ...

Three Classes of Employe Insurance .

Company Insurance .......

Group Insurance .......- 2+. ese ee ee eee ee eee eee e ees

Method of Insurance ....

The Plan of Insurance and "Individual Certificates for
Employes ...... 0.0 eee cee eee eees ;

The Master Policy .....

Adding New Entrants to the Original ‘Group .

Removing an Employe from the Group on ‘Account of Ces-
sation of Employment .

Individual History Cards for “Old and “New r Employes
Furnished by the Insurance Company . :

Opinions of Representative Employers . Muss ewens es
Burroughs Adding Machine Company.
Montgomery Ward & Company .

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PAGE
The Bilton Machine Tool Company .. PLE weheeewoeks Joe
Curtis Companies ..... LA iCegean me wER Se
E. I. du Pont de Nemours & Company « (iaieaatees: USE
Cosden & Company . Seeeheesteeers Oe
The American Rolling Mill Company. . enewee Ke wexea. Jos
B. F. Goodrich Company . isu eevee (BS
Prudential Insurance Company of America... css veve = BA
Lincoln National Life Insurance Company.........-.+.- 34
Service Motor Truck Company ...........0-00+e ere eres 84
H. J. Heinz Company 2.2.0.5 4.0. vance eeivee cee 8F

Typical Plans ........ “wuseuuseeereaeee meas UB
A Hartford Company .. Le one eae eRe an ama alee
An Ohio Company .. ; Seoeeeadtiueiee Sea teseeee: Ie
A Chicago origin, Vote tlie eer ee tg ake 15
A Newark Company s2 sic iev486 bys doe oiwaseecasevay 26
A New York Company 2.4.05 ciscciaesseee assess. WW
Ay New York Company: <cciscecvid erase ane ete eweocase 18
A. Bridgeport Company 2.244204 .422sene0%2 cteyesces 19
A. Pittsburgh Company ..<c0s:6ereseedscsvvveseei.ees 20
An Olio: Company: s) cassiseieceud suena acsases. 20
m& New York Company 222ccce casio ensceoiveaas sues: 20
mn Indiana; Company ssisesse staseeeerass tees eee tex 721
A Philadelphia Company ................ 0.0 cece eee 21
A New York Company: cc. o sce e tees eevkes wrk 2B
A Pittsburgh (Compas once cose aeteuaneerreendevee 20
& Vireinia Company .i405 +6600 seuGeeesanes eseesaass 26
A Minneapolis Conipany 2... ccc sone ei ecase cw tenes 26
An. Tidivns.-Comipany so cic jucene xaeeakens coewers woe: 2
A Chicago Company 26.26.4545 cen s4s og2054 sen eeacaeaes 25
A Niagara Falls Company ..................50.50--85 25
A, Philadelphia Company ...ss%-ssnesewiirvex ne sceese« BE
A; New Yorke Banke cnc00 opi gporeiecad gaa, ae dgswew gees, 26
A. Cincitmats Company ixascace ccs vex scx geeseeswese es, 26
A Bridgeport Company ........... 0... ee eee eee eee 26
Ap Chieago, Bank 5.055 .cacenra sc oreeu Gas eaters eenawee Oe
An Lowa Company 23.604 .sesusrees ip eneese acess 27
A Bridgeport Company ....2::¢sc:9:0se00¢ 0seuneacee 27
A. New York Bank .4 0i. eee ies cece de eee seaedan ens 28
A Delaware Company ........... 0.0 cece ccc eee aceeces 28
A Hartford Company® 23 oii. cotkae seeness caantesees 2D
A. Maine Compiny: acco sya deseweiwieee ees ddan acces 28
A Pittsburgh Company .............. 0. cee cee eee eee es 80
EMPLOYE INSURANCE

Recently a list of the various personnel activities which have been
endorsed by industry at large was compiled by the Managing Director
of the National Association of Corporation Training, and submitted
to each of the over one hundred and fifty Class “A” members of the
Association, with the request that activities already in operation by the
individual companies be checked off on the list. When returned and
co-ordinated, the lists furnished data of much interest, including the
extent and popularity of certain phases of personnel work over others.

According to classification along these lines, Employe Insurance
has third place among thrift activities in practice by Association
members, being preceded only by Benevolent Associations (including
sick and death benefit plans) and Bonus Systems. Yet Employe
Insurance is one of the more recent forms of so-called industrial
welfare work.

However the speedy winning of favor of insurance_over many
other schemes of employe relief is readily understandable. 'To the
employer it appeals both as a method of fostering more harmonious
relations and reducing turnover, since it offers the strongest kind of
deterrent to the employe against severing connection with the com-
pany. And even stronger must be its appeal to the employe. Not
only is individual life insurance in any adequate amount expensive
for the majority of workmen, but age and physical disqualifications
are likewise potent factors in putting it out of reach.

IS THERE A NEED FOR EMPLOYE INSURANCE?

According to the 1919 report of the National Association of
Manufacturers, it has been fairly well established that in the case of
approximately thirty per cent. of the workers, death is coincident with

entire financial collapse. Then, apart from the thirty per cent. or

more wage earners who have no insurance, there is, conservatively

insurance ‘available at time of death, while the average in: insurance = fot
3
the remainder of our workers does not exceed one thousand dollars.
Moreover, conditions have been found to be much the same among
the highly skilled as among the lower grades of labor; each class
living up to its full income and apparently not finding a place in their
budget for a proper amount of life insurance.

THREE CLASSES OF EMPLOYE INSURANCE

In the broadest sense, three methods of insuring the lives of
employes are open to employers. First—by means of participation
in company benevolent_associations which offer death benefits.
Second—by the creation of a fund, wholly supported by the company,
out of which the family or other beneficiary is reeompensed for the
death of an employe. Third—Group insurance in the strict sense.
The first method already has been outlined in an article on Benevolent
Associations, appearing in the October 1920, Bulletin of the
Association.

Company Insurance. St uw tuntuee

The distinction between company and group insurance lies in the
fact that the former plan inyolyes no.connection with any insurance
company. Death benefits are paid either directly out of the company
treasury, or from special funds set aside for such purpose. Insur-
ance of this second type naturally shows greatly varied features,
cases frequently being considered individually. A number of
examples of employe i insurance of this character are given at length
hereafter.

Group Insurance.

The term “Group Insurance” is designed to cover the practice of
insuring a company’s entire body of employes, or definite groups of
them through an outside agency. According to a statement contained
in a report of the United States Bureau of Labor Statistics, the group
plan can be offered to firms by the life insurance companies at greatly
reduced rates since it does away with medical examination and much
of the usual expense incidental to the selling of life insurance. In
order to secure a satisfactory rate from the insurance company, the
employer must offer conditions of employment which measure up to
a certain standard. The occupations must not be extra-hazardous,
sanitary conditions generally must be good, and good drinking water

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must be supplied. These prerequisites do not offer obstacles in the
case of most firms, since the employers most likely to wish to intro-
duce such a plan are those who have already progressed far toward
safeguarding the plant and providing good working conditions. It
is evident, too, that the elimination of medical examinations is made
possible through the physical examination on entrance which many
companies require and through the work of the emergency hospital
departments in caring for the health of employes, resulting in lower-
ing the number with serious diseases and maintaining the general
health of the force at a high standard.

Method of Insurance.

The method of insuring is to issue to the company a blanket policy
which covers the entire group to be insured. The insurance company
has a list of the employes included, with the age of each and the
amount for which each is insured. A certificate is given to each
individual which names the beneficiary, the amount of insurance, and
also gives the conditions under which it will remain effective. Natur-
ally the employe’s eligibility to the plan generally ceases upon leaving
the employ of the company, although several of the plans allow the
employe to continue his insurance at the regular rates; about the only
advantage being that he does not have to take a medical examination,
with perhaps the consequent increase in the premium.

“Group insurance is not a substitute for individual insurance,”
says William A. Day, President of the Equitable Life Assurance
Society, in an address before the Committee on Social Insurance in
Washington. “It simply supplements it. It is meant to provide
some insurance to those not otherwise protected by it, and to be a
substantial addition to the individual insurance which all are encour-
aged to provide for themselves. The plan has been found to work
best only as it is operated on an inclusive basis; namely, to include
everybody employed, or all those in the class for whose benefit
insurance is desired. é

“Any attempt to leave the choice with the employe whether he
should secure this protection or not, defeats in some degree at least
the object of the insurance in its attempt to be universal throughout
one group. For this reason it has not been found satisfactory to have
the employes pay for the insurance either in whole or in part. Any
proposal for payment from the employes entails the refusal of the
insurance by some employes, which destroys in the first place the

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universality of the protection, and in the second place impairs the
averages requisite in an insurance transaction, because those who
would stay out would be, as a rule, the stronger lives not feeling the
immediate need of the insurance.”

The Plan of Insurance and Individual Certificates for Employes.

Group insurance is usually issued on one of three plans, particulars
of which are set forth in the employer’s original application. ‘The
insurance is based on either—

(1) Length of service, under which the beginning amounts
depend upon the length of continuous service.

(2) An amount equal to one year’s salary.
(3) A constant amount, such as $1,000 for each employe.

A specimen certificate, descriptive of one of these plans, accom-
panied by letter to the employes, will be found in the appendix
marked “Illustration A.”

The Master Policy.

A specimen blank copy of the “Blanket,” “Group,” or
“Master” policy issued to the employer by one company will be found
in the appendix marked “Illustration B.” The premium for the first
year is inserted on the first page at the time of issue, when the total
amount of insurance and the total premiums involved has been
ascertained.

On the second page, under the heading, “Table of One-Year Term
Premiums per $1,000. of Insurance,” appears the individual premium
for every age from fifteen to the highest age in the group.

While this table of rates remains unchanged for a period of five
years, the net annual cost to the employer is determined from year
to year, beginning at the end of the first year of the insurance,
through the application of dividends, or annual refunds, and a refer-
ence to this feature will be found later on in this report.

Adding New Entrants to the Original Group.

The form in the appendix marked “Illustration C” describes the
method followed by the employer in advising a certain insurance

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company each month of the names of new entrants who became
eligible under the “Plan of Insurance” during the month immediately
preceding the sending in of the form.

If a death occurs prior to the receipt of this form upon which the
name of the new entrant is to be entered, the claim is promptly paid,
provided, of course, the new employe was eligible at the time of death.

The arrangement for submitting the names of new people monthly
rather than from day to day has been devised for the convenience of
the employer. The insurance company’s acknowledgment of these
“additions” goes back to the employer in the shape of an exact dupli-
cate of the data on Form 7570-B.

Removing an Employe from the Group on Account of Cessation of
Employment.

Insurance Companies usually prescribe that on or about the first
of every month the employer shall send a cessation form listing all
employes whose insurance ceased during the previous month on
account of cessation of employment. Such a form is listed in the
appendix as “Illustration D.”

The Insurance Company acknowledges the receipt of the data for
the terminated employes by sending back to the employer a duplicate
of this Form 7573-A.

Individual History Cards for Old and New Employes Furnished by
the Insurance Company.

A sample record or history card furnished by one insurance com-
pany is listed as “Illustration E.” As new entrants are added and
certificates issued, cards corresponding with the new entrants follow,
and should be placed by the employer’s clerk in their proper order
in the original card index box.

COST, SCOPE AND SIGNIFICANCE OF GROUP
_ INSURANCE PLANS

To quote again from the report of the Committee on Industrial
Betterment, Health and Safety of the National Association of Manu-
facturers already referred to:—

“As long as life insurance in its usual form requires acceptable
medical examination and is dependent upon the forethought and thrift

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of the individual, Group Life Insurance will continue the only way
to make life insurance universal among employes generally—and the
next question, therefore, is, does it produce results to the employer
and to society to compensate for the expense involved? Does it pay
to increase production cost in an amount sufficient to furnish this form
of protection for the producer’s dependents?”

Cost.

“Where the employer pays the entire premium,” said President
Day, of the Equitable Life, speaking before the National Conference
of Social Insurance, “and obtains from the employes better service,
increased productiveness, and increased persistency, the employer’s
outlay in premiums is fully compensated for by such improvements,
and is thus fully, although indirectly, paid for by the employe. This
fact is well attested in practice by statements from establishments in
which the plan is in operation. One large company, manufacturing
machinery, testifies:

?

“ “We have no hesitation in saying that the insurance has cost us
nothing, and that the good-will of the men has been secured.’

“Another organization, controlling a chain of public utility prop-
erties covering several thousand lives, says:

“ “We think that the benefits derived from the proposition warrant
the expenditure, and are very glad that we made the arrangement,
both from a humanitarian standpoint and from the fact that it
increased the satisfactory relations between the men and the company.
We have had a number of cases in which the insurance was all that
was left to the family of a deceased employe, and the other employes
have realized the value of the insurance from these cases.’

“That these conditions are true, alike for the wage and the
salaried worker, is further indicated by the expression of one of the
largest banks in our country, successfully operating group insurance.
The President of this bank goes to the heart of the subject when
he says:

“ “The banking business is a business of dealing with men. To con-
serve the human unit is the most important phase of our business.
You get what you give. If a bank gives its business attention to the
personal business of its employes, such as providing for them against
preventable distress, the bank can count on the employe giving added
personal attention to the business of the bank.’

8.
“Perhaps from the point of view of greater results for greater
benefits, the validity of the insurance has its greatest strain in con-
nection with the least skilled labor, mainly foreign. The following
pertinent statement was made by one of the earliest patrons of group
insurance, the head of a great manufacturing plant:

“At first this insurance system did not seem to affect much this
class of labor. I may say that the class of labor we can get generally
in the town of Passaic is not of a skilled or high order, being very
largely a foreign element—Hungarians, Poles, etc. I think, however,
the lack of effect was perhaps due to the fact that the men did not
understand what the benefits were, and as for some time after it was
installed we had no claims, they had no means of learning its benefits.
But after the benefits began to accrue, I noticed a material change for
the better in the tendency of the men to remain in our employ. While
we still have many changes, these are due to discharges for inefficiency,
unsteadiness or other causes, very few now leaving of their own
accord.’ ”

The cost is variously estimated to be from one to one and one-
half per cent of the amount insured, or an equivalent of about one
to one and one-half per cent increase in the annual payroll. That is
basing the amount of insurance on one year’s wages or salary.

This cost must be viewed as purely a plus proposition. No
employer could possibly justify it on any other basis because Group
Insurance does not operate satisfactorily if intended as a substitution
for any other benefit to the employe or to be legitimately expected
by the employe. It could never be viewed as a substitute for wage
increase or for workmen’s compensation benefits, for good working
conditions or for such other humane and appreciated benefits as might
be part of the work-a-day program.

Important as Group Insurance is intended to be among the major
factors in promoting good relationship with employes, it is clearly
of the second order of benefits and must necessarily follow satisfactory
major conditions, such as wages, working conditions, working hours,
etc. That employes consider it a factor in their relationship to
employers is clearly evidenced, however, in a large oil company which
adopted Group Insurance a year ago in connection with a general
plan for the bettering of industrial relations. This company recently
had direct evidence from one of their large departments that the
employes recognized that this measure of co-operation imposed
obligations, and could in the end be justified only by increased pro-

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duction. A resolution adopted by a committee of employes from this
shop is worthy of reproduction as an answer to the challenge that
employes do not appreciate and recognize the benefits so bestowed:

“RESOLVED, That in appreciation of what the Company has done,
we, the can shop employes, wish to reciprocate in a concrete way.

“WHEREAS, up to the present time, a day’s work for top and bot-
tom cutters has been twenty-seven boxes of tin each, be it resolved
that, from this date, as a voluntary act on the part of the top and
bottom cutters, they agree to cut thirty boxes each per day.

‘“Wuereas, most of the other employes of this can shop are work-
ing on machines, that are already running to the limit of their capac-
ity, be it resolved that they voluntarily agree to use more care in
performance of their tasks, in order to make their work as near 100
per cent efficient as possible.”

This resolution is a type of evidence that the true theory of
co-operation is understandable and can be understood as between
employer and employe by clearly pointing out how we always can
get more by producing more, and is particularly illustrating how in
this instance the employes considered the gratuitous reward of Group
Life Insurance.

In speaking of such measures when carefully thought out to
conserve vital needs of the worker and more than that to take into
account the needs of those who are dependent upon the worker and
are near and dear to him, and commenting particularly on Group
Life Insurance (of which he was the originator), as a measure to that
end, President Day, in his address before the National Conference
of Social Insurance said:

“We have passed through an epoch of industrial organization in
which the human element has been more or less neglected. Corpora-
tions and combinations of corporations have supplanted the small
business of more intimate human associations, and systematized much
of the red blood out of the worker in systematizing a new efficiency
by use of machinery. The employer and the employe are the same
kind of men as before, but lack of close contact causes misunder-
standings between them. In industry some systematic substitute for
the individual care and good will which formerly went from the
employer to the employe must be found to go with the advantages
of the era of machinery and centralized work in big units. Co-oper-
ation paid in those days and pays today. In addition to receiving a
full pay envelope, the employe must feel an interest in his work to
make it pleasurable and profitable.”

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Progress of Group Insurance.

The pros and cons of Group Life Insurance are set forth in an
interesting article by Harry W. Kimball, of the Arnold Print Works,
in the February, 1919, edition of Industrial M anagement. 'The con-
clusion of Mr. Kimball is:

“Group Insurance is growing in favor. Where adopted it has
rarely been discontinued. It affords valuable protection at a low cost
and where clearly understood by the workers has created good will
and has tended to accomplish the good claimed for it.”

An indication of the growth of the Group Life Insurance move-
ment is given by the fact that one of the large life insurance com-
panies which introduced this form of protection in 1912 now has
outstanding about $250,000,000 of this business. That is, the
employes now covered by that one company alone have a total pro-
tection of one quarter of a billion dollars. As there are four other
large insurance companies probably having between them as much
or more of this business than the one referred to above, it is fair to
assume that the aggregate for the country as a whole is not less
than one-half billion dollars of protection to wage earners at the
expense of the employers. With reference to the use of the word
expense in this connection, one of the leading industrial engineers of
the country claims to be able to prove that it is a misnomer; that
Group Insurance is in no instance an expense but an actual profit.

Scope of Group Insurance.

The National Association of Corporation Training has on file in
its offices the names of four hundred and eighty companies reporting
that a part or all of their employes have been insured under the group
plan. Fifty-eight of these companies are Class “A” members of the
Association. The greater number of the plans of member companies
cover all employes. Many, however, limit the plan to those with a
stated length of service to their credit. This service varies, periods
from thirty days to five years being required. A few companies make
eligibility for life insurance contingent upon membership in the com-
pany benevolent or some other thrift association, and one company
insures all employes earning a salary below four thousand dollars;
still another classifies its employes according to class of work with
corresponding distinctions in the amount of insurance. One or two

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companies have an additional endowment feature which takes effect
when an employe reaches the age of sixty-five.

Most of the companies, as has been already intimated, pay the
entire cost of. the insurance scheme, but two of the companies pay
fifty per cent, and another pays all after five years of service, while
those in the employ of the firm from one to five years are assessed
according to their length of service. This arrangement is reported
not to have worked out very satisfactorily, as those to whom it is
free are ready to avail themselves of it, but comparatively few of the
others have done so. Several companies have insured under the
“term” plan. This differs from the ordinary group plan in the
respect that the policy is renewed each year, and that the premium
increases from year to year as the employe grows older. The plan
of one of these companies, which pays half the costs, as well as of
several of the others, carries a disability clause, agreeing to pay for
total disability incurred before the ages of sixty or sixty-five are
reached.

Savings Bank Life Insurance.

In 1907 an Act was passed by the Massachusetts Legislature per-
mitting savings banks incorporated under the laws of the state to
establish departments for the issue of life msurance and annuities.
In lieu of instituting group life insurance, one member company has
become an agent for the Massachusetts Savings Bank Life Insurance
Plan. It reports the policies written to be cheaper than the old
“Industrial” imsurance as practised by the regular insurance com-
panies, and designed primarily for wage earners.

A Company “Insurance Department.”

Another company has established a separate and distinct insur-
ance department as one of its personnel activities, the objects of which
are to provide out of funds solely contributed by the company:

a. For the payment of certain death benefits;
b. For the payment of certain service pensions;

ce. For the giving of certain medical and surgical attention which
shall include hospital care, nurses, ambulance service and
surgical appliances.

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All of which benefits in the case of other companies—more commonly
included under the auspices of a benevolent association—are provided
for and administered in accordance with the regulations of the Insur-
ance Division.

The plans in force vary somewhat in the extent of the provisions.
Apparently one of the most satisfactory in its working out is the one
providing the equivalent of one year’s salary in wages with, of course,
a maximum limit paid in installments. This plan takes into consider-
ation automatically any change in the employe’s wages and secures for
the family a year’s income on the same basis to which they have been
accustomed. One company has modified this plan by limiting the
benefit to payment of salary from twenty to forty weeks.

Several of the plans provide for the payment of a fixed sum, these
sums varying in the different establishments from $200.00 to $1,000.00
and still others for the payment of sums varying with the years of
service until the maximum is reached, which is $1,000.00 in most cases,
but which is as high as $5,000.00 in two instances.

TYPICAL PLANS

A Hartford Company. In recognition of the fact that the success
of the company is due to a large extent to the faithful and efficient
work of its employes and to encourage and perpetuate honorable,
efficient work in the future as well as to recognize common interests
between the company and its employees:

BE IT RESOLVED that the officers of the Company are authorized
to provide at the Company’s expense to those employes who devote
all their time to the Company’s service and are compensated therefor
by salary and who have completed six months of continuous service,
life insurance to the extent of $300, increasing to $500 after one year’s
continuous service with thereafter an additional $100 for each com-
pleted year of service; and that insurance on a similar scale be pro-
vided for present employes of less than six months’ service or em-
ployes subsequently placed upon the Company’s payroll at the com-
pletion of the six months’ period; the maximum amount of insurance
in any case to be $2,500, such benefits to be payable either in one sum

or in instalments; and

BE IT FURTHER RESOLVED that the officers of the Company
be and are hereby authorized to provide for allowances during the
pleasure of the Company in the nature of pensions to employes who

13
for old age or failure of health from any cause except vicious habits
shall become disabled and unable to render further service; no one to
become eligible to such pension unless he shall have rendered five
years’ continuous service, and no pension to exceed one-half the com-
pensation received at the time of retirement and none to exceed $3,600

a year; and

BE IT FURTHER RESOLVED that the Committee hereinafter
referred to shall be empowered to continue salary payments or other
remuneration to temporarily disabled employes in accordance with
an equitable plan to be decided upon by such Committee.

RESOLVED that the President is hereby authorized to appoint a-
Committee not exceeding four to consist of members of the official
staff to pass upon the claims of qualifications of employes to share
in the benefits of the insurance and pension plans authorized by the
foregoing resolutions. This Committee shall have full power to deter-
mine upon the eligibility of an employe to a pension or temporary
benefits and shall have full power to adjust the payment of insurance
in the event of the death of an employe, including the payment of
the insurance in instalments at the discretion of the Committee.

RESOLVED that nothing in the foregoing resolutions shall be
deemed to obligate the Company to continue or make permanent a
policy or plan for insurance or pension benefits in favor of its em-
ployes, and that no employes shall by sharing at any time in the
advantages of such plans become thereby a permanent beneficiary
thereunder or acquire a right to the continuation of either or both
plans. :

Notification of the amount of insurance provided for the individual
employe will be sent out by the Actuarial Department in due season.

An Ohio Company. The Company, by a special arrangement, has
purchased a Group Life Insurance Policy covering the lives of
employes (including those of certain subsidiary Companies) desig-
nated by the Executive Committee to receive the benefit thereof.

Each employe is eligible for the insurance when he has been in
the employ of the Company for a period of not less than three months,
and has passed such physical examination as may be required by the
Director of Health.

Subject to the terms of this plan the amount of insurance on the
life of each employe is increased at the expiration of each successive
year of service until a maximum of $1,000 has been reached as follows:

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From 3 months to 1 year................. $ 500

From 1 year to 2 years ................... 600
From 2 years to 8 years.................. 700
From 8 years to 4 years.................. 800
From 4 years to 5 years.................. 900
Over 5 Years 62:54 ceded cia idssas~ 1000

Subject to the approval of the Executive Committee, upon receipt
of satisfactory proof of the death of an insured employe, a sum not
exceeding $100 may be advanced from the amount of insurance pay-
able to the beneficiary to cover funeral expenses. The balance of the
insurance is paid to the beneficiary in from one to twelve monthly
instalments as the Executive Committee may designate.

The Company reserves full right at any time to change or ter-
minate this plan and discontinue this insurance. Any insurance that
may be issued under this plan terminates whenever the insured for any

cause ceases to be an employe of the Company, as shown by the
records of the Company.

The length of service of the insured is reckoned as the period dur-
ing which he or she has been continuously in the service of the Com-
pany or its subsidiaries.

Temporary absence due to illness, or temporary lay-off on account
of reduction of forces is not considered as a break in the continuity of
service, but when such absence exceeds three months, the period there-
of may be deducted in computing the length of service.

If an employe, after having ceased to be such, is re-employed, he
is considered to be a new employe. No assignment of the insurance
is valid. Employes who have received Service Annuities from the
Company are not eligible for insurance under this plan, and the
award of a Service Annuity by the Company thereby terminates such
employe’s isurance under this plan.

A Chicago Company. Upon serving five consecutive years in the
company’s service, an employe becomes entitled to insurance privi-
leges namely, Life insurance protecting the employe’s widow, children,
or relatives according to the certificate of Insurance issued by the

15
}

Equitable Life Assurance Society of the United States to employes

entitled thereto.

DEATH

1. Funeral and_ burial
expenses not to exceed

2. If married (a) to sur-
viving wife (or husband if
disabled and so dependent)

With a special and final
payment, upon remarriage
of

(b) to surviving wife or
husband, or other person, if
appointed guardian for a
child under 16 years of age;
for support of one such child

For support of two or
more such children

8. If no wife (or dis-
abled and so dependent hus-
band) surviving:

To the guardian or guard-
ians (a) for support of ‘one
child under 16 years of age.

(b) For support of two
or more such children

AMOUNT
$100.00

Pension of twenty-five
per cent. of last wages

Two years annual pay-
ments lumped

Twenty per cent. of last
wages

Twenty-five per cent of
last wages

Twenty per cent. of last
wages

Twenty-five per cent of
last wages

Such benfits are intended to be payable as follows:

PAYABLE
AT ONCE

Until death or remarriage

One sum

Until death or attaining
the age 16

Until death ‘or attaining
the age 16

Until death or attaining
the age 16

Until death or attaining
the age 16

The amount of death benefits for injuries sustained by an employe arising out
of and in the course of employment, payable under the provisions of paragraphs
2a and 2b or 3a and 8b of this section shall not be less than the total of one year’s
wages of the deceased employe (limited to not more than $3,000 per year).

4. If no wife (or hus-
band disabled and so depen-
dent) surviving:

(a) To the beneficiary
named by the employe.

One year’s wages

(Maximum
amount $3,000)

A Newark Company. The Company insures the lives of its em-

ployes without any cost to them, whether on the active or on the
retired list, for the amounts indicated in the following schedule; and
upon the death of any such employe while in the service of the Com-
pany, there is paid, in one or more installments, to the person or per-
sons appearing to es ee to be ee sauteed Mhereto; the
. Sum: so-insured. «. :
16
SCHEDULE

When the length of service of such employe has been less than one year ....... $ 500
When the length of service has been one year but less than five years ......... 1,000
When the length of service has been five years and less than ten years (Pru-
dential Old Guard, Class A) 1.2.2... ccc ccc eee cece ene eeees 1,250
When the length of service has been ten years but less than fifteen years (Pru-
dential Old Guard; Clase BY wi. ccsesavecewsanteexsivesusuduntns 1,500
When the length of service has been fifteen years but less than twenty years
(Prudential Old Guard, Class C) ......... cc cece cee cette een eeee 1,750
When the length of service has been twenty years and over (Prudential Old
Guard, Classes'D, E, F, ete.)..... ccc cece eee eee eneeneees 2,000

Except in the cases of employes on the retired list, the foregoing applies only
to persons whose whole time is given to the service of the Company.

The plan does not apply to officers or directors of the Company.

A New York Company. Arrangements to provide for insuring
all members of the Employes’ Association at rates lower than can be
obtained individually have been completed with the Travelers. Insur-
ance Company.

All members of the Association will, on request, be insured for
$250 within the amount at present paid for dues, and. without any:
-extra' charge, namely sixty-five cents every three months. The Com-
pany contributes an additional one hundred. dollars to the beneficiaries
of any active or honorary member availing himself of this insuranee
who dies while in. the employ of the Company.

In addition there are various forms of policies which can:be taken
and up to the limit of $1,000 such insurance can be placed: without
medical examination. This additional insurance is charged for at the
rate shown on accompanying charges and tables.

Insurance taken at the yearly renewable term (or group) rate
increases according to age. This is the very cheapest form of insur-
ance; the policy provides no cash return, loan privileges, or sur-
render values.

Insurance under the ordinary life plan costs somewhat. more, but
has the advantage that it may be discontinued at any time after the
third: year and the holder will receive a paid-up policy, a loan, or
cash for the surrender of the policy. The rate of premium under: this
form of policy remains uniform throughout its term.

Insurance to sixty and seventy years of age costs slightly more
than for ordinary life, but premiums, uniform throughout, are payable
only up:to the ages given; if death occurs: previous to such age the

17
face value of the insurance becomes payable. If living the policy may
be converted into a paid-up life policy, or the holder is entitled to
receive an annuity for life, or the entire amount of premiums paid,
on surrending the policy. Insurance to 80 years of age costs less
than “ordinary life’ up to 53 years of age, after which the rate is
slightly higher.

The 20-year endowment policy requires the payment of uniform
premiums for 20 years. It has cash, loan, and annuity options and
after the third year, if premiums are unpaid, the policy carries itself
for a stipulated time. The face value is payable if death occurs before
the expiration of the term, and the policy may be surrendered for
face value or exchanged for a paid-up policy for a higher value at the
end of the term. -

The 20 payment life policy entitles holder to a paid-up policy
after uniform premiums have been paid for 20 years. This form
after third year has cash, loan, and annuity options, continuing insur-
ance in case of non-payment of premiums, and may be exchanged
for paid-up policy. New members entering the Association after
the date of the group policy must indicate the amount and form of
insurance desired within one year after becoming members. Any
employe of the Company, or the subsidiary companies, is eligible for
active membership after three months of service if over 16 years
of age.

Insurance may be continued by the member after leaving the
employ of the Company, a distinct advantage over the present method.

The charts and tables show premium rates at the various ages for
the following forms of insurance, namely:

Yearly renewable term, monthly and yearly rates and
average of total sum of yearly payments for an average
life according to mortality tables, divided by years of
expectation of life.

Ondinary life: .cc22se uestes oot oes eens ener wees Yearly Rates
Special endowment at sixty, seventy, eighty .......... Yearly Rates
Twenty year endowment .......................... Yearly Rates
Twenty payment life ........................+.... Yearly Rates

A New York Company. This Company’s plan is to insure all
employes one year in service for the amount of one year’s salary, not:
to exceed $5,000 on those whose salaries are in excess of that sum.

18
A Bridgeport Company. An Insurance Certificate for $500, is-
sued by the Travelers Insurance Company of Hartford, is given to
an employe upon the completion of three months of continuous em-
ployment. After one year of continuous employment has been com-
pleted, the value of this Certificate is increased to $600. For each
year of continuous employment thereafter, $100 is added to the value
of Certificate until a maximum of $1,500 has been reached.

This plan being retroactive, all individuals who have been continu-
ously in the employment of the Company for ten years or more have
received Certificates for the maximum amount of Insurance under
this plan.

To the family, or otherwise designated beneficiary of a member
of the force of the Company, who has been in the Company’s employ-
ment continuously for five years, is paid, in the event of his death, the
sum of $1,000.00. To the beneficiary of an employe of seven years’
standing is paid the sum of $1,200.00—the value of the Certificate
increasing yearly until the maximum of $1,500.00 has been reached.

If, at any time, while in the employment of the Company, any
insured employee, not yet having attained the age of 60 years, becomes
totally disabled from any cause by accident or disease, the amount
of insurance to which he has attained is distributed to him in equal
amounts for such period of years as may be determined by the Com-
pany after conference with him and his beneficiary. To illustrate:

If an employe, by continuous employment for ten years, has
attained the maximum amount of insurance—$1,500.00—and becomes
totally disabled through accident or disease, then $1,500.00 plus inter-
est is distributed in equal amounts yearly for a period of five years,
ten years, fifteen years or twenty years—dependent upon the con-
ditions surrounding the employe and his family.

For instance, if an employe insured for $1,500.00 is totally dis-
abled and it is determined to extend the distribution over a period of
_ ten years, the disabled employe will receive annually for ten years the
sum of $174.00, or a total of $1,740.00.

Should the distribution extend for fifteen years, the annual pay-
ment would be $126.00, a total of $1,890.00.

In the event of a twenty-year distribution, the annual payment
would be $102.00, a total of $2,040.00.

If the employe should die before the entire amount is distributed,
then the balance would be paid to his dependents.

19
A. Pittsburgh Company

Total Insurance in Force for Employe Who Saves. Under the Rules of the Savings Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Face Value of :
i At | At | At | At’ | Ate] At | At | At | At | At | At | At | Ab | At | At
Ta eae ; Dur- End | End | End | End | hd | End | Bnd | Bnd | Bnd | End | Und | End | Gnd | Wad | nd
Seal : ice « in, ‘of of of 0 0 o 0 of | ‘ol of | of of of | of o
of 6Mosservied + WHE Joining” [tsk | dot | and | ard | Ath | Sth-| oth | teh | seh: | oth | roth | afth-| r2eh-t ath | rath | 19m
Tnerenecd anlecd Savings Fu: — og west Yer Nene bos al veer Yee veer ia Ment i ead i vers
- co ‘of | of | o of ol of: | of 0 of ol of’ | of |} of |: of of f
ea nina are Saving|Saving|Saving tl Saving|Saving|Saving Saving Saving Saving|Saving|Saving|Saving
$500.00 6 mo. and-less than 1 yr. | 1000 | 1000 | 1000;} 1000 | 1000 | 100°] 1100°| 1200 | 1300 1400+} 1500 | 1600 | 1700 | 1800 | 1900 | 2000
500.00 1 yr. and less than 2 yrs.J 1000 | 1000 } 1000 | 1000 | 1000 } 1100 } 1200 | 1300 | 1400 | 1500'| 1600 | 1700 | 1800 | 1900 | 2000
500.00 2 yrs, and less than 3 yrs 1000] 1000 | 1000‘{ 1000 | 1100 | 1200 } 1300'] 1400 } 1500 | 1600 { 1700 | 1800 | 1900°) 2000
500.00 3yrs.andlessthan 4 yraJ 1000 { 1000 | 1000 | 1100 | 1200 | 1300 | 1400°| 1500 | 1600 } 1700-} 1800°| 1900 | 2000
500.00 ™ and less than 5 yrs} 1000 | 1000 | 1100 | 1200 | 1300 | 1400 ] 1500 | 1600 | 1700 | 1800 1900 2000
500.00 yrs, and less than 6 yrsJ 1000 | 1100 | 1200 | 1300 | 1400 | -1500'] 1600 | 1700 | 1800 | 1900] 2000
500.00 | 6yrs.andlessthan 7 yrsJ 1100 | 1200 | 1300 | 1400 | 1500 | 1600 | 1700 | 1800 { 1900 | 2000
500.00 7yrs. and less than 8 yrs| 1200 | 1300 | 1400 | 1500 | 1600 | 1700 | 1800 | 1900 | 2000
500.00 8 yrs. and less than 9 yrs.{ 1300 | 1400 | 1500 | 1600 | 1700 | 1800 } 1900 | 2000
500.00 9 yrs. and less than 10 yrs} 1400 | 1500 | 1600 | 1700 | 1800 | 1900 } 2000
500.00 ]l0 yrs. and less than 11 yrs 1500 | 1600 | 1700 | 1800 | 1900 | 2000
500.00. JL yrs, and less than 12 yrs.J 1600 | 1700 | 1800’) 1900 | 2000 | 2000 m
500.00 {12 yrs.-and less than 13 yrs.| 1700 | 1800 | 1900’ 2000:| 2000: } 2000
500.00 {13 yrs. andJess than.14 yrs.| 1800 | 1900+] 2000 | 2000 | 2000 } 2000 }
500-00 ° |{4 yrs. and less than 15 yrs.J 1900 | 2000'| 2000 | 2000 | 2000 } 2000 1
500.00 [15 years.and over. .2000 } 2000" 2000 | 2000"| 2000 | 2000 y rn
Total Insurance in force. _ / :
Total Insurance in force. Tn case saving is discontinued, | Total Insurance in force. _ : :
In‘ease saving is discontinued | or 'savings:. withdrawn after Ist In case saving is digcontinued or savings. withdrawn after the
during first year, policy is] year of saving and before the} 5th year of saving face value of policy is not reduced, but does not
reduced to°$500.00. gnd of the’ fifth year of saving,| increase.
policy is reduced ‘by subtracting
$500.00 from face value and add-
ing» $100.00 : foreach full year |‘
savings were deposited

 

 

 

 

An Ohio Company. Hach employe’s life is insured free of charge
by the Company for as much as the total of his year’s wages, not ex-
ceeding $2,400. The employe himself names the beneficiary.

A New York Company. Continued service of the employe is-
recognized as‘of great value, and.in order to encourage such service, .
and to aid in freeing the minds of the employes from anxiety as to
possible financial distress on the part of their families or dependents in
case of. the. employe’s. death, the Directors of the Company have
authorized Life Insurance on the Group plan for all employes who
have served the Company one or more years. The Life Insurance
Company requires no physical’ examination of the employe as a con-
dition of. such insurance.

This insurance is provided at' the Company’s: expense and became
effective on January 1, 1920. The insurance runs: for a' period of one
year, but it is hoped: and: expected that: experience will justify its
continuance thereafter.

20°
Upon the lives of employes who have dependents as described
below, the amount of insurance is
$500 after one year’s service.
750 after two years’ service.
1,000 after three years’ service.
1,250 after four years’ service.
1,500 after five year’s service (maximum).

Upon the lives of employes who die leaving no dependents, the
amount of insurance is $150, for funeral expense.

The insurance ceases as to any employe with the termination of his
employment, but the insuring company agrees that insurance on a
standard policy form at regular rates may be secured without physical
examination upon application to it by the person whose employment
is terminated.

-Dependents, who may be named as beneficiaries, are
Huband or wife

Child or children Dependency is assumed

Parent or parents

Any other relative actually dependent upon the insured em-
ploye for support.

‘Certificates of Insurance are issued to employes who are eligible
as above set forth, as soon as the necessary information as to the age
of employes, their terms of service and beneficiaries, has been col-
lected, but, as above stated, employes will be covered by insurance
from January 1, 1920.

An Indiana Company. The Company has taken out insurance
on the lives of all employes who have been with it for a year, from
April 1st:to-April 1st, subject to medical examination. Should any
employe die, after being with the company a year, his family or,nearest
relative will receive $500.00. ‘The amount ofthis insurance increases
-$100.00 each year, for five years, so that.if an.employe. should die
_after service of five years or longer,'his estate will receive a maximum
of .$1,000.00. ‘This.insurance costs the employe nothing, as all pre-
miums are paid by the company.

A Philadelphia.Company. Membership inthe Company’s Co-
operative Welfare Association carries with it a one thousand dollar
21
life insurance Certificate, issued by the Metropolitan Life Insurance
Company. ‘This Certificate becomes the personal property of the
member, to be in force and effect so long as he or she remains in the
employ of the Company, and retains membership in the Co-operative
Welfare Association.

Members of the Association leaving the employ of the Company,
are entitled under the terms of their Certificate, to re-insurance with
The Metropolitan Life Insurance Company for one thousand dollars,
without medical examination, at rates based upon the member’s then
attained age.

In naming the beneficiary, the Association strongly counsels all
members to give first consideration to the protection of their families
(wife, children, parents), or other dependents, in preference to nam-
ing as beneficiaries persons not coming within this classification.

If, after the payment of the first premium any member under
sixty years of age becomes totally and permanently disabled by
accidental injury or disease arising from causes which originated after
the issuance of the Certificate, the Insurance Company waives the
payment of further premiums, and pays to such member the full
amount of insurance in monthly or yearly instalments, as the member
may elect.

In case the beneficiary named in the application is not living or
cannot be located, and legal heirs of the deceased cannot be found,
the Association, through its proper officers takes charge of the
remains of the deceased member and provides for interment, at a cost
not to exceed three hundred dollars.

In cases where funds are immediately and urgently required by
the beneficiary or heirs of a deceased member, the proper officers of
the Association are authorized to advance a sum not to exceed three
hundred dollars, as part payment of the life insurance; such amount
subsequently to be deducted from the full amount of the insurance
due under the Certificate.

In case proper notice of the existence of a beneficiary or other heirs
of a deceased member, under the Interstate Laws of the State of

Pennsylvania, is not served on the Association within twelve months
after such member’s death, it is treated as conclusive that there are no
such heirs or beneficiary in existence, and thereupon the remainder
of the insurance then unexpended, reverts to the funds of the
Association.

22
A New York Company. Rules governing the Committee Organi-
zation and procedure in supplying to the Aetna Life Insurance Com-
pany, the necessary data for their proper handling of the Group Life
Insurance provided for club members of the Company Associated

Clubs.

Inclusion of Class 1 Single: A single man, a single woman, a widower with-
out dependent children, a widow without dependent children, a married woman with
hushand not dependent, a man divorced but without children dependent, a woman
divorced but no children dependent ;

GROUP INSURANCE CHART

After After After After After After
CLASSES 3Mos. 1Yr. 2Yrs. 3Yrs. 5 Yrs. 10 Yrs.

Noi.1 Single o:cccc006 cca teenies $ 500 $600 $ 800 $1000 $1300 $1800

 

 

No. 2 MARRIED
Inclusion of Class No. 2 Married: Man married with wife living.
Woman married with dependent husband.
A dependent child is construed as one not earning his own livelihood and under
18 years of age.

 

No. 2 Married with wife living. .... $ 800 $900 $1100 $1300 $1600 $2100
Husband or Wife alone
= «1 child dependent.$ 900 $1000 $1200 $1400 $1700 $2200
a « « Qchildren “ .$1000 $1100 $1300 $1500 $1800 $2300
. Be SESE “$1100 $1200 $1400 $1600 $1900 $2400
ee « «© & © ormore “ .$1200 $1800 $1500 $1700 $2000 $2500

 

Inclusion of Class No. 3 Married with children: Married man with children
but no wife, i. e., a widower; a woman married with dependent children but no hus-
band, i. e., a widow; a man divorced with dependent children but no wife; a woman
divorced with dependent children but no husband.

After After After After After After

 

CLASSES 3Mos. 1Yr. 2Yrs. 3Yrs. 5 Yrs.10Yrs.°
No. 3 Married with children but no wife:
No wife but 1 child dependent ......$ 600 $ 700 §$ 900 $1100 $1400 $1900
« «  * 6 Ochildren “  .....- $ 700 $ 800 $1000 $1200 $1500 $2000
Sey Pe Bere 5 ME oa ene tes $ 800 $900 $1100 $1300 $1600 $2100.
eo my et a ree $ 900 $1000 $1200 $1400 $1700 $2200
« « 5 ormore “  ....-- $1000 $1100 $1300 $1500 $1800 $2300

A Pittsburgh Company. By special arrangement with the Aetna
Life Insurance Company, a group life insurance policy has been pur-
chased to cover certain employes of this Company while in service.
Life is insured in accordance with the following schedule, and the

23
amount of insurance increases to correspond with the term of service.
When the term of service warrants an increase in the amount of insur-
ance, an additional certificate for the increase is issued.

Amount of

Term of Service Insurance
3 continuous full months’ service and less than 6 months...........++e0+- $250
6 continuous full months’ service and less than 1 year............+ee+0+- 500
1 continuous full years’ service and less than 2 yearS.........+0- ee eees 600
2 continuous full years’ service and less than 3 yearS.........+2+eeeeees 700
8 continuous full years’ service and less than 4 years.........000eceeeees 800
4 continuous full years’ service and less than 5 yearS........-.e+eeeeee 900
5 continuous full years’ service and over...........-0.ceeeeceeceeeees 1000

Provision is'thus made for the relief of dependents at a time when
they may need it most, and to safeguard this fully this certificate of
insurance cannot be assigned or ‘transferred. In the event of an
employe’s death at any time or place, from any cause whatsoever,
while in the employ of this Company, the amount of insurance then
in force upon his life is paid to his wife or (if a woman) husband if
any such is living; if not, to children who survive equally; and, if
none survive, to father and mother equally or to the survivor; if
neither survive to the employe’s estate.

If the employe cares to especially name a beneficiary, he may
arrange to do so:by a written request to the Company. This insur-
ance is furnished: by.the Company at:no expense to its employes, and
does not in any way take the place:of any payments to be made for
accidents under any workmen’s compensation laws.

A Virgima:Company. 'This‘Company adopted the Group ‘Life
Insurance Plan on July 1st, 1919. The employes are divided into
three classes as follows:

‘Class A—Foremen, Mechanics and Laborers. This class starts
with $500.00 and increases in the amount of $100.00 each year until
‘the maximum. amount of $1,000.00 is reached. It is necessary that an
employe ‘put ‘in one continuous year’s service before the insurance
takes effect.

‘Class .B—Clerical Positions—From $1,000.00 to $2,000.00. After
6 months’ continuous service $1,000.00 insurance is issued, which
amount is increased automatically each year until the maximum
amount of $2,000.00 is reached.

‘Class: C—Office Managers and Superintendents. $3,000.00 insur-
ance without further increases. This insurance does not depend on
length of service.

24
A Minneapolis Company. The Group Life Insurance Policy of
this Company in the Travelers Insurance Company, of Hartford,
Conn., increases in amount as follows:

Original amount after 8 months in service...... $500.00
Amount after 6 months in service.............. 750.00
Amount after 1 year in service................ 1,000.00
Amount after 2 years in service............... 1,250.00
Amount after 3 years in service............... 1,500.00
Amount after 4 years in service............... 1,750.00
Amount after 5 years in service (maximum).... 2,000.00

Policies are absolutely free to employes.

An Indiana Company. About two years ago this Company
adopted ‘the group insurance plan for its employes. According to
its plan there is no insurance during the first year of employment.
During the second year of employment twenty-five per cent. of the
yearly salary being received at the time of death is paid to the
employe’s beneficiary; during the third year, fifty per cent. is paid,
during.the fourth year, 75 per cent.; and during the fifth and succeed-
ing years, one hundred per cent.; but in no.event does the amount
so paid exceed $3,000. Both employes and officers are carried under
this plan.

A Chicago Company. Under one year of service, $500.00 is paid
the beneficiaries of the employe of this Company; increasing $500.00
for each year of service until the maximum of $5,000.00 is reached
at the completion of nine years of service.

A ‘Niagara Falls‘Company. The amount of insurance is deter-
mined by figuring from last date of employment.

1,month and less than 18 months.............. $500.00
18 months and less than 24 months............ 600.00
-24:months.and less than 36 months. ........... 700.00
36.months and less than 48 months............ 800.00
48 months and less.than.60 months............ 900.00
60.months and less than.72 months............ 1,000.00
72 moriths and:Jess than. 84 months............ 1,100.00
84 moriths or OVer.. . 1... eee eee eee eee eee s 1,200.00

‘25
A Philadelphia Company. The Company has purchased Group
Insurance from the Aetna Life Insurance Company, covering all
employes. No physical examination is required.

An employe must be in the employ of the Company three months
before the policy becomes effective. After three continuous full
months’ service a policy is written for $200.00. After six months’
service the amount is increased to $400.00. After one year’s service
the amount of the policy is increased to $500.00, and thereafter
increased $100.00 for each year’s service, until at the end of six years’
service, the amount is made $1,000.00, which is the maximum amount
allowed under the policy.

A New York Bank. Farly in the year the Bank took out a group
insurance policy covering the lives of its employes. The minimum is
$1,000 and the maximum $5,000, the exact coverage for each individ-
ual being conditioned upon his length of service.

A Cincinnati Company. The Employe’s Health and Insurance
Association (or the Mutual Aid as it is commonly called) is an
organization managed by the employes and guaranteed by the firm.

Since there is no administrative or selling expense and any deficit
is made up by the firm, it furnishes a safe insurance at much cheaper
rates than can be gotten elsewhere.

In addition to the sick benefits, the firm insures the life of each
member (at no expense to the Mutual Aid) for a sum varying from
$50.00 to $500.00, depending on the length of service.

A Bridgeport Company. Since December, 1919, the Company
has carried Group Insurance covering all of its three plants, making
it entirely voluntary on the part of the workers. Previous to that
time one of the plants had been subsidizing an Employes’ Benefit As-
sociation, which had sick and death benefits, but these benefits were
small and the dues were higher than at present under the present
plan. When the change was made, the Company dissolved this bene-
fit association and the funds were turned over to a social organization.

The dues covering the present group insurance plan are 25 cents
a month for everyone, regardless of the term of employment, and
every new employe is required to take out insurance. The insurance
covers all injuries sustained outside of employment and all cases of

26
sickness that are duly reported. This is known as Health and Acci-
dent Insurance. After a man has been in the employ of the Company
six months he receives life insurance to the value of $500.00. If he
has been in the employ a year, his life insurance is worth $600.00, with
$100.00 more for every year thereafter up to $1,000.00, which is the
limit of the insurance.

- About eighty per cent. of the total number of employes are in-
sured under the group plan. Every effort is being made to insure
the remainder, although it has not been made compulsory in the case
of older employes. Executives receiving a salary over $3,000.00 a
year are insured for $3,000.00 under this plan.

A Chicago Bank. The bank insures all its employes in case of
death, to the extent of one year’s salary, without any cost whatsoever
to the employes.

An Iowa Company. Each employe who has been with the com-
pany for a period of three months to one year is insured for the sum
of $500.00. The scale increases a hundred dollars each year of service
until a maximum of $1,500.00 is reached, after the employe has served
the company for ten years.

The first year, the expenses of the insurance are being borne en-
tirely by the company, but plans are being developed, whereby the
employes will pay for a portion of this insurance hereafter. The men
are reported to have taken very kindly to this plan.

A Bridgeport Company. Every member of the Sick-Benefit As-
sociation is also entitled to receive the following amounts of life insur-
ance free of cost. To members of this Association who have com-

pleted

Six months service...ic..<:exeeets ueewaeseee 9B E0000
One year’s Service... 1... eee eee ee eee eee eres 600.00
Two years’ service. ........ ese eee eee sree eee 700.00
Three years’ service.......- ++ ee eee eeeeee eee 800.00
Four years’ service......- 00. s-e essere eee eres 900.00
Five years’ service.....--- 00s eee eee eee eee cess 1,000.00

This insurance is allowed to members who have already completed
the respective terms of service, and the amount of the insurance

27
increases automatically from year to year as members advance in
the service of the Company. The Company furnishes to all employes
who have completed at least six months’ service with the Company,
and have not become members of this association, a life insurance
certificate of two hundred and fifty dollars, without cost to the
employe.

The life insurance benefit is payable in event of death to the bene-
ficiary named by the member. In addition, the certificate states that
if the member, before reaching the age of sixty, becomes permanently
and totally disabled so that he cannot perform any work, the insur-
ance will be payable to him in this case in installments covering the
period of five years, ten years, fifteen years or twenty years, depend-
ing upon the conditions surrounding the member and his family. If
the member should die before the entire amount is distributed, then
the balance will be paid to his dependents.

In case any member leaves the service of the Company, insurance
may be continued with the consent of the Company under an indivi-
dual policy issued at the regular rates of the Travelers Insurance
Company, but without medical examination, if requested within ten
days after termination of employment. It is the duty of the Presi-
dent of the Sick Benefit Association, upon the death of a member,
-either by himself or some member of the Governing Board, to investi-
gate the case and see that the said member’s beneficiary is paid the
amount due as soon as possible as per the terms of the policy, the
Secretary-Treasurer to report in writing all deaths promptly to the
President.

A New York Bank. It is the practice of this bank to insure each
employe for an amount equal to one year’s salary but in no event
more than $3,000.00.

A Delaware Company. The Company has contracted with the
Kquitable Life Assurance Society of the United States to include
new employes under the life insurance benefits of the Employe Group
Insurance policy, after a probationary employment period of six
months of. active service, should death occur while in the employment
of the Company, during the continuance of the policy and subject to
the ‘terms and conditions thereof. The insurance sé¢hedule -is as
follows:

128
Employes in service from 6 months to 1 year... .... $1,000

Employes in service from 1 year to 2 years........ 1,100
Employes in service from 2 years to 8 years...... 1,200
Employes in service from 8 years to 4 years...... 1,800
Employes in service from 4 years to 5 years...... 1,400
Employes in service over 5 years..............-. 1,500

At the expiration of the probationary employment period, insur-
ance becomes effective upon furnishing to The Equitable Life Assur-
ance Society of the United States the necessary insurance data on
the blank provided for that purpose and upon the issue to the new
employe of an individual certificate of life insurance. All costs are
paid by the employer.

A Hartford Company. The Company has an insurance policy
issued by the Connecticut General Life Insurance Company of Hart-
ford. This policy provides insurance for the company’s employes
against death at any age, or for total disability before the age of
sixty years. Each employe is insured to the amount of $500.00 after
continuous service with the Company for six months, and this amount
is increased to $1,000.00 after continuous service for twelve months.
An absence of three consecutive days without an excuse acceptable to
the management is considered an interruption of continuous service.

A Maine Company. The Company carries life insurance cover-
ing its employes on the Group Insurance Plan. Under this plan, all
employes who have been in the service of the Company six months
or more are insured against death and permanent disability, without
expense to themselves, no medical examination being necessary.

The amount of an employe’s policy depends entirely upon. his
length of service. A person who has been in the employ of the Com-
pany for six months to one year is insured for $500.00. Each suc-
cessive year $100.00 is automatically. added to the amount of this
policy until the maximum sum of $1000.00 is reached. The following.
table shows the schedule:

Continuous service—six months to one year. . $ 500.00
Continuous service—one year to two years... 600.00
Continuous service—two years to three years. 700.00
Continuous service—three years to four years 800.00
Continuous service—four years to five years. 900.00
Continuous service—five years or more...... 1,000.00

29°
In the event of the death of an employe, his beneficiary is entitled
to the sum due in accordance with the above schedule, regardless of
the time, place, or cause of his death.

In case of permanent disability, the amount due is paid to the
employe in annual instalments.

This insurance does not take the place of, or in any way interfere
with, benefits provided by the workmen’s compensation laws.

A Pittsburgh Company. The insurance commences at $750.00
and increases at the rates of $100.00 per year for a period of ten
years, making the value of the policy at the end of that period
$1,750.00. This schedule applies to foundry employes only. The
policies issued to officers, heads of departments, and the clerical office
force range from $2,000.00 to $3,000.00, from $1,500.00 to $2,500.00,
and from $1,000.00 to $2,000.00 respectively. —

COMPANY PLANS

A Detroit Company. The protection plan of this Company was
adopted as of January 1, 1916, as a means of providing that form of
protection which to the management seemed most needed by their
factory employes. It is purely a welfare measure adopted with the
idea of holding desirable employes, and with the further thought that
insurance protection would serve to relieve their minds of anxiety for
dependents, and therefore, permit them to perform their work more
satisfactorily.

This particular plan is based on the theory that most employes
do not provide sufficiently, if at all, for their dependents in the event
of early death. Therefore, to provide a measure of relief, the pro-
tection plan continues the earnings of the employe for a period of
from twenty to forty weeks after his death. This arrangement gives
the dependents some time in which to adjust themselves to the new
conditions. The method of making payments weekly removes the
objection of giving to an inexperienced person a comparatively large
sum of money at one time to be misappropriated or poorly invested
through the advice of well-meaning, but equally inexperienced friends.

A Philadelphia Company. This Company recently put into effect
an insurance plan providing for the payment of death benefits to the
survivors of faithful employes who died while still in its employ. This
plan is effective as of January 1, 1920.

30
The benefits are based entirely on length of service with the Com-
pany according to the following table:

More than six months................... $250.00
More than one year..................... 800.00
More. than two years.................... 400.00
More than three years................... 500.00
More than four years.................... 600.00
More than five years.................00. 700.00
More than six years...................:. 800.00
More than seven years.................. 900.00
More than eight years................... 1,000.00

_ Length of service is taken to mean continuous employment as
shown by the company records, and dates from the time at which the
individual was employed by the company. Any break in the service
record causes the employee to start again at the bottom of the list;
but there is an exception to this rule in the case of employes who
served in the Army or Navy during the war. An individual who left
the employ of the Company to enter the Army or Navy, and was re-
employed upon his release from such service is considered as having
been in continuous employment, provided he was not employed by
any other company during his absence.

This plan is not strictly group insurance in that it is not in the
hands of any insurance company.

The death benefits are paid out of the company treasury from
special funds set aside for such purpose. Each case that comes up is
considered individually, and payments of benefits may be withheld
when in the judgment of the directors, it is justifiable. Benefits are
payable only to direct heirs of an employee, and not to his estate.

A Massachusetts Company. This Company has been an agent
for the Massachusetts Savings Bank Life Insurance plan since 1907.
So many of its employes have taken advantage of the plan that the
policies now in force among them amount to over $100,000.00.

31
OPINIONS OF REPRESENTATIVE EMPLOYERS

Burroughs Adding Machine Company. “We have paid approxi-
mately seventy-five claims since the plan has been in operation, and
we feel that the plan has the approval of the majority of employes,
and is working in the direction to accomplish the results expected
of it.”

Montgomery Ward & Company. “The results which can be meas-
ured in dollars and cents of group insurance are very problematical.
In this unsettled state of the world, however, I believe that such plans
are excellent features of a large organization, and unquestionably
present real.merit even though the direct results cannot be measured.
We feel that the insurance is very much worth while in the long run.
It is much more appreciated in an organization which employs a large
percentage of married men.”

The Bilton Machine Tool Company. ‘We have carried group
insurance for several years for our employes, and three deaths have
occurred in our plant since this plan has been established. In each
case it was a life-saving proposition to*the bereaved families. I feel
that it is one of the best efforts we have made in the interests of’ our
employes, and I am enthusiastic for it.”

Curtis Companies. “Although we have only had the insurance
plan for a short time, it does have its effects on labor turnover. For-
tunately for the plan and its effect upon the other employes, two
death claims were paid within a month after we had taken out the
insurance, and these claims were paid to families of employes who
were quite hard-pressed for money, and, of course, did a great deal
of good.”

Ei. I dw Pont de Nemours & Company. “It is our feeling that!
Group Insurance is:of value in maintaining morale among employes.
While its direct effect is difficult to determine, we consider it, never-
theless, one of several important factors in our general welfare or
service program.

The following figures may be of interest:

From. June, 1919, to May, 1920, inclusive, the average number
of insured employes was 18,048. Of this number the following per-

82:
centages of separations from payroll occurred within the six classes
of insurance:

Class of Insurance Percentage Turnover
$1,000 10.1
1,100 9.0
1,200 4.6
1,300 3.5
1,400 2.6
1,500 2.2

 

Turnover for year among insured employes 32.0%

These figures cover all employes, both salary and wage-roll, who
have been employed more than six months. The yearly turnover
among total wage-roll employes will average about 175% for the
same period; this shows the tremendous turnover among employes of
less than six months’ service who are not eligible to insurance—it does
not prove, however, that group insurance is the reason for greater
stability among employes of over six months’ service, as many other
factors affect this question.

We feel that one important effect of group insurance is felt in
the great efficiency of a workman who feels that he is “protected”
and that his family will be tided over a critical period in case of his
death; this psychological effect is theoretical and, of course, impossible
of measurement.”

Cosden & Company. “It has been a splendid stabilizer, worth
many times the premium paid.” :

The American Rolling Mill Company. “We are striving to build
up a substantial, prosperous, contented group of American workmen,
and I personally am firmly convinced that group insurance in our
case was one of the steps on the road.”

, The B. F. Goodrich Company. “We have carried this insurance
for our employes for about three years and find that it is becoming
more and more a matter of interest to them as they become familiar
with the plan. If taken by itself I doubt that any very direct benefits
can be attributed to it, but, as a link in the chain of co-operation which
we are setting up between ourselves and our employes, it is a most

valuable asset.”
33
The Prudential Insurance Company of America. ‘The plan is
very much appreciated by our employes and has been satisfactory to
the Company in its operation.”

Lincoln National Life Insurance Company. “We consider this
feature a favorable one in promoting the satisfaction, contentment and
morale of our staff.”

Service Motor Truck Company. “Our Employment Department
feels that this has had some effect on our labor turnover and it is our
intention to continue this arrangement.”

H. J. Heinz Company. “We are of the opinion that insurance
is of no influence in holding persons in our employ, due perhaps to
the conditions that have existed throughout the country during the
last few years. We do feel that some of the older married employes
with a sense of responsibility do appreciate it. There is no question,
but what the beneficiaries in many cases have found it of great benefit
and help in time of need.

Regardless of what we have said above relative to its not being
appreciated by all the employes, we feel that it is one of the best
things that can be done for the employe whether it is appreciated
or not.”

34
APPENDIX
 

 
 

 

 

      
     
 

 

 

 

 

     
  
 
 

 

 

 

     
    

 
 
 

_ IN CONSIDERATION of the Application of the Employer for this Policy, which is hereby made

3 part of this contract, a copy of which Application is attached hereto, and of the pay- —
ment, in the manner specified, of the premium herein stated, hereby insures the life of
each of the persons herein designated as the Insured, for the term of one year from the
date hereof, subject to. readjustment and renewal as hereinafter sct forth, for the
amount specified herein, payable as provided, subject to the provisions on the second
and third pages hereof, which are hereby made part of this contract. —

THE INSURED hereunder are the several persons named in the
SCHEDULE OF EMPLOYEES - /
forming part of the Application above referred to, said persons being all the employees of

herein designated as the Employer, included in the group or class defined in the Appli-
cation. The original of said Application with Schedule has been retained by ‘Fhe.
Prudential Insurance Company of America, herein designated as the Company.

THE AMOUNT OF INSURANCE on the life of any person insured hereunder is the amount stated
in the plan of insurance set forth in the Application, and said amount shall be payable
by the Company immediately upon receipt of due-proof.of the death of such person
while the insurance on such life is in force in accordance with the terms hereof, at the
Home Office of the Company, in Newark, New Jersey.

PAYABLE TO the Beneficiary designated by the Employee.
FIRST mae one -PREMIUM,

 

 

ae oa ce) hap» inten ZBciese alaae Sh puceage siete ee oe Dollars,
- payable by the Employer on the delivery of this Policy, in exchange for the Company’s
ECCI PE glade, 2. etek, odin densa ( easy 209 Se ade Silas. ritiactate ae es

 

   
 

Said premium js the sum of the several premiums for the individual amounts insured
at the date hereof, computed upon the basis of the table of term premiums on the
second page hereof for the respective ages nearést birthday of the Insured. .

IN WITNESS WHEREOE, the said The Prudential Insurance Company of America, at its office
in the City of Newark, New Jersey, has caused this Policy to be signed by its President

; and its Secretary, and to be duly attested, this. . X. x x xX K X

day ofx xX. * X,one thousand nine hundred and XX ...X .*

 

  

 

 
   
   
     
       
      
   
       
   
    
    
       

 

 

 

 

 

 

 

= J Arrest, s
Om B40 IE : e P, Satie wk f
Jad NOT COME Ree
Total and Perinanent Disability Provision: Waiver of Premiums, Payment of Mist
| , Ce ; NDED BYJOHN F. DRYDEN | i oa +l] Kr
a: 2 a "BY FU iets "4 :
: 1% pionee RLOF INDUSTRIAL INSURANCE IN‘AMERICA

 

 

 

 

 

 

 
ILLUSTRATION “A”

GENERAL PROVISIONS.

Payment of Premlums.—This Policy is based upon the payment of premiums annually in advance, but premiums may be made payable in monthly, quarterly
or semi-annual instalments. All premiums are payable at the Home Office of the Company, but may be paid to an agent of the Company on or before the dates
when due, in exchange for official receipts signed by the President or the Secretary and countersigned by an authorized agent of the Company. If any premium be
not paid when due, this Policy shall be void and all premiums forfeited to the Company except as herein provided. The premiums or instalments thereof payable
during any policy year shall be based upon the total amount of insurance at risk at the beginning of such policy year, in accordance with the table of premiums
set forth herein. If the average total amount of insurance at risk, determined in the manner hereinafter provided, during any policy year shall exceed the total amount
at the commencement of such policy year the premium shall be increased proportionately and the increase in the amount of such premjum shall be paid by the
Employer at the end of the policy year. In like manner, if the average total amount of insurance at risk during any policy year shall be less than the total amount at
the commencement of such policy year the Company shall refund to the Employer a corresponding proportion of the premium paid. The average total amount of
insurance for any policy year shall be one-fifth of the amount obtained by adding together the total amounts actually at risk on the first and last days of the policy
year and on the days falling respectively three months, six months and nine months after the first day of the policy year.

Grace in Payment of Premiums.—In the payment of any premium under this Policy, except the first, a grace of thirty-one days without interest will be
allowed, during which time the Policy will remain in force.

Benewal of Policy.—This Policy is issued upon the one-year renewable term plan and may be renewed on each succeeding anniversary of its date for successive
terms of one year each, upon the payment on or before the date of each renewal of the premium for the amount of insurance to be renewed. During the first five-year
period from the date hereof the yearly premium for each renewal shall be computed upon the basis of the following ‘‘Table of One-Year Term Premiums per $1,000
of Insurance,” at the respective ages, nearest birthday, attained by the Insured at the time of renewal, but at the end of five years from the date hereof and at the
end of each five-year period thereafter the Company reserves the right to adjust the premium rates upon the basis of which renewals may be effected in accordance
with the Company’s schedule of Group insurance rates in force at the time of such adjustment, and premiums for renewals subsequent to an adjustment of premium
rates shall be computed accordingly. If the number of the Insured hereunder at any time shall be Icss than fifty the Company shall have the right to decline to renew
the insurance under the Policy. The yearly renewal premium payable by the Employer is the sum of the several premiums for the individual amounts to be insured.

TABLE OF ONE-YEAR TERM PREMIUMS PER $1,000 OF INSURANCE.

Additions to the Number of Insured.—All new employees of the Employer eligible for insurance in the group or class insured under this Policy shall from
time to time be added to the group or class originally insured hereunder, and, subject to the terms of the Policy, shall be insured in accordance with the plan of insur-
ance set forth in the application for this Policy. The Employer shall notify the Company whenever any such new employees are to be added and premium adjust-
ments shall be made as provided in the clause headed ‘‘Payment of Premiums.”

Individual Insurance Terminating with Termination of Employment.—lIrrespective of any other mode of termination the insurance upon the life of
any person insured hereunder shall cease and determine with the termination of the employment of such person with the Employer, except that when the cause of
termination of employment be temporary total disability, the insurance may be continued, at the option of the Employer, subject to the terms of the Policy. The
Employer shall notify the Company in writing on the first day of each month hereafter of the date of any termination of insurance during the preceding month on
account of termination of employment. Such written notification by the Employer of any termination of insurance shall be satisfactory evidence that such insurance
terminated on the date specified in the notification and shall release the Company from all claims on account of the insurance so terminated, except as to the adjust-
ment of premiums as provided in the clause headed ‘Payment of Premiums.”’

Change of Beneficlary.—Any person insured hereunder who shall have attained to majority according to the laws of the State in which such person resides,
may at any time, while insured hereunder, give written notice to the Company at its Home Office, on a form furnished by it, to change his (or her) Beneficiary or
Beneficiaries under this Policy. Such change shall take effect when a certificate thereof is furnished by the Company to such person insured and all Tights of his (or her)
former Beneficiary or Beneficiaries shall thereupon cease.

Incontestability.—This Policy, except for non-payment of premiums, shall be incontestable one year froin its date of issue, but if the age of any person
insured hereunder shall have been misstated the amount of the premium actually paid for the insurance on his (or her) life shall be adjusted accordingly.

Modifications, ete.—No condition, provision or privilege of this Policy can be waived or modified in any case except by an endorsement hereon signed by the
President, one of the Vice Presidents, the Secretary, one of the Assistant Secretaries, the Actuary, the Associate Actuary, or one of the Assistant Actuaries. No
modification or change shall be made in this Policy except such as is in accordance with the laws of the State in which the same is issued. No Agent has power in
behalf of the Company to make or modify this or any other contract of insurance, to extend the time for paying a premium, to waive any forfeiture, or to bind the
Company by making any promise, or by making or receiving any representation or information. a

Basis of Reserve and Computations.—The reserve upon this Policy for which funds are to be held during the first five years of insurance,

Se ea | 2 exclusive of an:
reserve on account of disability insurance, shall be computed upon the American Experience Table of Mortality with three and one-half per cent. int

erest per annum.

Entire Contract Contained in This Policy.—This Policy together with the Application of the Employer, copy of which is attached hereto, and the indi-
vidual applications, if any, of the employees insured, contains and constitutes the entire contract between the Parties hereto, and all statements made by the Employer,
or by the individual employees, shall in the absence of fraud be deomed representations and not warranties, and no statement shall avoid the Policy or be used as a
defence to a claim thereunder unless it be contained in the Application and unless a copy of such Application be attached to or endorsed on the Policy,

DIVIDEND PROVISIONS.

Annually during its continuance in force, if all premiums theretofore due have been paid, this Policy will be credited with a dividend fro ur’ earnings
i ‘ . eae : th i
of the Company as ascertained and apportioned by the Board of Directors. Such dividend shall be paid to the Employer.in cash or mets ae : me oe
applied to the reduction of the premium then due, if any. cas:

PROVISIONS AS TO EMPLOYEE’S CERTIFICATE AND CONVERSION OF INDIVIDUAL INSURANCE
The Company will issue to the Employer for. delivery to each person insured under this Polic

to which such person is entitled hereunder and to whom such insurance is payable, together with a provision that when the i i i
hereunder shall terminate by reason of termination of employment for any reason whatsoever, as herein provided, the So gals aid eae
person within thirty-one days after the date of termination of such employment, without evidence of insurability, issue a Policy upon the life of such person on any
of the forms customarily issued by the Company, except a policy of Term insurance, for the same amount as su!

oe ae ich pergon was insured for under this Policy at the
time of said termination of employment, subject to the payment of the premium for such policy at the then current . .
of and at the age attained by such person.at that time. ent rates of the Company according to the occupation

y an individual, certificate setting forth tHe insurance protection

ono 3401-£

38
ILLUSTRATION “A”

A COPY OF THE APPLICATION UPON WHICH THIS POLICY IS ISSUED 18 ATTACHED HERETO
¥

PROVISIONS AS TO TOTAL AND See es OF PREMIUMS—PAYMENT OF
CE.

p i i he first premium on account of the Policy has i ‘urnis .
If any person insured under this Policy, after tl pr ‘ @ Policy has been paid, shall f h di any, while
in full force and effect, that said person at any time, while less than sixty years of age, after the payment of eet Alea
. y

 

insurance is ; ' ‘| i f
bled or physically or mentally incapacitated to such i POM iany-cause!
hatsoover shall have become permanently disa’ r o Pp t such an extent that he (or she) by re: f ae 7 f
sacentored wholly and permanently unable to engage in any occupation or perform any work for any kind of com i ui oi ae ie Dee ss il ete

he payment of that portion of each premium applicable to the ingurance on the life of such disabled person that may become pa; : -

: te Naan disability and in addition to such waiver during such disability will pay to such person the amount aaupod on his to pe earn ee
request, either in one sum twelve months after the Company shall have received such proof, or in sixty monthly instalments during five years, each iaetaline t rc
the amount of $17.95 per $1,000 of insurance payable, the first instalment to become payable six months after the Company shall have received auch coal ad
subsequent instalments monthly thereafter. In lieu of monthly instalments the said amount will be paid, as the Employer may request, in annual seni ata
or quarterly instalments payable during five years, each instalment of the amount, respectively, of $218.99, $107.92 or $54.19 per $1,000 of insurance ayabli
the first instalment to be payable at the same time as provided for the first monthly instalment. The said person shall not have the right to aeiamte et
instalments,

The total amount of insurance under this Policy on the life of the said person at any time after one or more of such i i
the commuted value of the unpaid Cea nstalments have been paid shall not exceed

The said person, upon demand by the Company at any time during such disability and before the Company’s liability hereunder i
ceased, shall furnish due proof that he (or she) actually continues in a state of disability, aa defined above, and in aa of his foe heeds 4 bar et si
person shall be deemed to have recovered from such state 2 seserg t

In the event that the said person recovers from such state of disability before the Company’s liability under the Policy on account of sai
discharged, as specified above, no further instalments shall be paid by the Company and no further proportional parts te the premium prs aia
insurance shall be waived, but thereafter the amount, reduced as specified above, may by endorsement by the Company on the Schedule of Employees, attached
hereto, be continued in force, subject to the terms of the Policy, but if the said person be no longer in the employ of the Employer or if this Policy be no longer in foree
the said person may, in respect of such reduced amount, make use of the privilege set forth under the heading ‘‘Provisions as to Employee's Certificate and Conversion
of Individual Insurance.”

Any instalments unpaid at the death of the said person and for which the Company is liable, as herein provided, ehall be paid to the Beneficiary of the said
person, provided, however, that such unpaid instalments may, at the request of the said Beneficiary, be commuted at the rate of three and one-half per cent. per
annum compound interest and paid in one sum.

It is specially agreed that permanent loss of the sight of both eyes or loss by severance of both hands above the wrists, or of both feet above the ankles, or of
one hand and one foot, shall be considered total and permanent disability or incapacity within the meaning of this provision,

These provisions are granted without additional cost to the Employer.

PROVISIONS AS TO MODES OF SETTLEMENT.

Whenever an of i: shall b payable on account of the death of any person insured hereunder one of the following options may be designated
by the Employer as the manner in which such amount of insurance shall be payable provided that in no event shall Option 4 be available if the amount of each
instalment payable thereunder would be less than $10.

Option 1. Payment in One Sum.

Option 2. Payment Partly in One Sum and the Balance in Instalments in Accordance with elther Option 3 or Option 4.

Option 3. Weekly Instalments for One Year.—Payment during one year in fifty-two equal weekly instalments of $19.36 per $1,000 of amount so pay-
able, together with dividends, if any.

Option 4. Payment in Monthly Instalments for a number of months as selected from the following table, each instalment of the amount specified in
the table for the number of months selected, together with dividends, if any:

 

 

Number of | Amount of Each Number of Amount of Each Number of Amount of Each Number of Amount of Each Number of Amount of Each Number of | Amount of Each
Months During] Monthly Instalment|Months Duritg| Monthly Instalment| Months During| Monthly Instalment |Months During} Monthly Iostalment |Months During/ Monthly Instalment |Months During| Monthly Instalment
Which Months] Per $1000" |WhichMonthis| "Fes 81000". "\Which Moathiy| "Per 81000" |Which Monthly| Per #1000" |WhichMonthiy| Per 81000 [Which Monthly] Per 81000

Instalments of Amount Tnstalments of Amount Instalments of Amount Tnstalments of Amount Tustalments of Amount I ents of Amount
Would be Paid| #0 Payable Would be Paid so Payable Would be Paid| so Payable Would be Paid| so Payable Would be Paid! so Payable [Would be Paid| 80 Payable

6 $167 08 16 $63 23 26 $39 37 36 $28 90 46 822 94 56 $19 12
7 148 $1 WwW 59 59 27 38 02 37 9817 47 22 47 57 18 80
8 125 52 18 56 36 28 36 76 38 QT 47 48 22 08 58, 18 48
9 111 67 19 53 47 29 35 46 39 26 81 49 21 65 59: 18 21
10 100 60 20 50 87 30 34 36 40 26 18 50 21 93 60 17 95
nN 91 53 21 48 52 31 33 88 41 25 58 51 20 83
12 83 99 2 46 38 382 82 86 42 25 00 52 20 49
18 77 60 23 44 48 33 81 45 48 % 45 53 20 12
1 72:12 24 42 56 34 30 49 “ _ 23 92 54 19 76
5 67 38 25 40 98 35 29 67 45 23 42 55 19 46

 

 

 

 

 

 

 

 

 

 

 

 

Unpald Instalments at Death of Beneficlary.—If one or moro instalments shall actually be paid in accordance with the provisions above and if the

Beneficiary shall die before all instalments shall have been paid, ‘and if there be no contingent beneficiary designated, the unpaid instalments will be commuted at
the rate of three and one-half per cent. per annum compound interest and paid in one sum to the executors or administrators of the Beneficiary.

Dividends with Inst ts.—If an t of i be payable in instalments, monthly or weekly, any dividend from the surplus earnings as ascertained
and apportioned by the Board of Directors on account of amounts so payable will be paid in addition to the instalments.

onp 3401-6

39 }
   

        
 

 

ve
aa

INCORPORATED UNDER THE LAWS ‘é
OF THE STATE OF NEW JERSEY Coniicate

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in accordance with and subject to the terms and conditions of its Group Policy No.
insuring the lives of a group of the employees of

has insured the life of
an employee included in the said group of employees, for the amount of

DOLLARS,

and will pay said amount, together with any additional amount for which said employee may be
insured under said Group Policy at the time of death, as contemplated by the Employer’s Plan of
Insurance, specified on the second page hereof, to the Beneficiary designated by said employee upon
receipt of due proof of the death of said employee while the insurance on the life of said employee
under said Policy is in force. ;

BENEFICIARY:
If there be no Beneficiary living at the death of said employee the amount of insurance shall be paid
to the executors, administrators or assigns of said employee.

(The Beneficiary may be changed in accordance with the terms of the Policy by said employee at any time while the
insurance on his or her life is in force by notifying the Company through the Employer.)

Total and Permanent Disability.—If the said employee, while less than sixty years of age, and while the insurance on
the life of said employee under said Policy is in full force and effect, shall become totally and permanently disabled or
physically or mentally incapacitated to such an extent that he or she by reason of such disability or incapacity is rendered
wholly and permanently unable to perform any work for any kind of compensation of financial value, said amount of insurance
will be paid to said employee either in one sum twelve months after the Company has received due proof of such disability or
incapacity, or in monthly instalments during five years, the first instalment to be payable six months after the Company has
received due proof of such disability or incapacity; in accordance with the provisions of said Policy. ‘The disability benefits will
be granted subject to cessation, in accordance with the provisions of the Policy, should the employee recover from such disability or
incapacity. Permanent loss of the sight of both eyes or loss by severance of both hands above the wrists, or of both feet above
the ankles, or of one hand and one foot, will be considered total and permanent disability or incapacity within the meaning of the
provisions of said Policy,

Conversion of Insurance.—When the insurance on the life of said employee shall terminate by reason of termination
of employment for any reason whatsoever, the Company will issue, upon application by said employee within thirty-one
days after the date of such termination of employment, without further evidence of insurability, a policy on his or her
life on any of the forms customarily issued by the Company, except a policy of Term Insurance, for the same amount for
which said employee was insured under said group insurance policy at the time of the termination of employment, subject to
the payment of premium for such policy at the then current rates of the Company according to the occupation of and
at the age attained by said employee at that time.

Newark, Ne Jenene nnnnne neon , 192_. Firpventpiy dee ;

ord 8363

 

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ILLUSTRATION “B”

REGISTER OF CHANGE OF BENEFICIARY.

NOTE.—Any change of Beneficiary shall take effect only upon endorsement on this Certificate by the Company at the Home Office.

 

DATE ENDORSED BENEFICIARY ENDORSED BY

 

 

 

 

 

 

 

PLAN OF INSURANCE

Period of Continuous Employment

iesacceaimatst months but less than one year . . ......-..--2.------
One year but less than two years. 2.0. --s-seceeeeeeeeee
Two years but less than three years... . -------------------
Three years but less than four years ©. . -.n-------2e-
Four years but less than five years . 21. ----------e-----
Five years or more . ss 6 6 4 4 6 & 5 teens

This certificate should be carefully preserved. It shows on the other
side the amount of insurance to which you are entitled at the time of its
issue, and the above table will enable you to tell the amount you will be
insured for at any subsequent date.

This insurance remains in force only ‘while you continue in our employ
and while we carry group insurance for our entire organization. The
increases of insurance take place automatically on the anniversaries of
your employment, when this certificate immediately becomes valid for
the increased insurance shown in the table.

President.

41.
ILLUSTRATION “C”

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

Incorporated under the laws of the State of New Jersey
Forrest F Daypen, President HOME OFFICE, NEWARK, N. J.

 

 

SUPPLEMENTARY APPLICATION FOR INSURANCE OF ADDITIONAL EMPLOYEES
UNDER GROUP POLICY No............::2222220-------

In conformity with the terms and conditions of the Group Policy referred’to above, application is hereby made te
The Prudential Insurance Company of America for insurance under said Policy upon the lives of the following
named additional employees of the undersigned, each for the amount stated opposite his or her name and subject.
to such increase, if any, as is provided for under the Plan of Insurance set forth in the original Application for
above Policy.

The employees named below are all in good health at the present. time to the best of the applicant’s knowledge
and belief. All are now working for the applicant on full time and none are absent temporarily on account of:
serious illness or continuing poor health. The ages stated are in accordance with declarations made by the respec-
tive employees, and judging from the appearance of the persons and from available information are correct.

It is hereby agreed that this supplementary application shall become a part of the Policy, above referred. to,
and it is further agreed that the additional insurance hereby applied for shall be accepted subject in any and all
respects to the terms and conditions of said Policy and said additional insurance shall not take effect until this
application has been approved.

 

SCHEDULE OF EMPLOYEES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

= at . ; AMOUNT OF BENEFICIARY TO WHOM INSURANCE IS PAYABLE
(lobe inmruaty | FULL NAME OF EMPLOYEE TO BE INSURED | Nestcst me; (Weer BRELOY MENT Gabnette piso sien edi
1 | a : —
Predentia) of insurance) FULL NAME Relptionship to
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WV UNOS 8 site sh ccict abs HE OP 8 ite ieee TT
(Signature of Employer)
Dated: Ohbsicae cso casnce so caceesaete nese eis ed stad nesenees » 19... By...

ORD 75700B—~AEV 10-18

42
ee ILLUSTRATION “D”

Fosnest F. Drypen, President THE PRUDENTIAL INSURANCE CO. OF AMERICA Home Office, Newark, N. J.
Incorporated under the Laws of the State of New Jermy
Cessation of Individual Insurance under Group Policy No...
: :
To The Prudential Insurance.Company of America, = -
Newark, New Jersey.
}

You are hereby notified that the individual insurance under the Group Policy referred to above upon the life of each of the following
‘named employees of the-undersigned is to cease and determine as indicated, on account of termination of employment. ;

It is understood and-agreed that this notification shall constitute satisfactory evidence that the insurance under said Policy upon the
| jife of each of the.employees named below has.terminated on the date indicated and The Prudential Insurance Company of America is

| hereby released from all claims on account of such insurance, except as to refund of unearned premiums, if any, in accordance with the
1 terms of the Policy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

‘ Date of Termination No. in Date of Termination
it Gcbedule of lo Schedule of Name of Employee

’ No. ul aaa __Name of Employee of I aes ea Gf lanitance

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m fo [ate ae ween sec cenes meena. | [2 sewer wecenen ann [eee tenanane coer seencemsceecen

 

 

 

 

 

 

 

 

 

 

 

 

(Signature of Employer)

By ae snshtu sss. tees talestole diese ee

 

 
Employee insurance.
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$330
 

*