CHAPTER

societies, 261. Distinctive characteristics of fra-
ternal insurance, 263. Various assessment plans
that have been used, 266. Recent tendency to
adopt the protective features of old-line insur-
ance, 268. Recent legislation concerning rate
adjustments, 269. Business-assessment associa-
tions, 271. Assessment plans used by such as-
sociations, 272.

XXI.—INDUSTRIAL INSURANCE

The purpose of industrial insurance, 275. Mag-
nitude of the business, 275. Comparison of in-
dustrial with other forms of life insurance, 277.
Adjustment of the amount of insurance to the
unit of premium, 278. Organization and man-
agement of the field force, 279. Distinctive fea-
tures of the policy, 280.

PAGE

275

XXII.—DISABILITY INSURANCE, by Bruce D. Mudgett. 284

Development of disability insurance, 284. Rea-
sons for the disability clause, 286. Objections
urged against the disability clause, 288. The dis-
ability clause in practice, 291. Risks not covered
by the disability clause, 292. The definition of
disability, 294. Age and time limits to the ap-
plication of the clause, 297. Benefits granted-
kinds and amounts, 299. Payment of dividends
after disability, 301. Conclusion, 302.

XXIII. GROUP INSURANCE, by Ralph H. Blanchard .

The group, 304. The policy, 306. Rates, 306.
Benefits, 308. Functions, 309.

PART IV

304

ORGANIZATION, MANAGEMENT, AND SUPERVISION
OF LEGAL-RESERVE COMPANIES

XXIV.-TYPES OF LEGAL-RESERVE COMPANIES

Distinctive characteristics of each type, 313.

313

CHAPTER

Comparison of the stock and mutual plans as
regards the loading of premiums, 314. Argu-
ments urged in favor of each of the plans for
charging premiums, 317. The stock and mutual
plans compared with reference to the control of
companies, 318. Arguments urged in favor of
each of the plans of control, 320. The control
of mixed companies, 321.

XXV.-ORGANIZATION OF COMPANIES

Home office organization, 324. The board of
directors and the committees chosen from its
membership, 326. Officials exercising executive
control, 328. Officials intrusted with administra-
tive functions, 329. Officials serving in an ad-
visory capacity, 330. Other departments, 331.
Agency organization and management, 332. Re-
lation between the home office and the field force,
333. Commissions paid to agents, 334. Types
of agency organization, 335. The general-
agency system, 336. The branch-office system,
338. Arguments advanced in favor of the two
plans, 339.

XXVI.-LIFE-INSURANCE INVESTMENTS

Considerations that should govern companies in
making their investments, 342. State regulation
of investments, 344. The extent and character
of investments, 346. Nature and merits of the
various types of investments, 348. Rate of in-
terest actually earned, 352. Method of arriving
at the rate of earnings, 353.

PAGE

324

342

XXVII.-GOVERNMENT SUPERVISION OF LIFE INSURANCE. 355
State versus federal jurisdiction, 356. Officials
intrusted with supervisory control and their
duties and powers, 356. Subject matter to which
state legislation especially applies, 358. State
supervision in practice, 363. State versus na-
tional control, 364

PART V

IMPORTANT LEGAL PHASES OF LIFE

INSURANCE

CHAPTER

XXVIII.-LEGAL INTERPRETATION OF THE POLICY AND

APPLICATION

General rules underlying court decisions affect-
ing life insurance, 369. The application and its
interpretation, 372. Warranties and representa-
tions, 375. Definition of warranties and impor-
tance of the same to companies, 376. Classifica-
tion of warranties and manner of stating the
same, 377. State statutes relating to warranties,
378. The incontestable clause, 379. The suicide
clause, 381. Other policy provisions, 382.

XXIX.-INSURABLE INTEREST .

Insurable interest of the insured in his own life,
385. Creditor's insurable interest in the life of
the debtor, 386. Insurable interest growing out
of other business relations, 388. Insurable in-
terest of the assignee, 389. Insurable interest
arising out of ties of affection, blood or mar-
riage, 391. The time and continuity of in-
surable interest, 392.

XXX. THE LAW PERTAINING TO THE BENEFICIARY

Vested rights of the beneficiary, 394. Reserving
the right to change the beneficiary at will-
claims of creditors where the beneficiary has been
thus named, 397. Rights of creditors to life-
insurance policies, 402. Transmissibility of the
beneficiary's interest, 404. The designation of
the beneficiary, 406. Effect of cessation of the
beneficiary's insurable interest in the life of the
insured prior to maturity of the contract, 407.

PAGE

369

384

394

CHAPTER

PAGE

XXXI.—Law PERTAINING TO ASSIGNMENT OF POLICIES. 409
Policy restrictions relating to the assignment of
policies and the legal interpretation of the same,
410. State statutes affecting assignments by
beneficiaries, 413. Assignment of the policy by
the assignee-a policy of life insurance is not a
negotiable instrument, 414.

XXXII.—THE LAW PERTAINING TO THE Agent .

State statutes regulating agents, 417. Policy
provisions pertaining to agency, 421. Powers
of the agent, 423. Agent's liability to his prin-
cipal for injury occasioned by misconduct, 424.
Legal effect of agent's opinions on the meaning
of provisions in the contract, 424.

APPENDIX I.-How THE LIFE-INSURANCE

SHOULD VIEW HIS PROFESSION

SALESMAN

APPENDIX II.-SPECIMEN COPY OF AN ORDINARY WHOLE-
LIFE POLICY, TOGETHER WITH THE FORM OF
APPLICATION

416

427

438

APPENDIX III.-SPECIMEN COPY OF AN ADULT WHOLE-

LIFE INDUSTRIAL POLICY.

455

APPENDIX IV.-SPECIMEN COPY OF A WHOLE-LIFE AN-

APPENDIX V.-SPECIMEN COPY OF A FRATERNAL BENEFIT
CERTIFICATE, TOGETHER WITH FORM OF AP-