646 LINDSAY— SOLDIERS' AND SAILORS' INSURANCE. 



explained above in the discussion of allotments, allowances and com- 

 pensation. If no beneficiary within the permitted class has been 

 designated by the insured, or if the one so designated does not sur- 

 vive him, the payments go to such persons within the permitted class 

 of beneficiaries as would be entitled, under the laws of the state of 

 the residence of the insured, to his personal property in case of 

 intestacy and if no such person survives the insured, an amount 

 equal to the reserve value, if any, of the insurance at the time of 

 death of the insured, calculated on the basis of the American ex- 

 perience table of mortality and 3^/2 per cent, interest, is paid to the 

 estate of the insured in full for all obligations under the contract 

 of insurance. 



There are no provisions for lump sum payments. Insurance 

 payments are further protected, as are also payments of allotments, 

 family allowances and compensation, in that they are not assignable 

 nor s'abject to the claims of creditors of any person to whom an 

 award is made, except for claims of the United States against the 

 person on whose account the allotments, family allowances, com- 

 pensation or insurance are payable. 



An interesting provision was made for automatic insurance of a 

 limited amount and somewhat more restricted in its benefits to cover 

 all men in the active service from the date of the beginning of our 

 participation in the war (April 6, 1917), who, during the 120-day 

 period immediately following the publication of the terms and con- 

 ditions of this insurance (October 15, 1917) were totally and perma- 

 nently disabled or died without having applied for insurance. The 

 act specified that all such men were to be deemed to have applied 

 for and to have been granted insurance payable to such person during 

 his life in monthly installments of $25 each, which was the equiva- 

 lent of approximately $4,500 of insurance. 



In the event of death the payments of the balance of 240 monthly 

 installments at $25 each were to be made to beneficiaries, restricted, 

 however, to a widow remaining unmarried, a child, or a widowed 

 mother.*' 



^ This restriction with respect to the beneficiarj^ of automatic insurance 

 was amended by the Act of June 25, 1918, so that the beneficiary might be 

 a widow during her widowhood, or if there is no widow surviving, tlicn the 



