THE INSURANCE INVESTIGATION. 



BY GILBERT E. ROE. 



[Gilbert E. Roe, attorney, was formerly the law partner of Senator La Follette in 

 Madison, but when the firm was dissolved upon Mr. La Follette's entrance into active 

 public life, he removed to New York where he is at present practicing law. Mr. Roe 

 has taken an active interest in public questions, especially in the insurance situation 

 which he has investigated from the point of view of the insured.] 



Life insurance, as generally conducted, and its evils and 

 abuses are tremendous facts in our social and commercial and 

 even political life with which we must deal now. With these 

 facts, and not with theories, I purpose to deal in this discussion. 

 I venture also to hope that I may show that the evils of life 

 insurance now being revealed to the world are merely grafted 

 upon it and not inherent in it: and that those evils may be 

 easily, quickly and completely eradicated. 



The first thing to do in entering upon any discussion of 

 life insurance, is to free our minds from the idea that the busi- 

 ness is mysterious or deeply complex. However much those 

 interested in confusing the public regarding it may seek to give 

 it that character, the principles of the business are simple and 

 easily understood. 



Life insurance is merely a method or plan by which the 

 many help bear the burden of financial loss incident to the 

 death of one. Life insurance conducted upon the mutual 

 plan, merely means that a large number of persons combine 

 and agree that upon the death of one of their number the sur- 

 vivors will pay to the beneficiary, designated by the deceased, 

 a certain sum of money. As some one must collect and dis- 

 burse the money, agents are appointed by the members or 

 persons insured, who are charged with that duty, and these 

 agents are called officers. The aggregation of persons so com- 

 bined and agreeing is called a life insurance company or asso- 

 ciation. Surely there is nothing mysterious or beyond the 

 ability of the average person to understand in this. Thus 

 viewed, every person who takes life insurance insures not only 

 his own life, but helps to insure the lives of all his associates. 



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