Page:American Journal of Sociology Volume 15.djvu/503

 IMPROVEMENTS IN INDUSTRIAL INSURANCE 489

ing to about 8 per cent, of the premiums for a year, on the old policies which have been in force five years. Hitherto we have been paying this on whole life policies, which are the source of profit; we expect to begin to pay it on increasing life and endowment policies, which for a long time are not profitable but which now seem to have turned the corner.

The Metropolitan Company, Industrial Department, in July, 1909, issued this statement:

In January, 1907, the Company largely increased the benefits in its in- dustrial policies by reason of a heavy reduction in expenses and improve- ment in mortality experience. During the past three years the Company has steadily reduced its expenses. With industrial life policies premiums cease after age seventy-four. All policies except infantile 20-year endow- ment policies issued since January i, 1907, will be increased in benefits about ID per cent. Not only does the Company issue a new table for policies hereafter issued, but it makes the increase retroactive since the present forms of policies were adopted.

The following illustrations help us to realize the nature and magnitude of the recent ameliorations :

. In 1909 the Metropolitan declared bonuses on its old industrial whole life policies to the amount of $2,500,000. About half of this was in the form of cash bonuses which might be used in payment of premiums, and the other half by increasing payments on policies maturing during the year varying from 5 to 30 per cent., according to the ages of the respective policies. For 1910 the Metropolitan has declared bonuses amounting to $5,232,448 to its industrial whole life and increasing life and endowment policy-holders. Of this sum about a million and a half is set aside to increase policy payments maturing during the year on all policies that have been in force over five years. Five per cent, will be added to those over five years in force, and 10 per cent, to those over ten years, and so on up to 30 per cent, to those thirty years in force. The remainder of the total will be paid in cash or in reduction of premiums on policies. Upon all industrial whole life policies where the policy-holders pass the age of seventy-five during the year, the bonus will be the whole year's premiums — 52 weeks. The holders of the policies issued in 1879 and 1880 will receive a bonus equal to 26 weeks. Those of the