Metropolitan Life Insurance Company standards of ethics

Officers of the Metropolitan Life Insurance Company were particularly careful in the choice of their agents, and asked in detail how their skills, character and previous experience. They knew how important it was to look for in any application for insurance, and urged their agents to exercise the utmost care in selecting clients.

Despite the strong fight for the business, the company stressed and maintained high ethical standards. The guard agents do not offer incentives to improper or unauthorized promises. And 'to them to adhere to the printed text to represent the plans, specifications and company registration. Agents to exceed the limits have been reprimanded or fired. The official condemned the use of the common run down rival companies in the wild ride for businesses. This malpractice, they realized it was dangerous for the whole institution of life insurance. There were building for the day, but they were building for the future.

It 'obvious that they were also entrepreneurs and fans knew that the generous and fair treatment of policyholders would win public recognition. Claims are paid quickly. Policies were "registered", ie, countersigned by the Department of Insurance, indicating that a special fund has been deposited by the company and held by the State as security for payment of the policies when they become due.

In order to obtain official confirmation of its strong financial position, the company requested an examination by The New York State Insurance Department. In 1871, after its review, the Superintendent of Insurance, George W. Miller said that the life insurance company has been managed with "integrity, energy and ability, and concluded with the following words:" From a personal examination made, 1 am satisfied that the condition of society is such that the right to confidence of policyholders and the public. "

Similarly, the subscriber Baltimore, referring to the business in 1872, wrote:

"In many of the policies of the last 8.642 years, the constant increase of its revenues, the economy of expenditure, the nature of its activities, its management of the alert, his membership of large, rigid examination of their risks appreciation of the public of its plans characteristic of insurance, etc. - all these, we say, is the guarantee that whatever life solid contemplates the Metropolitan is abundantly able to provide. "

Smart management and the pursuit of business by the new administration took power results. By the end of 1871, after less than four years of existence, the company had on its books more than 11,000 life insurance policies totaling almost $ 15 million life insurance, a considerable sum for that time. Only two years later the figures rose to 18,600 policies in force, and for more than $ 26.3 million of business.

The official results for 1873 revealed that, in the number of policies written, the company has organized the third place among the 56 companies transacting business in the State of New York. At this point, the company had already entered the domain of the 17 States and Canada. His activities extended to all states of New England, Middle Atlantic, East North Central areas, as well as Iowa and Missouri.

This growth is sound all the more surprising since, during a period of economic and financial excesses. Speculation and "frenzied finance" were rampant. The question posed Civil War of the raw materials were gradually leaving, and the prices are reduced accordingly. Construction of railways excessive and too rapid development of the trans-Mississippi West had led to an excess of food and threw the old areas of cultivation.

Developed a sudden crisis that broke into the lavish prosperity of the country and was immediately felt by all insurance companies. In part because of poor management, accentuated by the general economic crisis, no less than 22 life insurance companies in the State of New York had ceased business in the six years ending in 1873.

It must be assumed also that the initial success of the Metropolitan was reached without much difficulty and continued indefinitely. The task of building an organization and functioning of a force field has been a hard year and expensive. Competent agents were difficult to find. Many of the men involved product companies, and a considerable number of applications were questionable risks.

Despite all efforts, the rate term life insurance has been high, reflecting the unfavorable economic conditions that have been gripping the country. How deep depression, the insurance company after insurance company went to the wall. Among the businesses of life insurance more than 15 registered in the State of New York in the period 1866 to 1868, the Metropolitan alone survived.