The Reduction of the Cost of Industrial Insurance
Two further developments helped to reduce the cost of industrial insurance in the twentieth century. As early as 1911 the company inaugurated a plan whereby industrial policyholders willing to pay weekly premiums directly and continuously to the home office or to a district office would receive a refund of 10% of the premiums. The following year this provision was included in the policy and became a contractual right of the insured. The Metropolitan was the first company to grant this allowance.
Large numbers of policyholders have taken advantage of this provision; in fact, more than 30% of the weekly premiums in force are now paid directly to the company, without collection commissions to agents; and the amount returned to policyholders in 1942 for such direct payment was about $7,700,000.
It is interesting to note that almost 30 years after this practice was adopted by the Metropolitan, it became a statutory requirement for companies in New York State, illustrating once again how the company