Verhovayak Lapja, 1945 (28. évfolyam, 1-52. szám)

1945 / Verhovay Journal

VOL. XXVIII.

OCTOBER 31, 1945

NO. 20.

WHY NOT BE HONEST?

Applicants Must Tell The Truth

IT WAS AN HOUR OF GRIEF AND YET, AN HOUR OF SPLENDID PRIDE"

LIFE-INSURANCE A CONTRACT

Life-insurance is a contract between, the applicant on the one hand and the Association (or insurance company) on the other hand. Whenever a contract is made between two parties, they must act in good faith or else the contract becomes null and void.

Insurance companies always act in good faith and so do fraternal organizations. Both realize that honesty is good business but fraternal organizations also have an additional motive for acting in good faith. Basically, they are '‘aid”-associations, founded for the benefit of the membership. They are non-profit organizations because profit is used to render assistance to needy members and worthy causes, in addition to lifeinsurance protection guaranteed to the membership.

Insurance organizations engaged in shady practices have abounded in the past, but strict control by the Insurance Departments of the States put an end to that a long time ago. Since then, generally speaking, insurance organizations have developed such high ethical standards that no person, able to read a life-insurance policy, has reason to be suspicious of the legalistic langguage which characterizes all contracts.'

It is true that one hears insured, as well as beneficiaries, often complain that they have been “cheated.” When that is true, it is not the company which is to be blamed but an agent who, despairing for business, didn’t sell what he was talking about. But no company is responsible for what its agents say.

A business organization is bound only by its contracts, not by its agents’ promises, but the provisions of the contracts are religiously observed.

Insurance companies and Associations are the most honest business organizations in the world. (Naturally, we write only about organizations which operate legally, under the supervision of the States.)

HOW ABOUT THE OTHER PARTY?

The signer of the approved application is the other party in a life-insurance contract. Obviously, he should adhere to the same ethical standards as the companies and associations with whom he desires to make a lifeinsurance contract.

This, however, isn’t the case in every instance. Many applicants desire the insurance protection offered them and they sign with the understanding that the organization cannot change its mind as to the provisions of the contract, but they think nothing of outsmarting the other party.

There are many who will put themselves down as ten years younger than they are, thereby gaining protection for lower rates than would apply to them according to their true age. They don’t realize that they are actually paying for insurance protection with devaluated money. As far as the company or the association is concerned, their dollar is worth no more than 80 or 75 cents as they will not pay the fair and scientifically computed value for the protection assured to them. Buying a dollar’s worth of protection for 75 cents, they cheat the stockholders of the insurance company or the membership of the Association.

More monkey-business is going on when it comes to the answering of questions concerning the health of the applicant. These answers are as much part of the life-insurance contract as are the provisions written by the insurance organization. The applicant will most certainly want to know whether or not the insurance organization dealing with him is sound and dependable. However, it never occurs to many an applicant that the insurance organizations are just as interested in his soundness and dependability as he is in theirs. If he had stomach-ulcers a few years' ago, he simply forgets about it. He may have had kidney troubles but dismisses that as unimportant. The young lady may have had

two miscarriages that kept her

in hospitals for weeks each time, but to the doctor’s question she will reply: “I never had any

trouble in all my life.”

Surely, applicants must realize that while they purchase insurance protection, the insurance organization purchases a risk. If the risk is bad, the insurer will lose, if the risk is good, BOTH GAIN. The bad risk, therefore,

takes an unfair advantage of the fact that the insurance company doesn’t know the last thing about him. But taking an unfair advantage is fraud in any language.

The insurer gives the insured a square deal, he is entitled to expect the same. In betting and sports ‘’fixing” is considered the most reprehensible act. People have been jailed and even shot for lesser crimes. Yet, that is what the bad risk does ... he is raffling out a sick turkey. And for good money, too.

But he is not bothered by his conscience. In fact, he is quite proud of himself. He congratulates himself for having been able to outsmart the other party.

THE PRICE OF PROTECTION

Life-insurance premiums are broken up into several units. Part of it goes into the mortuary fund, another part into the reservefund, etc. Insurance rates are high for older people because a larger proportion of the rates must be applied to the mortuary fund, since a 50 year old person cannot be expected to live as long as a 20 year old individual.

Thus, life-insurance rates must be computed on the basis of a mortality table. Mortality tables

This picture was taken at the Verhovay memorial celebration, held in Toledo, O., and attended by GROVE PATTERSON, editor of tlm TOLEDO BLADE, who described the solemn occasion in his “The Way Of The World” column as “an hour of grief and, yet, and hour of splendid pride.”

On the stage, beautifully decorated with wreaths, flowerbaskets and girls in Hungarian costumes, the portraits of the six heroic dead Verhovayans commemorated on that occasion, stand on trestles covered with black crepe. Behind the portraits of Cpl. Joseph Zam Jr., Pfc. John A. Kovács, Pfc. Joseph Tomor (Branch 301, Port Clinton, O., Lieutenant Zoliié Juhos, Coxswain Oscar Turi, (Rossford, O., Branch 194), and S.l/C Andrew P. Juhasz, (Toledo, O. Branch 27), stand the parents of the deceased who were presented with these portraits by Supreme President John Bencze.

What these portraits mean to the bere aved families, is beautifully expressed in the following two letters which are published as messages from the mourning families to the entire, membership of the Verhovay.

Port Clinton, O., Oct., 8, 1945.

From the depth of our heart we thank you for the beautiful portrait which was presented to us in behalf of the Verhovay, last Sunday, in Toledo, O.

It would be impossible to describe all that we felt when the portrait was presented to us.

It is such a life-like picture of him that it seems to us as if he would talk any time. That’s how we

want to keep his memory. That’s the way we want to remember him, for that is how he looked when he left us. A more beautiful gift no one could have given us. We thank you and may God bless the great Verhovay Fraternal Insurance Association. Respectfully,

JOSEPH ZAM AND FAMILY.”

The other letter came from Mrs. Joseph Pityer, mother of Seaman First Class Andrew Paul Juhasz, who wrote as follows:

“Toledo, 0., October 13, 1945

With all the warmth and love of a mother’s heart and also in behalf of my entire family, I thank my fellow Verhovayans, the Supreme Officers and the Board of Directors for their invaluable and deeply comforting acts, honoring the heroic dead of the Association and their parents.

The portrait of my beloved son is but a picture but it reflects the brotherly love and deep

sympathy of 53,000 fellow-members. That precious portrait cannot make the family circle complete

but it linders the pain of mourning and serves as a source of comfort. There could be nothing more beautiful, more permanent with which to comfort the mothers in the deep sorrow of their bleeding hearts.

I wish also to thank Supreme President John Bencze and Supreme Secretary Coloman Revesz for honoring my home by their visit on this occasion. 1

Please, accept all the grateful thanks of a sorrowing mother. May God bless always your endeavors.

Respectfully and Fraternally MRS. JOSEPH PITYER AND FAMILY.”

These two letters were received with sincere appreciation. They prove that the recipients of these portraits understand the motives that led the Directors in their actions, honoring the heroic dead members of the Association. It is we who are grateful for the opportunity to render, comfort and give a permanent expression of the sympathy of Verhovayans to our bereaved friends< We are grateful for having found a way to do so in a manner which is described by the families, thus honored, as “beautiful”, “Invaluable”, “precious” and “comforting.”

May these portraits always remain a source of comfort to the bereaved, assuring them of the lasting sympathy of all Verhovayans who will ever remember the heroes who died in the defense of a free America.

have been developed, however, not only for the healthy people but also for the sick. In fact, there are mortality tables for every occupation, and even for various sections of the country.

Life expectancy is shorter in

Pittsburgh than it is in Los Angeles.

Obviously, the mortality table developed for people who always have been in good health, does not apply to individuals who had to cope with various illnesses.

A 30 year old applicant, who had rheumatic fever in childhood, cannot be judged on the same basis as the applicant who was never sick in his life. The average victim of rheumatic fever does

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