Officials Serving in an Advisory Capacity

These are the actuary, medical director and counsel. The actuary's work has been described as "the forerunner of all the business to be conducted", and to be well qualified" he must be well informed not only in the mathematical part of his profession, but must have considerable. practical knowledge of life insurance before it will be safe to follow his advice." 2 His work is indispensable if the company wishes to conduct its business on a scientific basis. Previous chapters clearly indicate that premium rates and cash, paid-up, extension and loan values must be carefully ascertained before contracts can be written. The actuary also calculates the reserves and dividends of the company. From time to time it is necessary for him to devise policies to meet the heeds of changing competitive conditions and to comply with the requirements of the numerous laws adopted by the various states.

The medical director supervises the company's force of medical examiners, selects the physicians who shall constitute this force, instructs them in their duties, and is the final authority to pass upon the insurability of applicants. The acceptance of a risk depends mainly upon his judgment, and in arriving at a conclusion he must consider the local examiner's certificate in conjunction with the facts obtained from the application and sometimes from other sources. The work of the medical department is usually supplemented by an inspection department whose function it is to inquire into the habits and financial responsibility of applicants.

The legal department is charged with the responsibility of handling all of the company's legal matters. These include, among other things, the conduct of court cases growing out of contested claims, foreclosure proceedings, imperfect titles, etc,; the sufficiency and correctness of policy forms, agency contracts, bonds, notes, etc.; the inspection of titles to property purchased by the company or upon which it has granted loans; and the analysis and interpretation for the benefit of the company of the statutory and court law governing life insurance in those states where the company operates.