The Branch-Office System

As contrasted with the general-agency system, this plan is more recent in its development and is gaining in relative importance especially among the large companies. Its purpose, as already explained, is to establish branch offices in various districts in charge of a manager and cashier. The manager, usually selected because of his success as an agent, is charged with the responsibility of securing and directing agents within his territory and of instructing and otherwise helping and encouraging them in their work as solicitors. The cashier, on the other hand, to quote Mr. Lunger, "is charged with the collection of premiums and the interest on policy loans and with the keeping of all office records. He is expected to look after all correspondence in connection with applications and policies, notify delinquent policy holders of their obligations, attend to filling in proofs of loss, applications for policy loans and payment of maturing endowments and answer all communications from policyholders which are not of sufficient importance to be referred to the home office. He is also charged with the supervision, efficiency and conduct of the clerical staff. As in the case of the officials at the home office, the managers, cashiers and clerks at the branch office are paid by salary, although the manager sometimes receives extra payments (bonuses) for increasing the volume of business through his office and for adding to the number of productive agents."