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FEDERAL RESERVE BOARD x-4313. WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD H::crch 23, 1927. SUB.DCT: Group Life I~1surance. Dear Sir: It is the Boa:::·d 1 s understo.ading tLat all Federal reserve bM~cs have tDken out c.:rrplo~rees • grou:;:> life insura:'lce covering. officers and eoployees at both :-.ead offices and branches in an n;,1ount equal to their annual salaries with a naximu:n lioit, usually (f $5,000. We also understand that recently sooe of the Federal reserve bonks have made arrDngemerits with insu.ra:1ce cormmnies to allow cnployees of the bo.n:c to tak:e out additional group ins·u.rance at their own ex,9ense, or at a. flat rate, any difference between such rate and actual cost being charged or credited to the bo.n:c 1 s expenses. The Board would like to have rather cor:1plete information in its files regarding the group life ins·J.rance policies now carried by each bank on the lives of its officers and employees, and I would request that you furnish it, at your earliest convenience, with the following inforr:J.ation: • 1. Date on which baruc first took out group life insurance. 2. N3me of the company with which original policy was tclcen out, together with all cho.nges in compr...nies to date and reasons for changin5. 3. Copies of all grou'l:) life insur2..nce contro.cts now in effect. 4. Schedule of r.:1tes cho.rged by ages or groups, if not shown in contracts now in force. 5. Whether all c~nloyecs of heo.d office and br.:mch are considered as one grou) and if not how n:ru1y se·9arate groups are there and what are the reasons for the se·~arate groups. 6. Stater:.1ent showing tho following inforcation by years since group life insurance has been carried: Year Total Premiu;'!ls paid Dividends Net Expense Er.:ployees .Average Average age lJo. Average cost per er:1ployee Clair.1s paid beneficiaries .. , x-40lg 2 7. . 3. Whether officers 0-nd e.::nlo;yoGs arc ']C'rr:1i ttcd to t~·::e out aC.c~i tional group 1 ife ins,.1r:1:1.ce under -~~resent con tracts ~.lt t::ceir O':m ox·:wnso <:nd, if so, t'·w :'1.U.;:'bor cn.r:rying tlJ.e ad.~lition:ll insu.r.'lnce, tLo a:1ou:1t of suc-::1 insur:mce in force and tl1e :-·.ethod of nsscssL1g tJ.1c e::.ployees therefor • If bn:.ll<:: ~las wade n.rrange:::;ent s refcrrod to in No. 7 above, sl:..ow rate ~L:lc1. tot:.•l u:.:o1mt p'licl b:,· e:-::?lo;yees for additiona.}. grou;? ins'..lr:>.:lce anC. cost, if ru1.y, ascu::~:cd by bun,J.:. It will ·oo ap)rccio.tec1_ if you will f·.1.rnis::;. us, in adC::.i tion to the above infor;:;ation, su.ch data as ;y-ou :ulVo bcarL•g o::. the reasoas for cha.:1ges froo ;year to ~tear in tho cost of croup life ius-.1T&-:1cc ar.d other pertine:1t data. reg.1rding ;ro~.lr ex::erioace 71'i th grou:p life insurance which you thi:nk would be of interest to tLe Board. Ver,/ tru.ly yours, lt'al ter L. Edc.J·. Secretar.r • ..
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