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Soon after Mr. Ecker took the helm of the Metropolitan Life Insurance Company, Leroy A. Lincoln, age 49, became Vice President. He had come to the company in 1918 and in little more than a decade has demonstrated its ability to manage a variety of complex administrative problems.
He had a knowledge breadth and depth of the entire insurance business, having previously served as advisor to the New York State Insurance Department. He brought to his duties, not just an analytical mind acute, but also a warm sympathy for the men on the field, and special enthusiasm for social service program of the organization. When in March 1936, Mr. Ecker became Chairman of the Board of Directors, Mr. Lincoln became president, continuing the policies of his predecessor.
Frederick H. Ecker became president of the company in a period which seemed to many as a "Golden Era". All business was at a peak high, and the Metropolitan shared in the prosperity. Towards the end of this period many people seriously believed that a new order of life had come to America and the prosperity, with the Low-cost life insurance ( target = "_blank"> target = "_blank" href = "http://www.equote.com/li/term-life-insurance.html"> http://www.equote.com/li/term-life -insurance.html) would last forever.
One measure of this state of flotation was the increase in common stock prices, particularly those traded on exchanges. In terms so promising, it is not surprising that the common shares were seriously encouraged adequate investment, even for life insurance companies, and one or two companies not subject to the restrictions in the law of New York purchased substantial blocks of common stock and selected for their portfolios.
It was at this moment in September 1929, that President Ecker, in a speech to the National Association of Life Underwriters in Washington, discussed the proposal that life insurance funds put into common stock, and took a firm stand against such "investments" of life insurance companies. There were some who challenged his position, but not long after the direction of Mr. Ecker had been published and circulated arrived in October 1929, the first of the Accident Exchange. His trial on the dangers of common stock investments for life insurance companies was vindicated almost overnight.
The importance This catastrophe was little understood at the moment. It was not for weeks and months that the country came to understand that its entire economy had suffered a crash that could not be overcome for years. In case of overturning of first place in the bag in a deepening national depression well defined, the life insurance companies in the difficulties common times with other financial institutions.
A large number of people lost their savings in the stock exchanges. Many banks closed their doors, executions mortgage increased rapidly, and employment began to fall sharply. As a result, many people borrow on their policies, whether it was health insurance individual title = "http://cheap-insurance-rates.com/health/" target = "_blank"> http://cheap-insurance-rates.com/health/, or life insurance to get money so they could find through any other source. This situation is further complicated by the moratorium on policy loans delivery and enforced in most States of the limitations that were not requested by the Metropolitan.
The company continued to make all payments where no restrictions existed, and met with the obligation of all as soon as restrictions were lifted. During from the 1930s to 1939 the Metropolitan paid well above $ 5000000000 of life insurance policies (target = "_blank"> http://www.youtube.com/watch?v=UX8KnHM4qKg) or beneficiaries. These payments are saved from the ignominy of public assistance to many thousands who had established their own security plans through insurance during the most prosperous. Contemporary with the Federal Government's efforts to provide relief to the underprivileged members of the population, no doubt relieved public charge.
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