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What was behind the extraordinary success of the Metropolitan Life Insurance Company’s ordinary business plan? In the interplay of a number of fortunate factors, probably the most important was the wise decision of Mr. Fiske to concentrate on the insurance needs of people of moderate means through the issue of ordinary policies on the nonparticipating plan.

This was a complete departure from the prevailing practice of the leading mutual companies, which issued high priced policies coupled with extravagant promises of huge dividends. The Metropolitan took a firm position against the issuance of tontine or semi tontine policiesthat is, policies under which the dividends were deferred for a period of years, usually 20, and in which claims paid within the period did not share in the surplusboth a temptation and a gamble.

In announcing its return to ordinary business, the life insurance company formulated a principle which during the early years passed as its Creed:

“The Metropolitan believes the time has come when the plain, commonsense men who make up the bulk of the life insurance policyholders are looking for a plain business contract. By plain business contracts we mean those which tell their whole story upon their face; which leave nothing to the imagination; borrow nothing from hope; require definite condi­tions and make definite promises in dollars and cents.”

This decision was particularly opportune because of the character of the group among whom the agency force was operating. The Metropolitan organization then consisted of more than 4,000 agents working under the direction of nearly 700 superintendents and assistant superintendents in the leading population centers of the United States and Canada. Through industrial low cost life insurance they had already established close and cordial contacts with millions of peopleworking folk and small businessmen who had been almost entirely neglected by the leading life insurance companies.

As the country prospered and working conditions improved, more and more of these people were ripe for ordinary insurance, if it could be had at low cost; and obviously they would be interested in sound protection rather than in speculative “tontine” promises. Furthermore, the very character of the company’s sales organization made the decision all the more practicable.

The Metropolitan agent was constantly in the field reaching large numbers of people in all walks of life, rather than canvassing a small group of well to do businessmen, as did the usual ordinary agent. Perhaps more important was the fact that he was working full time for the company and already receiving an income from his industrial business.

Moreover, the Metropolitan agent, in constant contact with his prospects and policyholders, could service the different types of insurance better than the ordinary agent and help keep it in force. The company was careful to provide in its agency contract that commissions would be paid only to the men who either wrote or serviced the business. If a man left the employ of the company, all renewal commissions ceased. Under prevailing arrangements with general agents as practiced by purely ordinary companies, the man who wrote the policy received renewal commissions as long as the business was in force, even though he was not in a position to service it.

In the Metropolitan, on the other hand, the company retained the same degree of control over its ordinary as over industrial insurance, and the plan of compensation recognized not only the writing agent but also any other who might subsequently be entrusted with the care of the business on the debit. The result was to produce a close and mutually useful relation between the agent and his policyholders, which helped to keep the insurance in good standing and subject to continuous review as to adequacy.

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