REBATING AND OTHER SCHEMES 211

agents or companies are interested in their enforcement. They seldom take action. The only sentiment the average policyholder harbours when he learns that his neighbour has secured a rebate is anger that he himself failed to get one.

Lower premiums and better returns are al-most inevitably found in companies which do not give their agents commissions high enough to enable them to rebate.

An ingenious method of appearing to rebate, without really doing so, was once put out by a leading company and is yet used by two or three small companies. The company offered a premium for the first two years, combined, much smaller than the sum of two annual premiums. The surrender values were correspondingly reduced, however, and there was really no advantage at all.

Another scheme is known as the "board plan." It consists in placing a large amount of insurance with persons, as influential as possible, who are appointed members of "advisory boards," and among whom a certain portion of the premiums received is divided annually as a commission. The purpose is, first of all, to secure as much business as possible, as expeditiously as possible, from the board members themselves, and then to utilise their introductions and recommendations to obtain other members.