Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1846-09-26
"MuTuALr INsuRANcE.'-The last ,Legis.

"MuTuALz The last ,Legs.
lature passed an act incorporating an In
surance company in St. Louis, on. the
Mutual principle. The company have
organized, and are now prepared TO take
risks on property. We find an article in
the "StLouis Organ" explaining the plan,
from which we make an extract, as follows:
"THE HOME Mutual INsuRANcE COMPANY,
OF ST.. Louis" is based upon the purely mutual
principle. Every individual who insures, whether,
for large sum or small, thereby becomes a
member OF The Company, and is entitled to a
vote in the choice Of its directory, and the CON-
troll OF its affairs. By the charter OF tho institu
ton its sphere Of action is confined to this State
Upon becoming member OF the Company, and
receiving policy, each individual is required 10
deposite with the Secretary or agent, his prom.
issory note (wilhoul interes) for the amount Of
his premium. OF this note one.tenth only is
required 10 be paid down at the time OF the issu-
ance OF the policy: the balance remains liable
10 assessment for losses, in the proportion Of its
sum; but not oltener than once each year.
Should the ten percentage upon thr premium
notes prove sufficient 10 lquidste the losses, no
farther payment upon said note is ever required,
and whenever the member retires the note is
surrendered. 1t willthus be perceived that nine
lenths OF the capital of the company, consisting
Of that part Of The premium notes unpaid, re-
mains in the hands Of the members free OF inter.
est. At the same time, it is secured 10 the com.
pany in property far exceeding its amount-he
buildings and the interest in the lots on which
they stand, constituting, by the conditions Of the
charter, lien for the prompt payment Of all
| 10 ,oI
The success attending the system of Insurance
founded on Mutual risk in past experience shows
the great advantages of this system over all 9TH
ers. So far as can be gathered from reported
statistics, there is not in the United States COM
pany based upon this principle, which has ever
called on its members for more than 30 per cent.
| Of their premium notes, during o period of six
years saving Of at least 70 per cent, in oddi.
ton to the use Of the money, is thus demonstrated
| in favor Of this mode Of insurance over that upon
joint stock. 1t is not very surprising, therefore
that the term Mutual has sometimes been attached
10 companies which can boast little more of the
mutual principle, in their operation, than the
name. BY the annual reports Of the Vermont
! Mutual Insurance Company, for period of eigh-
| teen years, it appears that the average assess
mCnts upon the premium notes has not exceeded
81 per cent, and per cent upon The premium
note has been the largest amount ever required Il
dClray the losses and expenses OF the company
| IUf any one year. 1nVS, IL appears lllaC an ln0l
vdual insured for $1,000 in this institution, six
per cent having given his premium note for $50
has been required topay only 81 SO each year
amounting 10 $33 81 for eighteen years; while, il
a stock company, insurance on the same amount
at per cent. per annum including interest, would
cost Ss467 - for the whole period! Showing
balance of more than 500, upon even this small
risk, in favor of the mutual plan! And yet, strik
4 ing as the facts thus exhibited, there are in
stitutions in the United States conducted upo,
this system which show yet more fattering result
than tie Mutual Company of Vermont.
Persons owning property would do wei
to examine this system more fully, and if i
shall be found safe, and possessing all tn,
advantages claimed for it, they should in
sure at once. The act of Incorporation
officers, and bylaws, can be seen at thi
Office. a..tr.a. .fsas .a...... ..