Southport telegraph. [volume] (Southport, W.T. [i.e. Kenosha, Wis.]) 1840-1850, 1846-04-28
MUTUAL INSURANCE.

territory; The business operations of The COM
Pany are conducted at Milwaukee and agen-
cies are established in every comfy in the
eastern portion of the territory. The prn-
ciples oil Mutual Insurance have been prac-
iicaly tested during the last fifteen years,
and have been constantly gaining favor in
nearly every stale in the Union. Experi-
ence has proved it TO be the most economi-
eel method of 'nsuring agains, the calami-
ties OF hire. Especially does this method
Of insurance commend itselcio farmers, and
u = among this class that the operations OF
the Mutual companies are more generaly
directed. That the mutual plan is cheaper
tor the insured; than the stock companies.
is demonstrated not only from the compare.
tive difference in the rates of instance be.
tween the two, but from the very nature OF
heir organizations. A capitalist invests
money in stock insurance company, Just
as ne would in bank OF any other corpo-
rn'lon' for the purpose of realizing a profit
on his money The mutual plan con.em-
| plates no profit on an investment of capital:
u only provides for the payment of los
ses.
1t IS frequently enquired, how can
company which has no capital or fund, pay
heavy loss, should one occur? The abil-
Ity ola comppny on the mutual plan 10 paw,
IFS losses, canno, be questioned by any one
acquainted with the manner of It's organiza-
ton. For the information Of such as may
desire il, il may be well to state explani,o
ry: Persons obtaining an insurance in the
mutual insurance company. are required to
give "premum or deposit noie;" the pre-
mum notes range five to twenty per cent.
on the amount insured, according TO the haz-
ard or exposedness of the property. On
the premium note FIVE per cent is paid i'm
cash by the insured when he takes his poll
cy, which money is paid into the treasury.
Should losses occur by fire greater than the
amount in treasury arising from this five per
cent fund assessments are made on the de-
posite notes to pay them. Instances have
frequently occurred; where mutual co,npa
MES were not obliged to make any assess
msn's Tor losses for six and eight years in
successlon;th five per cent being sufficient
to cover all expenses. Generally small as.
sessmeLts are required, to cover Losses.
But 1t may be inquired, are the deposite
notes good, and can assessments be readily
collected on them in case of necessiay?-
Persons obtaining an insurance on houses,
furniture or other property insurable. are in
all cases required to give deposite note
with good surety, unless they possess an
absolute title to the real estate, flee from
any incnmbrance by mortgage or otherwise,
where the property is situate. IF there are
any class OF notes therefore which may be
denom'nated good, these must be of the
number. As i,regards the collection of as
sessnents on the notes, the company have
every facility for doing it promptly. If any
person shall refuse or neglect to pay an as
sessment made against him on his deposite
note. tor the space of thirty days fiom the
time of his being notified Of the same, the
act OF the incorporation, allows the company
TO sue and recover the whole amount of
such deposie note, and the amour, recov-
cred shall remain in the treasury subject to
its proportion of losses, until thirty days af.
tel the expiration Of the term for which the
insurance was made, when the balance
shall be refunded to the original maker of
the note. This PROVISION it will be seen
Cannot fail Of ensuing promptitude in the
payment ofassessments, and promote the
mutual safety Of all the insured.
Of the numerous insurance companies on
the mu,ua: plan which exist in New Eng
land, New York, Ohio, &c; we have the
late reports OF but few, but it is presnma-
BILE that those in our possession may be re-
galded as fair specimen of :he general
whole. The following extracts are given
for the public information
Extracts from the Onondaga County,
~ Y. Mutual Insurance Company:
"This Company has been in operation
more than nine years and during this period
of its operetions no assessment had been
necessary except in lS4l, of 2-lper cent
on the premium notes. The premium notes
being less than 10 per cent of the amount
of insurance makes The losses of that year
less than 3 mills on the dollar Of insurance,
add TO this the G other years including 1o-
IS, and suppose the premium notes and
property insured 10 be the same and the IN.
teresting and agreeable fact is exhibited
that less than four tenths Of one mill has
been assessed upon the members of that
company TO pay losses TO the time Of their
report last yeaf-whIe they have on hand
in their Treasury and in the hands of a.
gents IN cash the snug sum Of $2965, 90, to
pay for losses before any Assessment, will be
necessary.
The operations Of all insurance compa.
MES based upon the Mutual Plan, show
great saving in expense compared with the
oil l mode of Insuring, while Equal Protec.
ton is afforded. This e. onomy and certain
ty constitute their chief excellence"
"By The annual report Of The Saratoga
County (N.Y. Mutual Insurance Co. it
appears that TO pay the losses and expenses
of lSf IA the assessments made were about
mills on each hundred dollars insured,
and the losses and expenses of 1s45 re.
quirsd an assessment Of only about 2 mills
upon each hundred dollars insured, the los
ses of those two years averaging only about
2 2 l mills upon each hundred dollars. In
in this estimates losses upon The most haz-
ardous kinds Of property are included,
whereas. for farmers property. or isolated
dwellings, in villages, and towns the whole
amount Of losses and expenses would not
require an assessment exceeding one mil!
or one and half mills upon each hundred
dollars Of insurance"