The North-Carolina standard., 1849-02-07

And there remains in the hands of
Treasurer and Agent Sl,525,6S
That the balance due from this
Company account of loans
to it, outstanding. IS S7,OOO,OO
And there is but one claim made
against it, which the Company
resist, under the belief that it is
groundless, which is about S5,OOO,OO
This Company conslstsa at present OF nineteen nun
dred members individuals in it and each one ex-
pects and by his contract if fulfilled his part has
right to have sure indemnity against losslor dam
age by FIRE to the extent of two thirds of the whole
value of such property he has procured to be In
sured by it. To this end he has paid part and de-
posted his promissOry note for the residue, OF the
premium or required sum which premiums, in the
aggregate form the fund by which he is to get this
indemnity. The Company has no other means of
giving such indemnity to each and to all, and of pay
ing the expenses incident to carrying on its business,
but from this part of the premium paid, and the rest
that is promised to be paid upon request by each and
every individual of it.
1t is to be borne in mind also, that each member
of this Company is, himself and to the extent OF the
premium of him required insurer of each and every
other member of this Company, as well as OF himself
They ALL untedly and to the extent of the aggregate
of the premium notes. insure each one OF the lndlvId-
uals against their respective losses but each one Is
an insurer of every other IN It, to the extent OF
his premium note, and something beyond, viz 81 90
upon every 500 worth he has insured.
Whether the aggregate of the premium notes, which
amount to $362,911 SO, will or will not give this
sure indemnity, expected by the whole of the indi-
viduals, whose property is insured to the value of
So OO9 492 16, in that all of them, within five
years, shall suffer loss by fire, is readily answered
in the negative. But long course of observation
and experience has proved, In the most satisfactory
manner, that according to the ordinary course of
events, all the insured in Company do not, within
that time, suffer any loss from it, but only few
do. This fact having been observed, and numerous
and extensive instances of fire losses and risks hav
l,lrv
have applied their minds to the subject, system of
rules the subject of premiums and risks have
been formed and practced under for many years.
with changes and alterations adapted to the state of
the sub ects for insurance, the premiums gradually
lessening .as the condition of these subjects have
been improved and made less liable or less exposed
to destruction by fire; which rules being observed
by those who follow the business of insuring,
ders contracts for insurance certain of fulflment
to the party insured, and as little liable to disap
point him, any other engagement into which he
enters.
1t is obvious that the chief care of every company
individual undertaking to give indemnity for fire
losses, must be applied to the state and character of
the risks and to the condition of the capital from
which losses to be paid. Where joint stock
company individual is the insurer, and has
capital beforehand provided and receives present pay
ment IN money for all insurance premium that he
requires, he has to attend the custody and security
of such capital and premium paid, well to
the condition and quality of his risks. But in the
case of Mutual Insurance Company, like this of
ours, there rather and attention necessary
the premium required is only in part paid in and
the residue of tits secured in the form of promissory
note accepted in lieu of nine tenths thereof; aen-
ton to the state of these securities is therefore
matter of the; first concern. The premium notes
should all be solvent when taken and should continue
so during the term of insurance and until all liability
on them ceases. If they not so, how can fair
apportIonment or assessment, according to the re-
specve and differing of their premium notes
he mar In a3S of lOcc oh
portions to be assessed to make up the amount of it
1t Is obvious that upon the aggregate of the solvent
only, sums of money may be arbitrarily and irregu-
larly called for and rased but justice and muualty
of contribution contemplated and required by this
company's charter, is thereby violaed is it to
be suffered that who is insurer of others, but
who is either unable or unwilling to pay his Just
proportion OF the indemnify promised by him to
others, should himself receive that indemnity from
others, both able and willing to perform their con-
tract, but who entered into any such contract
as the insolvent insurer alledges and upon which he
must claim he, the insovent, wants indemnity, but
1t Is out of fund specially provided and apart by
others, for indemnity to those who contribute to it,
and not to him who has not the ability is indspos
ed to contribute his fair proportion, any thing
to it.
Each member then, as an insurer, has an interest
and it is his duty, such, see that all his CO.
insurers equally solvent with himself; and it
must be remembered that were he insured by Joint
stock company, he would not then be free from the
ascertain what is its condition, but that as he is in
sured by, as well as insurer in this one, whose
fand for indemnity lies in the hands of each and
every individual in it, greater caution is of him re-:
quired, at least of majority of his associated in
surersactivey to guard that fund from being either
Insecure or unfairly dealt with. He is paid for doing
this, by being insured 1s at less rate of premium,
and 2nd by being permitted to keep and use nine
tenths of it until it is wanted pay losses incurred
That and caution necessary for properly manage
ing the business of joint stock company, belongs
to few indiviuals to one the capital being by
them or him owned; but that which rests, in such
company, the few the one devolves, in the
case of such company ours, the many, and it
is requisite that the whole majority of them per-
form the duty. There is danger of loss to the
insured long as the solventpremium notes amount
to and viii pay his loss with the cost of collection
and the expenses of the company after this he
has chance of some indemnity; nor will he incur
loss, by irregular and arbitrary upon only the
solvent notes, but in such cases, he being solvent,
bis own note even, will pay more than its just pro-
portion and in process Of time after succession of
losses so improperly assessed and paid, this company
having disappointed the wishes and expectations of
its solvent members, will become as well to them,
as to Others who but for this, would become members
OF IT. subject of complaint.