Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1870-06-03
THE "KNOX MUTUAL ,.
AGAIN.
THE OTHER SIDE.

Editors Gazette: An article having recently
appeared in your paper from Mr.. q. E.
HILLS relative to the settlement of his la e
loss by our company, few words of expla-
nation seem called for, to set Us right in the
matter. The lgu. es he gives are correct,
but the use he makes OF them does US mi US
tiee, and is apt to mislead the public.
the $40 70 he Speaks of was the usual
amount paid down tI cover his proportion
of expenses Of the Company for the whole
term af insurance, five years, including sur
with losses. The Sl6 was for losses from
January p tn Sci ptember l, 1859, of which he
certainly could not complain. S62.45 OF the
remainder was for interest Dn asiVaHcr pay
ment of his claim before due, according to
his own proposal. This he gives Us no credit
for, as he does the " Richland " But was it
not an Outrage Tor them TO demand any
thing more than he had already paid them
whether they took one years assessments
or four. Why not r. quire them to s-ttle on
the same terms as the " Home" aud make
no discount at all Il the tRtehland" have
no rule on this subject they will have to
make Ont-, or do inj justice to those who have
To help pay their losses. If they have, and
did not apply il N Mr.. Hills case, they
showed partiality. As to the Home,s
they do business to make money, anu If
by waving the rule of all Cash Companies.
Ito discount the interest for prepayment, }
they could make TWO OT THREE times that
amount in premiums OF Mr.. Hills and 9TH
ers on new pollcles, II was g fa1r business
transaction. We don't feel at liberty to
make our mem berS pay thus for buncombe.
The settlement was made in accurdHnee
with our uniform practice, which has bs-tn
Z
the bylaw OF The company Article Sec
ton 8, plainly to be seen ON 81 page of pol
icy, which reads as follows / q In all cases
Of loss, the Company shall pay the whole
amount allowed on such loss, less such
annual percentage of the amount of the
premium mole for the uneZpis ed term OF
said insurance as shall be equivatent to The
average annual assessment for the last pre-
ctding nve ears
This II a modification of the prov isiOn of
the charter, (see Section 49, which allows
US, in case of total loss on pI operty situated
on leased land, as Mr.. Hills was, to retain
the amount OF the prem4 um note out of the
insurance until emu OF the term, and IS the
only equitable rule for q Mutual Company
TO adopt. Our general agent has been in the
habit of explaining this matter To stpDli-
9antS Tor 1nsurauce, and If he did not in Mr..
Hills case IL was an oversight. When
man becumes insured, in~ tead OF paying his
premium in advance he gives his note,
with the undersi and1ng that he Is TO pay
the whole amount if necessary 10 meet the
losses of the company during the term OF
his insurance. Now, if his property is de-
strOS ed, IL would be manifest Injustice 10
the rest of the members to give him the full
amount of his policy, and let him off with
p 'id The rule m ~ work a little hard on
one who has rIsKy property insured, and
ours SOOn after being insured; but no hon
est man expects to have "A fire, If he did he
would insure b. the month only.
Suppose Mr.. Hills property had not been
destroyed, and he had paid the early as
sessInrnt in our company on his noIe of
s!.oO, at the average of the last preceding
nVe yeHrS-31S per cent.-fG would have
amounted at the end of The term to S32g.z5,
Including the tirst payment for expenses
For the same amount, S4, ,0OO insured in
cash Company, whose rate on such property
IS iour per cent. per annum, he would have
paid SSO0! besides policy and renewal fees.
While the average annual assessment fSF
the past five years have been SO per cent.
on the premium notes, that for the W mole
period, since the organization of the COM
pany-thirty-tWO fyrars-has been only %
per cent. Take another view. Suppose
Mr.. Hills had pad his whole pre- nlum
down, for five years insurance, In cash
company, as g often done, and his proper
ty had burned the next week, wOulh they |
have refunded him any portion thereof9-
by no means.
Agents OF Cash Companies are using this I
statement of Mr. Hills very industr, ously 1
against rs, and 10 is not surprising as the 1
cheapness Of our Insurance IN /
t-rieres very ser ous'y with their fres, and /
The dividends of the com panies they repre- /
sent. The "Oid Knox has lived aud /
prospered unner many such attacks, and /
probably will continue to do 20. IL ha-
never been ia as prosperous "A condition as
now, with all it. liabilities paid up that are
iue. and - reliable capital of neatly a mil
wIILIAG TURNER,
june s-it Seo'y.