Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-06-19
FARMERS MUTUAL INSURANCE
COMPANIES.


Southern Oranges are giving atten-
ton to farmers mutual insurance COM
panies, and the Patrons of Husbandry
will be likely to thank the UNION AND
AMERICAN for any information on this
interesting subject. They may not
know that Michigan has thirty-three
insurance companies of this character,
carrying eighty million dollarsof risks,
and that all are reported as being IN
sound and zealthy condition. The
Farmers Mutual Insurance Company
of Kalamazoo county makes this Off
cial showing: Its first application for
insurance was made in May, 1868, elev-
en- years ago, since which time it has
issued 8, 164 policies, covering hazards
10 the amount of::S4, SO9, $50. The COM
pany has paid in losses during the same
period S25,773l3, including which were
49, animals killed by lightning.
The originators of the company, one
hundred in number, have paid for the
entire time a membership fee of 81,
policy fee of fifty cents, and one mil
per cent. on the amount to be insured,
and subsequently six assessments of
two mills per cent. each have been paid,
making thirteen mills for the eleven
years insurance, of which amount
there is now in the treasury one and
one-quarter mills per cent. of the last
assessment of one year ago, making
the actual cost liz mills for eleven
years insurance.
The worst years experience cost the
company two mills per cent. of its cap
ital; other years none. Policies are
issued for an unlimited time,
but subject to cancellation In whole or
in part by either party. No premium
notes are taken; all assessments are by
law a lien upon the insured property.
Losses in the collection of assessments
are less than one per cent, chiefly by
sale and removal out of the county.
Every member is a stakeholder to the
extent of the aggregate of his insur-
ance, and the total aggregate of all the
members is the capital of the company.
Each member is a voter in the annual
election of officers and in the general
business of the company. One sala-
ried officer does all the business of
secretary and treasurer, and is one d.
rector of a board of five for adjusting
losses, etc.
Attention is called to the fact that on a
risk of nearly five million dollars, run
ming eleven years, the loss has been
only small fraction over one-tenth of
one per cent a year, and that is all that
is paid for sound andreliable insurance
in the State of Michigan. On compar-
ing the cost between stock and mutual
companies. we find that of four stock
companies which do a large amount of
the class of hazards that the mutuals
are confined to, as shown in the State
Commissioners Report of last year,
one company paid $3.50 for losses for
each 500 received as premiums, auOth-
er company paid S21.5O of its receipts,
while still another company paid but
$3.50, while the fourth paid but So out
of each 500 reccived as premiums.
1t should surprise no one that intel
ligent, reading people are inquiring
where all their money goes, and how
many dollars are actually paid in re-
turn for any given sum expended. This
is the true test in all business transac-
tions. Precautions against losses by
fire, lightning, and other casualties
should be careful and rigid. Dishon-
esty (tbe greatest risk should also be
watched, and avoided so far as possible,
and then the actual loss paid promptly
with no litigation. A farmer who gets
his bouse or barn insured for 81 900 a
a year pays generally about one dollar
for the same on the mutual plan; and
at that rate whether his insurance is
larger or smaller. Human life, farm
stock and crops are often insured 10y a
similar organization.