Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1884-02-27
TO THE PUBLIC.

The success attained by The United
States Mutual Accident Association of
800 and 222 Broadway, New York, has
aroused the jealousy and envy of stock
accident companies, who, aided by mer-
| cenary insurance journals, have heralded
many false and garbled reports with
little if any direct loss to the As
ISOLATION, the institution to-day being
sustained by solid membership repre-
senting the best class OF business men IN
this country to the number of over ten
thousand.
The following comparison of figures
speaks for itself, and must prove of in
terest to all who carry Accident Insurance
1t affords practical solution to the ques-
ton: How can the United States Nut
ual Accident Association afford to insure
at half the rates of stock companies?
That it does accomplish this, and that
quarter of million dollars per annum to
its members in the cost of the insurance
furnished, is known to it's thousands of
policy-holders, and is proved by it's record
of the past six years.
From figures taken from the Insurance
and Commercial Magazine and the an
nual reports made to the Insurance De-
partment of the state of New York, we
find that the Travellers Insurance Com
pany of Hartford, accident department, J
received from 1866 to 82-inclusive-
$13, 457, PA. AS only So, S33, 81 of this
amount was paid for accident losses and
claims, So, 123,7O3 of the policy holders
money remained to be used for profits
and expenses in conducting the business
For each 500 of claims paid, the policy
holders paid s152.31 for expenses of man
agement.
In 1882 the accident premium receipts
OF the same company were $1.S19, 313,
from which were paid accident losses and
claims amounting to $749, 1862, and for ex-
penses $G4,54S, Leaving surplus to
stockholders of $145, 3OS, for one year.
The same company had in force Decem-
Der 31st, 1882, in round numbers, $173,-
| OOO, 900 of accident insurance. Their ex-
| penses for the year were 1924, 543 or a
cost of 1854 per thousand of insurance
then in force. This Association had at
the same date $50, 100000 of accident in
surancH and expenses for the year of only
| $1.14 per thousand of the insurance then
in force, showing on the above basis an
| average saving in expenses of $2100 to
each member holding a $4,000 policy at
the end of the year.
| A comparison for the year of the aver
age pro-rata of expense to each policy
holder, whether large or small, on the
basis of membership December 31st 1889,
shows saving in favor of this Associ-
atien in the expenses of management of
$7.55 to each member. On the same
basis the comparison is further improved
by the showing made that the entire cost
exclusive of the reserve belonging to
members), for insurance in the United
States Mutual Accident Association was
only four cents per member over the sum
used by the Travellers for expenses alone.
Considering this comparison of figures
it is not strange that the increase of mem
bers in this Association in 1882, was seven
per cent greater than in the above men,
toned company. In New York State
where the merits of this Association are
best known the Travellers had upon the
lives of its citizens, 2619 less policies in
| force December 31st, 1882, than they had
December 31st, 1881.
! The Accident Insurance Co. of North
America had total premium income
of $114, 1856 from which they paid losses
1927, 5SS, and total miscellaneous expenses
$79, 1872, showing that it cost that insti-
tuition 1884 for each 800 of losses paid.
The sharp competition brought about
by The United States Mutual Accident
Association for the accident insurance
business of this country has induced the
high rate stock accident insurance COM
panies in order to save, if possible, their
own business, to distribute broadcast