The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1893-05-26
Farmers Mutual Insurance.

NO. =.
To the friends of O. mutual inSur-
d',ce company for the farmers Of Az
len county.
1t occurs to me there were some
serious errors in article No. / of
this same caption. The example that
was given and the statement immedi-
ately following are very plausible
under certain conditions only. Under
other conditions the results might be
very disappointing to all stock hold
ers as well as the insured who might
suffer loss. They give the example of
a person who insures property to the
amount of $1,000. The rate assumed is
one per cent for three years which is
paid by giving a premium note for
$1,000. Their serious error is in the
last part of the next statement that
during the three years assessments
may be levied to exhaust the amount
of three premium notes but not to &C.
coed this amount. Allow me to sup
pose a case and ask question. Their
statement is that the old company
has over $4,000 worth of property in
sured. One per cent of this is 500.
Then under their supposition all that
the company could raise in three
years to pay expenses and all losses
would be 500. presume there is
more than one farmer carrying in
surance to the amount of $1,000. Sup
pose one such should suffer a total
loss land certainly this is not a violent
supposition else why should he insure
to that amOunt), when would he get
paid for his loss? If their statement
that these premium notes are the
measure of the liability of each insur-
ed person is correct, he would have to
wait till after the three years at least.
In the meantime how and from what
source would other losses that will
inevitably occur be paid? Their
statement is not correct, as has been
decided by the Supreme Court of some
of our States. If you will each of you
put yourself in the place of the man
who had the loss, you will at once see
that the ruling of the Court is only
fair and equitable. The first purpose
of an Insurance Company is to pay
losses, and if there is any property in
the possession of the partners the
Courts will compel them to pay the
loss whether the amount of the prem
ium note will pay it or not. Their
next calculation is also very faulty
and misleading. They state that for
the last 81 years they have carried an
average amount of $4,000 insurance.
They say it would have cost g, 90
to carry the same amount in old ms
urance companies for the same time.
The old insurance companies have
different rates for different classes of
property, and do not presume the
Farmers Mutual of Allen county
charge the man with a substantial
brick chimney with the stove pipe en-
tering the chimney directly the same |
rate as if he had stove pipe passing |
the ceiling into flue where it |
is never seen after it is put up, or per-
haps passing through both ceiling,
partition and roof. Good business |
sense dictates different rates for such |
risks. But at the highest rate that
any old insurance company would |
charge for the average farm property |
through a reliable local agent for
three years it would only cost for
three years 81 500 or or for 81 years
81 ,625. The regular rate for the best |
Of property would, make it cost only
81 900 for three years or $l0S3.33 for 81
These figures would insure this $50
300 for the time mentioned against
loss by fire, lightning and cyclones
in any of the old insurance companies
and believe by calling on any local |