The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1895-01-08
NO. Il.

|
the loser by fire for certain namee
proportion of his loss. If the Lloyds
Is composed of twenty members the
only association between them is that
each gives full power of attorney
empowering one person or firm to dc
the business for them, and also an.
points committee from their number
TO safely care for the money received
and to counsel, watch over and advt
their attorney.
II their attorney issues policy for
$4,000 each member Of the Lloyd is re.
sponsiblo for $3.50 only, the same as II
the attorney had written and delivered
twenty different policies for $3.50 each.
The question may be asked. "Sup-
pose one or more of the subscribers
fails or is unable to pay his share of the
loss, who pays his $250?" which is
] easily answered by asking Suppose
an insurer insures in twenty stock COM
pani5ESand one fails, who pays for that
baakrupteopDany ?" 40
Tho cases ~ exactly. si@iiatss 1t Is
II question of credit, but with the adj
vantage on the side of the Iiloyds n,
this way: II one of the members fai2
his attorney immediately ceases tt
issue policies in his name and may pro-
cure another subscriber, who, for "
privileges ol &embership in a prOt
table bus; ;&Ss, will assume all OF TIN
liabilities past, present and future oi
the failed member, and t.pe all of hi{'
rights to profits in the business
Another ready question is, How
the Lloyds do a profitable BUSINESS saS
less expense than q stock company
1T knows exactly what its expenses a
to be. 1t has no Office rent to pay, nll
does it pay any salaries. All such 4
penses are paid by its attorney outs
a stipulated percentage on the pt
miums received If the business
large or small it only pays the -
proportion. The reasSP forl
OF many stock companies nus ~
in the fact that their eXorbit S.
ses have eaten them up, rtg n
larger amount of premiums
pcnses than they were ableb ,z
Another important point isR 4
ure of protection given byN s|
guarantee as compared witty
company. In u stock compang =
ital paid in is the only q
There. is no individual respCS
G1SS!1 ~ no one would inv8
surance stecSSaif experience m
shown that's siums paidNa 5|.
more than equal the fSSISs, anEH
ses and give fair marginFeoftl - '.s
In Lioyds the security consis1seeS
the strength and credit of the insurerV
together with the amount of deposiiN
he has paid in and the further sum he{
Is liable to be assessed for This sun
Is usually about SIS, 1000 for each SUIT
scriber which means $1OO, COO if theftE
are twenty underwriters on the policyE
Now if each $1,000 policy makes
liability of only $3.50 to each under{s
writer, after all premium receipts ard
exhausted, II can be seen that nothipSl
but real conilagration like thu
Chicago fire can bankrupt q LloydsS{
and such fire would be equally de-
structivc to stock company. ~
table compiled from the sworn u
ports made by the stock fro insui4fne -
companies to the insurance depaft
ments of all the States in the Unio
shows that the average loss ratio
premium rcccips for ten years endintF*
In 1872 was 59.l9 per cent, and
average expenses ratio to preml
receipts during the same pcriuiNf 20 rs
per cent. This leaving a bGHyeuaass
2.40 per cent, and seems to show u +
clusively that the evil of fire insurancN
underwriting by stock companies doe
not exist in the loss ratio, but in th e.
unnecessary cXtraVagant expense ratiCf<
During 1893 the public paid the ol e.
line companies $l65,OU0,0 600. The di H.
ference between the stock companisl r.
3S.3;' per cent. expense account and tfi r.
Lloyds 20 per cent. expense accour &
20 3per cent. being allowed the att0i
ney or attorneys for all expenset
would show Il balance in favor
Lloyds of $2l $4,000. M
Many of the largest corporatia5E
and firms in the United States are &
SIrnl m of NJ ~ I'.t
and 500 Of the most reputable, rel g
bic, and responsible business mersnf IS sS
country, whose names may be - H E.
cd OF any OF the Lloyds, have ~ \ s.
mined to demonstrate stthSh the in
ancc business can Sf2 AaRAncted h
reasonable expense. and nave ar1r =
viduals conferred their powert |
torncy to undcrwrite In their nan. -
thirty Lloyd. f.
Among the subscribers and undo r.
writers in the various Lloyds are
DrcXcl, Morgan ~ Co, Levi p. Mo M
ton, Flint Il Co., Adrian lsclin, Har
O. Havemyer, George Bliss, Robt. q M
gate, ID. Appleton & Co., Oliver HaS 8
man, Samuel Untermcyer, Cornek, k,l<ff
N. Hoagland, Darwin r. james, Das|
Scott, Frank Hiscock, William
Cogswells, j. Fl. Nlagler, Rotart
McCurdy, H. b. Rathbonc, F6y, 4
Campbell, William III. Baker, Ruiz '&k
Whiting, Fred. Valentine, r., Il
Bliss, E. Il. Gleason, Hon. Edward
V. LOcw, w. Mccarthy ittIns
McAnerny, Francis "A. Pa
Nj. Bclding, George II. J' 81
lis B. Marvin, cX-Secrcta
Fairchild, Edward j. Ber{t & w e
Cammack, William II. +
Brandon, Joshua piza, 1s,,.s1,
ley, Weld Estate, Itic' ~ -
nett, and Vernon II.
The United S ~
which ovcrrulcs all ptV
antecs the individual insurer in
right to do SO business in any StateI,s
the Union. Lloyds are not under
supervisor of any State departmental
TIE CONDITION OF TEE STATE 81
The Charleston News and Courj jf
publishes "a general review of the "a
lnstrinl condition of thn C+ota a fE<.''.