Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1895-03-25
THE COVENANT.
The Explanatioa - to the lalesburg MI.
tual Benefit Insurance.

c. Z. Dixon, manager for the Gov.
enant Mutual Life association OF
Galesburg, was in the city today
As some little dissatisfaction had
arisen in this city among the policy
holders of the Covenant Mutual Ben.
eft association on account of the ap.
parent increase of assessment upon
the older members, The ARGUS, in
an interview elected the following
replies to the questions usually asked
by those interested. As to the in.
crease of assessment referred to in
the opening of this article, an inves.
tigation shows that it was simply q
read justment of rates, and is
fully explained by Mr.. Dixon in
his replies a. given below to . serie,
of questions:
What is the basis of your in
crease?"
1.-The increase was made in accord.
ance with the mortality experience Of
the association and the age of the in.
sured at the time he secured his pol.
icy. No increase or change has been
made in the amount of the expens.
assessment"
s.Why is it that the increase i.
greater in some cases, at least OF
members carrying $4,000 than or
members carrying e5.OOO?"
The increase is in proportion t.
the amount of the policy on like ages:
the assessments have been adjusted
in accordance with the age of eacl
member at the time his policy wa.
issued. Heretofore a man aged "a nj
the time his policy was issued. paic
the same amount as one 80 years ole
at the time he made application
which was manifestly unjust and
wrong; under the REIMBURSEMENT eaci
pays according to his age, at tn,
time his policy was issued. Conse
quently the man at SO is increased
more than one at the age of 81; and
thus it is possible that q policy for
Is, 600, issued at the age of "a is no
as much as one issued q,
the age of SO for $500.
ION your last sheet of mortuar,
payment appears loss of $4,000:
the members claim to have under
stood that the association aever.
until recently, wrote more than IS,
900 on any one life, and only recent,
increased that to $4,000. When die
you commence to take these of $20,-
900, and do you think it safe?''
"A number of years ago the limit
of indemnity was increased to &c.
900 and in 1892 to 500. 900; we be
lieve it safe in the manner in which
we handle it. We accept no one fol
800, 900 if there is a single flaw in the
family or personal history. and then
only after ascertaining that tn,
moral hazard is of the best. We re-
quire two separate examinations b.,
the best qualified physicians to b.
had"
HAS the association lost money!
Yes, the association has lOsi
money from the fact that for severa
years those members holding certiti-
Gates, have not paid sufficiently t.
pay their share of the death losses.
IF the association has lost money
and it was necessary to adjust as
sessments, how does it come thai
the association makes such a GOOD
showing, showing assests of nearl,
81. zoe. 900 Jan. last past?'
The reason it enables us to make
as good a showing as it does is ow.
ing to the fact that since 1890 the
new contracts have paid largely il
excess of the amount paid BY
the members holding the certifi.
Gates issued prior to 1890.
If you are now AZ years old
and that was your age at joining
and were to apply for a policy today
your bi-monthly assessment would
be 1875 on 5000 insurance"
What are the salaries of your
ofiicers-president, vice president
secretary and treasurer"
The salaries of the four officer.
combined. viz: President, vice
president. secretary and treasurer
are $40, 400 per year"
..Will this increase suffice, in youl
opinion, to carry the association
aiOuS. |" III III UCucCcSSdkyt W luIIo
er increase assessments every hall
dozen years."
Answering this question l woulC
say that no matter what my opinion
may be as to the likelihood of futur,
increase of assessments, the statute.
of both Illinois and Iowa prohibit
any official assurance to be given By
the officers of any insurance company
or society that the cost of carrying
the insurance will not increase un
less such institution collects from it.
policy holders the regular premium
established for old line companies
which would be at the age of 4:
$2s.95 bi-monthly on $1,000 insur
ancc."
What was the cause of the dealt
of your $40. 600 Los Angeles member
When did he join?"
Relative to the cause Of death o
Mr.. Mead. late of Los Angeles, Cali
fornia, would say that this was on
of those unfortunate cases; he wa
going home from his office at dusl
and was run over by a drunken
hOrseman and died from these in