The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1896-01-08
A Challenge

Believing that am thoroughly $bosted
~ ~ ktnus ana phases OF liic lns9 rance,
CIV .. n"oWnhR tnat ! can prove tnG6 6SuDe-
liolI.Y ml Q. me fidciltys policies. ! aereby
1'"ie'ec any aEcnt Ot any ne ms Hraiic:
colnPahy ~ sollctt Jointiy ne any
one who will consent to be solicited
The Fidelity Is not In fact an p3Njess
uhSHt company, annough II o,S ~ un-
der the assessment law in or S4void
the pernicious technicalities}s9 egal.
reserve law. Its premiums ,a,nc
each year, and you know eH 5s&}st
you have to pay. All It's polici> ntain
the "satety clause" which rcnoy, Is he
security absolute, and which is IN itself a
point OF superiority over companies that
do not have 1t.
It has never happened in the past, and
there is no probability that Il will ever
happen in the future. that the c9ricnt
premiums were not amply sufficient TO
pay the current losses. Ifsuch a CT ,tin
gency should ever occur, then the 'sn.
ciation can draw upon its surrhus' 10
make up the deficiency. The surplus
now amounts TO Two ii1ths as much As
the total losses Tor seventeen years il
it should ever happen that The current
! preniiOms and thc surplus Combined
should not be sufficient 10 pay The current
losses, then TIC safety clause permits the
Association 10 levy a temporary a,ye ,ofG
Nssessment 10 make up the doieicncv
| Othcr lona}jaNtss ,oould 90 into the Nnn3,
~ yccejUeys ander similar condtt,oue.P
| Blt note this difference + n;y 90
pei cent. Of the net assets leg rcHervc
companies i, legal re- e. am heaia.y
does not ALLOW, .>eal rese ~ DC
10 10 T,ey cent 81 t ~ cusfcns p S3;,r,,
musr also be set aside as lcgal sls;'rYc.
SO that u legal reserve COMPANY, q use
ouly about - per cent, Of its ...cm,
and about 10 per cent. Of its assds 10
meet any emergency; while The Fidelity
can use practically all OF its cnrrentlpre-
miums and assets ii necessary; and il
there should still be deficiency. IL has
all OF its policy holders behind It to'tide
1t over and save their insurance.
Note this difference also: The Fidel.
ity has $3o.78 for each dollar it owes,
while most OF the legal-rescrve compa.
mics have less than $I.r5 Tor each dollar
OF Indebtedness.
Whenever universal epidemic, or othe,
improbable condition, shall cause Tho FL
tictitY 10 make an assessment, euerg legal
rcs,ruc company aoM have already bee,
s,oept ont of existence
The laws under which the legal reserve
or net valuation companies were organ
lzed. are very crude and arbitrary. Nc
new companies are organized under
them. and the old companies have seen
the hangers and have been trying to
remedy the evils. They would get ou
Of the clutches OF those 'unwsc ant
hasty" laws If they could. They are
forced to charge exhorbitant rates, ir
order to survive
Take the evidence OF the legal. reserve
representatives themselves. Richard A
McCurdy, President OF the National Life
one Of the oldest and strongest legal
reserve companies. says:
The irrelevant theory OF net valua,
tions --- has been absolutely adopted
in our statute laws as purely arbitrar,
test OF the solvency OF the companies. /
the same principles were applied as a
test OF sclvency in mercantile business
they would put a stop to the transactions
OF commerce in every one OF its depart.
ments.
Chalton T. Lewis counsel OF the Mu-
tual Lie. says: "Bullt upon mistaken
assumptions, by false logic, it has become
in its application tangled mass OF prac.
tical absurelity. scarcely paralleled in
any other branch Of the administration
OF law. 10 determine the reserve upon
a single policy is to repudiate science,
| and SUBSTITUTE utyiiiauOn aLu Iua.kcry.'
David P. Fockler. a distinguished In
surance man and the first President o
the Actuarial Society Of America, said
The legislation which needessly
wrecked so many companies during The
last score Of years was, in large degree
the product Of ignorance. haste and pas
sion, and we should now endcavor tt
correct these mistakes OF the past, les
they bear fresh crop OF evils in til,
future"
The Fidelity has avoided these "ab
surd, "arbitrary" and dangeroues tech
nicalities by qualifying under the NOR
recent laws.
We do nothing SUD rosa we avoid n,
issue. We invite investigation and chal
lenge comparison. We propose to Civ
all who desire it the very best and safes
insurance Tor the least money practica
bic. Respectfully.
r. L. + REEM AN.
December 23. 1895,
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