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

Believing that am thoroughly bosted
on AL kinds and phases oil lie insr rance.
ana knowing that can prove tho supe-
LILY a,,a',oY .. 'ne fldeiitys policies. ereby
E1"'e"6S a"y s,ecnt oi any ne ms rance
so"pay ~ soic1t Jolntiy WIN y Z any
The Fidelity Is not In FACT an "ycss.
.,ieht company, aUnough It u'f . un-
DER the assessment law in or void
the pernicious technicalities Sstai,s egal
reserve law. Its premiums ,t,ne
each year. and you know eN In
you have to pay. All its polici> o,ain
the safety clause" which rcnoN Z ,hs
security absolute. and which is IN II, e,r a
point Of superiority over companiea that
do not have il.
It has never happened in the past, and
there is no probability that II win ever
happen in the future. that tic cGncnt
premiums were not amply snfticidn, to
pay the current losses. II such co .,in
gency should ever occur, ther. The ,so.
citation can draw upon its surrl,,sA TO
make up the deficiency. The surplus
now amounts 70 two iilths as much ay
the total losses Tor seventeen years If
it shoHsd cvcr happen that The cvrrcn,
premiuns and The surplus conoinea
shonld not he sullicicnt 10 pay The curren,
Losses, then the safety clause permits the
Association to levy y ,G,nporai) ora 3otd
assessment e make up the del ienoy.
Ohcf om}twses ,vould 90 into MeHuni,s
~ fccGjUcrS undcr similar condu,oN&
lnt note this difference = er;y 20
pei cent. Of the net assets . leg reServc
companies i, legal re- G. an hon. "
docs MOI ALLOW il al rose a DC
drawn i...>, pay current io Over
i1t9 ;;,,s&s cent Of }i;, currenr .tiuris
must also be set aside as lGtal rye
SO that 4 legal reserve comp3uf y use
otiy ahlnt 70 per cent oi ii5 .,.Cm miins
and about 10 per cent. Of its assets 10
meet any emergency; while The Fidelity
can use practically all OF its cnrrcn0prc-
miums and assets il necessary; and If
there should still be deficiency. il has
all OF its policy holders behind it to tide
it 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-
nies have less than $I.I5 Tor each dollar
OF Indebtedness.
lPhcncucr uniuerso7 cpi7cmic, or either
improbable condition, shall cause The FL
dcl'ty TO make an assessment, crcrg legal.
rcs,rUc company aUW haze ulrcndy been
S,0ep out Of c.ctstcncc.
The laws under which the legal reserve,
or net valuation companies were organ
ICED, are very crude and arbitrary. No
them, and the old companies have seen
the dangers and have been trying 10
remedy the evils. They would get out
Of the clutches OF those "unwise and
hasty' laws il they could. They are
forced to charge cxhorbitant rates in
order to SURVIVE.
Take the evidence Of the legal. reserve
representatives themselves. Richard A.
McCurdy, President OF the National Lie,
one OF the oldest and strongest legal
reserve companies. says:
| The irrelevant theory oil net valua,
tons has been absolutely adopted
in our statute laws as purely arbitrary
test OF the solvency OF the companies. Ii
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 Life, says: "Bullt upon mistaken
h",''"iP Peio'ot w toioC iSSiSS ~ ildS DCSOtliC
in its application tangled mass OF prac.
teal absurlity, scarcely paralleled in
any other branch Of the administration
OF law. 10 determine the reserve upon
sing,e policy is to e,,, rspudate sciea2eSe.
David P. Fockler. distinguished in
surance man and the first President OF
the Actuarial Society Of America, said
The legislation which needlessly
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 tc
correct these mistakes oi the past, lesl
they bear fresh crop OF evils in the
future"
The Fidelity has avoided these "ab
surd, arbitrary" and dangcroucs tech
nicalilies by qualifying under the more
recent laws.
We do nothing smb rosa we avoid M
issue. We invite investigation and chal
lenge comparison. We propose to Civ,
all who desire it the very best and safes
insurance for the least money practica
Bile. Respectfully.
r. L. + REEM AN.
December 23. 1895.