The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1896-04-22
. Challenge.

DCNeNlNR} lGat am tnOrOuEnlY posted
on aiilinds and phases OF lite insurance,
and Iuowing ;nat can prove the supe-
riorN OF The Eidelitys policies, hereby
|cuai.engc any agent ol any lille insurance
oomiany 20 solicit jointly with me any
one WHO will consent to be solicited.
'fhe lfidehty IS not in TACT an assess.
rMeni company, although it qualities un-
der The assessment law in order to avoid
tire peruicioUs lechnicalities OF the legal
reserve law Is premiums are the same
ea9hyclr aild you know exactly what
YOU ll4yc 10 pay All its policies contain
Tic SalatY olnGac," which renders the
secuflY absolute and which is in itself a
point Of suo9floyly over companies that
( Il mas ncrcr happened in the past, and
there IS 10 probability that il will ever
happ6n IN tie luturc. that the current
premiums were not amply sufficient to
pay Ihe Gurreul losses. II such contin
.eencg should eyer occur. then the Asso-
ciau3n can GraW upon its surplus TO
make up The deficiency The surplus
nov amounts 70 two filths as much as
the ,oai losses for seventeen years. If
/. should cyer happen that the current
premiums and the surplus combined
losses ,hen tnc safety clause permits the
asscl}ncne 10 make up the deficiency.
ono e3a}J'oa,cs acouid 90 into the hands
W rtt0pcrs 'tmtcr s!mttnr conditions.
Rutnoic this difference Nearly 90
pei Gers. Of he net assets Of legal reserve
does not allow the legal reserve to be
al y 80. 10, 1.c
40 per cent OF the current premiums
must ,aso be Sc. aside as legal reserve.
80 thlta egal rcserve company can use
ana aoont 10 per cent Of its assets to
ineet any enefg cncy; while The Fidelity
cqn use practically all Of its current pre-
ttcrr mould s!il be deficiency it has
al otCs policy holders behind it to tide
i oVer und save their insurance.
NQ,e this, difference also: The Fidel.
Ivy mas S.]o.7S i>r each dollar it owes,
'Whlc nost oi (he legal-rescrvc compa-
"sea an $I.I5 Tor each dollar
o. Indebtedness
iIdtqercr i ,saiuersal epidemic, o. other
tn'jppbpj{s $ollditi0n, shall cause Tie III
ac}'t0f 70 mel I assessment, eucrg legal.
ff}0te co0t2,lijP t0iN hare ulrcnRy been
s'crpt ol.t ~ et<S,cncc. H
rhelnWaondcrwhich the legal reserve,
riet valuation companies we're organ
iHed arc very crude and arbitrary. No
new companies are organized under
ucm, and !hc old companies have seen
the danger and have been trying to
lyenady Tie evils. They would get out
q ihc CLUTCHES ol those ''unwise and
hasly" laws i they could. They are
forced 10 charge cxhorbitant rates in
order to survive.
Take TIE evidence OF the legal, reserve
representatives. themselves. Richard A.
McCurdy President OF the Mutual Lie,
one of the Oldest and strongest legal.
reserve companies, lays:
The irrelevant theory oil net valua>
tons has been absolutely adopted
~ our salute laws as a purely arbitrary
test 3! HE solYcncy OF the companies. II
tha sane principles were applied as n
'e5t Of at3YtWyfin mercantile business,
they WoNid pa; stop to the transactions
OF com!ngfce ~ every one OF its depart
nten,s.nS
Chaltoi T l.cwis. counsel OF The Mu,
tual Lie, says "BulIt upon mistaken
assumptions, by false logic. it has become
u ~ application a tangled mass Of prac.
tical absirlW, scarcely paralleled in
any olhc, branch Of the administration
OF slaw. 20 determine the reserve upon
q single 5olicy is to rcpudia.c science,
and Substitute vination and Quackery."
David j, Focklcr, a distinguished in
sirarcc man and the first President OF
the Aciuarioi Society Of America, said :
lire leg islation which ncedlessly
wrecked somanY companies during the
iaSt score ot years was, in a large degree,
thc produce oG ignorance, haste and pas.
sion, and we should now endcavor 10
correct these mistakes OF the past, lest
they bear fresh crop OF evils In the
future
The Fidelity has avoided these "ab
susd, "arbltrdtv" and dangeroues tech
nica)ites by Qualifying under the more
recent laws.
We do onothinp sub rosa we avoid no
Issue. We invite investigation and chal-
lcnec cornpafson. We propose to give
a'l ~bo desitc il the very best and safest
insurance ior the least money practica.
bic respectfully,
r. l.. FREEMAN.
December e. 1906.