The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1896-02-19
"A Challenge

Believing that / am thoroughly posted
and knowing thatI can prove The supe,
rioritY Of the Fidelty's policies, hereby
challenge any agent ot any lilc insurance
company to solicit Jointly with me any
one who VIII consent to DC solicited.
Inc Fidelity Is not In tact III assess.
ment company. although it qualities un-
der the assessment law In or,ior 10 avoid
the pcrnicious tcchnicalities q, the legal
rcsoive law. lis premiums are the same
each. year, and you know exactly wha,
you have to pay. Allits policies contain
the safety clause" which rendcls the
security absolute. and'which is in itself a
point OF superiority over companies that
do not have it.
1t has never happened in the past, and
there is no probability that will ever
happen in the future, that the current
premiums were not amply sufficient to
pay the current losses. II such q contin
gency should ever occur then the Asso.
clation can draw upon its surplus 10
make up the deficiency The surplus
now amounts TO two. fil,hs rs much rs
the total losses for seventeen years. If
i should ever happen that The current
premiums and the surplus combined
should not be sufficient to pay tho currcn,
losses. then the safety clause permits the
Association to levy a Temporary pro raia
assessment to make UP The deficiency.
Other conopdn,cs acoutet 10 tafo he hands
cfrcccsvers unt9cr similar co.sclijioas.
But note this difference: Ncarly 90
pei cent. Of the. net assets OF legal.lcserve
companies is legal reserve, and tie law
does not allow the legal reserve 10 4.
drawn upon to pay curren, losses Oyer
40 per cent Of the current p,emiums
must also be set aside rs legal reserve.
So that a legal reserve qplIl{}T w can use
only4 about 40 per cent oi rs nteniI,,iy
and about 10 per cent. Of ity assets 10
meet any emergency; while Tile Fidelity
can use practically all ol lis current pre-
miums and assets ii necessary, and il
there should still be deficiency. il has
all OF its policy holders behind il Is tide
1t over and save their insurance.
Note this difference also. i-hc lidcl,
ity has $3o.73 for each dcllar il owes,
while most OF the legal-rcsaryc compa.
nies have less than $I.Is Tor cacN dollar
Of Indebtedness.
lPhencvcr q a,nivcrsdl r1EdG8,te. or ofAca
improbable condition, STAT co,iS. iHe N.
deity to m,akc an assessment cueiW l3gai.
| reserve company aOW hare al,cytiy been
s,oept ont Of existence.
The laws under which thc legai fesetve.
or net valuation companies %gta otFan-
lied. are very crude and aibi1ary no
| new companies are otgani:ed unde,,
them, and the old companies Nave s.en
the dangers and have been trying 10
remedy the evils. They wA0iA ret otit
Of the clutches OF those "unwsc and
hasty'' laws if they could. rhcy are
forced to charge exhorbitant rates III
order to SURVIVE.
Take the evidence Of the lcral,rcsarvc
| representatives themselves. RichBrd A
McCurdy, President ne mrtUai !.ie.
one of the oldest and strongest legal,
| reserve companies, SAYS
| THE irrelevant theory oil net yalua~
tions - : has been absolutely adopted
in our statute laws as a purely arbitrary
test OF the solvency OF TIC conPaniGs. Ii
the same principles wc,c applicd as a
test OF solvency III mercantile business,
they would put a stop TO th1 Transactions;
of commerce in every onc n is depart.
ments."
Chalton T. Lewis, counsel oi the Mu,
tual Life, says: "Eullt upon mistaken
assumptions, by false logic, II les bcuone
in its application a tangled mass 81 prac.
tical absufdlty, scaicely para icicd IN
any other branch oi ibe admin ,ration
OF law. TO determine The rcseryc upon
single policy is to icpudiay science,
and substitute divnation ana Gnackery." /"
| DAVID r. FocklGt, Il distin.t ancsi ~
surance man and the frs I'H!blent OF
| the Act0ario' SocieiY na AmcrQ anid
| fThn e9islatoh which r(elllYssly
! wrecked Sc many companies duiaF lhr
lass score OF years was, ii. d large lysycc,
the product ofignorance, haste and pas
sion, and we should now endeayorr to
correct these mistakes OF tae past. lest
they bear fresh crop Of evils in the
| future"
The Fidelity has avoided these sab
surd, "arbitrary" and dangeroues tech
nicalties by qualifying under the more
recent laws.
We do nothing sub rosa we avoid no
issue. We invite investigation and chal-
lenge comparison. We propose to give
all who desire it the very best and safest
insurance for the least money practical
Bile. Respectfully,
r. l.. FREEMAN.
December %. 1895.