Waterbury Democrat., 1901-08-15
K. OF c. ASSESSMENT.
The New Law Reported By The Con-
 mittee Yesterday.

mittee Yesterday.
 At the K. of c. convention yesterday at Cliff aven Chairman William 5.
 McNary of Boston and Secretary
 O'Brien of Baltimore of the committee
 on the revision of the insurance rate, presented their report which is quite
 lengthy and gives | level rate and step rate plan. Either plan, they say,
 is safe, affordng absolute security for
 the next fifty years, and they assert
 is indorsed by an actuary of high standing in insurance circles.
 Ill the report the committee say:
 Under the committees level rate plan
 we submit n table of level rates for
 whole life insurance based on the as- sumption that our investments will average 5 per cent interest per annum
 for the next fifty years. These rates
 are based upon table of mortality
 as closely approximatinS the expert ence of the fraternity beneficiary or
 ders as we consider safe.
 These rates are made payable
 monthly, and are so computed that
 no deducton on account of the pre-
 mium for the balance of the policy year will have to be made at death,
 as is the case with regular insurance
 companies which deduct an average of half years premium, unless the
 premium for the whole year has been paid ln advance. This necessarily
 makes the rates q little higher than they would be otherwise''
 Following this is given fve-year term or step rate plan. This plan is based on the experience of q we'll
 known life insurance company, in the case of persons who has been insured for five or more years before the ex- perience was taken account of.
 If the above rates should be adopt ed to go into effect on January l, 1902, the rate payable by each member of the order at that date would be the premium corresponding to his age at the birthday nearest to January 1, 1902. Thus, all members would be rated at the birthday which fell within the year beginning July l. 1901, and end- ng June 30, 1902. For all present | members that would hold until five years had expired, i. e. until January 1, 1907, when all present members that
 lived would be required to pay the rate for five years older
 As 1t would probably be more con- l venient to have the ages of all future 1 members counted from January 1, in- stead of from the various dates at which they join the order, it might be made a rule that new members | joining the order after January l, 1902, should be rated at the age on their birthday nearest to January of the year in which they entered. | Thus all persons entering in 1902
 would be entered as of the age at their birthday falling between July 1, 1901, and June 30, 1902. Those en- tering in 1903, would, in the same way, be rated as of their age at the
 nearest birthday between July 1, 1902,
 and June 30, 1903, and so on.
 ''In this way a number of persons would be rated at first as somewhat
 younger than they actually were, but i'll that case they would have to pay
 the rate for five years older earlier than they otherwise would do. Those entering in the later part of 1902 for example, would be required to pay the higher rate on January l, 1907, or only
 little more than four years after 1 they had entered. \
 If this method should seem obiec- tionable it might be arranged that only those entering in the first half of 1902 should be rated at their age on Janu- ! ary l, 1902, and those who enter after July l, should be rated at their age on l January l. 1903
 Tn this case the latter class of per l sons would have to wait slightly over | five years before they would be rated as five years older. In this way. how ever. some persons would necessarily be rated at lttle older than they were which might cause dissatisfaction Therefore, we think the first method would be more satisfactory, for though ] some of the members would be rated younger than they otherwise would be, still, on the whole. it would be only fair to treat new members somewhat more liberally because of their recent medical examinations"