The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1902-02-20
a MUTUAL INSURANCE PROBLEM.
The Strlngeney Of the Oklahoma Laws
is Embarrassing Several
Companies.

a strict enforcement of the law
would drive two OF the farmers mu
tuaI insurance companies IN Oklahoma
out OF business at this time, and the
third company could not exist later
than March. unless it renewed it's
present membership. The law passed
by the last legislature requires that
all farmers mutual insurance C ON
panies, which insure crops against loss
by hail FIRE and tornadoes, must have
a membership of not less than 0Oe
The law gave a monCJoiy e erch Dusi-
ness to Oklahoma companies. as for
eign companies found themselves un-
able 60 get the required membership
in Oklahoma The companies t,lns-
acted a nourishlng business in the sea-
son when wheat was growing and ma
turing. but. when the crop was har-
vested. the policies expired, as there
was no further need for protection.
This reduced ihe membership Of the
companies below the legal number
Some Of the companies contended that
whca faImcr took out q policy. he De.
came a permanent member, regardless
Of the expiration OF his policy At
torney General shng held, however
thai membership ceased when q mem
boris policy expired.
This opinion legally wiped two Of
the companies out Of existence, and
their officers have been discussing the
situation with James Mcconnell, as
sistant commissioner Of insurance.
Mr. Mcconnell has recently returned
from a consultation with the officers
OF the oklahoma Farmers Mutual In
surance company, in Perry and the
Medford State Mutual, at Medford The
Perry company has a valid member
ship Of 452, and the Medford company
a membership of O76. The Oklahoma
Farmers Mutual Indemnity associa.
tion at El Reno, has less han thou
sand members The policies of the
Medford company expire March /,
when It will be in the same condition
as the El Reno and Perry companies,
unless it renews its policies.
Mir Mcdonnell said that the in ur
ance depart ment wished 10 offer every
announcement consistent with safety
to the home computes. and that they
would be given "a reasonable time to
comply with the law they viii be
permitted to do business until after
the expiration Of their hail policies,
which win be written in April and
May, and, II by that time they have
failed TO secure enough fire policies
TO bring the membership of each com
pany up TO 900, the delinquents will
be forced to suspend business. It is
proposed. If possible. to keep the com
panies in business until the meeting
OF the next legislature, when they will
have opportunity TO ask for relief. The
companies policies are good for only
one year.
The business Of the companies in
1891 was successful, eacn having more
than enough money to pay all losses.
The Perry company received a total OF
s6,38S.62 in premiums. of which $5,
1892 was hail insurance, and paid
sa,2OS67 in hail and FIRE losses. The
surplus was not rebated
The Medford company collected So
3258S in premiums, of which S473 50
was fire and tornado insurance, and
paid out a total Of S4,433.32 The sum
OF si7l.21 was paid In rebates
The Icl Reno company did business
TO the amount Of S1sIz379, only
sal09i being premiums on fire and
tornado policies The losses Of the
company were s9.0081s Policy hold
ers we.e paid $40 25915 In rebates.