Mexico Missouri message., 1902-09-18
Will Interest The NJ. v. A.

from Modern Woodcraft, publish
ed by Leslie ID. Penney, which we
believe will interest every member
of the Modern Woodman society rs
well as many others who have to
deal with the cold and calculating
edges of business affairs. Mr.. PEN
ncy is connected with the State
Leader of this city. Here is his
article:
Many Neighbors have greatly
differing ideas concerning the ie-
serve rates of the plan proposed
by the REIMBURSEMENT Committee,
hence we have thought it well to
undertake to give plain and sim
pie explanation of this feature OF
readjustment.
In the first place, it is necessary
to say that all persons who have
made study Of life insurance
questions agree that it is impossi-
BILE to have Il safe and sound plan
of life insurance protection with
ont any reserve accumulation, UNI
less the rates of assessment or the
number of assessments are increased
with the ages of the members or
the age of the Society.
The experience of every insur-
ancc organization of whatever
character establishes the truth of
| the above assertion.
The Modern Woodmcn of Amer
lea adopted the plan whereby the
number of assessments is increased
to meet the increasing cost of in
surance, and thus it is that we
have the increased number of as
Scssments from three in 1884 to
eleven and twelve in 1900 and
1901 The death losses paid in
1884 amounted to S697, and it re-
Quired three assessments on the
members in that year in order to
pay these claims. In 1901 the
death losses actually paid amounted
to s., 143, 55l and required some
what more than eleven assessments
to provide for these losses.
Under the present plan of the
Modern Woodmen the rates of as
SesSment remain level after age of
entry, and consequently as the
death losses increase in amount
there is no other way to secure
larger receipts from the members
than by increasing the number of
assessments upon the entire men,
bership.
1t is conceded that to levy extra
assessments causes an lnequltable
distribution of the costs of insur-
ance, requiring excess payments of
younger members to make good
the Deficiencies of older members.
No one will deny that such Il
condition results from operation
under the present plan of the
Modern Woodmen.
BY increasing the rates of as
sessmcnt in order to raise more
money to meet increasing death
losses, all members will thus be
required to pay an increasing
amount according to the increasing
risks due to their advancing ages.
If there is il uniform and level
amount of protection granted to Il
member then we repeat that he
| either must pay an increasing
| number of assessments or he must
pay increasing rates of assessment
i'll order to provide for the contin-
ualIy increasing cost of insurance
if there is to be no reserve fund,
The reserve fund if sufficient in
amount will prevent the necessity
of an increase either in the mum
Der of assessments or in the rates
| of assessment.
| That is to say, the reserve fund
can be drawn upon and used to
supplement the contribution by
the member whenever the cost OF
insurance exceeds his rate of as
sessment.
BY having II large enough re-
serve accumulation or reserve rate,
it can be provided that the member
would have Il level and uniform
rate of assessment from age of en-
try throughout life. Thus, Mt age
20, if member would pay II net
annual Sire ah nateat, he could
have of Oh ri 43t level and
uniform for life. In the first year
of the $40. 81 the amount of 81 OO