Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1902-02-19
IsHED 1855
RADICAL : 4 PROPOSED.
Committee on Readjust q Il M.W.A Insurane
Reports Fayoral 81 Increased Rate.

The plan of ii odern Woodmen
committee on rate Z justment Of bene-
| fetal members cf rne Modern Woodmen
of America, has been submitted to the
membership of the society through the
medium of the February issue of the
official publication, copies Of which ar
rived in the city a few days ago. The
plan proposed is radical increase in the
present rates of assessment.
The report of the commiete. fills near
~ nineteen columns Of the official paper.
So far as may be Judged by persons un-
acquainted with acturial science, the
report is a very complete exposition of
the present condition. from a life insur-
ance stand point of the Modern Wood
man society
Reduced to everyday English, the sub
stance of the committees findings is
that the sooiety's present rates of assess
ment are both inequitable and inade-
quate, and, if a majority of the members
oppose change, the society will ulti-
mately go TO the wall-at least its in
surance features will,
The new rates submitted for the men,
bership are a combination of what are
known as natural and level premium
rates. That is, up TO the age of seventy
the rates increase with the age on tae
natural plan, and after the member
reaches seventy the increase ceases.
The rate thereafter remains level at
50 rs per assessment per s., 900
In order to intelligently understand
how the rates recommended By the
committee will be applied, it may be
explained that a member entering at
"a will pay mortality rare of so cents
per assessment and reserve rate iD ad-
dition of 25 cents per assessment, making
the cost rs cents, whereas the present
rate of assessment call for but 40 cents,
However, under the present plan the
rates of assessment do not change or
increase with increasing age. IL the
committees recommendation is adopted
| the members will start in at 81 years of
age paying a mortality rate Of 80 cents
per assessment per 81 900 insurance in
force. The rate increases each year
until, as stated, the member reaches the
age of seventy. The reserve rate how
ever, remains the same and does not in
crease with age. Entering at 81 years
| of age the reserve rate is % cents, which
| the member will pay each month in ad-
dition 10 his mortality rate until, at the
age of 20, level late of 50. rs per 81, 900
/ per assessment becomes effeC tive.
1t is figured by the readiustment COM
| mittee that the mortality rate alone will
| pay all costs of The members insurance
| until he reached the age of seventy.
| Then his monthly contributions to the
reserve rate are drawn upon to parry the
increased cost over and above his II Jr-
tality rate beyond'that age But should
member desire to sever his connection
with the society before he reaches the
age of seventy all his contributions to
the reserve fund are returned to him.
The new plan. if adopted, becomes
effective January /, 1904. All the old
members will then be lerated at their
attained ages, and thereafter new mem
bers will as the plan provides ne rated
at entry age.
The society's management On the rate
question, as disclosed by inquiry at the
head Office, is in favor of action by the
membership, but it will make no differ
ence to the management il the member
ship votes down the plan.