The daily silver state. [volume] (Winnemucca, Nev.) 1903-1907, 1903-09-05
NEW PLAN
ADOPTED BY
A. o. u. w.
The Revised Method of Levy
ing Assessments to Pay
Cost of Insurance
IExPlAINEDBYP.S TATE
Makes it Solidest and Safest
Fraternai Insurance Society
In the World

Fraternal Insurance Society
In the World
Reno Gazette: The new plan of In
surance that was adopted by the men,
bers of the A o. Z. w. at the meeting
of the grand lodge held in Reno Tues
day. and which the local lodge have
been figuring on, has been explained
by J. G. Tate, Of Denver. the Past
Supreme Master Workman.
In brief, the explanation of the
new ruling is as follows:
The A. o. U. W. has been in ex-
istence thirty-five years During that
time it has paid $12s,000, 900 to fam
lilies of it's deceased members. From
1868 until 1896 1t operated under what
is known as the 'level plan"-each
member paid 81 per assessment, but
there was no limit as to the number.
In 1896 a new plan was put into oper-
alton, which fixed the rate according
to age, and advancing from 65 cents
per assessment on $1,000 at 18 yeas
of age to $191 at the age of fifty and
over.
At the time the change was made ii
was sought to put reserve fund in
force, to be levied with each assess
ment, and consisting of 25 cents per
month on each $1,000 insurance in
force. This feature of the plan was
almost unanimously rejected. Had this
reserve fund been created, the order
would now be absolutely safe. The
assessments were limited to twelve In
any one year. 1t was soon discovered
that this plan was inadequate to pay
the death losses, and at the session
OF the Supreme Lodge, held in June.
1903, new rates were established
which will put the order on a basis
as to solvency, equal to that of any
regular insurance. Company in this
country.
The new plan gives the members
the option to choose between a rate
which remains level throughout life,
or a plan which pays very small
rate in the early years, but advances
with age until fifty-five years is
reached, after which the level rate Of
$44O per $1,000 is charged In order
that the older members may not be
unduly burdened a guaranty fund Is
created from the payment Of younger
members, which aggregate the sum OF
$3u, ,000, 900. This money is divided be-
tween the members now over fifty-five
years of age, and they may use 1t
as a reserve to make their certificates
safe, or they may cease paying assess
ments, and take it in the form OF
paid-up insurance.
For example: A member now sew
enty years of age, under the new
plan, need pay no more assessments.
ant can take paid up certificate for
$4,000, which is more money than any
member has paid into the order as
assessments.
A member now seventy-five can take
a paid up certificate for $1,13S. The
man, now fifty-five years old, who
pays the new rates, will have as a
reserve. which he can take as paid
up insurance. the sum OF $692 ON
$1,000 of insurance when he reaches
the age of seventy-five, or $13S4 on
$1,000 certificate.
A young man at eighteen years OF
age will pay $3.50 per assessment on
$1,000 until he reaches fifry-five years
or age, after which he will only Pay
s. per assessment
he win not only pay a less sum
at fifty-five than he did at eighteen.
but will have a reserve. which he can
take in the form of paid-up insurance
in the sum of $S38.
Under the new plan the rate OF as
sessment has been increased, but every
'certlricate will be a participating one.
The order can now look the world
in the face and defy any one to prove
that 1t is not able to pay all OF its
obligations. The A. o. U. w. has
done a vast amount of good, many
families in the city having received
$4,000.
The order never refuses to pay an
honest claim. It is now the safest and
grandest fraternal society on the face
of the earth