Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1903-09-04
A. o. U. W. INSURANCE.

~ " VI bN0OnAN~6s
New Plan Of the Organization 10 Ex-
planned.
The new plan Of insurance that was
adopted by the members of the A. o.
U. W. at the meeting Of the Grand
Lodge held in Reno Tuesday, and
which the local lodges have been fig
uring on, has been explained by ]. G.
Tate. Of Denver, the Past Supreme
Master Workman In brief, the expla
nation Of the new ruling is as fol-
lows
The A. o. U. w. has been in exis-
tence thirty-five years. During that
time it has paid $12S.0OO,0O0 to famil-
les Of its deceased members. From
1868 until 1896 it operated under what
was known as the '.ievel plain
each member paid 81 per assessment,
but there was no limit as to the num-
Der. In 1896 new plan was put into
operation, which nxed the rate accord
ing TO age and advancing from IS
cents per assessment on $1,000 at IS
years of age to $1.91 at the age of so
and over. At the time the change was
made it was sought to put a reserve
fund in force, to be levied with each
assessment, and consisting of 25 cents
per month ON each 81, 900 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 az
sessments 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 Ledge held in June, 1903,
new rates were established, which will
put the order on 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 & rate which
remains level throughout life. or n
plan which pays a very small rate in
age until So years are attained, after
which a level rate Of S4.20 per $1,000
is charged In order that the older
members may not be unduly burdened
a guaranty fund is created from the
payments of younger members, which
aggregate the sum of $50 200 900. This
money is divided between the mem
hers now over SIS years, and they may
use it as a reserve to make their GER
tificares safe, or they may cease pay
ing assessments and take it in the
form of paid-up insurance.
For example: A member now 70
years of age, under the new plan, need
pay no more assessments, and car
take a paid-up certificate for 5000
which is more money than any mem
her has paid into the order as assess
ments. A member now IS can take
paid-up certificate for $1,13S. The maj
now SIS years old, who pays the new
rates. will have as a reserve, which
he can take as paid-up insurance, tn
sum of 1892 on 81 1000 of insuranc'
when he reaches the age of 10, o
S1,3S4 on a $4,000 certificate.
A young man at Is years Of age vii
pay $50 per assessment on 5000
until he reaches SIS years of age, afte
which he will only pay 81 per assess
ment He will not only pay a les
sum at 55 than ne did at IS, but h
will have a reserve, which he ca
take in the form Of paid-up insuranc
in the SUN CT 1888.
Under the new plan the rate of a:
sessment has been increased, but e,
cry certificate will be "participa
ing" one The order can now look tn
world in the face and defy any one t
prove that 1t is not able to pay all {
it's obligations. The A. O. U. w ha
done q vast amount Of good, mar
families in this city having receive
$4,000. The order never refuses to pa
an honest claim. 1t is now the safe:
and grandest fraternal society G
earth
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