The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-06-07
R. A. INSURANCE
CHANGE DISCUSSED
OTHER FRATERNAL INSURANCE
ORDERS ARE INTERESTED.
REIMBURSEMENT Of Rates Necessary in All
Societies, Says an Authority of the
Modern Woodmen of America others
Say Changes Already Made Provide
for Mortality Increase.

The change in the rate plan of insur-
considerable comment in fraternal in
surance organizations generally as to
what will be done by other .organiza-
tons whose memberships are rapidly
reaching the heavy mortality period.
!" All fraternal insurance, societies
have discovered that a readjustment of
their rates, sooner or later, is neces-
sary,' said M. w. Dawson, state deputy
for the Modern Woodmen Of America.
ize that insurance has commercial
value, and that the societies have no
place from which to get money to pay
losses except from their members. And
with better realization of these facts,
fraternal societies are coming nearer
correct basis. I venture to say that
the Royal Arcanum, with its new rates,
is nearer to a correct basis than most
of the others. Yet I believe the Royal
Arcanum s experience has not been long
enough for them to make up an abso-
lutely correct rate-table.
evil it ever be necessary Tor the
Modern Woodmen of America to further
increase their rates9 I am afraid l
will have to answer honestly, yes. ct
without taking into account the growth
of the society and the taking IN OF
Younger blood, the Modern Woodmen
can operate on the present rate-tables
for ten years before reaching a stage
where twelve assessments a year Will
be necessary. At that time, rates will
doubtless be readjusted and the society
will be in a position then to prepare a
new table. which will be absolutely safe
and permanent for all time to come.
The hardest thing fraternals of stand
ing have to contend with today IS the
ORGANIZATION of new fraternal societies
operating on an inadequate, TOO cheap
basis
q. M. We'll, state manager for the
Woodmen Of the World and publisher OF
their official paper in Minnesota, the
az have Just returned from the meet
ing of the law committee and the SOW
ereign camp (the national organization
of the order) at Chattanooga. Inc
situation was then thoroly. gone over,
and it was decided that absolutely no
change was, or. would be necessary, IN
Woodmen Of the World rates. We con
slider the existing rates to be sufficient
" high to be safe for all time to come.
A demonstration that our rates are right
is shown in that since their adoption
four years ago, we have PAID every
death loss, and at the same time have
created a reserve fund of $2,5O0,O 900.
Carefully prepared estimates Lead Ie us to
believe that our rates are SUFFICIENT to
meet all demands when the present
membership becomes old and the mortal.
ity greatly increased
John Kennedy, custodian and assist:
ant financial secretary for the knights
of Columbus, gives the following state
ment for his order: s:.E
tsThe knights of Columbus were or
ganized in 1882, and on plan which it
| is believed will assure permanency te
the insurance feature of the organiza
ton This plan is a graded schedule OF
assessments. Every five years the
monthly assessment Of the insured is IN
creased. , At the age Of sixty this in
crease ceases and there is: a fiat rate
charged, which will meet the increased
demand for payments among the aget
members 'of, the society. The knights
of Columbus do not claim their insur
ance is the cheapest, but they do CLAIM
it is permanent on the present basis: }
E. N. Young, Jr., past high chic
ranger Of Minnesota for the Independ
emit Order of Foresters, says:
"The fact that the insurance rates O.
our society are perfectly safe, is show
in that we now have surplus on han!
/ Of $S,716,518, which is increasing eacl
month 100000 to $80,000.: Our incom
will vastly more than meet the increas
in mortality. A safe feature is tina
the sick benefits to members are no
paid out Of the national treasury, bu
are met by the local dues Of each re
spective LODGE