The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-02-28
A CLEAN DISCUSSION Of
FRATERNAL INSURANCE
By City Attorney Geo. A. Bangs in Response to Letter Of Inquiry Re-
ceved by Him From Editor Wheaton Of The Minneapolis Advocate
The Work Of Frderna| Insurance and Salient Feature
Of The Same hteIipntIy Discussed by Chair
man. OIL ?. Investigation Committee \

lei IoF ldctS 10 the endowment rank
reports to the Supreme lodge and to
the various commissioners of insur-
ance; thus any one may verify my
statements.
Question 1. Is it not Il fact that al
the present time about twenty-eight
million dollars of insurance is carried
in the Endowment rank upon men who
are upwards of fifty years of age, and
/ is not this fact a menace to the En-
dowment rank and to the order at
large?
Answer. In my judgment there ave
more than twenty-eight millions: in
the 33rd annual report Of the Kansas in
surance commission at page SIG, is the
statement of the Endowment rank for
the year ending December 81, 1902, the
! Sth table of which shows the certifi-
Gates in force On that date; (you lnny
also refer to pages 16 and II of the
1904 report of the Endowment rank to
the Supreme lodge) On Dec. 81, 1902,
| las shown by the Kansas statemenD
there was $24,460, 100000 of such insur-
ance, and there was sS,595, 10000 III
lives aged As, 40 and so; during the
three years ending Dec. 81, 1905, the
former amount would be increased by
the latter, making a total of $685.
| $4,000 less depreciations by deaths,
lapses, forfeitures and surrenders;
the annual death loss is approximately
$500, 100000 about 60 per cent of
which is on lives over fifty; and taking
into consideration surrenders, forfeit
ures, lapses, ETC., there must be be-
tween twenty-eight and thirty million
OF dollars of insurance ON lives owe.
! fifty.
That this may or may not be a
menace" to the rank and to the order
is dependant upon the premiums paid
by the men carrying such insurance;
! If the premiums paid are commensu-
rate to the risk imposed, then it is a
normal condition; if the premiums
paid by these men are insufficient to
the risk they impose, then it most
surely demands remedy for the
money must be obtained. If these men
are not now paying, or have not ON
deposit with the rank, the money
necessary to carry the current cost of
this insurance, it must be derived
from some other source. We all know
That these members have not now On
deposit with the rank an amount SUI
icient to carry their insurance if the
current premiums paid by them do not
equal the risk they impose upon the
institution, because four years ago this
institution had no funds on hand and
the men now over fifty years were ad-
mtted more than four years ago:
members admitted more than four
years ago were re-rated at the age of
admission and, not at attained ages 50
that their present premium rates are
not commensurate with the risk of
loss they impose upon the rank.
There is this further qualification
that must be distinctly understood ard
always borne in mind; the Supreme
lodge has power to adjust the rates
SO that each member shall pay to the
rank premiums commensurate with
the FISK he imposes and il this power
is exercised, then the condition is Mt
once remedied
Question 2. In your Judgment what
is the ability of the Endowment Fink
10 meet death losses during the next
hve and ten years, taking into account
the probable increasing mortality of
members who are now over fifty years
of age?
Answer. This is a question that can
DE better answered by an actuary. An
opinion by me would be but an infer
ence deduced from facts accessible to
all. In this connection | will say the
Endowment rank is in better condition
today than any other fraternal organ
lzatlon save one or two, of which J
have knowledge and there are very
many OF these institutions; in some
particulars it is in better condition
than any other because of the
general high grade of membership.
Members join almost every other fra
ternal organization chiefly from what
may be termed commercial motives:
they want cheap insurance and that is
the reason for joining; this is not true
or the Endowment rank. The men who
! join the Knights of Pythias do SO from
higher motives and are little concern
ed with the Endowment rank or uues-
tons of Insurance.; the Endowment
rank comes as a secondary PROPOSE
ton; it is reached after one has nut
into effect the motives inducing him
to join the order itself, which motives
as said before are of the highest; rot
only is this so but the rates now
! charged are much nearer safe rates
than those charged by any other in
stitution save, as said before, one or
! two.
Question g. Can the Endowment
rank meet it's probable death losses
during the next ten years without re-
adjusting and raising its present
| premium rates?
Answer. This also is a actuarial
question; it is dependant upon the in
crease in membership; if there is a
large increase of membership and Il
the contributions of the new members
gre used to defray the losses occa-
stoned by the old ones who are not
paying premiums commensurate with
the risk imposed upon the institution,
then possibly the re-adjustment of the
rates may be postponed, but in the end
it must come; it will come just as
/ surely as night follows day.
Question 4. Is it not imperative that
| in order to place the Endowment rank
! upon sound basis, rates must be