Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1906-07-25
COMMISSIONER HOST ADDRESSES
FoREsTERs.
CHEAP" MEANS FAILURE
Fair Assessments Must Be Collected
for Life insurance and Notice
Taken of Mortality Tables or Dis
aster Will Inevitably Be the Uiti-
mate Result.
Madison, July 10.

Insurance Commissioner Host yes
terday addressed the convention of
the United Order of Foresters, in ses-
sion here. preaching to the delegates
the gospel on adequate rates in frater-
nal insurance orders. His address fol.
lowed somewhat the remarks he pre-
scented before the legislative insurance
investigating committee and assem-
bled representative of the fraternals
Of Wisconsin, recently in Milwaukee
He spoke in part as follows:
There exists among the officers of
fraternalg. general feeling that it is
impossible to bring about better con
dition in these organizations, without
the aid of legislation, for all of these
societies will not adopt adequate rates,
unless they are required to do so by
statutory requirement
Very few of the officers have the
courage to place the rates of their so
cieties upon an adequate basis, whe'f
they must meet in competition, other
societies that remain on the death as
sessment or inadequate rate plan.
Only recently, the secretary OF a
fraternal society admitted in CONVEX
sation with me, that he knew the
rates of his society were inadequate,
but if the rates were increased an
other society, the name of which he
mentioned, would continue TO solicit
members. charging only its present
inadequate rates, and his society be-
ing in competition more with that
particular society than with any othe-,
would secure very few new members.
Therefore. his society continues to
collect inadequate rates. and the large
percentage Of the membership believe
they are procuring safe aud perma-
nent Insurance.
The majority of he officers Of
these societies. appreciate that with
ont considering that as men grow
older the death rate increases-that
young men may die, old men must
and making provision for the increased
number that must and do die, failure
is as sure and certain as is the fact
that no man. set Of men or institution
can for any length of time give some
thing for nothing Too, they know
that there are just three ways in
which safe and secure life insurance
can he furnished, be 1t old line o.
fraternal insurance
Three Requisites.
Il. The premium to be paid from
year to year for a fixed amount of In
surance, must be an increasing amount
at all times to cover the full current
or actual cost according to the at
tanned age of the insured
% The premium to be paid may be
fixed amount as of age at entr@,
while from year to year. as the in
sured grows older, the amount of in
surance is reduced, being graded at
all times to the actual and mathemat-
ical purchasing power cf the amount
paid
3. The premium must be sufficient
to enable the creation Of reserve
fund sufficiently large on each policy
to make future deficiencies or to eqnal-
ize the increasing hazard Of increas-
ing age.
The first two plans are almost i'm
possible, or at least, would be un.
popular. In other words. instead OF
increasing the premium from year to
year as the insured grows older, or in
stead of decreasing the amount of in
surance protection with increasing
age, there must be a reserve, which IS
the equalizer between the hazard o.
increasing age and the original level
premium fixed at age of entry. An
equalizer there must be under any
correct plan of life insurance, It
may be an increase in yearly prem
ium, or an annually decreasing amour.
Of insurance or a reserve, but one Of
these equalizers is demanded by the
laws Of mortality.
The argument. the reserve Is in the
pockets of our members was not and
never will be carried out by expert
ence; If il really ever were there, the
pockets must have been so deep as 10
place it wholly beyond the reach OF
the arrangements or receivers.
1T would have been much better
had no special laws ever been adopted
to regulate fraternal societies, fot
then recognition Of mortality tables
would have been enforced from the
start. Fraternal societies cannot per
manenuy live and ignore mortality
tables, and the sooner they realize
this fact the better It will be for alt
concerned.
"The most unfortunate aspect Of
the present condition of fraternal So
cleties is, that when failure comes
land failure must inevitably come to
an institution built on shifting sands
and not ON a solid rock foundatio' }
it carries down with It the hopes, and
in some cases, the fortunes of tbs
very people who are least able to
stand such calamity.
Il am a firm believer in the frater-
nal society with adequate rates, but
would be a false friend, indeed If
did not point out the true situation
no matter how unpalatable and uu
pleasant it may be- This is not the
time. for administering the medicine I'm