The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-06-08
FRATERNAL INSURANCE.
Article Written by Geo. A. Bangs Of
This City on Subject for Pythian
Advocate.

The May issue of the Pythian Ad-
vocate, published in Minneapolis, in
the interest of the Knights of Pythias,
ment rank, K. of p, in which branch
of the order number of very import
ant changes have been made recently.
Mr.. Bangs is supreme representative
of the order and in his article which is
lengthy and comprehensive, is a Sec
ton devoted to the history of the crea-
ton of the Endowment rank. Under
the belief that it will be of interest
to members of the order in North Da-
kota, the portion referred to is here
with reproduced:
The Endowment Rank.
The Endowment rank was organized
in 1877 upon the post-mortem assess
ment plan; one dollar was collected
of each member for each death with
twenty-five cents additional for en-
pense; this assessment was made
without reference to age and the med
ical examination was meager; men,
bers having more than 81 900 of bene-
fit paid in proportion thereto, but a
member fifty paid precisely the same
as one twenty-one years old.
III &C yCoAo ldlCl lhllu CldSS was
formed of members between fifty and
sixty years of age and these paid the
same for mortality expense and less
amount for operating expenses, their
total assessment being $11O.
The falsity of these plans soon re-
vealed itself and in 1884 a new sched-
ule of rates was adopted and a new
class provided, and all of the old
members transferring to such class
prior to July 1, 1885, were re-rated at
entry age, and not at the attained age.
The rates adopted were inadequate
even had they been applied at attained
ages, but there was material de-
them applicable to entry ages.
In 1883 the members who had trans
ferred were re-rated under their age
July 1, 1885, perpetuating, but to some
extent ameliorating, the former error
OF course experience demonstrated
the inadequacy of the rates, and in
| 1894 there was an increase thereof
by the addition of annaal dues in the
sum of sixty cents per thousand.
The relief afforded was but temper
airy, and on May Is, 1901, a special
assessment was levied, and on Septem-
Der 1, 1901, the N. F. c. level life
rates were adopted, but in applying
the same. the error was again COM
mitted and the rates applied at entry
age and not at attained ages.
No actuarial examination was made
of the rank prior to the adoption of
the N. F. c. rates in 1901, and there
was no attempt to equitably and scien-
tidcally distribute the burdens; the
mortality experience of the rank was
not ascertained, so that no comparison
thereof with the mortality assumed as
the basis of the N. F. G. tables could be
or was made; under the conditions as
above the N. F. c. rates were and are
inadequate for three reasons:
1. The rates were not applied at
attained ages but at entry ages, the
effect of which was that new member
aged 81 pays the N. F. C. rates as of
that age, while the former member
aged Al pays precisely the same rate
because when he Joined he was aged
81, although the risk imposed upon the
institution by the latter's membership
are materially greater than that i'm
posed by the new member.
2. The expense of managing the
business was not provided for in addi-
ton to the rates adopted, which were
not rates, but instead thereof such net
rates were discounted 10 per cent, that