Devils Lake inter-ocean and Devils Lake free press. (Devils Lake, Ramsey County, N.D.) 1905-1909, 1906-06-15
Courtesy Grand Forks Evening Times.
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 CT Pythias,
contains an article on the Endown-
ment Eank, 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 ex-
pense; this assessment was made
without reference to age and the med
ical examination was meager; mem
bers having more than $1,000 of bene-
fit paid in proportion thereto, but "a
member fifty paid precisely the same
as one twenty-one years old.
formed of members between fifty and
sixty years of age and these paid the
same for mortality expense and a less
amount for operating expenses, their
total assessment being $110.
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
M ami fron -
prior to July 1, 1885, were re-rated at
entry age, and not at the attained age.
In 1888 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
1884 there was an increase thereof
by the addition of annual dues in the
! sum OF sixty cents per thousand. "a
| The relief afforded was but tempor-
airy, and on May Is, 1901, special
assessment was levied, and on Septem-
Der /, 1901, the N. F. G.. 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. G, rates in 1901, and there
] WAS no attempt to equitably and scien-
tifically 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
Iefect of which was that new member
aged 81 pays the N. F. G. 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.
i 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
amount being allotted to the expense
/ fund.
j .. Inc ~, II. 2. tables were COM
piled for use by new institutions and
not by those institutions which had
been In existence for any considerable
length Of time and who. had thereby
accumulated a mass Of impaired risks;
the mortality experienced Of the rank
1 had and has exceeded that assumed ais
q basis for the N. r. G rates
/ The Endowment rank belongs to the
first of the classes / have given; ii
Icoliects in advance a sum pre-calcu-
lated ais sufficient to defray its death
losses and expenses.
BY reason Of the conditions as de-
tailed above such calculation is pa