The times and democrat. [volume] (Orangeburg, S.C.) 1881-current, 1910-06-25
PROTECT YOURSELF
BY FORMING A MUTUAL IssUR-
ANCE COMPANY.
According to Bill Passed by the Leg

According to Bill Passed by the Leg
islature Last February Ten Men
NAV Organize For Self Protection.
A bill was passed and approved by
the Legislature on the 4th day of
February 1910 providing for the or
ganization and regulation of Mutual
Protective Associations. 1t provides
that any ten men of lawful age
could form an association to protect
| themselves against loss from. fire,
disease, accidents, lightning, hail fail
ure of crops, and to insure the live
stock of it's members. 1t must be
understood that this association is al
lowed only to protect its members
and is not organized with purpose
of making money, or enriching any
one privately These associations
are only allowed to work in the coun-
ty in which they were organized.
Before the state allows any of them
to begin business the elected presi-
dent and secretary of the proposed
association must swear that twenty
five men will take out policies in it
| for not less than a total sum Of
twenty-five thousand dollars. This
| list of subscribers must be sworn TO
and filed with the Insurance Com
missioner.
Each member of the Association is
entitled to one vote in the elections
necessary. 1t is required that thirty
day notice be given of each meeting
by publishing the same in the county
paper and by sending postal to each
memb Der of the association, who can
either attend or send proxy, but
no man is permitted to vote more
than twenty proxies or vote under
the orders of anyone having twenty
proxies. Each association is required
to meet at least once year and elect
directors and officers, the lattsr can
not be elected for term longer than
two years. The amount to be receiv-
ed by each officer must be stipulated
before the duties of the Office are en-
tered upon or the work performed.
The manner in which this association
would pay the loses of its number
would be to assess each member
equitably for the amount of the loss.
Should upon investigation the lnsur-
ance Commissioner find that ay Off
Ger is neglectihg to levy and collect
any assessment made he may apply al
any court having the proper author
ity for a mandamus to enforce the
performance of the neglected duty.
The premium is TO be guaran-
teed by note or lein on the property
insured, but the property must be 50
described that a person could rec
ognize it from the description. Any
of these associations could create
reserve fund in the maner prescribed
by their bylaws, provided it did not
conflict with!:the laws of the state.
From a table compiled by Insurance
Commissioner McMaster it is shown
that there are fifteen of these insur-
ance associations now at work in this
State, carrying from s191,604 to
$4,425,040 insurance in force. The
rates of these companies range from
s1.SO. to $500 per thousand. ~
Here is what Insurance Commits
sioner McMaster says about them:
'The salvation of these companies
is to have director in each township
who will approve the insurance of
each piece OF property in his town.
ship; to take only the class of prop
erty, viz country residences and ten
ant houses; to take only limited a.
mount of insurance, say $1,000 on
any one peice of property; to have
at least one annual meeting of the
policy holders at which the officers
and directors are elected, and at
which complete reports are to be
made by the officers; to have quar-
terly meetings of the directors.
While number of these asso-
stations levy assessments as the fires
occur, and while others levy assess
ments but once a year it is believed
that it would he very much better and
safer to require the insured to pay
in advance what is understood to be
the rate by the stock companies, and
at the end of the year to refund him
whatever the saving might be.
There are many other features
connected with the business needing
explanation and the insurance De-
partment will be glad to answer any
inquiries made" Addres your let
ter to the Insurance Department of
South Carolina, Columbia, S. C.
Said to Be Exaggerated.