The diamond drill., 1911-07-29
maccabees to Raise Rates


raised.
A special session of the great tent
has haen called TO meet next September
at which the rate increase will DO tax
en- M.
However the Maccabees are not the
only onas affected Every insurance
order will within few years nave 70
repulate their rates in accordance WIN
the state laws which are quite uulloIn "
"a their requirements. The Woodmen
grand camp will mtet in January
when the rates Of that order wili oe
put on a proper basis
Commander Lovelace. in discussing
the matter says
uAu fraternal beneficiary societies
instituted % or more years ago were
organized under a wrong OASIS Oh IN
suraace. Several years aGo. through
the efforts OF the National Fraternai
Congress. strictly scientific MORTALITY
table was prepared which met with
...N
the !, ,armest approval and Endorsement
of the various state commissioner ~
insurance. Many societies ~ tho ~
y d nave already readjusted their
rates 10 conform to this table others
are preparing 20 do 50, among tne"
the Knights Of the Modern MaccaDees'
uWhen il is understood that the
change is made mandatory by the atti-
tnde Of the insurance commissioners
with whom we fully agreel It VIII do
readily understood that no other course
is left open for us. Besides TINS reau
oustment guarantees eafety and protec-
tion 10 all bsnsticiaries.
1.-THE X. o. T. M. M. Is a Michigan
institution. organized In THIS soa'o
with heaquarters located here. anu
nearly all It's business done in Micni-
gan. Wa have paid out in Dement'S uur'
ing the past 80 years more than VI"
200 600 and nearly every dollar usS
been paid TO the wife or child Oh
Michigan resident.
"It has been apparent for some years
tnat the system upon which our cur
rent cost membership of the socieey
was originally established is wrong.
uThe history Of our society has peeh
identical with that of every other cur
rant cost organization or society wnicn
collected less than sufficient to proviao
for ,he intimate payment OF all its Gel
tifcaves.
',In tho early years, there are rapiu
growth..an enthusiasm. low deatn ra'e
and very small cost. As years go oS
and more and more of the membership
become concentrated in the older ages
the death rate increases and greater
number Of assessments are necessary 20
meet the mortality cost. With the IN
creasing uunlber of these calls, dissat
isfaction arise among the members,
lapsation sets in and 1t Is impossible 20
grow.
aThis society reached its high point
in 1904. Up to that time It had never
called more than elk assessments In
any one year. Its membership was
1876. 500. With that year we were com
pelled TO commence levying additional
assessments To care for the mortality
cost. While II required 20 years for
our assessments to increase from one 10
seven, the past seven years have result
ed in an increase from the latter mum
ber 70 i2, all of which are required TO
meet.the current mortality and old age
disability losses OF the year.
with tae increasing number of as
sessments. il became practically impos.
sible for the society to write new busi'
ness upon that plan in competition
with other societies on the sane basis,
which were organized later than we
were had lower death rate and could
furnish protection at less cost on ac'
count OF tho membership being distri
buted within the Admission OF entry
ages A continuation upon the preaenl
basis must inevitably result, within u
very short space of time. in the levy
ing OF double headers
Each additional assessment results
in the driving out of large number
OF the younger and most desirable
risks. leaving ethe society with a con
stantly increasing number OF old mel
or impaired risks. Under the present
system. each year the society p-acti
cally stands on new basis with il
membership ono year older than II wa
the year previous.
"Our older members. having no &C
cumulations aud retaining the sam
rate under which they entered the 30
ciety. are now being carried at YER.
serious loss.and their deficiencies mus
be made up by appropristing- the con
- a. A