The Birmingham age-herald., 1922-02-18
alks
 On Insurance

Tn my last talk the type made me say non-essental Mutuals whereas 1 wrote non-assessable Mutuals, m writing of the different classes ot Insurance Con panies.
 A non-assessable policy policy in which the contract provides that assessments be made on the insured and the limit of his liability under the contract is the amount of the premium charged
 Such policies issued by many Mutual Com- panies, who have Reserve Guarantee Fund to pro- vide for the payment of any losses which may in of the premium income and these companies instead of making assessments out of the profits of the business dividends totheir polcyhoders Some pay dividend at the end of the year and others pay in the form of lower rate than that charged by the Stock Tariff Trust Companies, an advance div idend at the beginning of the insurance!
 The dividends returned premiums rebates in the Mutual Companies from 10 to 70 per cent of the premiums paid and there business in Alabama who have had for several years returned to them dividends of 50 per cent of the premiums paid by them to Mutual Companies.
 The Guarantee or Reserve Fund referred to pro- vided by Mutual Companies serves the same purpose the Capital Stock of Stock Company that is the protection of the pocyhoder and cannot be used for any other purpose.
 The fundamental difference between Stock and a Mutual Company is that in a Stock Company the Stockholders get all the profits and interested in their being large possible, regardless of who else it may affect, while in the Mutual Companies the pocyhoders share in the profits and interested in keeping down fire losses and expenses much as possible.
 good illustration, of non-assessabe Mutual is the Mutual Life Insurance Company of New York. This IS purely Mutual Company which has paid millions of dollars in dividends to it's pocyholders, paid mil lions in loss claims accumul lated millions in assets and never made assessment on its policyholders.
 The Equitable Life starting off>with one hundred thousand dollars after paying millions in loss claims making millions in loans to poicyholders, paid millions in dividends to policyholders and made an as- sessment on them.
 The New York Life, another Mutual Company, has paid millions in loss claims millions in dividends and made an assessment.
 The Penn Mutual Life and other Mutual Life Com panies too numerous to mention, have paid dividends to policyholders for many years and never made an assessment.
 There is long list of Mutual Fire Insurance Com panies who have paid all loss claims large amounts in dividends accumulated large and made assessment on their poicyholders. One of these in Ohio is 36 years old, has paid over eight millions in losses returned six millions in dividends to it's policy holders and has cash assets of two million dollars
 
 Therefore, when agents of the Stock Insurance Companies or their employees or their hired men of whatever class members of the Insurance Trust which has taken many millions from citizens of Alabama in the form of overchages for insurance feeling the competition, attack Mutual Companies alleging that they are not good for claims against them, or that pelcyholders are liable to assessment show ignorance of the subject blinded by selfishness that they cannot see the truth are deliberately attempt ing to mislead and deceive the public.