The Wichita daily eagle. [volume], April 04, 1894, Page 8, Image 8

About The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906

Image provided by: Kansas State Historical Society; Topeka, KS

                
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THE BANKERS LIFE ASSOCIATION OF DES MOINES, IOWA
EDWARD A. TEMPLE, President. O. B. AYRES, Vice President. LYMAN COOK, Treasurer.
P. M. CASADY, Assistant Treasurer. ' E. E. GLARK. Judicial Director. -Dr. GEO. CLARK, Medical Dirccor.
SIMON CASADY, Financial Director. A. C. STILSON, Secretary. Dr. W. J. LATTA, Medical Examiner.
J. C. BUFFI NGTON, Cashier. . H. S. NOLLEN. Auditor.
"Was organized in 1879, under the patronage of a number of Bankers in Iowa, Illinois and Nebraska. They believed that a carefully devised plan of Life Insurance, built upon the conservative
ideas prevalent among bankers, could be made to serve the purposes of the average business man quite as well, if not better than the system then known to the public.
Recognizing the very important fact that stability and permanence were the first features to be considered, the promoters introduced the Guarantee Fond System as the basis upon -which all con-
tracts should be founded.
In this act they adopted a feature recognized
In this ffuarautee fund they found an am
ized by law as applicable to Fire Insurance, but which had never been applied as a means of securing the fulfillment of Life Iu&urance Policies.
Lple substitute for the excessive reserve required under the level premium systemr and by a just method of taxation based upon this fund, they
found a
The promoters provided further that the (jtaarantee x unci, which stands as a pledge or good faith on the part ot each member during his life time, should in the event of
bership be paid to ins oenenciary. this is uquitaoie in every sense or me wora, ana 11 at nrst signp it migm, oe considered a dangerous source ot depletion, the operation of the
years demonstrates to the contrary, the total sum ot these payments during that period being but $Z5,bI0, while the death losses paid have been $,275,306.77, and the
rrfflii for eaualizms the cost of Insurance among members proportioned to their different ages.
ISTot only this, but they found it an invaluable stimulus to cohesion so sadly wanting in all Life Associations wherein results depend simply upon the disposition of the member when called upon to
pay his share of losses and expenses.
" And last, but not least, they found a method for protecting the member against excessive cost of Insurance, by forming a Surplus Fund, from lapsed guarantees and interest on investments, with
which to pay death losses in excess of i per cent, per annum of the membership. The value of this Special Feature can be best understood by the operation of the vear 1S93, during which the addi
tions to this fund were over L6 per cent or tne amount paid ior cieatn losses during cue year.
his death during mem'
system for fourteen
Guarantee Fund has reached
$913.30;
The promoters avoided excessive taxation of members for the accumulation of useless assets by simply providing for sufficient funds to pay current losses and to secure the payment of those of
the future through the Guarantee Fund before referred t
They avoided extravagance in management by simply providing a limited sum for expense of a business economically conducted.
They avoided at once the temptation and the opportunity to speculate with Company Funds by securing the passage of a law prescribing the character of the securities in which its permanent
funds should be invested, and requiring their deposit with the state as a pledge for protection of members.
They avoided the liability to excessive mortality by strict medical examinations, by limiting membership to unhazardous occupations, and by requiring the approval of a local banker upon all ap
plications, as well as his personal recommendation of agents and solieitors.
Thev avoided the large losses incident to other systems through irresponsible agents, by requiring that all payments from members, as well as those from the Association in settlement of death
losses, should pass through designated depository banks,
Bankers and other influential business men, to whom the foregoing plans were presented, readily foresaw in this system not only a certainty of results as to the financial ability of the company
to meet all just claims, but such attractions in the nature of low cost and ample security as would insure continual additions to the membership in the future, and upon the faith of their convictions
as to the soundness of the system, readily gave their names, their patronage and their influence toward the building up of an institution which has become the pride of its promoters and a credit to
the fraternity whose name it bears, as well as to the state of Iowa, which granted it a charter, and whose laws afford the fullest protection to its resources and to the interests of its members.
Fourteen years of well directed and conscientious effort on the part of the management within the most conservative lines enables it to place before the public the folio win"- showing 4
ASSETS.
In First Mortgage Liens on Real Estate
In Municipal, County and School Bonds
In Iowa Insurance Department in Trust for Policy Holders
In Missouri Insurance Department
Securities in Home Office -
In Guarantee Notes of Members - -
In Treasury and Banks - - -
$ 721,700.80
120,400.00
$ 840,900.80
1,000.00
1,200.00
334,615.40
66,524.43
$1,244;240.63
Total 3STet Assets, December 31, 1893,
SUliFLTTS.
Certificates of membership in this Assodiation terminate if not renewed by a
quarterly payment due in January, April, July and October of each year hence the
legal Insurance Liability of the Association, ascertained by tne law of reserve and
mortality applied to level premium companies is the sum or money required to pay
claims during the current quarter.
The sum thus required December 31, 1893. was - $ 136,668.00
The Surplus Assets on that day were - - 1,107,572.63
Insurance Written in Iowa During 1893 $3,326,000.
Statement Showing the Increase of Business in the Association from
July 1, 1879, to December 31, 1893.
Total Assets
COSTS.
$1,244,240.63
The estimated maximum cost for $1,000 Insurance is $14,00 per annum on
age 40, other ages in proportion.
Members are protected in this low rate by a Surplus or Emergency Fund com
posed of interest and lapsed guarantees, which increased $71,115.11 in 1893, and
which now amounts to $316,596.81: this Fund being pledged for payment of any an
nua cost resulting from a possible death rate in excess of ten to the thousand.
Expense of management per $1,000 Insurance for 1893, including cost of
newDusmess ------
Average cost per annum, age 40, for 1,000 Insurance, fromlS84 to 1893,
inclusive -
POLICY ACCOUNT.
$2.38
DATE I rtftic1113 Guarantee and
Issued. Surplus Funds.
June 30, 1880 . . : . : J ISO $ G,8'J9.50
June 30, 1881 . . . . . , 246 9,32S.32
June 30, 1882 .....,.' 623 24,801. SO
June 90, 1883 . - . . . . l,5Sl 59,321 S9
June 30, 1884 . .; . 3,648 123,529.44
June 30, 1885 . ...... . ' . . 5,100 178.726 43
June 30, 1886 . . -, ". w . . t. l 7,041 249.605.41
June 30, 1887 . . . ' . ' . '",. 8,822 303,406.11
December 31, 1887 v. .. .. .. fc . ' ". 9,911 384,347.23
December 31, 1888 ."" . . . . . .'-." 12.630 444,78947
December 31, 1889 . .. . " . :. 15,253 547,17211
December 31, 1890 . . . . ' . 18,795 684,21199
December 31, 1891 ..... 11,592 833,484.81
December 31, 1892 ..... 27,701 10'J9.209 70
December 31, 1893 . . . . 32,953 1,229,803.81
In Force December 31, 1892,
Written and Kestored During 1S93
Total - - . - .
Terminations
By Death .
By Lapse
By Cancellation
Total Terminations 2124 for
Total in Force December 31, 1S93, 24,685 for
$ 326,000.00
3,840,000.00
82,000.000
$7.48
$43,044,000.00 -
10,574,000.00
$53,618,000.00
i
I
$ 4,248,000.00 t r
$49,370,000.0
The following letter is printed by kind permission of Henry W. Rule of this
city, who has held policies to the amount of $6,000 for the past twelve years in the as
sociation. This will give some idea of the practical workings of the system:
DES MOINES, IOWA, Jan. 17, 1894.
HENRY W. RULE, 108 E. Second Street, Wichita, Kansas.
Dear Sir "We have your favor of the 11th inst, with draft for $9.00 for pay"
ment of Call 43. We enclose voucher and, as requested, a statement showing the to"
tal cost of your insurance to date, including the $96.00 guarantedfund which we are
holding in trust for your beneficiary. You will see that the total cost to you has been
$474.87, this amount paying your assessments since your admission, almost twelve
years ago. This would be at the rate of $36.57 per annum for the $6,000 insurance,
or $6.60 per $1,000 per annum. Yhile the association has furnished you with this
cheap insurance we have been accumulating a surplus fund which provides agaiust
excessive cost in years to come. This fund now exceeds $300,000, and is increasing at
a rapid rate. You will see that while we furnish our members with cheap insurance
we are at the same time accumulating a fund that will protect them from an exces
sive death rate. We will greatly appreciate any favors shown Mr. Cherry in the way
of introducti n to your friends. In view of your long connection with the associa
tion this should be of valuable assistance to him. Yours Truly,
A . C. STILSON, Sec.
The following extract from an editorial in a prominent Journal devoted to the interests of level premium insurance is evidently dictated by an honest
rstem ot JLile Insurance
NSOLICITED, and therefore
may
llie following extract from an editorial in a prominent Journal devoted to the interests of level premium insurance is eviden
desire to do full justice to the Bankers Life Association of Des Moines, even though the writer prefesses to have no faith in any sy
except that operated by the "Old Line" Companies. His comments are based upon the Annual Report of 1892, are UNSOLK
worthy of quotation for the benefit of "whom it may concern." :
THE BANKER'S LIFE ASSOCIATION OF DES MOINES, IOWA. .
lms 1S an association doiug business upon the assessment plan. It claims to be providing life iusurance by improved methods, upon terms and conditions peculiar favorable to ite
patrons. It has made a record, a very honorable one, having done business thirteen years, and presents a financial statement that invites attention.
"Ihe foundation upon which the association is built consists of a deposit or entrance fee, paid by each member, equal to one dollar for each year -of his age on each $2,000 insurance, as
a guarantee that he will make the paj-ments necessary to keep him in good standing. In case of death this deposit is returned by the association, but is retained in case the member lapses his cer-cincate-
"These deposits now aggregate over $S00,00O. The funds are invested in the most approved securities and deposited with the state of Iowa as permanent custodian, under the laws of that
state, Iowa being the only state requiring the deposit of the entire reserve of the Mutual Benefit associations with the state.
Apparently no other provision can be devised which affords so complete protection to members of associations of this class. It is the same made by the state for the security of policy holders
in level premium companies, incorporated under the Iowa law which has given such prestige to the life companies of that state. . .
4. j.1 ' , e succe''s of tne Bankers Life.Association of Iowa has been remarkable, but it is not to be commended so much for its success as for the fidelity of its managers in administering upon the
C rust thev have created, for the care of which they are responsible. '
"Evidently they have realized the serious" nature of their obligations to, the members of the association, as thev have resort to the most approved methods of obtaining business through the
co-operation and influence of the most respectable and trusted class of business men in everv communitv where the association has been established. It has not burdened its members with heaw
vroriong expenses, nor excessive salaries of officials. On the other haud, it is difficult to understand how its affairs could have been conducted with such efficiency and at so low a ratio of expense.
It has proven an example of assessment life insurance conducted bv methods that are eminentlv respectable and worthy. In all these it has our hearty commendation and we unreservedly
endorse its management as entirely worthy the respect and confidence of its members so far as abiiitv and integrirv is involved in its business management So far as the question of financial
solvency is concerned we concede the point that only by the grossest mismanagement or rascalitv will it ever faiL "
HOME OFFICE, MARQUARD BLOCK, DES MOINES, IOWA.
-n ,t ?luJee 01 0Ul' experienced and successful solictors wanted at once. To those who can procure business when an opportunity is presented we can offer facilities that are unequalkd
For. f urta- information as to plans, rates, etc. Call on or address
H. A. CHERRY, Manager Southern Kansas. Hotel CareF. WicMta. Kan.
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