farmers' mutual insurance companies' union, 3(31 



business, you might as well begin to c-arry out your goods. There are 

 very few partial losses of farm buildings. If it goes beyond a couple of 

 hundred dollars it is pretty sure to take the whole building. In case light- 

 ning strikes a nine hundred dollar building and damages it to the extent 

 of one hundred dollars, 1 don't believe any mutual company can afford to 

 say they will only pay two-thirds of that loss. If the house should be 

 entirely destroyed it would be our duty to pay the full two-thirds for 

 which it was insured. In our by-laws we say we have a right to repair 

 or I'ebuild, and we do so. 



President Jones: You do not claim that section would be worth any- 

 thing if you only paid two-thirds the amount of any damage that might 

 occur to a building. You could not repair a $150 damage with $1U0. A 

 few years ago the old line companies doing business in Indiana agreed 

 upon a rule of co-insurance compelling the insured to carry a certain pro- 

 portion of the risk. If the insured did not carry 20 per cent, of the risk, 

 in case of a partial loss they would pay only 80 per cent, of it. Then the 

 Legislature of the State passed a law which prohibited that sort of in- 

 surance company doing business in the State. Now j'ou have not taken 

 the 80 per cent, rule, Mr. Clarke, you have taken the GG§ per cent. rule. 

 Would you not come under the statute of co-insurance because you com- 

 pel the insured to bear a part of the lossV 



Mr. Kelsey: Did not the Legislature exempt farmers' mutual insm-- 

 ance companies from that part of the law? I am sure it did. 



Mr. Mendenhall: Suppose the roof of a dwelling house should catch 

 fire and burn half of it off, what part Avould you take to adiist that loss? 

 Would you put on one-half of the roof, or would you simply put on two- 

 thirds of the part that was destroj'ed? How Avould you adjust that? 



Mr. Clark: We would not build anything or repair anything. We 

 would find out what the roof was worth, what part of it was destroyed, 

 and pay two-thirds of the value of the part destroyed. 



Mr. Tufts: We have a clause in our by-laws which provides that 

 we shall pay losses as they occur and as they are approved, up to the 

 amount of the policy carried. 



Mr. Heagey: I am here almost entirely for the purpose of hearing 

 this discussion. We have had this question up for some time. We have 

 consulted our attorney in regard to the matter, and he says there is no 

 law that will permit us to settle a loss on a partial basis; we must pay 

 the partial loss in full. We have revised our by-laws to provide for the 

 payment of partial losses in full. 



Mr. Clark: Many years ago when we were incorporating this clause 

 in our constitution our treasurer and myself differed in regard to the ad- 



