A 



With the Associated Companies 



LIFE INSURANCE 



More t)i.in a thousand policvholilers, 

 agents, and others lainc out Jan. 2^ to 

 hear the report of ('oiintry Lite hisiir- 

 ance C onipany s rccordsniashinc per- 

 formance during; l';36 at the annual con- 

 ference in the LaSalle Hotel. 



Reports by the field men, Mielier. 

 Ramler, Graham, and Masching started 

 otf a busy mornint;, then followed dis- 

 cussion of mortality trends an<.l the an- 

 nual statement by Dr. Boland. medical 

 director, and Howard Reeder, actLiarv. 

 Man.iger L. A. Williams rounded out 

 the meeting with an inspirational adilress 

 in which he recounted the progress of 

 Country Life to a SlOO.OOO.OOO company 

 in less than eight years. 



Mortality experience for the year. Dr. 

 Boland said, was only 26.7^r, which 

 keeps the five-year average at approxi- 

 mately 26. *> per cent. This record is at 

 least -iO (K-r cent lower than the .iver.ige 

 of other companies of comparable size. 

 Most comjMnies have a mortality experi- 

 ence running -lO per cent or more of the 

 American table of mortality on which 

 rates are based. 



Ab>out 6l"^r of the company's business 

 is non-medical. Mortality experience on 

 this business is 2^:)<'(. On the ^6^/r 

 of medical business, the mortality figure 

 was 2S' ', . This higher rate is due to the 

 fact that the medic.d group mcludes per- 

 sons in three classifications as follows: 

 1. Impaired risk: 2. large amounts of 

 insurance; 3. applicants beyon>l >0 years. 



Seventy-six per cent of C'ountry Life 

 policy holders are males. 2 Kr females. 

 Mortality • in the male ilivision was 

 2y..S',f . iemale only \f''^'f ■ "This low ex- 

 perience is imusual an>.l is due in large 

 part to very strict underwriting rules;" 

 Dr. Boland said. Mortality experience in 

 the 12 year term group (S3.<il "^.OOO) was 

 3-1. '^""r * - substantially higher than in 

 the permanent insurance plans. 



I'ollowing arc the age groups, the 

 amount of insurance in each, and mortal- 

 ity experience: Age 0-1 l. over Sl'^.COO.- 

 000 in force, mortality 19.Tr; \'^-M) 

 yrs. about $3 3,000,000 in force, mortality 

 2-1.3'^^; age 3I-'lO $22,000,000 in force, 

 mortality 29.6':; ; aue il-^(). SK^^OO.OOO 



in force, mortality 2^'^f : .vj.c "11-60. S3.- 

 ?00.000 in force, mortality iLl*;;; ,ige 

 61 and over. S2-) 3,250 in force, mortality 

 experience 5S.''^; . 



Death claims of S221.920 were paid 

 durmg the year. Lxpected mortality last 

 year was SS31,5S6.33 showing a mortal- 

 ity saving of S60y,666. (Guises of death 

 to policyholders were as follows: diseases 

 of heart, blood vessels, kidney, 27.8^^ ; 

 accident I'^.H'^; pneumonia WAf'r; 

 acute intectious diseases (scarlet fever, 

 diptheria. small pox etc.) 8.2*"; ; ap- 

 )xndicitis "'f ; cancer ~'', ; suicide 

 ?>.X'^f : miscellaneous ^V'i. 



AUTO INSURANCE 



Breaking all records of service and sav- 

 ings to I'arm Bureau members of Illinois, 

 the Illinois Agricultural Mutual Insur- 

 ance Company wrote 13,8Si new policies 

 in 1936, Earl C. Smith, president of the 

 company reported to more than 1,000 

 policyholders and .agents at the annual 

 meeting January 2~, in the LaSalle Hotel, 

 (^liicago. 



This new business brought the total 

 policies in torce to '>'i,691 at the end of 

 the year. President Smith revealed. Sin.e 

 1927 the company has enjoyed a .steady 

 increase in both the amount of business 

 written and total assets. Ihrec types 

 of services offered by the company are; 

 complete automobile insurance, employers 

 liability insurance, and protection of i-H 

 (dub cabes. 



A. L. Richardson, manager of the com- 

 pany, showed graphically how each pre- 

 mium dollar is spent. The major portion, 

 65.1 cents, goes b.ick to policyholders to 

 meet losses or as dividends. Last year 

 59.3 cents went to cover losses incurred 

 by policyholders; 5.S cents were returned 

 as dividends; 12.6 cents were s.ived as 

 surplus; 9.3 cents paid for administrative 

 services; in\estigation and adjustment in- 

 cluding legal scr\ices took 11.5 cents of 

 the premium dollar; corporate manage- 

 ment cost only .7 cents of the total in- 

 come of the company. Man.iger Richard- 

 son pointed out that this last charge is 

 extremely low when it is compared to 

 similar costs of other companies in the 

 same business which often run as high as 

 .^.^'■:''r of their total income. The re- 



maining .S cents was spent to pay per 

 diem expenses of the directors, and for 

 re- insurance. 



Summing up the total expenditure of 

 the premium dollar, Richardson con- 

 cluded that the I-arm Bureau members 

 of Illinois pay only for the ser\ice they 

 receive. Premiums to the extent of SH90,- 

 H37.70 were paid into the company by 

 policyholders last year. Of this amount. 

 S527,882.13 were paid back to policy- 

 holders w ho suffered losses. 



L. C. Drake, superintendent of • the 

 company's claims department, reported an 

 increase in the number of claims handled 

 during the year. Higher farm income 

 was given as the main reason for this in- 

 crease, l-arm folks are buying more cars, 

 taking out more policies, and travelling 

 more and farther, Drake pointed out. 

 With 17,971 claims filed during the year, 

 the total loss experience of the company 

 remains at a satisf.ictory level. Thirty- 

 four per cent of the policy holders filed 

 claims in '36 compared with 13.99f '^^ 

 first year of the C^ompany. 



( . M. Se.igraves, director of the I. A. A. 

 department of safety, told the policy- 

 holders that 66 per cent of the cars tested 

 in the state during the year by the I. A. A. 

 Safety Lane ecjuipment were found to be 

 in an unsafe driving condition. He said 

 that 8 3 percent of the cars rejected did 

 not have adecjuate brakes. 



It behooves the policyholders to co- 

 operate in controlling the volume and ex- 

 tent of accidents, as premiums of insur- 

 ance are in the long run determined by 

 the loss experience of the company, ' 

 Mr. Smith said. 



In the discussion which followed the 

 business meeting tliere were several re- 

 cjuests for personal accident policies. 

 When Donald Kirkpatrick, secretary of 

 the man.igemcnt board showed that it is 

 impossible to offer satisfactory polii ies ol 

 this type for less than $20 annually, the 

 group voted to postpone consicjeration. 



Less than 7 percent of the farmers 



of Maine and Massachusetts are tenants. 

 The highest percentages are found in 

 the South, with about 70 percent of the 

 farmer.s of Mississippi classed as ten- 

 ants. C^ornbelt states such as Iowa, 

 Illinois and Nebraska, have a higher 

 than average percentage! of farm ten- 

 ants. 



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24 



I. A. A. RECORD 



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