FRATERNAL INSURANCE IN AMERICA 235 



tions was found necessary in various societies is prima facie 

 evidence that the original scheme was financially unsound. 



A late and important failure illustrates this. At the time 

 of organization no attention was paid to mortality tables. 

 As the members began to grow old and the dues increased, it 

 was found that the assessments had been fixed too low to 

 meet the obligations. At various times since the institution 

 of the order it has been found necessary to increase the assess- 

 ments, but old members agreed to pay the increase because 

 they had reached an age when insurance in a regular life com- 

 pany could no longer be obtained. Another inducement for 

 continuing m spite of the larger assessments was the fact that 

 they had so much money invested in the organization that 

 they felt they could not afford to lose it. 



The proceedings of the National Fraternal congress for 

 1899 found that the rates paid for the same kind of insurance, 

 at the same age, in different societies, w^ere: at the age of 30 

 from 25 cents to $1.40; at the age of 50 from 65 cents to $3.80. 



Still more elaborate comparisons are made in the sub- 

 joined table, exhibiting, except in columns 1, 11 and 12, level 

 annual rates for $1,000 of w^hole fife insurance. Column 1 

 gives ages. Column 2 gives the net annual level premiums 

 based upon the American experience table, with 4 per cent 

 interest. Since net premiums provide for the so-called reserve 

 and mortality elements only, but not for the loading or expense 

 element, the premium actually collected, gross or oflftce pre- 

 mium, must be considerably in excess of what is indicated in 

 this column. The assumed rate of interest is perhaps too 

 high for a time when a number of leading companies are going 

 over to a 3 per cent basis. This would necessitate another 

 addition to the net premium, for the lower the assumed rate of 

 interest, the higher must the premium be. Column 3 contains 

 the net annual level rate per $1,000 of w^hole life insurance, 

 adopted and recommended by the National Fraternal congress. 

 Columns 4, 5, 6, 7, 8, and 9 show the rates collected by as 

 many different fraternal societies for $1,000 of whole life 

 insurance. 



For columns 5, 8 and 9 the annual rate was secured by 

 multiplying the monthly rate by twelve. The product is 



