Page Eighteen 



THE I. A. A. RECORD 



May, 19)2 



Auto Insurance and Farm 

 Supply Co.'s 5 Years Old 



Tremendous Growth in Volume 

 Business Revealed at Close 



■ r :,;<■[■: ■■^i:':'-:^:^ of 1931 -■■■'■■ -^ ■'■-:-■ -^n 



April 1 was the fifth birthday of two 

 business enterprises of the Illinois Agri- 

 cultural Association. ^ ' :: 

 :: The Illinois Agricultural Mutual In- 

 surance Company, organized to provide 

 Farm Bureau members automobile in- 

 surance at cost, issued its first policies 

 April 1, 1927. The Illinois Farm Sup- 

 ply Company, state purchasing agency 

 for Farm Bureau co-operative oil com- 

 panies, began operations on the same 

 day. 'J':\:rL: %;:, . '■'•:.:■-.. . 



The first automobile insurance policy 

 went to Josiah J. Bait of Bond county. 

 More than 3,000 Farm Bureau members 

 had already sent in apphcations for in- 

 surance before the company started is- 

 suing policies. By the end of the first 

 eight months the company had received 

 6,326 apphcations. Assets of the com- 

 pany at the end of this period were 

 $125,000. 



The Farm Supply Company started 

 business with ten county companies al- 

 ready organized and a number of others 

 in process of organization. By the end 

 of seven months the company had 14 

 member companies and had handled for 

 them a total of 3,500,000 gallons of 

 petroleum products. 



In contrast with its record at the 

 end of the first year, the I. A. Mutual 

 now has assets approximately $850,000 

 and has received to date more than 

 33,000 applications for insurance. 



The Farm Supply Company in 1931 

 handled for its 47 member companies 

 more than 33,000,000 gallons of pe- 

 troleum products. Total capital stock 

 in these county and district companies 

 aggregates more than $900,000. Farm 

 Bureau members received more than 

 $500,000 in patronage dividends on 

 last year's business. 



Two other associated companies '^are 

 older than these. They are the Illinois 

 Agricultural Auditing Association, or- 

 ganized in 1924, and the .Farmers Mu- 

 .^tual Reinsurance Company, which 

 started operations in 1925. 



Plans for the expansion of the Shelby- 

 Efiingham Service Company have just 

 been announced by Manager C. H. 

 Becker. The program includes the 

 building of a bulk storage plant in Ef- 

 fingham or nearby, and the addition of 

 three new truck salesmen to the num- 

 ber already operating. More than $6,400 

 in preferred stock was subscribed for 

 recently guaranteeing the success of the 

 extension program. 



Country Life Increases y 

 Assets 25% in Two Mos, 



Policyholders Achieve Outstanding 

 Record in Paying 1932 Premiums 



JOHN REUTTER OF IROQUOIS 

 CO. AND HIS THREE BOYS 



"John Reutter and his boys have three cars and 

 two trucks insured in the Illinois Agricultural 

 Mutual," writes Carl Irving, special agent, "and 

 all are policyholders in Country Life. 



"Mr. Reutter is a progressive Farm Bureau 

 member and takes an active interest in the wel- 

 fare of his community. He is a real booster 

 for the Farm Bureau." 



The three boys left to right are: Orville, 

 who drives an Iroquois County Service truck; 

 Earl, who handles a milk route from Cissna Park 

 to Kankakee; and Paul, who helps his father 

 manage the farm and 20 fine Holstein cows. 



March Leads in Farnn 



, Fires, Records Show 



There are more farm fires in March 

 than in any other month of the year. 

 March also leads all the other months 

 in the amount of fire insurance written 

 on farm property. This information 

 was gleaned from the records of the 

 Farmers Mutual Reinsurance Company. 



The fact that the company received 

 applications for more fire insurance 

 during the first week of March this 

 year than in any week since it started 

 business in 1925 indicates that hard 

 times on the farm are not causing 

 farmers to give up their fire protection. 



The large number of fires at this time 

 of the year is attributed to seasonal con- 

 ditions many of which might be avoided 

 by more caution on the part of the 

 farmer. One cause of March fires is the 

 fact that chimneys become stuffed with 

 soot near the end of winter, creating 

 an additional hazard. 



A 25 per cent increase in assets dur- 

 ing the first two months of 1932 

 is one of the newest records established 

 by Country Life Insurance Company. 



Assets of the company grew from 

 $1,201,000 on December 31, 1931, to 

 $1,494,000 on February 29, according ;. 

 to Manager L. A. WilHams. Country 

 Life established an unusual record last >. 

 year when its assets were doubled in 

 twelve months.??-" ;■ 'r:).'xj:''l ''\C-'':^y.'i"-: ■ ''-'/■'-, 



This rapid growth of assets is partly 

 accounted for by the fact that the 

 company has experienced a very low 

 mortality rate. Williams reported that ' 

 on children between the ages 0-15 the 

 mortality was only 11 per cent of the " 

 expected. 



Another factor that "Williams pointed 

 out is that the entire assets of the com- 

 pany are invested in the highest type 

 of bonds available. Country Life has 

 not had a single investment default in 

 principal or in interest. 



"The confidence of the policyholders 

 in Country Life is proved by the low 

 lapse rate," Williams said. "Out of the 

 $11,940,000 worth of insurance in 

 force in 1929, on which the fourth 

 premium was due in February this year, 

 all but 1 per cent paid the premiums 

 due. In other words, only $80,000 

 worth of insurance lapsed out of nearly 

 $12,000,000 in force in 1929." . 



Auto Insurance Company 

 Has Earned Premium Gain 



The quarterly financial report of the 

 Illinois Agricultural Mutual Insurance 

 Company shows an earned premium of 

 $89,961.31 as compared with $79,248 

 during the first quarter of 1931, ac- 

 cording to A. E. Richardson, manager. 



This is evidence that Illinois farmers 

 have not seen fit to go without auto- 

 mobile insurance. Approximately 1,000 

 new policies were taken out by Farm 

 Bureau members during the first quar- 

 ter. During the week April 18 to 23, 

 99 new policies were written. 



There seems to be quite a bit of trad- 

 ing going on in the state, judging from 

 the large number of transfers coming 

 in now, Richardson said. ' 



V. Vaniman, director of insurance 

 service for the I. A. A., says it costs 

 money to hurt people and to get hurt 

 in automobile accidents. If for no other 

 reason, the Farm Bureau auto accident 

 prevention campaigns are worthwhile as 

 a money saver, he says. 



Marshall-Putnam members are making 

 auto accident prevention a major proj- 

 ect in 1932. Other counties are con- 

 tinuing their safety work. Last year 

 work done by the County Farm Bu- 

 reaus in accident prevention is credited 

 with reducing farm auto accidents con- 

 siderably. An extensive drive is being 

 planned to make the 1932 auto safety 

 program the greatest the Farm Bureaus 

 have ever put over. 



He also mentioned the fact that 

 spring activity on the farm was caus- 

 ing a considerably number of farmers 

 to avail themselves of the employers' 

 liability insurance service, which costs 

 Farm Bureau members only about ll/z 

 cents a day per man employed. 



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