February, 1933 



THE I. A. A. RECORD 



Pafe Twenty-one 



Auto Company Makes 

 Wonderful Record In '32 



President Smith and Manager 

 Richardson Report on Prog- 

 ress of Organization 



A. E. RICHARDSON 



Your company is to be congrat- 

 ulated for finishing the year with 

 the strongest financial statement 

 ever presented to its policyholders, 

 President Earl C. Smith reported at 

 the annual meeting of the Illinois 



Agricul t u r a 1 



Mutual Insur- 

 ance Company, 

 Peoria, Jan, 25. 

 More than 600 

 attended the 

 meeting. 



"The assets 

 now total $934,- 

 193.49 of which 

 $890,008.28 is in- 

 vested in high 

 grade bonds," he 

 said. "It is with 

 pleasure that I 

 report to you 

 that not a single bond of this com- 

 pany has defaulted either in in- 

 terest or in principal. 



"During the past year the pre- 

 mium earned was $363,756.94. This 

 item refers to assessments due and 

 paid. During 1932 Illinois farmers 

 purchased a greater volume of auto 

 and employers' liability insurance 

 through their own company than m 

 any previous year. A total of 4,723 

 applications were received for auto 

 insurance and 166 for employers' 

 liabUity. 



"While it is difficult to compare 

 costs for the reason that there are 

 many types of policies and many 

 methods of operations," said Mr. 

 Smith, "we can say without fear of 

 contradiction that this company is 

 saving its members more than " a 

 quarter of a million dollars annually 

 on auto insurance alone when com- 

 pared to the cost of similar insur- 

 ance in any other company operat- 

 ing throughout the state." 



,c 20,000 Claims Handled 



More than 20,000 claims have 

 been reported to the company since 

 it was organized. Of the large num- 

 ber filed there are only 46 unsettled 

 claims which occurred prior to 1932. 

 A year ago the audit report showed 

 a reserve of $111,207 to cover 520 

 claims which were open at that 

 time. All of these have subsequently 

 been settled except 46, and on 

 Jan. 1 this year a reserve of $54,051 

 was in reserve to take care of these 

 remaining claims. If it should take 

 all of this reserve, the company 

 would have disposed of the claims 

 open a year ago for $91,100.61 in- 

 stead of $111,207, the reserve which 

 was set up. 



Manager A. E, Richardson and V. 



Every chair filled at the Annual Meeting of Illinois Agricultural Mutual 

 Insurance Co. in the Fere Marquette Hotel, Peoria, Jan. 25. 



Vaniman, director of insurance 

 service, discussed briefly acquisition 

 experiences during 1932. Vaniman 

 reported on the accident prevention 

 work through the Illinois Farm Bu- 

 reau Safety Club. He later presented 

 Emory W. Parks of Macon county 

 with a silver cup awarded by the 

 Illinois Agricultural Association to 

 the County Farm Bureau most ac- 

 tive in accident prevention work. 



Agents Get Hats 



Manager Richardson awarded 

 three new hats to agents for the 

 company making the best records 

 during the December drive. The 

 winners were E. A. Carncross of 

 Cook county, R. P. Cothern, Ford 

 county, and D. J. Auble of DuPage 

 county. 



Mr. Richardson stated that there 

 was no consistent variation in the 

 loss ratio between the various sec- 

 tions of the state. Contrary to ex- 

 pectations, the policyholders in the 

 area closest to the largest metro- 

 politan center in the state had com- 

 paratively fewer accidents than 

 policyholders in some of the down- 

 state areas. He stated that there 

 has been a steady decrease in per- 

 centage of operating expense since 

 the company was organized. In 1927 

 operating expenses took 31% of 

 premium income whereas in 1932 it 

 required only 18.2%. 



Auditing Association 



Holds Annual Meeting 



THE importance of proper and 

 accurate accounting and audit- 

 ing for farm co-operatives and or- 

 ganizations was traced by M. S. 

 Winder, secretary of the American 

 Farm Bureau Federation, in ad- 

 dressing more than 100 delegates 

 and members at the annual meet- 

 ing of the Illinois Agricultural Au- 

 diting Association in Peoria, Jan. 

 25. 



M. S. WINDER 



Mr. Winder 

 praised the Illi- 

 nois Agricultural 

 Association for 

 its aggressive at- 

 titude and busi- 

 ness policies as 

 exemplified i n 

 the success of 

 the many service 

 companies each 

 has established. 

 He c a u t i oned 

 against too great 

 economy at the 

 expense of high grade service. 



Manager F. E. Ringham presented 

 details about the organization's 

 work during 1932 in which he re- 

 ported the completion of 366 audit 

 assignments for the 314 members 

 of the Association, 



Increase In Members 



The membership showed a net 

 increase of 13 for the year. He in- 

 vited the co-operation of all mem- 

 ber companies in an effort to se- 

 cure a better distribution of the 

 work of the auditors throughout 

 the year. He stated that every ef- 

 fort had been made to reduce op- 

 erating costs so that member com- 

 panies might benefit through lower 

 expense. He showed how the aver- 

 age service charge per member had 

 declined from $107.06 in 1928 to 

 $87.94 in 1932. 



A. J. Gilfillan of Watseka who 

 has served ably for many years re-; 

 tired as president of the organiza- 

 tion and member of the board of 

 directors. Directors and officers 

 elected for 1933 were Albert E. 

 Heckle, Quincy, president; Jesse L. 

 Beery, Cerro Gordo, vice-president; 

 Geo. E. Metzger, Chicago, secretary; 

 R. A. Cowles, Bloomington, treas- 

 urer; C. R. Hays, Normal; Henry H. 

 Parke, Genoa; R. H. Vorhees, Jer- 

 seyville. 



