FARMERS MUTUAL, FIRE IKSURAHCE COMPANIES. 9 



last five years, while 99 reported having made 2 assessments during 

 the same period; 135 reported 3 assessments; 116, 4 assessments; 413, 

 5 assessments ; 62, 6 assessments ; 26, 7 assessments ; 22, 8 assessments ; 

 and 21, 9 assessments. Thirty companies reported from 10 to 14 

 assessments, and 9 more than 15 assessments. The greatest nmnber 

 of such assessments levied by any one company during the last five 

 years was 29. Thirty-one companies did not report the frequency 

 of assessments. From the figures just given it may be seen that the 

 most common plan is that of annual assessments, while in the remain- 

 ing cases less frequent assessments than 1 per year are considerably 

 more common than more than 1 assessment during the 12-month 

 period. The plan of collecting in advance at least one year's esti- 

 mated cost of insurance, and the assessing in advance for each of the 

 succeeding years of the policy term, appears to be gaining in favor 

 among these companies. 



LIABILITY OF THE INSURED. 



Of the companies reporting, 829 operated under the unlimited lia- 

 bility plan, the insured obligating himself to pay his pro rata share 

 of all losses and expenses legally incurred by the company. Of the 

 remaining companies, 215 reported limiting the liability of the in- 

 sured to a specific amount, while 117 companies returning question- 

 naires gave no information covering this question. The average obli- 

 gation assumed by the policyholder in the companies which reported 

 limited liability was equal to $1.41 per hundred per year while the 

 policy remained in force. A special note was required as evidence of 

 the liability of the insured by 161 companies while the greater number 

 reporting, namely, 872 companies, relied on a clause in the insurance 

 contract for the validity of the obligation assumed by the insured. 

 One hundred twenty-eight companies reporting did not give in- 

 formation upon this point. It would appear, therefore, that less 

 than one-fifth of the farmers' mutuals limit the liability of the in- 

 sured, and that even a smaller proportion require a premium note. 

 The prevailing plan is that of unlimited liability, the obligation to 

 pay his proper part of losses and expenses being assumed by the 

 insured as a part of the insurance contract. 



CLASSIFICATION OF PROPERTY. 



The returns from 334 of the companies indicated that they made a 

 more or less elaborate classification of the risks insured, while 733 

 companies stated specifically that no classification at all was made 

 by them. The remaining 94 companies returning questionnaires did 

 not answer the question concerning classification. It may be added 

 that proper classification for premium and assessment purposes has 



