UNITED STATES DEPARTMENT OF AGRICULTURE 
BULLETIN No. 786 
Contribution from the Bureau of Markets 
CHARLES J. BRAND, Chief 
j&?* < &SU 
Washington, D. C. 
May 28, 1919 
PREVAILING PLANS AND PRACTICES AMONG FARMERS' 
MUTUAL FIRE INSURANCE COMPANIES. 
By V. N. Valgeen, 
Investigator in Agricultural Insurance. 
CONTENTS. 
Page. 
Introduction 1 
Location of companies, date and 
method of incorporation 2 
Membership, votes, and annual meet- 
ing 4 
Directors and officers 5 
Hazards and risks 6 
Business territory 7 
Plan of raising funds and frequency 
of assessment _ 8 
Page. 
Liability of the insured 9 
Classification of property 9 
Method and cost of getting business- 10 
Salaries of directors and officers 12 
Adjustment of losses 12 
Surplus and refunds 13 
Reinsurance 14 
Conclusion 14 
INTRODUCTION. 
There are about 1,950 farmers' mutual fire insurance companies in 
the United States. These companies have in general shown a high 
degree of stability and have proved of much value to their members. 
The total amount of insurance which they now have in force exceeds 
$6,000,000,000. A questionnaire was sent out by the Bureau of Mar- 
kets making inquiry concerning the plans of organization and the 
business practices of these companies. The information contained in 
this bulletin is largely a summary of the replies to this question- 
naire. 
The organizations here classed as farmers' mutual fire insurance 
companies are those mutuals whose risks consist either entirely or 
very largely of farm property. In most States where these com- 
panies exist they are recognized as a separate and distinct class of 
insurance organization and operate under laws which practically 
Note. — This bulletin should be of special interest to the directors and officers of 
farmers' mutual insurance companies, and to those who contemplate the organization of 
such companies. 
104975°— 19— Bull. 786 
