14 BTJLLETIX 786, TJ. S. DEPARTMENT OF AGRICULTURE. 
of these companies operate strictly on the assessment plan and collect 
from time to time from their members only such amounts as will 
suffice to pay losses and expenses. 
REINSURANCE. 
Eight hundred ninety-one of the 1,161 companies returning ques- 
tionnaires gaye replies to the question covering reinsurance. Of 
these only 67 reported haying a part of their risks reinsured, while 
824 companies stated specifically that none of their risks were re- 
insured. Suitable reinsurance facilities are among the great needs of 
many of these companies, a need that only recently has begun to be 
more generally recognized by them. In one State, namely, Iowa, a 
special reinsurance company has been organized by the farmers* 
mutuals, and in Illinois the law was recently amended so as to permit 
these companies to place reinsurance with one another. Such privi- 
lege has for some time been granted by the laws of Wisconsin, Iowa, 
Missouri. Xebraska, Kansas, Kentucky, and Colorado. The Minne- 
sota law permits the companies to write joint or concurrent insurance 
in conjunction with other farmers' mutuals. on property located out- 
side of the prescribed business territory. All State laws on this sub- 
ject should permit the farmers' mutuals to reinsure a part of their 
larger risks with one another, and should also permit these com- 
panies to write policies of joint or concurrent insurance outside of 
their special territory in order that they may be encouraged by one 
jDlan or another to avoid exposing themselves to excessive, losses. 
CONCLUSION. 
The preceding summary, while pointing out the prevailing plans 
and practices among farmers' mutuals, also brings out clearly the 
variety in such j)lans and practices. In 16 of the States, associations 
of mutuals have been organized. These associations hold either an- 
nual or biennial conventions at which the officers of the member com- 
panies have an opportunity to compare methods and discuss plans 
for the improvement of their organizations. Such associations should 
be formed in all States where farmers* mutuals exist. The National 
Association of Mutual Insurance Companies, which holds annual con- 
ventions, is in large measure composed of farmers' companies. The>e 
intercompany associations are a powerful influence tending toward 
the improvement and standardization of the plans and practices of 
farmers' mutuals as well as of other mutuals that avail themselves of 
membership in them. While rigid uniformity may not be desirable, 
a reasonable approach to uniformity in the plans and practices of the 
farmers' mutual fire insurance companies, at least within a given 
