14 —s- BULLETIN 840, U. S. DEPARTMENT OF AGRICULTURE. 
Occasionally it will be found necessary or desirable to make a 
more detailed subdivision of the items found in the columns headed 
“All other receipts” and “All other disbursements,” respectively. 
Since the entries in these columns in the case of the average farmers’ 
mutual will be relatively few, such further classification of these 
items will involve but a small amount of work. 
The method of ascertaining the amount of insurance in force has 
already been referred to in connection with the book for increases and 
cancellations. It may be briefly summarized at this point. The 
amount of insurance in force at the beginning of the year will be 
the same as amount in force at the end of the previous year. The 
amount of insurance written will be found by adding to the sum 
of the figures in column 5 of the policy register entered during the 
year the sum of the figures in column 2 of the record of increases 
(Form 2, left-hand page). 
The net amount of insurance which has expired during the year, 
by virtue of the termination of the period for which it was written, 
will be found from the appropriate sections of columns 5, 7, and 9 
in the policy register. Assuming that policies are written for a uni- 
form period of five years, as is the case with more than two-thirds 
of the farmers’ mutuals, the net amount of expirations during 1919, 
for example, will be the sum of the original amounts of the policies 
written during 1914, plus the sum of any increases made to these 
policies, less the sum of any cancellations therefrom, as shown in 
columns 5, 7, and 9, respectively, in the policy register. To this net 
amount of expirations is then added the sum of all cancellations dur- 
ing the year, as shown in column 13 of the special book for increases 
and cancellations, which column should include all cancellations, 
whether of parts of policies or of entire policies the regular period 
of existence of which has not yet elapsed. The sum thus obtained 
will represent the total amount which has expired or been canceled 
during the year. 
The amount written during the year is then added to the net 
amount in force at the beginning of the year, and from this sum is 
subtracted the amount which has expired or been canceled during the 
year. The difference represents the net amount in force. 
Similarly, the amount in force in each class may be found by. add- 
ing to the amount in force in that class at the beginning of the year, 
the amount written in that class during the year as a part of original 
policies, plus the amount of all increases in the class for the same 
period. From this sum is then subtracted the amount in the same 
class which has expired or been canceled during the year. The sum 
of the net amounts obtained for the several classes should again give 
the net amount which the company has in force, and should, of course, 
agree with the amount obtained by the first process. 
