N, BULLETIN No. 530 
Su V4 Contribution from Office of Markets and Eural Organization 
See Poe CHARLES J. BRAND, Chief 
Washington, D. C. ¥ May 8, 1917 
THE ORGANIZATION AND MANAGEMENT OF 
A FARMERS’ MUTUAL FIRE INSURANCE 
COMPANY. 
By V. No -VALGREN, 
Investigator in Agricultural Insurence. 
CONTENTS. 
Page. | Page 
HME NOCUELLO Ie eee eer ee Renew AS ale ek Nes ie RES orplanke tamsuranCesas..050s.a2 50 12 
anpose ombnercompanys- fa: «. pels ea 2 | Liability of the company and of the insured. . 13 
SUSIIESSILEETM COL: ae aenee cee = sacs ce sane 3 | Reduction and cancellation of insurance_._- 14 
Membership and voting privilege._.........- Sia | MERE ES an GeaSSCSSIMeNESae eee a 2 ee et 15 
i OardronhkdineClOlse ae yes sae ae eee meee eae Sore Classifica bt OneOinI SS ais sess ra ka ee 16 
Oifficersiandscommiuibtees=---5--.2----45-6--= = GuimpettlementiollOsSesses-ose54- 2-022 0=. 52-82! 17 
Applications for imsurance: =. 22-2. - 5... 2: Sis WNCSCBV Crete eee ora o2 ac i 18 
MATS PEC ULONEO LIS KGery ae oe ee ee ee RL 10 | Amendment of by-laws and articles of incor- 
Rormmrandsterm ofpolicy=44---5.--- =) = INQ) Py OXOy Be a es ee Re ents 18 
Limiting the size of individual risks........- ft Suggestive organization and business forms. . 19 
INTRODUCTION. 
Farmers’ mutual fire insurance companies represent one of the most 
successful efforts at rural cooperation in the United States. Nearly 
9,000 such companies are in existence, with a total amount of insur- 
ance in force exceeding 54 billion dollars. These companies are 
increasing rapidly in number and size. In some States of the Middle 
West fully three-fourths of all insurable farm property is now 
insured in the farmers’ own companies. Organizations of this 
kind are found in every State except Florida, Mississippi, Louisiana, 
New Mexico, Arizona, and Nevada. 
The organization of a farmers’ mutual insurance company should 
be preceded by a certain amount of preparatory work. The legal 
Notrre.—This bulletin is intended mainly for two classes of readers—those contem- 
plating the organization of a farmers’ mutual fire insurance company and those desiring 
to improve the methods and practices of an existing company. It aims to outline 
principles and methods developed by successful companies of this kind and to set forth 
the advanced ideas held by their officers, rather than to discuss the subject theoretically. 
78934°—Bull. 5830—17——1 
