Life — January 17, 1884 — page 16: what you’re looking at

Machine-transcribed from the original scan — historical spelling and the odd misread are preserved.

LIFE: TO THE PUBL THE success oe by The United States Mutual Accident Association of 820 and 322 Broadway, New York, has aroused the jealousy and envy of stock accident companies, who, aided by mer- cenary insurance journals, have heralded many false and garbled reports with little if any direct loss to the Association, the institution to-day being sustained by a solid membership representing the best class of business men in this country to the number of over ten thousand. The following comparison of figures speaks for itself, and must prove of interest to all who carry Accident Insurance. It affords a practical solution to the question: “How can the Unirep Srarzs Morvan AccIDENT AssOcIATION afford to insure a4 half the rates of stock companies ? That it does accomplish this, and that the Association éffects a saving of over a quarter of a million dollars per annum to its members in the cost of the insurance furnished, is known to its thousands of policy-holders, and is proved by its record of the past six years. From figures taken from the Insurance and Commercial Magazine and the Annual Reports made to the Insurance Department of the State of New York, we find that the Travelers’ Insurance Company of Hartford, (accident department,) received from 1866 to 1882—inclusive—$13,457,274, As only $5,333,571 of this amount was paid for accident losses and claims, $8,123,703 of the policy-holders money remained to be used for profits and expenses in conducting the business. For each $100 of claims paid, the policy-holders paid $152.31 for expenses of management. In 1882 the accident premium receipts of the same company were $1,819,313, from which were paid accident losses and claims amounting to $749,462, and for expenses $924,543, leaving a surplus to stock- holders of $145,308, for one year. The same company had in force December 31st, 1882, in round numbers, $173,000,000 of accident insurance. Their expenses for the year,were $924,543 or a cost of $5.34 per thousand of insurance then in force. This Association had at the same date $50,000,000 of accident insurance and expenses for the year of only $1.14 per thousand of the insurance then in force, showing on the above basis an average saving in ex- pense of $21.00 to each member holding a $5,000 policy at the end of the year. A comparison for the year of the average pro-rata of expense to each policy-holder, whether large or small, on the basis of membership December 31st, 1882, shows a saving in favor of this Association in the expenses of management of $7.55 to each member. On the same basis the comparison is further improved by the showing made that the entire cost (exclusive of the reserve belonging to members), for insurance in the United States Mutual Accident Association was only four cents per member over the sum used by the Travelers’ for expenses alone. Considering this comparison of figures it is not strange that the increase of members in this Association in 1882, was seven per cent. greater than in the above-mentioned company. In New York State where the merits of this Association are best known the Travelers’ had upon the lives of its citizens, 2619 less policies in foree December 31st, 1882, than they had December 81st, 1881. The Accident Insurance Company of North America had a total premium income of $114,335 from which they paid losses $27,588, and total miscellaneous expenses $78,132, showing that it cost that institution $284 for each $100 of. losses paid. The sharp competition brought about by The United States Mutual Accident Association for the accident insurance business of this country has induced the high rate stock accident insurance companies in order to save, if possible, their own business, to distribute broadcast throughout the land millions of circulars intended to defile the clean and illustrious record of this Association. They go back several years, when as an auxiliary to the Association a mechanic’s Division was formed, for the purpose of granting a separate insurance upon its own merits to that class of individuals, and when within a few months after the organization of such Division a death loss occurred, the full amount represented by the then existing mem- bers of that Division of the Association was paid to the widow. They:would have the public believe from their malicious and garbled statements that the Association does not pay its losses in full :—Whereas this Association does pay every loss promptly on receipt of proofs and for the full amount named in the policy. The Association at this date has not a single claim upon its books unpaid, nor one dollar of indebtedness. . Respectfully, 320 and 822 Broadway, New York, JAMES R. PITCHER, December 15th, 1883.