152


REPORT OF THE COMMISSIONER OF INSURANCE.


the subscribers paid out for reinsurance against excess losses
$3,425.30, leaving the net deposit premiums $47,075.30. The
Exchange paid to subscribers for claims $7,710.96. Its un-
adjusted claims consisted of death claims amounting to $4,000,
temporary and permanent disability claims, $101,460. These
latter items were estimated. It returned to its subscribers in
dividends $5,684.68 and paid its attorney commissions to the
amount of $22,343.75.
The assets of the Exchange consist of cash in banks,
$55,075.17, and  deposit premiums in   course of collection,
$32,080.33, making a total of $87,155.50.   The reserve for
annual deposit premiums, according to section 1915m of the ANis-
consin Insurance Laws for 1913, was $31,383.25. The Exchange
owed the attorney-in-fact for commission, $9,215.56, and un-
paid reinsurance against excess losses, ;$2,017.18, making a
total liability, which includes the unpaid claims, of $57,065.99.
The surplus over all liabilities was $28,641.07.
BANK BALANCES
The bank balances were reconciled with the closing entries
of the cash book. The reconciliation is as follows:
Bank balance shown by bank books ...................... $58,095.76
Bank balance shown by books of Exenange ................ 55,075.17
Checks outstanding  ......... ......................  $3,020.59
OUTSTANDING CHECKS
Southwest National Bank .......   ...............    $188.50
Comnlerce Trust Company ...............................  2,832. 09
Total ..........................................  $3,020.59
THE AUDIT
The premium income was verified from the policy register.
All the disbursements were traced to the original checks and
vouchers. The claims of the company were investigated and
those that were unpaid were scrutinized. It was found that
while a considerable amount remained unpaid the great ma-
jority of the claims were settled promptly. There seemed to be
a generail tendency on the part of employers of labor, who are