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REPORP OF THE COMMISSIONER OP INSURANCE.


inspection. We have investigated the books and records of the
exchange, and we find that this has been; carried out in full byy-
t4e aMttocnhy-in-f act.  Each .snlbseribher is credited with his
1--,wope-v (ldeposit premium against wliich. is cla rged his l)ro rata
shale of losses and expenses.
LOSSES AND CLAIMS
The exchange has been organized for such a short period of
time that it is impossible to state definitely the experience of
the company in regard to losses and claims.
From August 1st to September 27th, 1913, the exchange has
paid out to subscribers $345.51 for losses and claims. Its amount
of unpaid claims is comparatively small. It has four death
claims, which, according to the company's estimate, can be
settled for $1,300. One of these is in suit, and a reserve of
$700 has been carried on this claim. The estimated amount of
compensation on unpaid and unadjusted claims amounts to
$398.63, and the unpaid doctors' fees, $189.75. To, the com-
pany's estimate we have arbitrarily added for contingency the
sum of $2,000.
In the examination of the claims for indemnity, we were sur-
prised at the small amount for' which some claims were com-
promised. Many of these claims were delayed for a consider-
able period of time, but as most of the insurers in the exchange
were outside of the compensation aet, the defences set up by
the exchange seem reasonable.
It is the theory of the exchange that the relations of the
attorney-in-fact to the subscribers is not only one of company
to policyholder, but also one of attorney to client. Therefore,
the exchange advises it subscribers whether to stay outside of
the compensation law or to come under the law, depending upon
the nature of the aet. For instance, owing to some features of
the Texas and Illinois compensation laws, the attorney-in-fact
is advising his clients to stay outsider of the law, while in Kansas
he is advising them to come under the act. We are informed by
the attorney-in-fact that he expects to work in harmony with
the compensation law of this state.