.xi.


REPORT OF THE COMMISSIONER OF INSURANCE.


unearned premium reserve of about $50,000; making the total
assets nearly $97,000. The amount of insurance all written for
one year was $5,388,000.
If the premium charged were 100% of the regular premium,
it would be possible to maintain on all such new premiums the
full unearned premium reserve and also to pay all losses and
expenses, and leave a margin for returning dividends. The
effect of a lower rate of expense on the higher premium and
of possibly reducing the loss ratio through carefully selected
increased business would also enable the laying by of a surplus
to gradually build up the unearned premium on the old business.
The change from the old method of doing business to the new
would undoubtedly be accompanied by some disturbance; but
whatever the member receives in return in a dividend at the
end of the year is just that much gained over carrying insur-
ance with the regular companies at the regular rates, and the in-
creased stability and confidence resulting could not fail to in-
crease the business of these companies.