REPORT OF THE COMMISSIONER OF INSURANCE.


97


showed that the actual liability under these' items! was consider-
ably less.
Earnings to Policyholders
The amount of earnings paid to policyholders during the six
months ending June 30th was $322,962.86. The net premiums
received during this period were $296,223.10. It will thus be
seen that the earnings paid subscribers were considerably more
than the net premiums received. The earnings however were
not based upon the premium reeeipts for the same period of
time, but upon the earnings of the previous year. The amount
of com-mission paid the attorney-in-faet was $49,432.97.
Numnber of Subscribers
Th'lle total number of subseribers on June 30, 1913 was 466,
rand the total insurance in force was $139,117,191.77. The aver-
age amount at risk was therefore nearly $300,,000.00 for each
subscriber.
Bonds of Attorn-eys
The attorney-in-fa-ct and the deputy attorney-in-fact are each
bonded to the amount of $25,0010.00.
Books and Records
We found the books and records of this exchange to be very
comprehensive and well kept for' statement purposes.
The Audit
The amount of insurance carried by each subscriber and the
remniums paid were checked from the policy register. All items
of expenditure were verified from original sources. The bonds
and certificates of deposit were counted and verified. The bank
Lalance and the cash book of the company reconciled. The man-
ner in which the earnings of the subscribers were distributed
was investigated and we believe that the method adopted by the
exchange is fair and equitable to each policyholder. The min-
utes of the.advisory committee were read. The method of in-
specting risks and making surveys was investigated. As a core