44   BEST'S INSURANCE REPORTS—FIRE AND MARINE.

1i

BANKERS AUTOMOBILE INSURANCE COMPANY — Continued.

The examiners commended the prompt and equitable set- Other income       1,651 27

tlement of claims, but the method of disposing of the stock

and the keeping of stock records was very severely criticised. The report dated September 3, 1919, states: "To sum up, the accounting of stock transactions, as evidenced by the company's books, has been loose, improper and in-correct."

It writes a conservative volume of business. The expense ratio has been moderate for a young company and its loss ratio low. It has a good loss paying reputation.

Classes of Business Written.— It writes fire, theft, tornardo, liability, property damage and collision insurance on automobiles and tractors.

Territory.— Licensed in Iowa, Kansas, Nebraska and Texas.

Dividends.— It paid in 1919 a dividend of $10,000.

Officers.— President, Charles Maixner; vice-president, A. H. Armstrong; secretary, Frank Dwiggins; treasurer and general manager, H. W. Kenyon.

Directors.— Armstrong, A. H.; Dwiggins, Frank P.; Kenyon, H. WT'.; Lansing, Harry W.; Maixner, Charles; Sheakley, E. C.; Strode, E. C., Turner, Clark; Wertz, W. W.

Stockholders' Annual Meeting.— January 15th.

326.67; total, $26,306.60.

Loss on investments during 1919, $3,535.15; investment expenses incurred during 1919, $54620; total, $4,081.35.

08   Gain from investments during 1919. $22,225.25.

00   Gain and Loss Exhibit, 1919.—Gains: Underwriting,

24   $779.63; investments, $22,225.25; premium on sale of capital stock, $61,880; total, $84,884.88.

84   Loss from dividends, $10,000.

79   Surplus, December 31, 1918, $46,569.42; increase, $74,-

00   884.88; surplus, December 31, 1919, $121,454.30.

BANKERS FIRE INSURANCE COMPANY,
Lincoln, Neb.

TOTAL INCOME    $273,164 90

DISBURSEMENTS, 1919.

Net losses paid    $40,399 96

Underwriting expenses    102, 466 40

Dividends to stockholders    10,000 00

Other disbursements    6,404 72

TOTAL DISBURSEMENTS    $159, 271 08

Ratios to Premiums Written.— Losses paid, 20.8%; incurred, 34.4%; underwriting expenses, 53.0%; underwriting profit, 0.4%.

Ratios to Premiums Earned.— Losses incurred, 36.7%; expenses incurred, 61.4%; underwriting profit, 0.4%.

Underwriting Exhibit, 1919.— Premiums earned during 1919, $181,364.86; loss from underwriting profit and loss items, $2,549.92; total, $178,814.94.

Losses incurred during 1919, $66,593.15; underwriting expenses incurred during 1919, $111,442.16; total, $178,-035.31.

Gain from underwriting during 1919, $779.63.

Investment Exhibit, 1919.— Llterest, etc., earned during 1919, $21.979.93; profit on investments during 1919, $4.-

INCOME, 1919.

Gross premiums written    $239, 864

Less reinsurance    2,000

Less return premiums    44, 154

Total net premiums    $193,709

Interest, etc   15, 923

Premium on sale of capital    61,880

GENERAL REVIEW.

History.— This company was incorporated under the laws of the State of Nebraska on April 2, 1919, and was licensed January 26, 1920, and began business January 31, 1920, with an authorized capital of $2,000,000, of which, as of December 31, 1919, according to advices received from the secretary, $509,700 had been paid in, and a net surplus of $254,850.

A complete financial statement of recent date relating to this company appears in the " Addendum."

There was a very heavy expense incurred in selling the stock of this company, and it was only after some hesitation and a complete investigation that the State Department of Trade and Commerce finally issued a license to this company. The company's stock, par value $10 a share, was purchased under contract by the Bankers Brokerage Company, composed of three of the incorporators of the fire company, at $15 per share, with the agreement that this stockselling organization should also provide the company with an agency plant. It then proceeded to sell the stock to the public at $25 a share. The matter was aired through an investigation made by the Department, following which it required the brokerage company to make payment to the fire company of a portion of what it received from the stock.

The history of the transaction is given in the following statement to the public, made on January 28, 1920, by

Secretary Hart, of the Department of Trade and Commerce, of which the Insurance Bureau is a part:

"This Department has just grantfd a license to the Bankers Fire Insurance Company to do business in Nebraska. The articles of incorporation were filed April 8, 1919, and provided for a capital stock of $2,000,000, and a surplus fund of $1,000,000, the company to commence business when $500,000 of its capital is fully paid. The company deposited $100,000 in securities with the Department of Trade and Commerce on December 16 and made application for a license. The customary examination was made by the Bureau of Insurance, which disclosed that the company had on hand $500,000 cash capital and $250,000 cash surplus and' had sold 50,000 shares of stock the par value of which is $10.

" All of the stock of the Bankers Fire Insurance Company was sold to the Bankers Brokerage Company on an underwriting contract by which the Brokerage Company agreed to pay $15 a share for the stock and also establish agencies, both loan and business-writing agencies, in every county in the State.

"A complete examination of the books of the Bankers Fire Insurance Company and an examination of the con-tract between the Fire Insurance Company and the Broker-age Company convinced this Department and the Attorney-

eneral's office, who conducted the investigation, that the Brokerage Company made an exorbitant and unreasonable