We were advised in January, 1919, by the Superintendent
of Insurance of Illinois, that when the exchange received
its license to commence business, January 4. 1919, it hact
applications from 102 members, which made a total of
insurance in force of $455,400, and that from the various
subscribers they had collected $3,547.99, this money be-
longing entirely to the subscribers, the manager having de-
ducted his compensation.
The unearned premium liability is small in proportion to
the net premiums written during 1919. and the net cash
surplus is but $6,672.10, also small.
This exchange is licensed in Illinois only.
The Advisory Committee, as of October 16, 1919, was as
follows: A. L. Castle, treasurer Channon Emmery Stove
Co., Quincy, Ill.; E. P. Compton, vice-president Quaker Mfg.
Co., Chicago, Ill., and E.. F. Frazer, president W. S. Frazer
Company, Elgin, Ill,
Its statement as of December 31, 1919, is as follows:
Admitted cash assets: Bonds and stocks owned (market
value), $7,150; interest due and accrued thereon. $6.13;
cash in banks and office, $2,42S.S9: premiums or deposits
outstanding not over three months due, $7,547.80: total
cash assets, $17,132.82.
Liabilities: Losses, adjusted. due, $467.38; not due,
$300; total, $767.38; unearned premium deposits, $7,687.62:
due attorney-in-fact for administration expense, $1,938.22;
reinsuranee, $67.50; total liabilities, $10,460.72; net cash
surplus, $6.672.10; total, $17.132.82.
Cash Income, 1919.—Premium deposits written, gross,
$50.561.10; less return premium deposits, $14,637.46; less
reinsurance, $481.25; net, $35,875.39: interest, etc., $17.59:
total cash income, $35,892.98.
Cash Disbursements, 1919.—Net losses paid. $9,904.03;
paid to attorney-in-fact for administration expense, $8,-
613.40; legal expense, $60.59; taxes, licenses and fees,
$179.35; other disbursements, $202.44: total cash disburse
Transactions Since Organization.— Premium deposits re
ceived, gross. $50,561.10; less return premium deposits,
$14.637.46: less reinsurance, $48.25; net premium deposits,
$35,875.39; interest received on investments and bank de-
posits, $17.50; total cash income, $35.892.98. Losses and
adjustment expenses paid, net, $9.993.56: commissions paid
to attorney-in-fact for administration expenses, $8,613.40;
other expenses paid, $269.52; total expenses paid, $8.882.92;
returned in cash to members, as savings, $83.93: total cash
In connection with this report, see important article in
troducing this section.