The exchange has no advisory committee, but has an
agreement with a trust company, which provides that with
drawals must be made only for the purpose of payment of
losses and claim expenses, for the refund or return pre
miums, or for the payment of dividends at the close of the
year. The guaranty fund shown in the assets is available
under a trust agreement. for the purpose of reinsurance in
the event of a loss exceeding the cash reserve of the
Service of process may be made upon the attorney-in-fact
or upon the Insurance Commissioners of any State in which
the exchange is licensed to operate.
Business its secured through a sales farce in the employ
of the attorney-in-fact, and no business is accepted through
It is licensed in Pennsylvania, Michigan and Maryland.
Its statement as of December 31, 1919, is as follows:
Admitted cash assets: United States Liberty bonds, $10,-
188.70: interest due and accrued thereon, $836.23: cash in
banks and office, $39.374.28; premiums or deposits out-
standing not over three months due, $49.589.97; salvaged
automobiles held for sale, $2,500; deduct insurance for
factors of safety and theft preventatives. —$422.12: guar
antee fund. $93,000; total cash assets. $245,067.06.
Liabilities: Unpaid losses, $26,794.10; unearned premium
deposits, $136,206 OS; total liabilities, $163,000 15: net cash
eurpius, $82,066.SS: total, $245,067.06.
Cash Income, 1919.— Premium deposits written. gross,
$442,599.01; less return premium deposits, $73,035.55; net,
$369,563.46; interest, etc., $941.18; guarantee fund,
$18,000; other cash income, $31.18; total cash income,
Cash Disbursements, 19lit—Losses paid, gross, $203,-
187.67; less salvage, $15,360.20; less reinsurance, $S80;
net losses, $186.947.47: paid to attorney-in-fact for ad-
ministration expense, $92,347.24: unused premium deposits
returned to subscribers, $50.877.39: total cash disburse
9'ransactions Since Organisation.— Premium deposits re
ceived, gross, $1.02.8.273.26: less return premium deposits,
$187,202.13; net premium deposits, $841,071.13; interest
received on investments and bank deposits, $2,904.72;
guarantee fund, $178.005,18: accrued interest, $836.23;
other cash income, $31.44; total cash income, $962351.70.
Losses and adjustment expenses paid, gross, $409.730.53;
less salvage, $26,146.30; less reinsurance, $880; loss and
adjustment expenses paid, net, $382,704.23; commissions
paid to attorney-in-fact for administration expenses. $210,-
320.19; guarantee fund withdrawn for replacement, $25,-
008.19: total expenses paid, $618,032.60; returned in cash
to members, as savings, $99,752.04; total cash disburse
in connection with this report, see important article in
troducing this section.