BEST'S INSURNCE REPORTS — FIRE AND MARINE.

utS9

AUTOMOBILE INSURANCE EXCHANGE,

Seattle,

History.— This is an inter-rneurance exchange which was
organized and commenced business March 15, 1919.
Management and Reputation.— The attorney-in-fact and
manager is Charles Sumner Best., Seattle, Wash., who has
iad long insurance experience. He had his early training

n the last. but has been actively 'gaged since 1906 as a
ar:tl agent at Seattle He bars an excellent reputation.
Plan of Operation.—The escltange writes fire, theft, lia
dility, collision and property damage on automobiles, fol
owing conference rates and rules in the main. but accept
ng fire, theft, liehilit-y- and coaision at from 15% to 2.5%
liseount from the conference rates, and writing at a dis
ount of from 10% to 15% below the conference rates
ehere full coverage is effected. No reduction is made on
troperty damage coverage. The largest gross a;zcregat i
mount insured in any one hazard is $26,000, and the
arg. st net amount $12.000. No risk is accepted unless the
subscribing member executes a power of attorney, and no
ire is accepted until the owner of the car makes a corn-

statement and a full loss record of applicant is
iecu red.

The Advisory Board is composed of some of the most
nfluential men in the State of Washington, and it is
thinned to enlarge this body considerably during this year
ty adding to it a number of other substantial business men
vho will thus represent the exchange in each locality of
size.

The Advisory Board elect from their number an execu-
,ive committee, who meet with the attorney and manager
mce a month and keep in close touch with the operation
tf the exchange, and they report their findings to the other
members of the Advisory Board.

On March 15, 1920, the attorney and manager informed
is that the exchange had three hundred and twenty-five
subscribers and insured risks in the number of about four
tundred.

It is licensed in the State of Washington only.

For operating expenses and as compensation for his seta
ices the attorney-in-fact is allowed 25% of all premiums
eceived, such compensation to include all expenses inci
lent to the underwriting of the business, but taxes, legal
and adjustment expense, rating bureau charges, State li
enses and fees, auditing. Advisory Committee and similar
xpense approved by the Advisory Committee, is paid by
he treasurer out of the general fund and charged pro rata

o each subscriber.

The liability of each subscriber is several and not joint.

Wash.

and is limited to an amount not in excess of snob propor
tionate sum as the amount of liability carried by each sub-
scriber bears to the total amount guaranteed by all sub-
scribers.

Separate accounts are kept with each subscriber and all
are open to their inspection.

The subscriber may revoke the authority given in the
power of attorney upon ten days' written notice, and is not
liable on any policies for loss accruing after the expiration
of such date. He is not, however, permitted to withdraw
any of the reserve fund credited to his account until the
liability under all policies in effect at the time of his
resignation has terminated.

All deposits and investments are made by and in the
name of the exchange, and are under the control of the
Advisory Committee.

Savings are returned to subscribers annually, except that
the manager is authorized to set aside as a reserve fund
for all contingencies such amount as the Advisory Com
mittee shall determine as adequate, but not to exceed the
amount of one annual premium,

Its statement as of December 31, 1919. is as follows:
Admitted cash assets: Bonds and stocks owned (market
value). $50; cash 5n banks and office, $18,&60.43: premiums
or deposits outstanding not over three months due. $I,-
602.77; premiums or deposits outstanding about four
months due, $1,392.19; premium notes. $17,758.90: accrued
interest, $499.12; total cash assets, $40,163.41.

Liabilities: Losses in process of adjustment, $826.110;
resisted. $2,307.50; total, $3,133.60: reinsurance, $92.37:
net, $3,041.23; unearned premium deposits, $29,242.50; due
attorney-in-fact for administration expense, $925.61; total
liabilities, $33,209.34: net cash surplus. $6.954.07; total,
$40,163.41.

Cash Income, 1919.— Premium deposits written, gross.
$66,448.44: less return premium deposits. $7.784.95; less
reinsurance. $178.50; net, $58.484.99; interest, etc., $12.61;
salvage. $11.15; commission on reinsurance, $26.77: total
cash income. $58,535.52.

Cash Disbursements, 1919.— Losses paid, gross, $3,174.52;
less salvage, $11.15; net losses. $3,163.37: paid to attorney
in-fact for administration expense, $14.810.66: Advisory
Committee expense, $5.40; legal expense, $900; taxes, li
censes and fees, $65; other expenses. $460.72: total cash
disbursements, $19,405.15.

In connection with this report, see important article in
troducing this section.

AUTO.MOBI LE OWNERS INTER-INSURANCE ASSOCIATION,

Lowman Bldg.,

History.— This is an inter-insurapee exchange which
omn enecd business June 1, 191$.

Management and Reputation.—The attorneys-in-fart and
'tanagers are Frederick A. Wing and George T. Baldwin.
Ir. Wing states that he had the management of Oregon
ml \Was iingtan for the Massachusetts Mutual Life Iusur
nee Company for a number of years and that subsequently
e o^ereted a hensri', fire insurance agency- in Seattle.

Seattle, Wash.

Wash., under the name of Wing and Galion. His experi
ence in reciprocal insurance is limited to this enterprise,
and his general training has not been broad in automobile
underwriting. The insurance experience, if any, of George
E. Baldwin has not been furnished us.

Plan of Operation.— This exchan,.'e affords full coverage
on automobiles. lts plan of operation is unique, in that
its proriume are hexed upon mikaze rati -r than horse-