BEST'S INSURANCE REPORTS —FIRE AND MARINE.   673

AUTOMOBILE UNDERWRITERS OF AMERICA—Continued.

Net losses paid, $72,971.61; paid to attorney-in-fact for ad-
ministration expense, $76,818.38; Advisory Committee ex
pense, $247.71; excess reinsurance, $850.11; legal expense.
$300; taxes, licenses and fees, $255.79; other expenses.
$312.75; unused premium deposits returned to subscribers.
$27,507.40; expenses of adjustment and settlement of losses.
$2,623.71; total cash disbursements, $181,887.46.

Transactions Since Organization.— Net premium de-
posits. $725,727.24; interest received on investments and
bank deposits, $4,823.40; other cash income, $848.75; total
cash income, $731,399.39. Losses and adjustment expenses
paid, net, $181,177; commissions paid to attorney-in-fact
for administration expenses, $11.5,583.49: other expenses.
$119,825.71; total expenses paid, $416,586.20; returned in
oath to members, as savings, $60.616.06; total cash dis
bursements, $477,202 26.

Estimated saving effected for members from organization
as compared with manual rates. 18% to 22%. Each policy-
holder credited with amount of savings in accordance with
his interest.

The exchange is licensed to transact business in Illinois.
Missouri, Oklahoma, Tennessee and Texas.

Executive Council.— J. N. Brown, president Alamo Na
tional Bank, San Antonio, Texas; F. H. Blankenship,
cashier American Exchange National Bank, Houston,
Texas; C. L. Kerr, Gulf Refining Company, Houston, Texas:
Van A. Webster, insurance, San Antonio, Texas; R. R.
Darrah, Magnolia Petroleum 'Company, Fort Worth, Texas:
E. Moye, president Union Bank & Trust Company, Houston.
Texas; Abe M. Levy, Levy Dry Goods Company, Houston,
Texas; Ewell Nalle, Nalle & Company, Austin, Texas, and
R. M. Worley, insurance, San Antonio, Texas.

mium deposits, $178,7$8.32; return premiums or deposits,
$1,175.13; special reserve for unknown and unexpected
losses, $8,383.97; total liabilities, $217,160.59; net cash
surplus, $57,9'59.24; total, $275,119.83.

Cash Income, 1919.-Net premium deposits written;
$509,078.99 interest, ete., $5,069.83; refunds on cash pre
miums charged off twice in previous statements, adjust
ment made by certified public accountant, $20,068 57; other
cash income, $536.57; total cash income, $534,753.96.

Cash Disbursements, 1919.— Net losses paid, $156,135.30;
paid to attorney-in-fact for administration expense, $147,-
647.87; Advisory Committee expense, $448.18; legal ex
pense, $642.70; taxes, licenses and fees, $275.79; unearned
premium deposits returned to policyholders, $45,558.18;
other disbursements, $8,417.96; total cash disbursements,
$359,425.98.

Transactions Since Organization.—Premium deposits re
ceived, gross, $1,309,602.22; less return premium deposits,
$361.465,82: less reinsurance, $956.47: net premium de-
posits, $947.179.93; interest received on investments and
bank deposits, $8.353 97: donated by management, $21,-
95.8.84; other cash income, $1,011.64; total dash income,
$978,534.38. Losses and adjustment expenses paid, net,
$270,796.43; commissions paid to attorney-in-fact for ad-
ministration expenses, $147,647.87; general expense, $175,-
23x59; miscellaneous, $6,334.99; total expenses paid, $6'00,-
014.88; returned in cash to members, as savings. $77,522.73:
total cash disbursements, $677,537.61.

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

BANKERS AUTO INSURANCE ASSOCIATION,

First National Bank Bldg., Chicago, Ill.

History.— This exchange was organized and began busi
ness in September, 1918, but did not receive its license
from the Insurance Department of Illinois until March 25,
1919.

farnsgement and Reputation.— The attorney-in-fact is
the Bankers Insurance Exchange, Inc., a corporation organ
ized under the laws of Illinois September 10, 191S, with
$1,000 paid-in capital.

Mr. J. W. Cherry is president and is in charge of the
underwriting and has had some twelve years of insurance
experience.

Plan of Operation.— The exchange issues policies cover
ing fire, theft, liability, property damage and collision in
surance on pleasure automobiles and commercial trucks.

The limit of liability assumed by the exchange is fire
and theft, $4.000: collision, $700; liability. $5,000 for
injury to or death of any one person; $10,000 for injury to
or death of more than one person; and $1.000 property
(lamas e.

The maximum line assumed is $20,000, subject to any
single conflagration, of which $15,000 is reinsured.
Subscribers are admitted on the recommendation of the
attorney-in-fact,   Business is secured through solicitors
and branch offices in Illinois, and is not accepted from
brokers.

The rates are based upon the population of the com
munity in which the car is insured. In towns having a
population in excess of $10,000, a charge of 25% is added,
and, in towns having a population exceeding 50,000, an
additional charge of 50% is made. The cost price of the
ear is taken into consideration, and in determining the
semi-annual assessment of a subscriber having fire, theft,
and collision insurance. each respective coverage as its
ratio bears to the total amount of insurance in force is
multiplied by the basic rate, which, as stated above, is
based on the population of the town.

The subscriber's agreement and power of attorney pro
vides that each subscriber shall pay the attorney-in-fact