ASSESSMENT LIFE INSURANCE 23

Among the institutions which have longest been able to withstand the evil effects of the erroneous plan are the fraternal insurance societies, although they were the first to introduce it. This is due to two things, viz.: the extraordinary economy and efficiency of their democratic system of management, and the vitality which the loyalty and strong interest of their individual members give to them. On this account, also, they find it easier to pass over to sound plans than have assessment societies, which were con-ducted more nearly like business companies. The fraternal societies as a. whole are now in the midst of such readjustment, some just entering upon it, some preparing to do so, and others just emerging. In spite of this, they are each year showing a large increase in membership, individual societies suffering a loss of membership usually only for a short time in consequence of readjustment.

We are not here concerned with the history of assessment societies, and will consider only their plans, endeavouring to make clear wherein they were defective and how the errors may be overcome.

The original assessment plan was as follows : Upon the death of a member one dollar was assessed against each living member, from the proceeds of which was paid a certain sum to his beneficiary. If the assessment produced more