FARMERS' AND TRADERS' LIFE INSURANCE COMPANY SYRACUSE, N. Y. Examined to ascertain condition November 30, 1919. Report dated December 30, 1919. Examiners: C. T. Sanders, D. F. Broderick. History This company was originally known as the Farmers' National Life Insurance Company, and was incorporated July 3, 1912. On September 17, 1914, the name of the company was changed to the Farmers' and Traders' Life Insurance Company. It is a stock company writing business on the non-participating plan only. It was originally incorporated with a capital stock of $200,000, divided into 2,000 shares of a par value of $100 each, and with a surplus of $100,000. During 1919 by a vote of the board of directors and stockholders of the company, and with the approval of the Superintendent of Insurance, the capital stock was authorized to be increased to $300,000, making an increase of 1,000 shares of a par value of $100, or $100,000. Under the agreement and by-laws, the stockholders of record as at the date of the vote had the option of subscribing for the new issue of capital to the extent of 50 per cent of their holdings at par. The option of subscribing at this figure expired December 1, 1919. One hundred and eighty-eight shares were so subscribed for by the stockholders. The balance of the stock is to be sold at not less than $200 per share. A plan for the distribution of the balance of this stock has been submitted to the Superintendent of Insurance for his approval, and when received, the company expects to put it into effect at once. Corporate Powers: The corporate powers of this company are exercised by a board of twenty-five directors and such officers and advisory boards as they may from time to time appoint and empower. Prior to October 1919, a full board of twenty-five directors was chosen annually, but at a meeting of the stockholders held October 7, 1919, the certificate of incorporation was altered and amended so that three classes of directors would be chosen as follows: Eight directors for a term of one year; nine directors for a term of two years, and eight directors for a term of three years. Hereafter, the only directors chosen in any one year will be to fill the places of those whose terms expire in that year. The by-laws provide for only two regular meetings of the board of directors each year, on the third Tuesday of March and September. A quorum consists of nine members. Directors who receive no salaries as officers or otherwise are given a fee of $5 for each meeting attended, and in addition their actual expenses incurred in attending such meeting. Committees: Two committees are elected by the board of directors Executive and Finance. The president, secretary, treasurer and four directors constitute the executive committee, and this committee exercises all the powers of the board of directors in the interim between the meetings of the board. The finance committee consists of the president, treasurer and three other directors. Unless otherwise ordered by the board of directors, the members of this committee continue in their positions until the expiration of their terms as directors. This committee is charged with the duty of supervising all investments and loans made by and on behalf of the company. No investment or loan shall be made unless first passed upon and approved by said committee. Agencies: Supervision of the agency organization is exercised by a superintendent of agents. At the present time there are 450 licensed agents under contract with the company, including what are known part time" as men. Contracts have been entered into by the company with New York, Pennsylvania and Ohio State granges whereby these granges are to do everything in their power to further the interests of this company and make an effort to have every granger take out insurance in this company. For this service the company is paying to these granges 2 per cent of all premiums received from the second to the tenth policy year on insurance written on the grange members or by grange agents in their respective states. Nearly if not all of the insurance of the company is on the lives of farmers who are members of the grange. Business in Force: On December 31, 1918, the company had 3,206 policies in force with insurance to the amount of $4,511,250. On December 1, 1919, there were 4,594 policies in force having a total of $6,712,750 insurance. Death Losses: Since the company has been in business up to December 1, 1919, it has paid on account of death claims a total of $53,500. Of this amount $23,000 was paid in the eleven months of 1919. All death claim papers were examined and while the earlier claims were proved in rather crude form, there was sufficient evidence to warrant the payments made. Death claim forms are now in good shape and are uniformly filed. Death claims were found to have been paid promptly upon receipt of satisfactory proofs of death. Surrenders: There were comparatively few policies surrendered for cash, but in cases where policies were surrendered, the values as computed were found to be correct. Following is a statement showing the receipts and disbursements for the eleven months of 1919, and a statement of assets and liabilities of the company as at November 30, 1919: Ledger assets Dec. 31, 1918, as per statement.. Total ledger assets.. $389, 818 42 106 52 $389, 924 94 |