Fraternity-Testvériség, 1974 (52. évfolyam, 1-12. szám)

1974-04-01 / 4-6. szám

CONTROLLER’S REPORT—continued

IMPORTANT

II. COLLECTION OF DUES

I am happy to report that we had an outstanding collection in 1973, again. Only twelve branch managers did not send their report until the end of the year and their number shrinked to three as of January 10, 1974. The overwhelming majority of the managers deserves recognition of the Board for their faithful services.

Once again, we learned that replacement of deceased, disabled or resigned branch managers is very difficult and in some cases impossible. Branches left without service are losing membership. Automation of our billing system and the administration is probably the only workable answer to this and other problems.

Prepaid dues far exceeded dues in arrears and the comparison of the two figures shows some improvement since last year. We had less arrears.

In the following comparative study I give dues income in the USA and in Canada showing adjusted gross dues income, considerations for supplementary contracts, health and accident income separately.

Information to Policyholders

of

THE HUNGARIAN REFORMED FEDERATION OF AMERICA

Never! Never!

Let This Happen To Your Policy Or Certificate

NEVER — Surrender Or Lapse Your Policy:

—It is a vital part of your assured estate

—It increases in value with each paid premium (Term Insurance excepted)

—It is a permanent protection for its beneficiary

NEVER — Drop Your Policy To Take A New One:

—You cannot replace it at the same age premium Rate

—You cannot replace it without an additional annual cost POSSIBLY NOT AT ALL in case of an occupational hazard or physical impair- jnent.

THE HUNGARIAN REFORMED FEDERATION OF AMERICA Is Under Strict State Supervision:

—Your policy has been approved by Insurance Departments where Company is licensed.

—Your Company’s assets and reserves back of your policy must be maintained in accordance with State Insurance Department Regulations. WE—

—Recommend that you as an owner of a legal reserve contract keep your policy in force by paying premiums promptly.

—Know of no plan other than Insurance that offers both immediate funds for the beneficiary in case of premature death or a cash fund (Term Insurance excepted) for the owner at retirement age. which in effect, adds to the owner’s Social Security or other retirement program.

—Warn against being influenced by idle gossip or uninformed advice. Your Company can best answer your questions.

—Advise you to contact your company or its representative should necessity create premium payment problems.

IN ALL SINCERITY

If we are helpful in any way in your keeping your policy in force at all times, we will indeed be gratified; as we know there will come a day when you will say, “I’m Grateful I Did”.

CALL OUR LOCAL REPRESENTATIVE!

Find their names, addresses and telephone number on the last page of this magazine.

Year

Adjusted Life Dues

C.S.C.

1968

$1,246,579.56

$75,848.77

1969

1,346,283.28

58,013.98

1970

1,371,345.99

63,852.68

1971

1,355,015.40

82,834.40

1972

1,356,329.88

99,083.23

1973

1,351,038.21

87,964.05

Total

dues income

decreased by

several factors.

Total Life Dues

A. + H.

Total Dues Income

$1,322,428.33

$58,789.71

$1,381,218.04

1,404,297.26

60,774.34

1,465,071.60

1,435,198.67

50,499.98

1,485,698.65

1,437,849.80

46,117.68

1,483,967.48

1,455,413.11

40,976.81

1,496,389.92

1,439,002.26

36,868.30

1,475,870.56

$20,519.36. This

set back

is attributable to

Single premium received from converted endowment certificates (the so called C. S. C. account) is a rather irreliable source of income as I explained in my report for 1972. It has fluctuated between $58,000.00 and $99,000.00 during the last six years. In 1973 we experienced a decrease of $11,119.18.

Continued decline in our accident and health dues was the other contributory factor. Adjusted life dues decreased by $5,291.67 also.

Constant increase in our non premium paying insurance is primarily responsible for the stagnation or even slight decline of our dues income.

The following listing shows the changes in our dues income per certificate and $1,000.00 insurance in force computed on the basis of non-premium paying insurances separately. It is one way to measure the quality of our inventory.

DUES INCOME

Year

Per Certificate

Per Insurance

in Force

Dues Paying

Total

Dues Paying

Total

1968

$44.70

$37.25

$32.42

$28.16

1969

48.87

40.11

33.96

29.27

1970

51.41

41.51

34.07

29.13

1971

53.75

42.42

34.38

28.98

1972

56.87

43.83

35.08

29.14

1973

59.23

44.45

35.32

28.82

The above figures demonstrate that new insurance written had a good quality during the past several years. Steady increase in dues per $1,000.00 insurance held indicates that lower premium paying contracts were replaced by higher premium paying insurances. In other words, not the quality but the volume of new business is responsible for the stagnation or slight decline in our total dues income.

Branch handling expenses increased again because we applied the higher deduction rate authorized by the Convention throughout the year:

1972

1973

Branch Deductions U.S.A. Canada

$94,593.93 $2,629.28

99,693.92 3,079.54

Salary to Br. Office Clerks $9,148.00 9,643.00

Total

$106,371.21

112,416.46

(Continued on next page)

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