Fraternity-Testvériség, 1975 (53. évfolyam, 1-12. szám)

1975-04-01 / 4-6. szám

English Section

SECRETARY’S REPORT

for the year of 1974.

Mr. President,

Members of the Board of Directors:

1974 was not an ideal year for life insurance promotional work. At the beginning of the year the members of our Field Force lost much time by staying in line for gas. They hesitated to make longer trips because of the gas shortage. They are still hesitant to make longer trips because the high price they must pay for gas. Looking into the future we are warned that in case of a Middle East War we might again have a gas shortage. Our government warns us that even the United States cannot afford the annually ever escalating deficit it must pay for the imported oil. Our European Allies are paying more than a dollar for a gallon of gas. Unless the oil producing countries reverse their present price fixing policy, we also must be prepared to pay a higher price for oil and gas. From a promotional point of view both shortage and the rising of prices will mean more difficulties and will result in a complex of problems. I received many complaints from our Field Force and Branch Managers about the difficulties they experienced in the collection of dues. In the community hardest hit by unemployment both our Field Force and Branch Managers had to work harder to save the certificates from lapsing. They often have to go two and three times to the homes of members to collect the dues from the unemployed family members. If the unemployment situation will worsen, it will not only mean more unemployed persons in the blue and white collar, skilled and unskilled labor market, but the time factor will automatically make persons receiving unemployment benefits today, welfare cases within a few months. All the economy experts agree that this is the severest and longest recession we had since the end of World War II. Most of the experts agree with the administration by maintaining that the recession will reach its lowest point by the end of June and from July on the percentage of the unemployed will decrease. A minority of the experts claim that unless the government and congress will make strong appropriate measures the present number of unemployed persons may double by the end of the year. Whether we are optimists or pessimists concerning the present and future unemployment situation, we must recognize the fact that inflation is making things worse. Both the unemployment and the inflation factors have a tremendous influence on the life insurance market. In spite of all the difficulties we experienced, I am happy to report that we closed the year of 1974 with the amount of $644,213 increase in our insurance in force. For this accomplishment I thank the hard working dedicated members of our Field Force. I also give recognition and express thanks to those Branch Managers who gave a helping hand and cooperation to the promotional work of our District and Section Managers.

A tremendous amount of work had to be done in the administrative and underwriting sectors of my department. I express my thanks to Mr. Gyula László who alone is doing the underwriting work. During the year he had to go through surgery. When he returned to work with a weakened physical body, the unprocessed applications were piled up on his desk requesting his immediate attention and highly specialized services. The same thing happened after his vacation. He also had to do extra work when Mrs. Katalin Galanthai Nagy was on vacation. He did the same thing in 1973 without any complaint. However, since the time of his operation he is increasingly feeling, especially during the periods when the unprocessed material piles up on his desk, the need for extra help. Mrs. Katalin Galanthai Nagy works regularly half days in my department. She does all the beneficiary changes; issues duplicates of the old lost certificates and helps Mr. László in the typing of the new certificates. Mrs. Jayne Szaz resigned from the secretarial position on September 20, 1974. Mrs. Maria Szabolcsy started to work on part time basis on October 6th and on full time basis a few weeks later. During the interim period and whenever extra help was needed Mrs. Palma George volunteered her services free of charge as a dedicated member of the Federation. Despite the change in personnel we were able to do the work with the cooperation of the employees in my department and the help of Mrs. George. I thank them for their dedication, cooperation, work and services.

I. ADMINISTRATION

1. State and Provincial Licenses

The 1974 and 1975 Annual Statements and all other documents requested by the thirteen states and the Ontario Canadian Province in which the Federation operates were mailed in time for the 1974 and the 1975 licenses to the thirteen states and the Ontario Canadian Province. The Federation received licenses to operate in the thirteen states and the Ontario Canadian Province in 1974.

2. Examination of the Insurance Department of the District of Columbia.

The previous inspection of the D.C. Insurance Department was made in 1968. This inspection was long overdue. When we asked for the reason of the long delay we were told that the department is under staffed and they use a method of priority. The Federation has a good record in the insurance department. We do our best to comply with the D.C. insurance laws. No complaints were made by our members or other insurance companies against the Federation concerning the ethical and legal aspects of our operation and our payment of claims. The Federation also enjoys a high standard of solvency. I was requested to produce the state insurance licenses in which states the Federation operated during the years of 1969, 1970, 1971, 1972, 1973 and 1974. The Province of Ontario, Canada licenses were also inspected and all were found in order.

3. Board of Directors

a) During the year two regular and one special meetings were held by the Board of Directors. The first regular meeting was held from April 1 through 6 in Washington, D.C. and the second regular meeting was held on September 5 through 7 in Ligonier, Pa. A special meeting was held on January 18 and 19, 1974.

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