Fraternity-Testvériség, 1975 (53. évfolyam, 1-12. szám)
1975-04-01 / 4-6. szám
CONTROLLER’S REPORT — continued C) FLUCTUATION OF INSURANCE IN FORCE 12-31-70 39,117,160 740,229 9,199,922 247,750 48,273,082 987,979 49,261,061 12-31-71 39,353,122 885,229 9,147,406 233,250 48,500,528 1,118,479 39,619,007 12-31-72 40,004,347 908,636 8,835,401 200,035 48,839,748 1,108,671 49,948,419 12-31-73 40,336,363 862,386 8,538,788 191,500 48,875,151 1,053,886 49,929,037 12-31-74 41,103,151 1,006,508 8,245,091 218,500 49,348,242 1,225,008 50,573,250 An increase of 644,213 during 1974 and an increase of 10,725,747 since 1959. IV. CLAIM SETTLEMENT 1973 1974 U.S.A. Canada U.S.A. Canada No. Amt. No. Amt. No. Amt. No. Amt. Death 340 $406,343 17 $13,250 323 $378,770 11 $6,000 Sick Benefit 95 6,878 — — 89 6,380 1 150 Hospitalization 98 31,028 — — 107 25,443 — — Matured 550 528,623 4 3,027 502 478,081 3 3,000 Surrender 519 257,542 10 2,482 546 276,102 15 5,414 Others 355 — 11 — 357 — 8 — We granted loan against 140 certificates in the USA and 3 certificates in Canada. On December 31, 1974, we had outstanding loan in the USA in the amount of $570,- 323.00 and in Canada in the amount of $9,482.00. I issued 865 expense vouchers in the USA and 101 in Canada. We settled properly submitted claims within 24 to 48 hours, an accomplishment which no large companies or associations can match. A special appreciation is due to our branch managers whose prompt and outstanding cooperation made this possible. We notified holders of endowment certificates shortly before the date of maturity, giving the different optional methods of settlement. We were able to convert 46 more certificates in 1974 than in the previous year and our income on the Consideration for Supplementary Contracts account has shown a dramatic increase: Income on C.S.C. account in 1973 .................................................$ 87,964.05 Income on C.S.C. account in 1974 ................................................. 117,444.08 the proposed budget for the current year. The proposed budget was prepared with the cooperation of the Executive Committee and the Actuary. I forwarded a monthly budget-expense reconciliation to the National Officers and the Accountant. VII. PAYROLL, TAXES Gross salaries for the National Officers and the Home Office employees are determined by the Board of Directors, compensation to the field force is calculated by the Secretary on the basis of their monthly production. After deducting the various Federal and State taxes as well as contribution to the Retirement Benefit Fund, we forwarded net payroll to the Treasurer’s office. Taxes withheld were always submitted to the US agencies and Canadian tax offices on time. The Federation is requested to file a yearly report to the Internal Revenue Service and three States although as non-profit organization we are exempted from paying taxes. I have the uncomfortable feeling that this might be an administrative technical preparation for future tax levies. In Canada we have paid the following taxes in 1974: National Corporate Taxes.....$10,032.00 Ontario Corporate Taxes .... 6,761.88 INCREASE ....................................................................................... 29,480.03 I instructed and urged our field force to replace certificates on extended term by premium paying insurance. As soon as they locate the holders of such certificates, we give the cash value of the extended term insurance by return mail. V. TRUST FUND Unclaimed matured proceeds and death benefits which cannot be remitted to the legal recipients because of various reasons, are kept on our Trust Fund. As a result of our newly introduced notification procedure we were able to reduce the balance of the Fund by significant amount: U.S.A. Canada Total Balance on Dec. 31, 1973 .............. $147,370.24 $5,034.84 $152,405.08 Balance on Dec. 31, 1974 .............. 111,079.94 5,034.84 116,114.78 DECREASE ........................................... State Welfare Departments consider these deposits abandoned properties after a certain number of years under the escheat laws. At the end of such period the Federation must transfer unclaimed insurance proceeds to the State agencies. In order to use these funds for fraternal purposes we tried to put a stipulation into our new insurance contracts which would authorize the Federation to transfer unclaimed proceeds to our Student Aid or other Fraternal Fund. As a result of a conference with the ........................................... $ 36,290.30 Chief-Examiner of the D. C. Insurance Department, we relinquished, however, this idea. It was his opinion that we certainly need the approval of all the States and even if such stipulation would be included in the contracts, the escheat laws of the States would prevail. We still can recommend to our Members and prospects to designate the Student Aid or Bethlen Home as contingent beneficiary.VI. BUDGET I submit a budget-expense reconciliation for the year 1974, combined with $16,793.88 Less: Refund ........................ 909.41 Total Corporate Tax Paid ....$15,884.47 We will pay 2% tax of premium collected on insurance certificates issued on or after January 1, 1974. VIII. REINSURANCE Insurances over $15,000.00 are automatically insured up to $60,000.00 with the North American Reassurance Company. I give account on cost of reinsurance as follows: Reinsurance premium paid in 1974 ..........................$5,577.07 Less: Experience Refund....... 1,258.79 Net premium paid for the year..............................$4,318.28 We ceded $790,400 life and $1,317,- 000.00 accidental death insurance as of December 31, 1974. One of our reinsured members died and the Company reimbursed the Federation for $5,000.00. IX. OTHER SERVICES 1) I served as chairman of the Employees’ Retirement Benefit Plan. I give 21
