Verhovayak Lapja, 1953 (36. évfolyam, 1-12. szám)
1953 / Verhovay Journal
VOL XXXVI. «3^8* 51 APRIL 15, 1953 No. 4. Minites of the Board of Directors' Meeting Taken at the regular meeting of the Board of Directors of the Verhovay Fraternal Insurance Association, convening on Monday, March 23, 1953, and continuing through the week, in the Board Room of the Home Office. Pittsburgh, Pennsylvania. Present are National President John Bencze, Vice-Presidents Julius Macker and Dr. Andrew Kovács, Directors Gay B. Banes, Aloysius Falussy, Henry Gross, Alexander Gyulay. Albert Ibos. Coloman Kolozsvary, Stephen Lang, Richard J. Phillips, Joseph Turner, Louis Vizi, John Vizzi, and National Officers Coloman Revesz., John Szalanczy and John Sabo. 1. The meeting is*called to order at 10 A. M. by National President and Board Chairman John Bencze. He warmly greets the assembled directors on this occasion — the first session of the Board in the new year. He expresses happiness at seeing the group and anticipates that the important deliberations about to take place will be conducted with harmony and understanding. Knowing only too well the responsibilities of our office and the ever present needs of the Association for sound, progressive policies, the hope is expressed to keep these uppermost in the minds of our directors. 2. Director Louis Vizi extends to the Board the greetings and best wishes of Joseph Miller Jr-, manager of Branch 59, Scalp Level, Pa, The Board with appreciation acknowledges this gesture of good will. 3. National President John Bencze, on behalf of Gaspar Papp. Chairman of the Auditing Committee, extends his best wishes and that of the Auditing Committee members to the Board for a most successful and fruitful meeting. The Board acknowledges same with appreciation. The Board is dismayed to learn, of: the recent illness of Andrew Bandy, esteemed member of the Auditing Committee, and expresses its most sincere wish for a speedy and full recovery. 4. The Board acknowledges with appreciation the good wishes tendered by Vice-President Julius Macker on behalf of president Joseph Heck and manager Stephen Lukacs of Branch 36. Detroit, Michigan, and manager Joseph Szabó of Branch 443. also Detroit, Michigan. 5. Similarly the Beard acknowledges with deep appreciation, the greetings of Leslie Dus, Field Supervisor, as well as that of Louis Balogh, vice-president of Branch 45 and delegate of Dis trict 19B, Cleveland, Ohio. 6. The agenda as prepared by the National Officers is adopt ed by the Board. 7. Inasmuch as the term of office for the Chairman of the Board was limited to one year at the March 1952 Board meeting, the Board of Directors deems it advisable at this time to act again upon the election of someone for’ this office. It is the consensus to limit again the term of office to one year, and the Board unanimously reelects John Bencze its Chairman. 8. The reports of the National Officers concerning the activities of the Association during the previous six month period are presented to the Board. The Board accepts same as the basis of a detailed discussion of the vaiious points presented therein. The Annual Statement and the Valuation Report also are reviewed by the Board. 9. For the purpose of conducting the customary examination of the Home Office, the Board divides into the following standing committees: Finance & Investment: Directors Banes, Gross Phillips and Vice-President Macker. Appeals: Directors Falussy, Kolozsvary, Vizi and Vizzi-Organization: Directors Gyulay, Ibos. Lang, Tur'ner and Vice-President Dr. Kovács. 10. The Board directs the National Officers to make arrangements to provide a suitable occasion for the presentation of the Illustrious Award citation to National Treasurer John Szalanczy, Director Henry Gross and Assistant to the Secretary Leopold Hirsch. The date selected for the occasion is Wednesday evening, March 25. 1953, at the Roosevelt Hotel, Pittsburgh. 11. The meeting is adjourned at 12:45 P. M. to allow the (Continued on page 11) Highlights of the National Officers’ report to the Board of Directors It is customary for the National Officers to render a full report of the operations for the year — 1952 in Review — to the Board of Directors at its first semiannual meeting-. Some of the details of this report are so interesting that it is worthwhile to pass along- the information to the general membership. In this way we feel that our membership will have knowledge of the operations of the fine organization to which they beloijg. LIFE INSURANCE — New and Previous Business. The total life insurance in force in this society on December 31, 1952 was $47,900,792 on 60,578 membership certificates, an increase of 81,288,835 in total insurance and 358 in number of members. A total of $3,268,000, and increase of 12.40% insuring 2,927 members was placed in new business by our field men. Each new certificate averaged $1,117. Terminations from allsources—death, cash surrenders, lapses, etc. were $2,290,467, a very slight increase over the figure of a year ago. Lapsed insurance in the amount of $285,250 was reinstated. BENEFITS RECEIVED FROM THE ASSOCIATION During the year the society paid $656,640 in benefits. Death Benefits were $475,689, including $2,500 additional accidental death benefits; Sickness and Accident benefits were $145,127; Matured Endowments totaled $35,800; one Payor claim of dues waived amounted to $23.55. Total benefits paid since February 21, 1886 — $15,011,109.72. MEMBERSHIP CERTIFICATE RESERVES Benefits credited are additions made to reserves calculated for each membership certificate and are regulated by law. The society is required annually to make these additions to the membership certificate reserves so as to carry out its contractual promises to the members and beneficiaries. Total reserves amounted to $12,417,960, including disability reserves of $529,261 and special reserve for non-deduction of deferred fractional premiums at death of the member — $63,463. The reserves on all our certificates issued since January 1, 1949 are valued on the American Men Table at 2Wr interest, while ail the certificates issued prior to January 1, 1949 are valued on the American Experience Table at 3% interest. MEMBERSHIP CERTIFICATE DIVIDENDS Dividends are a return of unused monthly dues from three principal factors — fewer deaths than indicated by the mortality table used, interest earned above the rate assumed and savings from the provision made in the monthly dues for expenses. Holders of certificates issued from January 1, 1949 received dividends totaling $4,430.49, while premium refunds to holders of Juvenile Term certificates who were written up on a permanent form of insurance in either the Senior or the Juvenile Order totaled $3,161.14, making- total dividends $7,591.63. DEATH RATE The death rate for 1952 was slightly higher than for 1951 — 56.15%. Diseases of the heart, blood vessels and kidneys, also cancer, contributed highly to the slight upward trend. The following- very worthy Illustrious-cited members, who contributed much to the growth of our society, were taken by the Grim Reaper during the year: John Toth, Sr. Br. 31 Died:Jan. 2, 1952 Joseph Berey Br.45 Died:Feb. 14, 1952 Steven Raboczi Br. 364 Died:April 18,1952 Andrew Varga, Sr.Br. 186 Died:June 25,1952 John Kucik Br.71 Died:Aug. 25, 1952 Martin Voros Br. 234 Died:Sept. 9, 1952 Gabor Horvath Br. 229 Died:Oct. 18, 1952 Joseph Magyar Br. 216 Died:Nov. 18, 1952 May their memories be ever inspiring to our Verhovay memberhip! COST OF OPERATIONS We, as all other organizations, are facing ever increasing costs of operations. To provide service consistent with the rights of our members, we have adjusted earnings for our Home Office employees and men in the field to attract and to keep good help. Total disbursements and accrued expenses have amounted to $508,008.26, which is 31.9% of the total net monthly dues from the members. The Verhovay experience is very favorable when viewed in comparison with the experience of ten of the largest fraternal societies in the country — 37.1%, and with that of 10 fraterrials comparable to Verhovay in size — 39.7%. Our solvency ratio as of December 31, 1952 was 105.98%. INTEREST EARNINGS The net rate of interest earned in 1952 was 3.09% as compared with 3.04% in 1951. The gross rate of interest earned — prior to deduction of all expenses, allocated or unallocated — was 3.41%. This rate of earnings is very favorable, particularly so when weighed against the high grade bond portfolio of the society. (Continued on page 8)
