William Penn, 1963 (46. évfolyam, 5-23. szám)
1963-09-18 / 18. szám
September 18, 1963 PAGE 3 William Penn (Continued From Page 2) The then Chairman of the Board, Julius Macker, called a Special Meeting of the Board for January 17, 1961, which became a duly constituted meeting when all the Board Members signed a Waiver of the 8-day Call Notice. General Counsel Banes rendered the opinion that the signing of such Waiver was legal. Mr. Banes was also of the opinion that, under the provisions of the By- Laws, when the Convention is not in session, the Board of Directors has full power and authority to fill vacancies in the Offices of the Association^ Accordingly, the majority of the Board ruled that the vacancy in the Office of the President be filled at that Special Board meeting. The vacancy was filled by electing Julius Macker unanimously to fill the unexpired term of the late Coloman Revesz. With the election of Mr. Macker to the Presidency, a vacancy existed in the Office of the 2nd Vice President and Director Julius J. Lenart was elected to fill this vacancy. The vacancy on the Board was then filled with Michael J. Faczan. SICK BENEFIT and ACCIDENT & HEALTH This block of business gets smaller and smaller with each passing year. The issuance of this type coverage ceased January 1, 1956. The Rules and Regulations pertaining to Sick Benefit were liberalized in 1957 and the Board saw no need to revise these rules during the past four years. The By-Laws empower the Board of Directors to provide for Accident & Health coverage, thus the Board can at any time act to meet the needs of our membership. The Hospitalization, Major Medical and Income Protector program of the Association has never reached wide spread acceptance among our members. The various types of coverages offered to employees at their place of work has resulted in our reaching only those members who could not purchase this type coverage at their place of employment. The trend among Labor Unions today is towards more and more disability, hospital and insurance coverage. Consequently, we find that most of our members do not purchase this coverage from us, because it is part of the coverage they receive at their place of employment. At the present time, we offer to our members the following Accident & Health Plans: Defender Plan: Individual Sickness Plan is sometimes called the Income Protector Plan. This plan is available to all except self-employed females and is available in all States except New Jersey, which state would not approve the plan for sale. Special Risk Plan: This Plan was especially designed to provide a Sickness Plan for coal miners and others in hazardous occupations. Liberator: Hospital and Surgical Expense Plan — our most popular Accident & Health Plan. Family Surgical Expense Plan: This Plan pays for Surgical operations only according to a fixed scale. Daily Hospital Indemnity: This Plan pays a specified rate for each day of hospital confinement. Major Medical Plan: This Plan pays for 75% of the hospital and surgical expenses in excess of $500.00 up to a maximum of $7,500. We believe this to be an adequate offering of various plans to our existing and prospective members. ---■ i5r,v-1 NEW BUSINESS DEPARTMENT Many new tools were furnished to the Field Force to stimulate the writing of new business. Our experience showed that business written on a Non- Medical basis was sound and profitable, therefore, the Non-Medical Limits were increased to: Age 0-40, $10,000.00. Age 41-45, $5,000.00. Our full and part-time writing agents are now authorized to write new business with the following Limits: Age 0-9, $10,000.00. — Age 10-15, $20,000.00. — Age 16-60, $100,- 000.00. — Age 61-65, $10,000.00. New Age 0 rates were established for infants, thus eliminating the necessity of having to write Preliminary Term insurance, — except in New York State. Children are now insurable at Age 5 for Accidental Death Benefit. Members entering Military Service may now retain Accidental Death Benefit and Disability Waiver coverages, however, the Accident & Health coverage may not be retained. The Accident & Health Certificates provide that those receiving government care are not eligible to benefits under this policy. Therefore, any member having Accident & Sickness and/or Hospitalization insurance in force, must, upon entering Military Service, cancel such contract and request the return of any premiums paid after month entering Military Service. These members then may reapply for Accident & Health coverage within 6 months of their discharge from Military Service. All they need to do is to complete a Military Questionnaire, a Personal Health Certificate and pay the dues for the month of reinstatement. Short form Adult and Short form Juvenile applications were devised, and after approval from the various jurisdictions were put to use in order to make the writing of insurance up to $2,000.00 much simpler. True, some of our Branch Managers would like to see an even more simplified application, however, there is a certain amount of vital information that the Underwriting Department needs before it can issue a Certificate and it would be quite difficult to simplify the applications any more. NEW PLANS OF INSURANCE To the many basic plans of insurance available in our Ratebook, we added a Special Single Deposit Option for reinvesting of Matured Endowment proceeds. The purpose of this new plan was to recapture as much of the proceeds of Matured Endowment policies as possible. It affords the member insurance coverage, the Fieldman with increased earnings, and provides the Association with much needed premium income. A Special Term to Age 25 Plan was introduced for Ages 0 to 16, with a minimúrh of $1,006.00 and maximum of $5,000.00 coverage. The advantage of this Plan is to afford immediate coverage at Term rates, and then between the Ages of 16 and 24, the member has the right to convert this Certificate to a permanent plan of insurance, without evidence of insurability, at a ratio of up to 3 to 1 of the original face amount of the Certificate. At age 25, the insured may convert to a ratio of up to 5 to 1 of the original face amount. SPECIAL REINSTATEMENT PRIVILEGE In order to facilitate the reinstatement of Lapsed members, a Special Reinstatement offer was made in January of 1962. On the basis of this new offer, a Lapsed member could be reinstated immediately, upon submitting a properly completed Personal Health Certificate and paying, in one sum, all interest due on the total dues in arrears, and then paying not less than 2 months dues each month until all arrears are cleared. BRANCH MERGERS As of December 31, 1959, the Association had 234 Branches. On December 31, 1962, however, this number decreased to 202. In most cases small branches were dissolved because the Branch Manager died, or was in ill health and could no longer carry on his duties; or, there was no one among the branch members who would be willing to assume the duties of Branch Manager. There was no alternative but to merge such branches into the nearest active branch, or to transfer the members to the Home Office Branch 600 for proper servicing. Indications are that in the ensuing four-year period, there will be addit i>al branch mergers. Economic conditions have forced many families to e to larger cities; the elderly and retired, however, stay on and try to k-.ep their Branches alive, but it is a losing battle. Eventually, most of the Branches located in small mining areas will be dissolved. We have seen once thriving branches dwindle into small inactive branches. We have nothing but admiration and praise for those dedicated Branch Managers and Branch Officers who continue to carry on against seemingly unsurmountable odds. CITATIONS We have attempted to recognize the services of dedicated Branch Officers by awarding ILLUSTRIOUS CITATIONS which consists of a lapel pin and scroll. Any elected Branch Officer who has served 15 consecutive years in the same office, or for 20 years in a combination of Branch Offices, is entitled to the citation. During, the past 4 years, a total of 35 ILLUSTRIOUS CITATIONS were awarded and these were presented amid appropriate ceremonies. Branch High Lights TO OUR CONTRIBUTORS: The English WILLIAM PENN ia published the THIRD WEDNESDAY of EVERY MONTH. It will be published next oa October 16. Notices and other short items will be acceptable up to the deadline, October 9. Long contributions, such as articles, should reach the editor no later than October 2. If possible, material for publication «hould be typewritten and on ONE SIDE of paper only, DOUBLE SPACED, allowing SUFFICIENT MARGIN. Address all contributions to: EDITOR WILLIAM PENN WILLIAM PENN FRATERNAL ASSOCIATION 436 FOURTH AVENUE PITTSBURGH 19, PA. CLEVELAND, Ohio Branch 14’s picnic, held on Sunday, August 25, at the Kalo Farm, was an outstanding success reminis-THE CONTROLLER’S DEPARTMENT The last four years, 1959-1962, in certain respects have been years of trial for our Association. Where we anticipated steady forward progressive movement we experienced below par results. Profits increased in 1960 by $75,032.62 over 1959, but decreased in 1961 by $21,957.32 over 1960 and again decreased in 1962 by $37,877.21 over 1961. This decline in profits is most concerning because it is the most significant item which can contribute to an increase in qur solvency ratio. Without sizable profits we can expect, as a rule, a decreasing solvency ratio. SURPLUS COMPARISON ITEM 1959 1960 1961 1962 1. Gain from Operations (after dividends) $+ 730.32 s+ 75,763.34 $+ 53,806.02 $+ 15,928.81 2. Net Capital Gains + 76,558.46 + 10,046.25 + 186,907.53 + 110,721.32 3. Not Admitted Assets — 2,471.77 — 41,915.81 — 14,347.12 + 9,348.09 4. Security Valuation Reserve — 100,488.15 — 21,193.28 — 219,326.36 4- 35,338.11 5. Increase in Trust, Welfare & Pension Accounts — 26,581.55 — 15,670.50 — 15,303.90 — 17,553.62 Increase or Decrease in Surplus $— 52,252.69 $ + 7,030.00 $— 8,263.83 $ + 153,782.71 Surplus, Current Year $ 1,775.617.64 $ 1,782,647.64 $ 1,774,383.81 $ 1,928,166.52 Surplus, Previous Year 1,827,870.33 1,775,617.64 1,782,647.64 1,774,383.81 Increase or Decrease in Surplus $^- 52,252.69 $ + 7,030.00 $— 8,263.83 $+ 153,782.71 Solvency Ratio 106.87% 106.72% 106.51% 106.95% 1956 1957 1958 Solvency Ratio 107.79% 107.68% 107.29% SUMMARY OF OPERATIONS COMPARISON Commissions -and service and collection fees decreased by $187,236.62, while General Operating Expenses and Taxes decreased by $172,458.66 during the four years. The following two statements are a four-year comparison of: (1.) General Operating Expenses, which includes Field Expenses as well as Investment Expenses. (See General Operating Expenses) (2.) Taxes, Licenses and Fees. (Continued On The Next Page)
