Fraternity-Testvériség, 1982 (60. évfolyam, 1-4. szám)

1982-04-01 / 2. szám

VICE PRESIDENT-SECRETARY REPORT FOR THE YEAR OF 1981

Dear Fellow Directors:

The forecast of the insurance experts has been widely published since the beginning of this decade of the 80’s.

The first figures released were that of the 1800 life insurance companies in existence, the number will be reduced by one third at the close of this decade. Last year this was revised and now the prediction is fifty percent of these companies will begone from the scene, either through consolidations or mergers.

This is not only effecting the life insurance industry, but we see it happening around us everyday with banks, savings and loans, airlines and many of the giant industrial corporations.

1 am sure that each industry, regardless of their product or service have felt the additional requirements and demands made on them by our government agencies.

Since consumerism is playing such an important role in our lives today, it does not look as though these requirements and demands will be eased in the near future.

RULES AND REGULATIONS

As 1 have previously reported, all of the states in which we operate are passing new laws to regulate the life insurance industry.

On July I, 1981 the state of Connecticut readability contract of insurance became effective.

It was necessary to have our actuary prepare the new format to be submitted to the insurance commissioner of Connecticut. These were found acceptable and approved by the department. The cost for the preparations, submitting and filing by the actuary was done for this one state only.

Other states are following with the readability contracts and we are not sure if they will accept the text approved by Connecticut. If not. then new contracts must be made and submitted for approval. This could become a very costly change if we will be required to have separate insurance contracts in each of the states in which we are licensed.

Other rules and regulations pertaining to the licensing of agents, disclosure statements and cost index and distribution of the buyer’s guide fall under the jurisdiction of the President with the field force. The professionalism in our industry is being stressed and additional schooling and training is necessary to keep pace with all of the new aspects of this business.

BRANCH MEETINGS

In order to maintain our non-profit tax exempt status with the IRS, it is absolutely important that we comply with the law regarding the holding of regular branch meetings. (By-laws Paragraph 56)

Those branches that have sent me the minutes of their meetings are on file in my office. As had previously been mentioned, it is not enough to come together occassionally and not have some purpose or project for which to work. All of you know that our two pet projects are the Bethlen Home and the Student Aid and Loan Fund. During the past year the 85th Anniversary celebrations were held in various areas and the only donations to the Bethlen Home and Student Aid and Loan Fund were received from Cleveland, Chicago, Connecticut and Pittsburgh branches. The local branches should continue to

have fund raising affairs and help these projects, along with any community involvement which furthers our cause.

NATIONAL AND STATE FRATERNAL CONGRESSES

Being a member of the National Fraternal Congress of America enables us to be kept informed of proposed, pending and enacted legislation in the various states. We attend the larger state congresses where we are licensed. In the past few years invitations have been extended to the area directors and field force members. I am serving on committees on the national as well as state levels. At the various state congresses the theme of professionalism is being stressed. All field personnel are encouraged to broaden their scope of involvment and enroll in the Fraternal Insurance Counselor (F.I.C.) courses that are made available.

CONSOLIDATION COMMITTEE MEETINGS

In order to complete the necessary documents for this board meeting, many meetings were held during the year. The minutes and all pertinent information concerning the consolidation were mailed to all Directors for their review. The article written on "Consolidation Update" was published in the special February 1982 issue of the Fraternity. At all meetings, our Special Counsel, Richmond H. Ferguson was present and wheneverthe Legal Counsel, Alex B. Eger, Jr., was not present, he was kept informed of the proceedings by Mr. Ferguson as well as receiving the minutes of the meetings. The Executive Committee tried to have these meetings in conjunction with the Board of Managers meetings as well as the church groups Youth Camp in Ligonier, PA.

All National Officers were present and the respective youth groups were presented checks from the HRFA as our contribution to their loyalty, devotion and dedication to their churches. Following a delicious cookout as guests of the Bethlen Home they then toured the facilities and visited with the residents. These young folks brought much joy and happiness during their stay. I participated in laymen day services in Youngstown. Ohio, Fairport Harbor, Ohio and also at the Bethlen Home Chapel in Ligonier. At all such places the HRFA and Bethlen Home were promoted. My thanks are extended to these pastors for the opportunity of visiting their congregations.

SICK BENEFITS

In 1975 the Board meeting raised the benefits and maximum limitations on the old sick benefit plans by 50%. The surplus in the A & H line has continued to increase in spite of the liberalization.

After the close of 1982 this could again be reviewed to see what the current status is and make adjustments accordingly.

TRUST FUND

There are unclaimed matured certificates and death benefit proceeds which cannot be remitted to the legal recipients due to various reasons. These are kept in our trust fund. After a certain number of years, in accordance with the state laws, these deposits are considered as abandoned property under the escheat laws. These unclaimed insurance proceeds are then transferred to the respective states.

We make every effort to remit the proceeds to the legal recipient and publish the names in the Fraternity. This has brought some results but monies are still transferred to the states when no response is received.

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