The Union Democrat

Mutual Aid Societies.

There are a number of co-operative organizations in this State, which promise to pay on the decease of a member, a certain sum for each contributing member at the time death occurs. By paying a small sum on entrance to the society and a stipulated amount on the occurrence of each death, the officers and friends of these institutions, claim that insurance upon life can be had much cheaper than it is afforded by regular Life Insurance Companies. In these co-operative associations the indemnity and security is contingent on members continuing their payments on the occurrence of each death, with nothing binding on them to do so. These kind of companies have proved unprofitable to those who sought their protection in the Eastern states and are regarded as failures; as not possessing the elements to give security with a degree of certainty that any sum will be paid to the representative of a deceased member. They accumulate no fund or reserve to meet the demands of death. One of these associations were brought into court recently at San Francisco for not complying with the insurance laws of the State. It resulted in a judgment prohibiting this "benevolent association" from doing any more business in the State, and the parties who had conducted it were fined several thousand dollars. We believe there are some persons in this county who have invested in these delusive insurance projects, the chances are more than doubtful that they or their heirs will ever receive an iota of benefit for the money paid out. Last week the Insurance Commissioner declared officially "that all Mutual Aid, Mutual Provident, Mutual Beneficial, Co-operative Relief, or Protective Associations, transacting the business of life insurance in this State, in any manner, are unlawful and liable to the penalties of the Insurance Commissioner Act, unless they have first procured a certificate from the Commissioner authorizing them to transact business as above." The effect of this declaration will be to close up these "enterprises." Any one desiring life insurance, can find a number of companies who will furnish it at the lowest cost and with ample guarantees that are secure as human organizations can be made. Cheap life insurance offered at less than experience has proved it can be given is worthless. Organizations offering it, benefit none but their officers at the expense of those they delude.