Massachusetts Spy And Worcester Advertiser

FIRE INSURANCE COMPANY.

The Mutual Fire Insurance Company for this County, was organized on the 2d inst. by the choice of the following officers to hold their appointment until the stated annual meeting.

HON. LEVI LINCOLN, President.
SAMUEL M. BURNSIDE, Treasurer.
ISAAC GOODWIN, Secretary.
HON. AARON TUFTS,
HON. BENJAMIN ADAMS,
HON. SALEM TOWN, Jr.
HON. STEPHEN P. GARDNER,
BEZALEEL TAFT, jr. Esq.
Directors.

By the terms of the Charter, "no policy of insurance shall be made by the Corporation, until the sum subscribed by the associates to be insured, shall amount to 200,000 dollars."

It is necessary therefore that such of the inhabitants of the County, as are desirous of protecting their buildings from fire, should set their names to the subscription paper, copies of which may be found with the respective officers and others in various parts of the County. It is requested that returns be made at the adjournment of the meeting to be held at the Court House on Wednesday evening Nov. 5th, at six o'clock, where it is expected the bye laws will be reported.

This Corporation is founded upon principles somewhat similar to those of the Massachusetts Mutual Fire Insurance Company in Boston. And from an experience of 25 years, it is found that this mode of insurance affords complete protection, for an expense merely nominal. By the practice of that Company, the ordinary rate of insurance for a wooden dwelling house in the country for seven years, is 1 per cent or less. The premium is paid at the commencement of the policy, and in addition to this, the owner of the building also deposits with the Treasurer, a sum equal to four times the amount of premium. This sum (which on a dwelling house appraised at 1000 dollars at the above rate, will amount to $50) is immediately put at interest, and the proceeds thereof, form the disposable funds of the Corporation. At the end of the seven years (if no loss has happened to the house by fire) a settlement takes place with the assured, by making him debtor for his part of all sums paid for losses, and creditor for the net amount of all premiums and interest received during the term. The balance of this amount has generally resulted in an amount due to the assured, equal to the whole sum deposited, and simple interest at a rate varying from 4 to 6 per cent a year, on the same.

It is presumed by those best acquainted with the nature of risks in this County, that this Corporation, will probably be enabled to insure, upon ordinary dwelling houses for one half the above rates, but a better judgment can be formed upon this subject after the promulgation of the bye laws.

Worcester Oct. 10 1823.