Minnesota Farmers Mutual Insurance Company, 1934, Letter to Members

To the present date, the Season of 1934 has been one of the worst Windstorm Seasons In the history of the Northwest.

Everyone can remember the high winds and dust storms which swept over the country time after time during the spring. These storms were so -severe that they caused a tremendous amount of damage to farm buildings. During June, July, and August, several very bad cyclones occurred which covered unusually wide areas, and caused an enormous amount of damage.

The Minnesota Farmers Mutual Insurance Company has been doing business FOR OVER FORTY-THREE YEARS. Experience shows clearly that windstorms, cyclones, and tornadoes occur more often and cause more damage now than in past years. Every farmer needs windstorm insurance now more than ever before. No one can tell when or where a storm will occur, and In times like these no one can afford to "take a chance" without insurance. Every farmer should ask himself this question, "What would I do if I lost my buildings, livestock and machinery, if I did not have insurance ?" If you will think it over you will realize that you are protecting yourself against possible disaster by carrying insurance. We believe that windstorm, cyclone and tornado insurance in times like these is of the utmost Importance to every farmer. The past ten years has proved over and over again the fact that destructive windstorm arc more frequent and severe than they used to be and the need of cyclone protection greater than ever before.

The Minnesota Farmers Mutual Insurance Company is now forty-three years old. During all of that time, every loss has been adjusted and paid in full. We arc naturally proud of our Record. No Company could do business for more than forty-three years with the farmers of the Northwest unless it rendered real service to its Policyholders. This Company has. during its long history, been the means of saving a great many farmers from financial ruin. During the past ten years alone we have paid a total of over Two Million Dollars in losses; we have Increased the Surplus of the Company; we have reduced the expense in proportion to the volume of business; wo have Increased the volume of business over one hundred per cent; we have saved our Policyholders over a Million Dollars in the cost of their insurance.

This year (1934) our farm cyclone losses are over THREE HUNDRED THOUSAND DOLLARS, and the Diredors have levied an extra assessment on farm cyclone business of ten cents per $100.00 of insurance. By making this small extra assessment of only 10c per $100.00 of Insurance, in addition to the regular dues, we will be able to take care of the tremendous increased volume of losses without reducing the Surplus of the Company to any appreciable extent. We have not raised the regular survey fee or premium dues, and the ten cents per $100.00 of insurance extra is only charged this year on account of the heavy losses. In this manner the Policyholder gels the benefit of our very low Cost during normal loss years. Ten cents per $100.00 of insurance means an added cost of only two cents por $100.00 per year over a five year period, and remember that our cost is far less than the "Board Rate." We ask our Policyholders to compare our charges with the charges of any other Company. Find out what other companies are charging now for farm cyclone insurance. Remember that windstorms, cyclones and tornadoes occur more often and do more damage than in past years. We know that if you will investigate the charges of other companies, you will be more than satisfied with your policy in the "Minnesota Farmers." We do not believe that any company over a period of years can furnish good cyclone protection at a lower cost than the "Minnesota Farmers."

On January 1st, 1934, the Surplus of the Minnesota Farmers Mutual Insurance Company was $433,055.63. Surplus means added protection to the Policyholders. Every dollar collected by this Company from its Policyholders is used only for losses and expenses. There are no stockholders to get dividends, no Officer or Director of the Company gets any commission, and every dollar which is not used for losses and expenses goes into Surplus, which is held for the protection and safety of all Policyholders of the Company. Remember that what every Policyholder is most interested in is good cyclone insurance. If you never have a loss, any kind of a policy In any Company is good enough, but if you do have a loss you want to know that your loss, no matter how large it might be, will bo honestly and fairly adjusted and paid in full. The Minnesota Farmers Mutual Insurance Company has a record of forty-three years of honest business dealings with the farmers of the Northwest. and has sufficient Surplus to properly protect its Policyholders.

If you have never had a loss by cyclone, tornado, or windstorm, your turn may conic next. We all know that every year somewhere in our territory some of our Policyholders are going to have their buildings destroyed, their livestock killed, their farm products and machinery ruined, and no one can tell when or where the next storm will strike.

In conclusion please remember:

That the Minnesota Farmers Mutual Insurance Company is the oldest mutual company in Minnesota;

That we have been in business for forty-three years;

That wo have over fifty thousand Policyholders;

That our charges for many years have averaged less than the charges of most other companies;

That during the past ten years alone we have paid over $2,000,000 in losses, and have saved our Policyholders over $1,000,000 in the cost of their insurance.

1. "To Our Members", Minnesota Farmers Mutual Insurance Company Brochure, 1934, pages 1-3.
See Also
Minnesota Farmers Mutual Insurance Co. 1931-1934 Claims Paid (Searchable)

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