of the cost value of the insurance actually done. It would seem
as if an allowance of 20 per cent. would be a liberal one in the case
of the regular companies, which surely have as good facilities for
doing business as the assessment societies.
As far as insurance is concerned, there is less difference between
regular and co-operative companies than is generally supposed. Regular
companies assess each policy in advance for a year's insurance at a
time, while co-operative societies furnish insurance only from one
assessment to another. The difficulty in the way of collecting the
assessment in the latter case would seem to be greater than in the
former, owing to the more permanent nature of the regular insurance
contract.
In compensating agents the assessment companies naturally pay in
proportion to the insurance obtained, inasmuch as there is no other
basis to go upon, but regular companies usually pay the agent a
percentage of the premium _which includes a considerable trust fund_
over and above the assessment for actual insurance. It is easily seen
that by the last method the agent's compensation increases in
proportion to the amount of savings bank business forced upon the
company.
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