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- Title
Purchasing Efficiency with Excess Surplus.
- Authors
Brummond, David J.
- Abstract
This article examines financial data of fraternal benefit societies and offers a snapshot of the fraternal benefit system as a whole. A significant decline in the role of fraternals in providing life insurance to Americans is noted. In a search for answers to why this decline has occurred, a profile of the NAIC Annual Statement operating results of 90 fraternals who are members of the National Fraternal Congress of America is presented. This profile reveals that as a group, fraternals are less efficient than commercial life insurers and less viable as ongoing, insurance organizations. The profile also reveals that fraternals as a group report a significantly greater percentage of their total assets as surplus than their commercial life insurer counterparts. The author suggests that this excess surplus be employed to purchase greater efficiencies that will help preserve a more sustainable future for fraternal benefit societies.
- Subjects
FRATERNAL organizations; FRATERNAL insurance
- Publication
Journal of Insurance Regulation, 2000, Vol 18, Issue 3, p315
- ISSN
0736-248X
- Publication type
Article