The Rural Voice, 1979-10, Page 57Stuce eoceptev 9edezaiiaa 760ucuetune
A word
on "Co-operators"
At a recent meeting of the Bruce
Federation of Agriculture Directors a new
young director questioned why the
federation enclosed an application for life
insurance for Co-operators in the monthly
bulletin. He felt we were
endorsing that company ahead of all other
companies.
The older directors were taken back a
few minutes but then suddenly realized the
younger generation does not realize the
connection betwen the co-operators and
the Federation and how could they —we
likely just take it for granted that they all
know the early history. Consequently they
asked me to prepare something that will
explain our connection and early existence.
In 1947 and 1948 the Federation of
Agriculture realized farmers were de-
serving of a special rate for auto insurance
so they set out to start their own company.
This was a big undertaking and required a
lot of work that was beyond the physical
ability of the county executive so they hired
a fieldman. I was hired in 1948.
My first assignment was selling common
shares to obtain our charter. The next
effort was appointment of agents and
giving them training to obtain their license
and acquaint them with the rate manual.
The first policy was written January 5, 1949
at the Ont. Fed. Annual meeting in
Toronto. To offset some of the expenses
incurred by the Federation the insurance
company reimbursed them a small return
of about 25c per new policy and so much
per renewal.
In 1951 this amounted to$250.00, in 1953 to
$363.00. 1 was also licensed and this helped
in financing my salary which was $2,400 a
year. The company grew fast and by 1963
the return to the federation was $5,363.06.
Assistance was also given the Rural
Co-operator now known as the Farm and
Country.
The direct payment to the county units
has now been discontinued and the
payments are made direct to the provincial
which in turn provides the services as
formerly paid for by the county.
After we had the auto insurance
company safely launched we entered the
farm liability urban fire accident and
sickness and life insurance. We did not
enter the farm fire because we felt the
mutuals were doing a good competitive
business and we would stay out of their
field if they stayed out of farm liability.
This agreement has been broken and
we now find ourselves in the farm fire
business this year.
While the younger generation might now
realize the connection between the Co-
operators and the Federation of
Agriculture exists because the federation
started the company along with some help
from the credit unions and co-operatives,
they should not forget one other very
important aspect of the Co -opera cors. We
are a major competitor in holding down the
insurance rates in this province and
Canada.
True we are not always the lowest in all
categories but we were the first to provide
farmers with a special low rate which all
companies provide now. Another factor is
we are an all Canadian company; our
investment are in Canadian industries, we
will not be a victim of a foreign take over.
Another important factor is that even
though many people have the insurance
with other companies, we have been able
to save them many dollars too.
Many people have contacted us for a
quotation on their auto insurance because
they felt their rate was too high. After we
quoted our rate the competitor dropped his
premium to compare with ours. We do not
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drop our rates just because the competitor
has a lower figure on that particular
customer. We price our rates on our actual
claims experience.
From time to time we will get out of line
but those who stay with us year after year
will have • a satisfactory insurance
experience in both rates and claims
service.
I trust this will explain the Co-operators
and Federation of Agriculture
connection and that moral support will
continue in the future among the younger
generation.
Jim Powers, Chepstow.
Sales Representative (366-2392)
Bruce County
Federation
of Agriculture
NORTH CENTRAL
REGIONAL MEETING
8:30 p.m.
Oct. 15,1979
TARA Community Centre
SOUTH WESTERN
REGIONAL MEETING
8:30 p.m.
Oct.16, 1979
Hollyrood School
Bruce County Federation of Agriculture
Monthly Meeting
Oct. 9, 1979
8:30 p.m.
OMAF Office Walkerton
THE RURAL VOICE/OCTOBER 1979 PG. 55