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Show UTAH FARM BUREAU May 1971 Insured Page Gunnison Site For Leadership Meet to Value? by Joseph H. Jenkins, Fire Underwriting Manager workshop for Farm Bureau Boards was heard at Gunnison last week with Sanpete Farm Bureau President Keller Christensen welcoming the The or average clause are two terms used in the insurance business to help increase insurance values to current replacement cost. Inflation in the past three years, 1968 to 1971, has been above nineteen per cent. In some areas, such as the building and repairing industries, Inflation has been as high as thirty per cent. The Insurance Business has been hit very hard in this upswing of inflation due to the increased cost of rebuilding and repairCo-insura- nce ing dwellings. Therefore, this article is being written to explain how the Clause works on your Utah Farm Bureau Insurance Comhomeowner and fire policies. panys Lind and Hamilton exchange greetings The name probably came about when someone said an was Insured a that with the insurance company because he did not buy enough Insurance. The reason for can be best understood by first recognizing the most losses are partial losses. Assume that Mr. Walker and Mr. Brown have homes that are termine from space when crop Cache County Farm Bureau unsimilar and have the same value of $10,000.00 for replacement in tothus facildiseases are days market. Says the fire insurance rate is ten cents per $100.00 der direction of Alton Hoffman, itating early developing to pretreatment of Insurance. If Mr. Walker carries $8,000.00 on his home, he pays President, sponsored a vent excessive losses. Salt conDinner Meeting at which a premium of $8.00. If Mr. Brown, realizing that most fire losses tent of soil can be detected similare relatively small, buys only $2,000.00, he pays a premium of only time Dr. Don L. Lind NASA AsbeA marked difference arly. $2.00. Assume further that each has a $2,000.00 loss. Mr. Walker tronaut was featured speaker. The tween such soil can be seen near program is becoming an annual the U.S. - Mexican has paid four times as much premium as Mr. Brown for reimburseborder. U. affair that brings prominent farm ment of a $2,000.00 loss. If an 80 per cent clause has S. Farmers have made efforts to been used, Mr. Brown should have recovered only $500.00 of his and businss leaders together as a reduce salt content thus reflect$2,000.00 loss. It becomes obvious that there is no equity when one means of appreciating and undera difference. man insures his property for twenty per cent of its value and another standing each other and ways in ing significant Utahns Farm Bureaus attending Insures his for eighty per cent, and yet both receive the same payment which each group can work together national convention in Houston alfor a given partial loss, even though one paid four times as much as to build a better economy and com- so received information from Dr. munity life. did the other. In other words, a given set of rates applied to all inDr. Lind spoke of the value of Lind. Of 250 attending, guest of a given class will not be fair if the Insurance to value sureds the space program in production of included President Elmo and Mrs. varies among the Insureds. Women's Chairman techniques Hamilton,Whitbeck Photographic The clause, in effect, requires that the insured, in food. and husband and Barbara order to be able to buy the Insurance at a particular rate, agreed to have made it possible to de- - V. Allen and Mrs. Olsen, Execucarry at least a specified percentage of insurance to the value of the tive Secretary Utah Farm Bureau property at the time of a loss. If the insured fails to carry this much Federation. Cache County Farm Insurance, he will not collect fully for partial losses. Bureau members attending took To illustrate the way the clause formula works in business guests to the occasion Quentin L. Peart, former Vice at their own expense. the case of our friends Mr. Walker and Mr. Brown, suppose that in consideration of being able to obtain the insurance at the rate of ten President of the Cache CounDr. Lind was born in Midvale, cents per $100.00 of insurance each one of them was forced to acty Farm Bureau, was killed in an Utah and received his education clause. accident in a silo on his farm at in Utah schools and his Ph. D. cept a contract containing an eighty per cent The formula would work as follows. Richmond, Utah, on May 1. degree from the UniversityofCal-ifornl- a Mr. Peart and his at Berkeley. He married Dean Smith, were both overcome Amount of Loss - Limit of Recovery Insurance Carried X the former Kathleen Maughan of Insurance Required by fumes when they entered the a daughter of Mr. and silo. There were no witnesses Logan, Howard Maughan. They Mrs. J. to the accident, but it is assumed For Mr. Walker: are the parents of four children. that one man went into the silo to try to correct some faulty Amount of Amount of Recovery Loss $8,000.00 Amount Carried Co-insura- nce nce Co-Insu- rer nce Cache County Hear Astronaut Agri-Busine- ss Accident Claims Cache Leader nce Jake Fuhriman, Field director for Utah Farm Bureau discussed Legislative issues pertaining to pollution, insecticides, pesticides, Farm Labor and State Finances. These Issues all being current and need attention as they are very important, to all Farmers and Ranchers. We should all make a point to write to our congressmen and legislators and tell them our feelings on these issues. Young Farmer Representative Elwln Johnson, Delta discussed the responsibility of the Young Farmand their role in the future of farming. Stuart Johnson, Aurora, President of State Young Farmers in Farm Bureau invited all to help advertise the Talent Find, the State Discussion Meet and to start looking for a Utah young farmer under 30 to qualify for state and for national honors. ers son-in-la- w, X $2,000.00 $2,000.00 equipment, was overcome, and then the other went in and attempted to rescue the first and was in turn overcome. At the time of his death, Mr. Amount of Loss - Amount of Recovery was President of the RichPeart A mount Carried $2,000.00 X $500.00 mond $2,000.00 Farm Bureau local, and a Amount Required $8,000.00 member of the Board of Directors of Richmond Black & White Utahs oldest dairy cattle Days, to test Some readers of this article might like this formula with show. Active in church and ciother figures. In doing so, keep these additional pointers in mind. vic amount of loss. (2) Recovery affairs, he had served in the (1) Recovery can never exceed the can never exceed the amount of insurance (3) Recovery can never bishopric of the Richmond South Ward. formexceed the figure resulting from the use of the He was the owner of a large ula. (4) The smallest of these limitations applies. irrigated dairy farm in Richmond is one of the most misunderstood terms in the which he operated with his Mr. Smith. Insurance business. Therefore, dont feel like you dont understand He survived by his wife, Mar-lgen- e, is above the article. have read after you two If you have any questions in regards to daughters and three please contact your Utah Farm Bureau Insurance Agent, and if he can't grandchildren. answer your question, please feel free to write me at the Utah Farm Bureau Insurance Companys home office. For Mr. Brown: Multi-coun- ty group for the hosting county Board members from Millard, Wayne, Sevier and Sanpete organizations were in attendance at this highly Informative meeting. Womens District Chairwoman, Fern King of Teasdale led the first part of the discussion talking on Food is a Leaflets printing these Bargain. facts will be distributed to the grocery stores for customer distribution. nce $8,000.00 Amount Required 5 Following the meeting, Mrs. Jack Madsen and Mrs. Nell Sorensen of Sanpete Farm Bureau served refreshments for the group. NEWS LETTER cartoonist Himme wins twelfth award from Freedoms Foundation nce son-in-la- w, Co-insura- nce v" Ed Thomas Sustained as Bishop Ed. A. Thomas who retired from Farm Bureau Staff February 28, 1971 has been chosen and sustained as Bishop of the Palmyra Ward, West of Spanish Fork. Mr. Thomas has had a long service career and will be well grounded for his new calling. Named his councelors were Eldon Money, who is also Utah County Farm Bureau president and John Hansen, brother of Ray Bert Hansen who is Member of Utah Farm Bureau Young Farmers and Ranchers committee. Mr. Thomas had planned to take it easy on the farm working with his sons Blair and Calvin in a farm operation of considerable size producing milk and a variety of field crops. The Thomas sons may look for additional help in the absence of Mr. Thomas while he serves as Bishop. Farm Bureau and all of the staff who worked with Mr. Thomas extend congratulations and best wishes for success in a most challenging and rewarding career. Make Your Membership Participate Your County Farm Bureau in Fcrd Himme, cartoonist for the AFBF Official NEWS LETTER, has been recognized for the twelfth year by Freedoms Foundation of Valley Forge, Pennsylvania, for a NEWS LETTER cartoon. Himme received the Foundations Honor Certificate Award for this cartoon, Essential Ingredients For Americas Melting Pot, which appeared in the February 16, 1970, issue. The award-winnicartoon is reproduced below. Himme, who lives in LaG range, Illinois, won his first Freedoms Foundation award for a NEWS. LETTER cartoon in 1955. He has received awards each year since 1962. His cartoons have been pub lished in the NEWS LETTER for 35 years. -- ng |