Document KGxjQBoRgKjjp0NGvV8eVaNBQ

PLAINTIFF'S EXHIBIT1 MET-918 LC Mr. G. W. Pitzhugb, Supervisor Res 544A-G - The Ruberoid Co. The above policy u Issued la 1927 aad revised la 1929. The coverage aa Issued at the "T" rate, but for a number of years the experience vas unfavorable, aad at the re newal date la 1931 (December 31st), e increased the rate to T.+52.00. it the time of the increase, the claim rate was 121%, aad our lose amounted to slightly more than $22,000. There vas a loss the year following the Increase, but the experience has been favorable every other year since 1931. $e have recovered our early losses and are now paying dividends on the coverage, but this is due partly to redistribution of premiums of almost $14,000. Two years ago, we reduced the rate from T.+$2.00 to T.+1.00, and the experience has continued to be favorable at this latter rate. However, last year the claim rate was 83%, and our profit was only $610. la the current year the claim rate la 57%, and to October 31st we have a profit of about $7,500. If the "Ta rate had been charged continuously from issue to date, our claim rate to date would be 91%. Based on the exper ience from December 30, 1931 (the date the rate vas increased from "T" to T.4%2.00), the claim rate to date, using the *T" table, would be 81%. (See attached sheet). Being the experience of the last two years only, that is, the period we had been charging a rate of T.+$1.00, the elaim rate at the "T* rate would be 79%. There is also Accident & Health coverage, and the exper ience has been favorable. Last year we reduced the rate for this coverage from 70^ to 60^. As indicated above, we have transferred approximately $14,000 from this coverage to the Life coverage. The Life average eost increases five cents on reoomputation, from $1.10 monthly to $1.15. Is vise of the indicated ex perience at the aT" rate, end taking into consideration the fact that this policy still contains an Installment Total ft Permanent Disability Provision, I suggest that we continue the present rate of T.+H.00 for at least one more year. If tha rate reduced, the e*J ployee contributions must be reduced. Hovembcr 30, 1938 DCB/HM ________ Division Sup Life ft Health Section