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By HOWARD WIEDENHOEFT<\/p>\n
In 1937 Wisconsin’s state law authorized mutuals the ability to write supplemental coverages for smoke, theft, and similar disasters, but it wasn’t until 1951 that it authorized extended coverage. Along with extended\u2014also known as wind coverage\u2014came the new requirement of reinsurance, where another insurance company takes on all or part of the risk covered under a policy issued by another insurance company in consideration of a premium payment. In 1951, the state law determined wind coverage had to either be 100% reinsured or the mutual’s wind losses must be capped at $2.50 per thousand of wind insurance in force.<\/p>\n
According to their minutes, neither Watertown Mutual Insurance Company<\/a>\u00a0or\u00a0Ixonia Mutual Insurance Company<\/a> approved the writing of supplemental coverages until 1952. That same year Ixonia Mutual also approved the writing of wind coverage.<\/p>\n Interestingly, even though it was approved, Ixonia Mutual did not offer wind coverage to its policyholders until 1955. Why the wait? At that time the Wisconsin Association of Town Mutual Insurance Companies was working to set up a reinsurance company and it wasn’t until 1955 that it was ready to offer coverage. Ixonia Mutual then purchased wind reinsurance from Wisconsin Town Mutual Reinsurance Company, capping their wind losses at $2.50 per thousand of wind insurance in force.<\/p>\n Watertown Mutual approved writing\u00a0 wind insurance in 1955. They reinsured 100% of their wind coverage with Midland Union Insurance Company of Juneau. Midland Union paid all their wind losses and Watertown received a commission for writing the coverage.<\/p>\n This new way of insuring meant extra bookkeeping for both mutuals. It required two sets of books: one for fire and supplemental coverages and another for wind coverages.<\/p>\n Effective December 31, 1965, Midland Union Insurance Company cancelled their wind reinsurance contract with Watertown Mutual because they could no longer get an adequate rate from Midland\u2019s reinsurers. Watertown Mutual then purchased wind reinsurance from Wisconsin Town Mutual Reinsurance Company, capping their wind losses at $2.50 per thousand of wind insurance in force.<\/p>\n One cannot help but wonder if the 1965 Palm Sunday tornado<\/a> was the major reason for the cancellation of Watertown Mutual\u2019s wind reinsurance contract? The tornado caused $45,295 of damage to its policyholders which was all paid by Midland Union. Ixonia Mutual paid its policyholders $46,482 for their damages, of which $36,000 was reimbursed to the mutual by their reinsurance company.<\/p>\n Both Watertown Mutual and Ixonia Mutual added their first deductible to their policies of $50 after this tornado.<\/p>\n Nowadays, Forward Mutual offers insurance with the reinsurance backing of Grinnell RE. With Grinnell’s A.M. Best rating of A<\/a>, our mutual feels confident in offering the best coverage available to our policyholders.<\/p>\n By the Minutes: Introduction<\/a><\/p>\n 1872 Watertown Mutual Founded<\/a><\/p>\n 1875 Ixonia Mutual Founded<\/a><\/p>\n Comparing the Capitalizing of Two Early Mutuals<\/a><\/p>\n A Mutual\u2019s First Claim<\/a><\/p>\n Supporting Dairy in the Late 1800s<\/a><\/p>\n 1879 Early Challenges for a Young Mutual<\/a><\/p>\n Ixonia Mutual\u2019s First $1000 Loss<\/a><\/p>\n 1885 A Year of Neighbor Helping Neighbor<\/a><\/p>\n Changes of Bylaws<\/a><\/p>\n Our Dairy Heritage<\/a><\/p>\n Insuring Automobiles<\/a><\/p>\n Taxes, War and the English Language<\/a><\/p>\n Supporting the Community\u2019s Fire Protection<\/a><\/p>\n Board Directors and Their Meetings<\/a><\/p>\n Standardization of Wisconsin Mutuals<\/a><\/p>\n Of Electricity, Radio and Foxes<\/a><\/p>\n Our Annual Meetings Over the Years<\/a><\/p>\n Tumultuous 1930-1940s<\/a><\/p>\n How a Major Disaster Affected Extended Coverage and Reinsurance<\/a><\/p>\n Surviving the Big Dogs in the 1960s<\/a><\/p>\n Introducing Agents to the Mutuals<\/a><\/p>\n Accounting Over the Years<\/a><\/p>\n Centennial Anniversaries<\/a><\/p>\n Mutual Offices<\/a><\/p>\n Mutual Managers and Staff<\/a><\/p>\n Establishing Confidence in Financial Strength<\/a><\/p>\n Entering the Era of Computers<\/a><\/p>\n The 1990s, Advancement and Angst<\/a><\/p>\n The Start of the 21st Century<\/a><\/p>\n Concord and Watertown Merge<\/a><\/p>\n Ixonia Mutual and Watertown Mutual Merge and a New Company is Formed<\/a><\/p>\n Setting the Stage, Moving Forward with a New 2020 Vision<\/a><\/p>\n
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