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Kent & Essex Farmers Mutual Fire Insurance
Company was organized on June 13, 1888 and commenced business
on July 27, 1888. The company first operated from Romney Township
and then out of the home of the manager in Merlin.  Initially,
the company was established to insure farm properties against
the perils of fire and lightning only. The limit of insurance
on buildings was two - thirds of their value.
The company operated under the Premium
Note Plan whereby every insured signed a premium note amounting
to 3% of the amount of insurance required. Policies were written
for a three year term and the annual or three year premium allowed
the company to hold money in reserve to cover losses. If the
losses exceeded the premiums, the company could then call on
policyholders for an assessment under their premium notes. Due
to high losses, this company did in fact make one assessment
in 1933.
One of the notable changes in the company
was the elimination of the premium note as at December 31, 1975.
This was made possible by the establishment of the Fire Mutuals
Guarantee Fund, set up by the 52 Farm Mutuals. It became operative
on January 1, 1976, with each company contributing an amount
to the fund based on their insurance in force at the end of 1974.
This fund serves as protection to the Policyholders against any
of the participating Companies going out of business and the
Kent & Essex Mutual takes great pride in being part of this
organization.
Looking over our records for the past century,
we find a repetition of the same family names among our directors,
agents and policyholders. This is evidence that certain families
have been with this company throughout our full 100 years of
service!
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In 1957
the company added Windstorm coverage and by 1970 its portfolio
had further expanded to include Machinery Floater, Theft, and
Liability coverages among others. In 1982 the company obtained
Supplementary Letters Patent to change its name to Kent &
Essex Mutual Insurance Company. The company also changed its
underwriting procedures to write all policies on a one-year term.