Page 8 - Frankenmuth Insurance 150 Years Anniversary Booklet
P. 8

From association to corporation

                  The year 1941 brought a major milestone for the association.

                  The Frankenmuth Fire Aid Association became the Frankenmuth
                  Mutual Fire Insurance Company, a corporation operating in three

                    counties with 12 agents in the field. To make it even more official,
                        the company moved its offices out of the mortuary and into

                          the Fechter Hardware building at 112 South Main Street
                          (now Gill-Roy’s Hardware).

                           Though the association was now a licensed corporation,
                          its conservative practices, cautious willingness to try new

                        ventures, and strong sense of community remained.
                  These principles served the new corporation well. In just seven

                  years, the company more than doubled its total in-force insurance,
                  going from $29 million in 1941 to $59 million in 1948, with 10,700

                  policies in 12 counties. With business prospering, the company
                  relocated again, this time to its own office building at 130 West

                  Tuscola Street.

                  New innovations kept the business growing. The company issued
                  the first non-assessable policies in 1952, which meant that

                  policyholders did not pay when others had a loss, but rather paid
                  premiums up front and relied on the company to pay loss claims.

                  The company was one of the first in Michigan to begin writing fire
                  and related insurance lines on farm, commercial and dwelling risks,

                  and introduced a combination fire and windstorm policy.

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