Monday, November 30, 2009
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Consistency, stability mark Frontier Mutual Insurance

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[November 30, 2009]  Many who drive by Frontier Mutual Insurance Co. at 305 Decatur St. in Lincoln probably don't realize the importance of the mutual insurance company. But many area farmers as well as farmers across much of the state do.

Frontier Mutual Insurance is a progressive and leading farm mutual whose primary business is devoted to protecting the physical assets of Illinois farmers and their livelihood throughout much of Illinois. The company protects the assets of farms from the northern border with Wisconsin and stretches as far south as Montgomery and Effingham counties.


Although the name Frontier is relatively new, the company's roots go back almost 125 years. Frontier Mutual was derived from a merger in 2000 between two well-known farm mutuals, Point Mutual and Lincoln/Logan Mutual. Point Mutual of Pontiac originated in 1886 as Eppards Point Mutual, a Livingston County township mutual whose primary occupation was, and is today, insuring farms. Lincoln/Logan was established in 1887 as Lincoln/Logan County Mutual, located in Lincoln, a community devoted to the farming industry.

The Frontier office in Lincoln has a staff of seven Logan County residents who work to service the 4,500 farms and farm family members throughout the state.

Larry Cook, a 25-year insurance agent, has been in charge of the office for 3 1/2 years. Born in Arcola, a farming community, Cook understands his policyholders. Larry and his wife, Diane, have two sons, Max and William, attending Lincoln Junior High School.

"We protect Illinois farmers' assets: houses, tractors, combines, tools and farm buildings all are covered by our company," Cook explained at his office.

He wanted to point out that as a mutual insurance company, the company is owned by the policyholders, with a board of directors made up of those farmers.

Cook explained that the fact the insurance company covers a great part of Illinois helps all of their policyholders.

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A natural disaster in one region can have its losses offset by policyholder premiums in other parts of the state that didn't suffer the same disaster.

It is this large service area that has helped keep rates constant for the last six years for policyholders, Cook said.

Pooled resources spread the risks out, and that keeps costs stable in a time when farm families are continuing to see other costs of operation continuing to increase.

The company is conservative, investing premium funds in CDs and bonds. Thus their reserves are not as affected by the ups and downs of stock market prices or other investments subject to the whims of a volatile marketplace.

Cook said that stability and consistency are the goals of Frontier. And for Illinois farmers, such stability in costs is as welcomed as a wet spring and a dry fall

Some 50 independent agents throughout the Illinois service area are associated with Frontier.

For more information, you can call 217-732-8222.

[Frontier Mutual Insurance Co.; LDN]



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