Originally the insurance was compulsory. At the convention of October,
1893, it became optional and remained so until October, 1894, when it
again became compulsory. Owing to opposition from members carrying
old-line insurance and from the uncertainty in the number of assessments
levied each year, the St. Louis convention of 1896 reverted to a system
of optional insurance. Previous to the adoption of this plan the Order
had paid death, total disability and partial disability claims to the
amount of about $75,000. From January 1, 1897, to September 30, 1904,
$74,909.66 was paid to beneficiaries, making a total paid since
organization of about $150,000.

The National Association of Letter Carriers of the United States of
America was organized at Milwaukee, Wisconsin, in 1889. In 1891 the
Association was incorporated under the laws of the State of New Jersey,
and on February 26, 1892, was reincorporated under the laws of the State
of Tennessee. The aim of this organization is "to unite fraternally all
the letter carriers in the United States so as (_a_) to secure their
rights as Government employees and to promote the welfare of every
member, and (_b_) to found the United States Letter Carriers' Mutual
Benefit Association."[33] The first annual session appointed a committee
to draw up a plan for an insurance system. The report was published in
January, 1891, and was considered by the National Association at its
second annual session in August, 1891,[34] and the Mutual Benefit
Association was instituted.[35] The insurance has always been voluntary
and consequently the membership of the Benefit Association has been only
a small part of that of the National Association. On July 1, 1905, there
were 5318 members carrying insurance to the amount of $13,866,000, while
there were 19,000 members of the National Association.