The New York herald., 1867-02-22
FIRE INSURANCE.

1 National Convention Of Fire Underwriters
The convention known the National Board Of Fire
Underwriters reassembed At No l56 broadway yester
| day morning at haifpast nine O'Clock PRESIDENT y
Mclean OF the Citizens Fire Insurance Company Of TINS
city, occupied the chair The attendance OF delegates
very large, and the proceedings OF most in
teresiing character The Hon William Barnes. Super
nienden of Insurance in the State OF New York, being
present was invited to seat alongside the President.
Tho rst business transacted the taking from the
table OF report presented Wednesday by Mr. Mark
Howard OF the Merchants Fire Insurance Company o
Hartford. in relation to
oyRR INSURANCE
Mr. HOWARD spoke earnestly against the custom which
obtained many companies of insuring property TO its
its full value or its value 1t had he thought
bad influence on the business and held out tempta
tons to those dishonesty disposed. The unlm
tied insurance policy was full OF evil he SAID.
II caused the assured TO become neglectful
a. 70 proper care and watchfuiness over their
places or business and their residences, and was
fruitful cause of losses to the insurance compa.
nies clause to the effect that no further insurance
should bc made In other companies without consent
ought in his opinion, TO be inserted in every policy.
In order correct the custom of unlimited insurance he
moved the adoption Of the following resolutions
Whereas l. being The design q the FIRE insurance con:
portion 1T risk Of the party insured TO
this time honored Barrier to nceniiarsm having BEEN re
c" o,Asa sna
he OF the entire insurance capital OF The country
Resolved That in the opinion Of this hoard the adoption
Of ne io"mns stimulation in future fir, insnranc. con
to restore proper relations between the insurer and
insurance that OF any policy
that The Insurers can and shall ee only liable for e three
and that one quarter shall be borne by the insured
slr CHARLES PLArr, OF the North American Insurance
Company, Of Phiiadcphia thought that the plan pro-
posed bv Mr. Howard would not effect the desired
object The three fourths rule would, in his opinion
have disastrous effect the insurance business II
contemplated he supposed to increase the premium
while the risk was iessened This would prevent the
mercantile community from insuring to SO large an ex-
tent az was the custom al present He moved that tho
resolutions be referred TO the Executive Committee to
be elected After further debate the matter was
referred
The Secretary OF the New York Board of Fire Under
writers transmitted 10 tho convention the action OF that
Board 1T tate meeting which recommends the incor-
poron Of TIE Hamburg clause IN all forms o' policy FOR
the futnrc The following is the clause referred to-
That IN - loss BY FIRE heppening on The premises occu
@ p 9s n I'M wn nc % ,f bs' s %
Of loss so asceained ad proved and y case OF other In
whole amount insured thereon.
The matter referred To the Executive Committee
Mr.. HoDcrs offered the focwng:-
Resolved That this Convention promises
rates ontcd hy he focal boa rds OF the counrv and in the
absence az The local boards the rates by the Ma
to ny psry who vii recevc The same with the three quar-
rs or ismhurg clause added at reduction of twenty per
cent
Mr. i.ARvgp, Of the Norwich Insurance Company
Norwich. Conn, said that the allowing of indefinite in
surance at with the very principle
which the companies were founded He did not think
that the Hamburg clause however would stand the test
insured FOR $500 600 and that when the fire which de-
srovcd his propcry broke out his stock remarkably
erni ye', bad he Maid premium ON $500 00O the court
would award him that amount He wished just here to
direct the attention OF The convention TO the practice OF
allowing brokers' commission 10 the insured party when
the insurance was effected without the aid Of agent
TINS practice hur'f and the local board in his city
had requested him TO bring tho matter before the con-
venton
prevent fraudulent losses was to mako strict inquiry ~
to tho character Of every party applying for policy.
This necessary in the insurance business
IL was IN the carrying on of commercial transactions.
Nj. u. A. HEAfD, OF New York, remarked that this
subject was important The evils that the offices now
suffered were various. Ono of them was inccndlarsm
at the hands OF the yaeab0nd another inccndiarsm
oarsed ny parties who had insured thei- properly
and 70 be benefited by its destruction Then again
the neglect and indifference re the likelihood
of confederation. caused by the present system Of
Insurance. or insurance for the full value OF property
Whether the three fourths clause would remedy these
evils he knew not but reform In the manner OF
surance vas nperatively demanded. For himself he
would say he considered tho needed reform could
only brought about by making the insured in every
party 70 the risk. The discussion of tho matt or
proper insurance standard and prepare thom or such
changes IN the manner OF issuing policies - might
hereafter be agreed upon vas 70 r,.r ms opinion 700
held out TO the insured by the c0mpanies them.
selves and nom this cause might attribute the in
than the financial hazardit was more injurious
He was firmly convinced that uniform rule OF In
9uiry into the character and standing OF eyey applicant
for insurance would lessen the losses at least twenty
Mr. HoPx or New York, thought that the best remedy
70 create large surplus fund by increasing the
tar rates OF insurance What caused the great dsas
In the business Years ago liberty to obtain in
pocs and this Mss shs fruitful sourcs Of the mischief
that had been wrought As citizens, thcy had duty TO
perform beyond mere money making They ought to
prevent from becomng rascas so far as lay IN
their power TO do But he doubted whether sufficient
unanmity could be obtained in this convention TO adopt
he would advise ali companies to establish high rates
and then for good and sufficient cause allow deductions
therefrom. As moral man. he would favor the cur
tailment Of risks; but as an insurance man. will
ing 70 make money, he would not Tho moro nu-
merous and the larger the fires tho better II
for tho companies What he considered the principal
cause Of conagratons was the aacrty with which
panics rushed TO pay up losses He knew OF instances
where these had been paid without particle Of proof
having boon presented 70 tho cause OF lire
To the extent OF loss Let the companies take time In
vestpae and deliberate before they pay and losses
watching over properly would then be rcmcdicd. He
wished 70 have the Executive Committee look into this
matter and prepare clawe covering this ground to be
Mr. KrsasBunY, OF Providence, r. L., favored tho
ourhs rule but thought the whole subject should
rctcrrou
Mr. CHARLES PIJrT, or Philadelphia, hoped the COM
mitce would be increased to y, and that tho matter
would be referred to them. He favored . pro rata
clause He invariably charged double rates when an
applicant did not fully insure.
Mr. MARX HOWARD said that he did not wish TO press
his resolution against AM great opposition and he would
concur in the proposition refer TO the Executive Com
mittee with instructions 10 report at the next meeting
Of the National Board The motion TO refer was then
agreed to.
THE ADJUSTMENT or LOSSES.
The COMMITTEES on Adjustment. through Mt. n r.
Campbell chairman, made report 70 the eject that
about ten per of the raid each year were over
payments. amounting to about si0000,0O0 annually
The OF this over payment, the committee aver ~
the scan investigation bestowed the origin o. conna-
graons and the extent OF the losses suffered The COM
mitiee recommend that payments OF losses DC maze
until majority OF the companies concerned concur as 70
the amount due the insured that Whenever the risks
embodied in policy specific a. well as general the
latter shall be considered to pro raa on each spccc
subject Of insurance. and that losses be paid M inc
maturity Of the claim The report having been accepted,
Mr.. D. X sArrxRLEs, of New Haven. moved 20 amend
BY making all losses payable at the expiration Of sixty
days from the completion OF proof and that whenever
payments made before the end Of such sixty DAYS
pro rata deduction be made from such payment He
would mako this mandatory on Tho companies repre-