The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1868-09-09

ed pay TO the losers the sums TO which
they are respectively entitled. Usually,
these men or companies fix the amount
of The premiums at such rates as Lney
may think will meet all the losses ike
ly to accrue, and leave them a surplus
as reward for their own trouble
Iftheyi calculate Alright in this respect,
and no unusual losses occur, they
make money. If they miscalculate,
and unexpected losses have to pc
borne, they lose. For the safety OF the
Insured in this latter contingency, u
tai. out OF which losses can be pa1d II
necessary. But as a general thing the
amount of the premiums must equal
or exceed the amount OF the losses anu
expenses, or tho business must stop.
There is an Impression prevalent
among some who have not become ac-
ouainted with the facts connected with
the subject, that insurance is an ex-
tremeIy profitable business, and that
the companies engaged in II receive q
vast deal more money, in the shape OF
premiums, than they pay out for losses.
Statistics, however, demonstrate that
this idea is an incorrect one. In the
three years, 1865, 1866, and 1867, the fire
and marine insurance companies OF
this State received in premiums Sll0,-
72O, 600, while they paid out, for losses
and expenses, Sill, $50 900. That is the
aggregate insurance business, for three
years, of all those engaged in it in this
State, resulted in a loss of $S00,OO
Some of the companies, to be sure,
made money, but others had to draw
upon their capitals, and the public ac-
tually gained $500, 900 at their expense.
These considerations show that u
great deal of skill and knowledge is re-
quisite 10 manage the insurance BUSH
ness as to make the premiums cover
lnaunu oN1H nv Garnff1l agIf.
mates of the risks to which each parcel
of property insured Is exposed, and of
the likelihood of its being destroyed
must be made. All the circumstances
under which accidents occur must De
observed and studied, and inferences
drawn from them. The average OF
losses in particular kinds of business
must be noted, and prsmiums regulat.
ed accordingly. Even the personal
character OF those who apply for insur-
ance must be taken into account, and
allowance made for 1t. All this, and
much more besides, is essential to the
proper conduct of an insurance office;
and without it, the business is sure to
come to an unfortunate end.
Furthermore, 1t Is apparent that not
only must the men who attempt to
carry on the business of insurance be
competent to the task, but they must
also have some other resources to meet
their losses than merely the premiums
they collect, With every precaution,
the losses will, as we have seen, some
times exceed the premiums. and then,
IL there be no capital to fall back upon,
those who hold policies are really not
insured at all, and in case of loss
fail of the relief they counted upon.
Hence the necessity of some supervision
of insurance companies to assure the
public of their pecuniary ability, and
10 protect them from such bogus con-
Germs as those which lately flourished
in Jersey City-mere traps 10 catch
premiums, without any expectation on
the part of their managers of paying
losses.