The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1871-11-30

The great fires of the present year have
demonstrated the fact that a reform is needed
in the insurance business to correct the grow
ing evil of over-insurance. Wepresume that
not over one-half of the insurance policies in
force in the United States to-day mot includ-
ing policies in unsound companies) are good
for the full amount which they are supposed
TO represent, is, after the property may
be destroyed by fire, the companies will be
able to prove that the actual value of the
property lost did not equal the amount
called for by the policy. The more iully to
explain our meaning, We clip the annexed
paragraph from an able article on this subject
in the 81. Louis Democrat:
To insure q stock of goods for, say, Sl0,-
QUO, and pay the premium on that sum for
ten successive years. perhaps. To this you
are annually melted by the gentlemanly con-
duct of an able solicitor, who approaches You,
hat in hand, as the time for renewal arrives,
and wonld be pleased to receive your contin-
ued patronage. You are then distinguished
customer, whom To serve is exceeding jov,
How quickly fire transmutes the characters
in the Interesting drama! In place of the
gentlemanly solicitor comes the stern and
unyielding adjuster; and you, no longer a
distinguished stranger, are resolved into a
poor relation-a pensioner upon the bounty
of your former servants. In vain you pro-
ducc your policies and your catalogug oi
Losses TO justify their payment. The adjuster
knows better; he has been in your kind of
business himself: he knows that your goods
were not worth SO, 600 or even 5000; vet
to avoid delay and trouble he will settle with
you on the basis Of the latter figures. That
or noshing-ior his wo. d is Law, and you see
from the ponderosity of his watch-guard, the
size of his seal ring and the expense of his
general makeup that he is man not to be
trifed with. Iou take the money, which is,
in certain sense, 30 much clear gain, and
you go home with shattered faith in human
promises. Now this is not ''paying every
dollar Of it, losses" on the part of the insur-
ance company. The ''adjuster" comes in at
the wrong end of the bargain. 1t is in ex-
tremely bad faith for 4 company 10 accept the
premium on $4,000 valuation and after
wards resolve it into S, 900 loss. Ii should
satisfy itself that the valuation Is fair one
when the premium lis paid, and then, if the
fire makes q total wreck, the settlement
should be full and complete. Between "pay-
ing every dollar" OF loss after the adjusiei' 8
gouge OF fifty per cent. and paying but fifty
cents on the dollar on the original policy, the
moral difference is in favor Of the latter.
We commend this subject to the attention
OF the Kansas Legislature this winter. The
evil can be reidily corrected by
legislative enactment compelling in
surance companies doing business in this
State, to pay, in cae of honest los, the full
amount called for By the policy; and where
il can be shown that goods have been re-
moved and die building burned BY the in
sured With ths intention of deftapding the
companies theeaGire policy shall Be forfeited.
This would put IN end At once to The evil Of