The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1873-05-03

In the retrospective work of the Commission
CT the past three years, Mr.. Paine finds ample
proof Of the evidence of the wisdom of the
Legislature in creating the office and providing
for the publication of its reports. Three years
ago the State was filed with irresponsible COM
panies and agents. whilegtherc were no means
to distinguish between the reliable and worth
less companies. The watch kept by the Com
missioner and citizens has tended to remove
from the State weak and irresponsible foreign
companies and saved our people from the loss
attendant upon the two caamities of Chicago
and Boston
Mr.. Paine, in noticing the existence of pre-
judice against Name as "hard" State for fire
insurance, disproves the statement by showing
that for the four years prior to 1872, the pre-
miuins collected in Maine by fire insurance
companies amount to $2,5 1854. while the
losses paid amount to but 81 ,49S, 23S, giving a
ratio of losses to premiums of IS per cent
During the SAFE period the ratio of losses to
premiums in New York were 62a per cent, and
in Massachusetts 673 per cent.-a balance in
favor of Maine in the first State of 81 per cent.
and nearly 10 per cent in the latter.
The Commissioner devotes quite a large por-
ton of his report to the Boston fire and the
lessons to be derived from that calamity, 50 far
as they relate to insurance. The lessons he de-
duces from that and the Chicago fires for in
surers are:
/. Larger companies with larger capital, suf-
ficient to take in fair average of all the risks
of the community, and
2. AS consequence of the first a greater
expansion of territory over which the risks
shall be spread, and
8. Greater care in avoiding the accumula-
ton of risks within the same exposure.
In relation to fraudulent fires, Mr.. Paine
warmly recommends that the law Of last year
for inquests in cases of such fires, as there il
reason to believe have been intentional. He
also recommended frequent examination Of
buildings in villages and cities by skilled men,
to detect defects and the careful watch by
all persons in dwellings and mills for articles
that will produce spontaneous combustion, or
the careless disposal of matches, ashes or dam
gerous location of fiues.
Mr.. Paine devotes large space to the discus
sion of Life Insurance. Among the defects Of
this department of insurance he points to the
fact, that Of the great number of policies that
are lapsed or abandoned, and the small part
that are terminated by death and paid. The
whole number of policies which terminated dur
ing the year being 1858, amounting in all to
S303, S37, 976, the number of those terminated by
death or other maturity being 6, SS9, and amount
ing to $40, 102. 3s9, being 6.o7 per cent in num-
Der and 6.61 per cent in amount.
The remedy is discussed at some length, but
no definite suggestions are made beyond new
rr,lao f which, fbo Muf1,o1 Tifa of
New York attempted last January, but was
deferred from by the clamor of other com panies
He predicts that this company will ere long
carry out its plan and that others must follow
or be ruined. Speaking of the possibility of
reducing the premiums ON life assurance, he
says:
To show how far the actual facts existing
sunport the ground now assumed. it may not
be inappropriate to slate the figures developed
by last years experience OF the companies do
ing business in this State. The whole amount
of premiums received by all these companies
during the year, as reported was $50, 300,0 99,
the amount paid for losses was $30.722, $50.
while the amount refunded to policy holders
was Sis, G40, $3.50, being thus nearly twenty-five
per cent of the premiums paid. For the col
lection of all this large sum heavy commissions
were paid in addition to other large expenses
ever attending upon the receipt, investment
and disbursement of money. All these are to
be added to the repayment in order to deter
mine the exact overpayment.
Mr.. Paine also discusses at length the rule
OF assessing rates of insurance upon the sole
basis OF the tables of mortality framed from
Vne average of human life. This he deprecates
% an evil leading to the bad results of life as
surance. He says:
life -o os f f always found in cases of human
craeies 81 50 oadngs and vessels, certain dosyn
peculiar cast or H' 81 character. giving each
an diners having direct bearin@ ~, hug VI
9n OF q@nS %a apa hence Of cost and the
upon this cost in the one case NY IN hXing
The general average Of life is no mo oae oCne ounce
IDENTIFY to be relied npon in forming ,,ole conf
of any individual risk than the same ot Sne ut
of risks Of fire and marine classes. Indoag
thus far it is very generally conceded the doc,
] trine is true the difficulty consisting in lie