New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-01-30
INSURANCE RATES AND RULES.
AN EFFORT TO COMBINE COMPANIES

AN EFFORT TO COMBINE COMPANIES.
THE FAILURE or THE NATIONAL BOARD OF UNDER
WRITER'S To MAINTAIN UNIFORM RATEs-A
LOSING BUSINESS FOR MANY CoMPANIEs-NEw
RULES PROPOSED.
Among the purposes of the organization Of
the National Board Of Fire Underwriters the eslab
llshment and maintenance Of reasonably remunerative
rates IL entirely successful for consid
cradle period In maintaining such rates Companies
belonging TO the Board-or nonBoard companies.
AZ they are callcd-cOud put their rates Just
"A little below those fixed by the Board, and
thus deprive the Board companies OF large proportion
OF their business. The Chicago fire In 1871 aroused the
companies which survived that calamity TO a sense OF
their danger and OF the importance Of charging sur
cient prices pros times TO enable them To
cunulate surplus against the time OF DISASTER ond in
1872 the National Board became effective than It
had ever been before. For few years nearly all the
strong agency companies doing business In
the United States united with the Board and
adhered with fair degree Of honesty 10
the Board rates. soon however, widespread
agraon following the Boston fire. feeling OF security
grew among the companies, many OF which withdrew
from Board In order to engage in free competition
10 rates. aud many Of those which remained did not hes
tate 70 violate Board rules. The Board. through ts
Executive Committee struggled against the tide. but
in vain; and, three years ago, all rules TO
rates IN Ncw-York City and adjacent cities were
abandoned The competition has been sharp that all
sembance OF uniformity has been lost and 1t currently
reported circles that company has
sured dwellinghouse property in NewYork and Brook
lyn for five years for 20 cents the $1OO The rate
at which stores and merchandise have been
insured has been simply that on which
each insurer could agree with agents Of companies.
The disastrous results OF this systemor lack OF system
have been apparent to careful underwriters hut they
been compelled TO bide their time until the evil
should become potent that It would be recognized by
all. The decline in rates may be shown by the
following CURES Of the companies doing business in the
State of New-York: The premiums received by these
COMPANIES III 1874 were 0s4 per cent Of those of 1873;
In 1875, 94A per cent IN 1915, syn per cent In 1877
force pecembeT 81 1873 exceeded those in force De
cemDer 81 1873 415421 310 The effect tins recg-
business OF the companies insurng In tho
state OF New-York for the first six months
comn as we're 2i 4e a@ and their aggregate
Losses and expen-es dlvdends eHcepted were tho
same perod 500 744 324 H. wing the OF loss
be ~, Gs3,s5 49-a dlscOuasing balance In the alb
Aspeciai mas engaged several weeks
perfecng system OF rules and rates 10 be adOptedIy
the recently organized Association OF Fire Underwriters
The committees report which has been amended care
fully section by section by the association. adopted
yesterday by OF 80 10 /. Two sectous, however
were referred TO the committee for further considcra.
ron but 1t is said To be Improbable that any change
Will be made In these new. regulations.
The rates fixed as follows:
Brcs and stone dwellings ..................ls
dwellings occupied part 20 and 30
Furniture them.
Merchandise. 80 and 80
Term policies dwellings De written Tor three
wears for two aud One-half annual premiums and ior
fivc years annual premiums. No rebate or al
lOwance shall be made, directly or indirectly
and the brokerage shall be limited TO 7lo per cent
Forf.tures the inITacOn OF the rules respecting
rates rebates aud brokerage are fixed follows For
writing below the adopted rates, sum equal to the
premium cnargeae by the tariff upon the amount IN
fIrcd making rebate or Tor paying larger hrOk
GRACE than that allowed by the rules the Of 800
These ifractions shall be regarded errors and no
plea that the error accidental shall he admitted
Compnnes becoming members Of the association are re-
CURED to make deposits with the Treasurer according
10 thaIr annual business In NewYork These dcpo.its
range from $3.50 $780, ard must be kept good by the
nm