The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1881-04-08
UNIFORMITY IN INSURANCE
POLICIES.


uniformity in the policies of FIRE insur-
ance companies has failed. After the
passage of the measure In the Senate,
it has been indefinitely postponed by
the Assembly. The reasons for this &C.
ton are given as follows:
There are many companies whose
charters require certain clauses not nee
essary to the general form of insurance
policy. To insert all Of these in order
to allow them to do business in Wis
consin would be to create a sheet of un-
wieldy size, more encountered with fine
print than the most Objectionable forms
now In use. Again. large firms carry
ing heavy Insurance. have printed forms
which are gummed on the blank policy.
which would be unlawful under the
proposed bill and all policies would
have to be writ en- out. A firm carry
Ing, as some do, from fifty TO two hun
dred policies would put the agencies to
great expense for clerical labor, and all
such attachments as mortgage"
clauses, which are printed BY the thou.
sand and gummed to one out of every
form policies, would have to share q
similar fate. The bill was ably drawn,
and probably came as near to attaining
the desired object as any bill could
hope to do, but the inconvenience of
it would have BEEN greater by far than
the inconvenience to adjusters In COM
putting ratios Of losses under hon-con-
current policies written under existing
laws.
Most Of the policies now issued con-
tam number Of severe conditions
printed in small type which few insur-
ers read and understand. Frequently
they are conditions to which few would
subscribe after q clear understanding.
And some of them are violated In many
instances. Usually the agent declares
that these conditions are simply mat
ter of form, and appeals to the records
to show that payments have not been
withheld under violations. While IL
is true that companies do pay losses
without murmur In many cases
where the conditions have not been OBJ
served, it is also true that in event Of
great condagration involving mil.
lions of dollars the holder of policy
under. the conditions noted Ia very
glad to compromise. In one instance,
where an insured establishment used
sixty oil lamps, 1t was found that in
every policy covering the property the
use of oil was declared sufficient to in
validate the policy. There Is hardly q
doubt that il the establishment had
burned, the policies would have been
paid--but il large number Of build
ings insured In the same companies had
burned at the same time, the companies
would have forced a compromise. In
looking over a number of policies, it is
found that many Of them prescribe as
follows +" If the property be sold or
transferred, or upon commencement of
foreclosure proceedings or upon the
existence of q judgment lien upon" the
policy is invalidated. Now any man is
liable at any time to have Judgment
lien upon his property, without in any
way threatening the transfer Of the
property. If Brown presents a bill for
5000 to Jones, and the latter admits an
indebtedness Of only 800, Brown be-
gins suit and in the end secures judg-
ment of 500, which becomes lien up
on all of Jones' property and inya!i-
dates his insurance policy.
An important feature Of Are insur-
ance Is this When an insurance COM
pany whose policies contain all these
conditions loans money on property it
insists that the borrower shall surren-
der all policies containing such condi-
tions. These companies know very
we'll what these conditions mean. The
Northwestern Mutual Life win not
loan money or property insured under
the conditions referred to. The intent
of the bill passed by the Senate was to
authorize the Commissioner Of Insur-
ance to protect the people from peculiar
conditions. With the assistance of the
Attorney General he was to prescribe
fair and necessary conditions as nearly
alike In all cases as the characters
would permit. This, carried out,
would eliminate many of the condi-
lions which are now prescribed, 50 that
the published conditions would not
render a larger sheet necessary. The
chief purpose is fairly expressed in the
fifth section
The forms to be prescribed or ap-
proved, as aforesaid, shall be SIMPLY
and concisely drawn, without unusual,
unreasonable. unconscionable, incon.
venient or vexatious conditions, excep-
tions or provisions In favor Of the in
surer, to the end that such clauses
which are now frequently printed in
policies Of insurance and escape the
observation of the insured, shall here
after be inserted. If at all, only in writ
ing in each policy.
The reasons given for the indefinite
postponement Of the bill In the Assem-.
bly, do not appear to be sufficient. con-
sidering the Importance of the matter.
--ReDublicdn and Nescs.