Wood River times. [volume] (Hailey, Idaho) 1882-1915, 1885-08-26
THE INSURANCE COMPACT.
1t Is Knocked Higher than Giideroy,s
Kite.

1t will be remembered that, upon
the passage, by the Idaho Legisla.
ture last winter, of the bill known as
"the face.value policy bill," which re
quired insurance companies to pay, in
case of a total loss, the full sum for
which the destroyed property was in
sured, over 105 companies which had
been taking risks in Idaho, withdrew
from the Territory in body. These
underwriters formed compact by
the terms of which they agreed not to
insure in this Territory until the OBJ
Ject'onable enactment should have
been wiped from our statute books.
Things worked smoothly for few
months, the companies which had en-
tered the compact canceling their risks
as they expired, and stubbornly re-
fuslng to renew the policies. Pres
emily, however, one company, then
another. not doing business in Idaho
heretofore, opened agencies and be-
gan taking risks. The door once
opened, other companies followed
suit, and it soon became evident that
Idaho would soon have all the insur-
ance that she wanted. This properly
alarmed the old companies, and led
them to seriously consider the situa-
ton. They did not wish to withdraw
from the compact, yet, if they re-
manned in it, the other and much
weaker companies would step in and
occupy the field, and even if the OBJ
noxious law should he repealed, would
retain the business, as patrons could
not, when once so unceremoniously
driven off, be expected to resume their
old allegiance. As time wore on the
situation became very much strained,
and as the hard times caused all in
surers to be more conservative than
heretofore, to insure for smaller
amounts and demand lower rates, the
company managers concluded that
they could not longer afford to get
along without the Idaho business.
Finally, on the 9Th of this month,
as per agreement, the State Invest
ment Insurance Company of Califor-
MIA gave notice that it withdrew from
the compact, and would resume taking
risks in Idaho within 80 days, or by
the 9Th of September. Immediately
thcreupon Mr.. MegilI, General Man.
ager of the Western Department of
the Phoenix Of Hartford, and Home
of New York-.two as staunch COM
panies as there are in the country
also gave notice that he would with
draw from the compact under the
terms of the agreement. The
Hamburg Germany and Societe
Mutuelle (of France) also withdrew
at once, and three others followed suit.
The Withdrawals had by this time be-
come so numerous that formal notice
was deemed no longer necessary, and
some of the companies even went the
length of putting agents in the field
at once, without giving the 80 days
notice originally agreed upon.
In few days it will therefore be
fully as easy to get insurance in Idaho
as it ever was.
But, now that the companies have
succumbed, what will our business
men do? OF course, they have their
preferences, based upon the known
assets and reputation for fair dealing
of their favorites; and they will doubt
less reinsure with them. But If they
are not over anxious, our business
men now have an opportunity offered
of compelling the underwriters to re-
duce their outrageous rates; as, if one
company will not offer fair rates, one
of the 15o-odd companies certainly