Wood River times. [volume] (Hailey, Idaho) 1882-1915, 1885-09-09
THE "FACE.vALUEv LAW.


LOss-Etc.
Frank w. Young, special agent of
the Lion and other first. class insur.
ance companies, was in HALEY this
morning, and called at this Office to
state that, even if the Coast Insurance
Compact were knocked "higher than
Ullderoy's KITE" as stated IN the
'lMEs' no company of any standing
would write on buildings in Idaho at
present.
"When will we be able to obtain in
snrance?" asked the reporter.
"When you repeal the face value
policy law" was the reply.
"Sappose we waive all rights un-
der that bill?'
"Even then we would not insure
buildings in Idaho. In the first
place, you cannot waive a statutory
right; and i'll the next place, the un-
derwrlters are fighting this law on
principle, and we never evade any
law, nor don't propose to. We hold
that this law is equally detrimental 20
the companies and the honest prop
erty.holder, and will not take risks
under it. Before we accept that
class of business in Idaho, your Leg
stature will have to meet and repeal
that law. | have no doubt the law
was passed in good faith. 1t see ms
unjust, at the first blush, tor an insur.
ance company to refuse to pay the
face of policy. But suppose man
lnsufes his property for more than its
value and sets fire to it? His neigh
Dor, who is an honest man, and con.
sequently is not over.nsured, suffers
by the fire. He cannot have his loss
made good, yet he might lose five
times the amount for which he is in
sured. This law is not original with
Idaho. 1t has been tried before in
other States, bat invariably repealed.
In Wisconsin, for instance, it was en-
acted. What was the consequence?
The first year incendiarism increased
90 per cent; the next year the in.
crease Of incendiarism was so great
that special session OF the Legisla.
ture had to be called to repeal the law,
and thus protect honest property
holders. You may see fit to do that
here"
The TIMES began to discuss the
propriety Of calling for an extra ses-
sion, but it was ascertained that this
could not be done except by Congress
or the President of the United States
And as it would be almost hopeless to
expect executive interference, the
matter was dropped"
"Then l see no hope for you until
the meeting of the Legislature.'
but how are we to regulate the
insurance companies? In the present
sparsely- settled and undeveloped con-
dition of the Territory an insurance
commission would prove too great a
burden"
"You might adopt the California
law. That seems to be just for both
insurer and insured, and it meets the
requirements of even the exacting
new constitution Of that State. You
might also require the companies to
file certificates of standing fir m the
Examiners of New York or Massa.
chusetts, or both. In those States the
companies are held to strict account
ability. Bat you need not expect
any insurance on buildings here as
long as that law stands"
"Not even if the Compact were
broken:"
"Not even if the Compact were bro
ken. The companies doing business
in Idaho retired before tue CumDalt
was formed, and the passage of the
law had nothing to do with it. The
Compact was organized for the pur
pose of regulating the rates and work
ings of insurance companies. The
statistics Of the past five years, care
fully and accurately compiled, show
that the leading insurance COMPANIES
and by this l mean all the very
stauuchest and wealthiest-have been
doing business at an actual loss!
That the average payments for fire
losses have amounted to 635 per cent.
of the premiums received; that the
expenses have amounted to 80 per
cont additional-thus leaving only