Morning journal and courier., 1885-09-30
ghe aumrmaI and Gunrier.
Wednesday. september 30, 1888



 ! BIG FIGHT IN NEW HAMPsHIRE. The "valued policy" insurance law, which was made at the recent session of the New Hampshire legislature, has created more stir than any non-partisan measure that has been acted upon by the representatives of the peo- pie during the last fifty years. The commu-
 nifty is divided into two classes upon the en-
 actment, one fayoring it, as it is the law of
 the State, and the other violently opposing it
 as dangerous, mischief provoking, damag- ing measure to the material interests of the State. The former class embraces all the newspapers in the State with but two excep- tions and many of the broadest minded, far seeing men in the State and the people gener- ally at large; while the latter class is made up principally of insurance agents and man ufacturers and corporation managers, who fear that under the existing state of things they will be unable to effect reasonable in surance Tn sound and reliable companies on the property under their charge.
 Overvaluation in fire insurance policies has prevailed in New Hampshire for years. Agents have generally secured their profits through commissions, and it has been for their in terest to write the policies for large amounts possible. Then when fire oc- cured, and the property, thus over-insured was totally destroyed the companies have screwed down the value of it to the smallest possible amount, and offered the loser about one-half or two-thirds of the amount he had paid premiums upon, or lawsuit, just which he preferred. This kind of work has had much to do with the enactment of the new law, which provides, among other things, that all companies, domestic as well as for eign, in case of total loss by fire or a cas- ualty shall be liable to the full amount of in- surance expressed in the policy, and that no other evidence than the policy itself shall be admitted to determine the value of the prop erty insured. It also provides that, in case of the partial loss of property by fire or other casualty, the company shall pay to the as- sured his actual loss.
 The insurance companies object to the law and the Spirit" in which it was enacted. They threatened that if the law WAS passed they would withdraw from business in the State and cancel all existing policies and they Have carried part of their threat into execution. The fifty eight companies which have left the State represented some SIP, 1000, 900 in policies They carried risks to the amount of $40, 100000, embraced in some 10000 pol icies, all of which they propose to cancel be- fore January 1st next. The feature of the law which compels the payment of total losses according to the value insured, instead Shn cl,o &la cured, IS the one which has most provoked the companies. They claim that they do not contract to pay a certain sum, but only to indemnify the insured from actual loss not exceeding the amount named in the policy. l They say that under this law they would be | liable to suffer unjustly, because CD the l property may have bsen overvalusd in secur- ing insurance; (2) it may have depreciated in value between the date of insurance and that ! of the loss; and (3) the temptation to incen- diarism would be very greatly increased. | The answer of the friends of the new law to I the first objection is that agents must be l more careful in fixing the valuation of prop erty insured. They should never write 8 ! policy for more than the ready cash value of l the property. They say the second objec- | tion is entitled to no weight, so long as the | reserve the right to cancel poli cies on short notice. And they dispose of the third objection by the claim that the sErest 1 way to prevent an increase of incendiarism is to prevent over-insurance.
 The quarrel is very large one, and it 1oes not now look as if it would be soon settled. There is some talk of having spe- ,ial session of the legislature called and try ing to get the law repealed, but it is not aow probable that this will be done. Mean while great many people in New Hamp shire are wondering how they can get their property insured.