Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1886-10-29
How the New IIampshire Law has
Worked,

When the New Hampshire "valuod policy"
law was passed and the foreign insurance
companies summary withdrew from the state,
something very like panic ensued in bust.
ness circles. Property was left without insu-
rance, and it took some time for the people |
to recover their heads and adapt themselves |
to the new order of things. The foreign |
companies undoubtedly expected to be able |
to dictate the terms on which the people |
should beg them to come back but nothing
of the sort happened. There was temporary
Inconvenience, but new methods of insurance
soon sprung up, and in due time all property,
except possibly the heavy manufacturing con-
Germs in the eastern part of the state, which
are best able to take care of themselves, was
covered in way which has proved sstistac-
tory. Better than all, the increased precau-
tions against fires which were thus stimulated
have resulted in reducing the losses during
the past year GO per cent below the former
average. In other words, there have been
only two ffths as many fires AZ formerly.
Bat opinions vary as to the wisdom of the
new law and as to the satisfactory character
of its working. As soon rs MI Harvey in
prominent men in different parts of New
Hampshire for their views, and below we give
the main portion of the replies received. The
first expression is from man of wide obser-
walton and excellent standing in Now Hamp-
shire, and one who has long held important
official position in the state. He says:
81 think our people generally were in favor of the
principle involved in tue valued policy" bill which
hnya a nod
| many who condemned it from the start. Tue action
Of the foreign insurance companies in withdrawing
from the state even before the law took effect present.
ed new and formidable complication. Its, perhaps,
too early to judge fairly OF the present situation aud
! Of the expedients to which our people have been
| obliged to resort When the foreign companies with
drew aud declined to write further risks we had only
one stock company IAN excellent oue) in the state,
| with capita OF half million and surplus nearly
l. equal to the capital This company and two three
weaking mutual companies were all that our people
mad 10 depend upon. Three new stock companies
were Immediately organized, with aggregate capt.
tai Of 100000 aud score more OF mutuals which,
with the old New Hampshire company, have practi-
cally done our ERE insurance for about year.
practically then, the valued policy law has given
these stock companies, with an aggregate capital
and surplus Of 81 $40 OOO and few cheap muuais in
exchange for splendid list Of reliable companies with
an aggregate capital and surplus Of over s25 600 900
We have also a lot OF wildcat organizations too weak
to comply with the insurance laws Of any state writ
ing policies and collecting premiums because the peo
pie can get nothing better but which utterly I'M
reliable and irresponsible. Business men, manufac-
urers aud mill owners would be very glad the OPP
|
pay Tor IT, and are seriously embarrassed because Of
their inability to get 1t.
"On the other hand the gravity Of the situation has
compelled greater care in the protection of property
and the prevention of fires and money that would
duarily have gone in premiums has been expended
in appliances tor eHtinguishng fires, that for a
year we have had comparatively few fresno very
disastrous ones II the present state of affairs could
continue FOR series of years, aud we could escape
any sweeping couhagrations, companies could
gradually work themselves into stronger position
but the conditions and to-day it would not
tenn.
~ am Informed by our insurance commissioner
that not Of the foreign companies has manifested
any disposition desire resume business 10 New
Hampshire since their withdrawal and no reputAbl,
foreign company has sought the privilege Of doiul
business in New Hampshire since the enactment Of
the law.
$50 you see we are paying our money for a cheaI
kind of Insurance, which is all right long ther,
are no fires, and hoping that the pinch will nevel
come My own opinion is that the state would be bet
ter off without the law and with the old companies
e doing business here than it is to-day"
Another gentleman from the same section
: of the state, and one who has excellent op
E portunities for observation, gives substantial
ly the same facts as are stated above. II,
says that at the start there was popular fu
rore in favor of the law, and in spite of til,
inconvenience and disturbance which tn
withdrawal of the foreign companies caused
0 there was a determination to make the law
" success At first it was impossible to Obtain
q insurance, but when the home companies be
d gan to be formed, money flowed into them 3,
fast that many sprang up, and to day the stat
D is full of insurance companies, good, bad ant
1 Indifferent" In spite OF his own decided
e prejudice against the law, he thinks the ma
jority of the people are still in favor Of it
9 To him, personally, however, it seems like
g "crsze" which must have its run Like tn
i humps and the measles" and it's folly vii
; only be found out when a sweeping fir
a comes.
third gentleman, from the western par
: one of equal prominence in his Own seotio
v with the other two in theirs and a man 0
l. conservative business principles writes il
d unqualified endorsement OF the valued poll
u cy" law. He says
l. "when the valued policy law was passed in ou
state, it caused good deal of anxiety among propert
" owners and business men whose credit depended to
q considerable extent on their ability to carry goo
~ lines OF insurance There were undoubtedly som
cases of embarrassment in consequence Of the witt
drawal OF the companies from the state but the rapi
organization Of new companies, and the willingness
Of the old local companies to increase their lines
l. insurance, aided greatly to readust matters and t
day do not know business firm corporation tbs
cannot get all the insurance that ought to be placed
n nsura6le risks The charge that the moral haEr
- wonld be greatly increased has been refuted by III
years experience. On the other hand, the losses
fire In the state have been greatly diminished by
on Of the fact that companies will only insure for
81 fair percentage Of the value, leaving good margin
the risk of the insured-thus insuring greater care
70 the protection of insured property. have hes
% tion in saying that think the law only Just
one Of the most benehcent that has been place
II on the statute book In cur state.n
te This certainly is strong evidence in fave
1t of the new law, and our impression, gathere
n from variety of sources, is that it voices til
j h. a. ~
1t Hampshire on the subject. In other word
h we think the law finds favor with the averae
st run of small insurers, while the men of larl
s. business interests would prefer TO have IL
4 protection Of the large and strong foreig
lie companies.
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