New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-10-24
INSURANCE MEN DISSATISFIED.
COMPLAINTS OF MANY BROKERS.
THE COMMISSIONS LARGELY RTpUcFD-wHAr
ONE OF THE UNDERWRITERS SAYS.

THE COMMISSIONS LARGELY RrpUcFD-wHAr
ONE OF rHE UNDERWRITERS SAYS.
MANY insurance brokers in New-York. Brooklyn
Long Island City, Hoboken, Jersey City and
Staten Island, arc dissatisfied with the COM
pact entered into by the recently organized
underwriters of the metropolitan district Of New
York which was adopted with the view OF improving
tho fire insurance business and for the purpose of
decreasing the present heavy ratio OF expense in
Quoting the same The conditions of the compact
that all risks in the metropolitan district shall be
eoutably rated, that commission shall be paid in
excess of 10 per cent of the premium, and that
hate shall be made the assured from established
rates
Tho bro,,ers COMPLAIN that the commissions allowed
oro aI.ogethcr TOO small that recognized and trust
worthy brokers who depend for their livelihood ex
clusivey upon the insurance business not protected
from tho competition of people in all sorts OF business
with whom insurance brokerage rs nerc,y mchrhtm
and that the premium rates ON dwelling houses have
hem advanced 70 much that many householders are
inclined TO regard insurance as TOO expensive and to
carry their own risks. One OF the rnes o' the com
pact requires that an insurance broker to be rcco9
nized as snch must be enrolled by the manager of the
Underwriters Association and broker IL defined as
one who is engaged mainly or maternity Al pacing
insurance for customers ConVoyahcers, rca' estate
agents and trustees controllers of estates
pecialy mentioned as being included III the definition
of n broker. Members OF the association are Tor
hidden TO obtain business from brokers to the disad
vantage OF their fellow members by means OF presents
donations perqnsites contingent COMMISSIONS or
promises to he fulfilled in the future.
leading broker who is one Of the o'hccrS ot the
Ncw-York Board of Fire Insurance BroNers the
members of which are said TO contro my six-tenhs
of all the insurance placed on city properly, summed
up the situation in this way yesterday
The compacr faulty throughout and is sure TO be failure
sta,c Who do LILLE insurance business side issue and
the aggregate Of whose premiums 90 n9l cef w. Sea
bic brokers who thousands Of dollars annually to
long do Won sppolc the brokers hiatt Not
y % better G and ir
rebates Now suppose that 20 t" crran nssrnre
will net them 100000 nprcmnms IN year II they WI give
ss Nos :" nJ rn their back on the compact That IS one
Ills agreement went into effect commission rangSd
from 20 nigh O. cent and III MANY ms inc
assured received portions Of these COMMISSIONS III inc shape
end and the companies VII look out for nnmbor
ore every me 10 f r ter "o & McetSor we hvo
able to place risks dwellings IN cool COMPANIES ~
other risks are considerably advance The companies may
look KIP n'n 1 GO R I9M their minds soon Most o. their
money made out Of the risks in the Melr9po tan s,rct
comp?c they desire TO continue doing bust
at tho Old stand.
A prominent member of the metropolitan Board OF
Underwriters 10 whom the arcuments advanced ny the
the brokers had no reason TO complain. adding:
Ten cent generous commission, Five per cent is
paid by The assured and materially reducing the re-
CENTS al the companies All their .ak about The effect OF The
copact on Themselves nsnccrc For instance they
that tie premium rate on dwelling houses has
Don't they that the 10 cent commissions on the
premiums the rate are l. than - per cent com
Oil Several companies had been making
special Efforts get the dwelling house business and they
such extent that thcy were losing
money In the compact the rates were hzc az inquire
that viii make the insurance dwellings reasonably proht
able the companies Insurance companies are not dog
10 unnatural that thcy snOuu
Ate with u making money
argument advanced hy the broker with whom yon
talked that ne cOnd induce surname"
disregard offering to give business that
would -l1O0OO anau lv The nSlnctrltV
of the who maize that remark evident when tei You
that there lOh firm in N"wNor that could pace
that amount OF business with single company The RISKS
would be distributed among hadozen COMPANIES