The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1886-10-27
The Valued Policy Measure.

There are indications of strong oppo.
sition to the proposed insurance legisla.
ton, which is mainly copied from that
of New Hampshire. The bills of Mr.
Harvey and Senator Spear (Which are
precisely the same) are more illib-
eral in two respects, for, as has been
pointed out by the Brattleboro Re
former, they omit two important pro-
visions of the New Hampshire law
that the insurance companies may have
the right to prove fraud or misrepresen-
tation if they can in obtaining insur-
ance, and in limiting its operation to
real estate. AS it stands Mr.. Harvey's
bill (and likewise Senator Spear's) pro-
vides that the amount of insurance on
any building in case of loss by fire or
lightning shall be taken to be the
amount of the loss, providing there be
no criminal fault on the part of the in
sured. In any suit upon policy the
amount expressed therein shall be the
measure of damages, and no other evil
dence on that question shall be adj
mtted as to the value of the property.
In brief, the New Hampshire statute
prohibits combinations to raise rates :;
prohibits the removal of causes from
the state to the United States court
declares that the amount of damage
shall be the amount expressed in the
contract as the sum insured; and pro-
vides for standard policy.
In regard to the workings and prac-
teal effects of the law in New Hamp-
shire, opinions are widely at variance.
The friends of the law claim that while
it may have caused some inconvenience
it has prevented over-insurance and
placed the whole insurance business on
sounder basis; and the Manchester
Union says of one of its effects, that
New Hampshire was never more
prosperous than to-day and we have
capital at home, that other states used
ceipt of a letter from prominent citi-
zen of New Hampshire to whom we
addressed some inquiries in regard to
the operations of the valued policy law
in that state. So far as we know, the
writer has no personal interest in the
insurance business, and no motive for
not representing the situation correctly.
He says " regard the valued policy
bill as craze, and it must have its
run, like the humps and measles. l
think tive-sixths of the people of New
Hampshire were originally in favor of
it. In time, as the result of its opera
tions, l think the majority of the peo-
pie will be on the other side. 1t drove
one hundred twenty millions of insur-
ance capitalize best in the world
out of New Hampshire, and invited in
wildcat companies that will never pay
when big fire comes. To meet the
emergency, stock and mutual insurance
companies have opened up like mush-
rooms. AS long as there is no large
fire they will apparently flourish. A
big fire in one of our cities or large viii
lagos, like PASSPORT, Maine, would sub
stantially wipe them out. The loss in
New Hampshire by fire is about $4,000
per day, and in time it will all have to
be paid by New Hampshire companies
unless the law is changed. The price
of insurance everywhere but in the
cities and large villages, has been in
creased since the passage of the law
twenty-five per cent. The policies run
from three to five years, usually, and
not more than quarter of the old pol
icies have expired since the passage of
the law. Those paying the twenty-five
per cent extra are very bitter. Bust
ness men want to insure in reliable
stock companies, except those who fav-
ored the law for political reasons. 1t
was so popular before its passage that
politicians of both parties were inclined
to favor it to get votes"