Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1889-10-17
THE rALUED PoLICY Law.
Insuramcc Mon Not Afraid Of New
Yeat-s fny-Ehcy hnther Wei-
come Et,

last session OF tne legislature tnefe docs
not eoetn to bs any great apprehensions OF
trouble or any ureasine-s among tho local |
agents OF the big stoCk insurance COM
panies. 1n fact some of them, to judge |
from their tone and the smack OF sinister
glea which hetrays itself when conversiDg |
on the SUI jact, ono might almost suppose
that they welcomed New Years Day rs not
anything OF u dies ifm to them. And THIS Is
about tee truth OF the matter for among
the very people, rs reports go. who origt-
mated tae law, the Judgment has already
come OF bruited increased rates, to which 10
added confessed difficulty la getting their
farm property insured ~ ali.
This atatemsnt IN the New York Times In
regard to the meeting OF tho New England
Exchange in New York on Thuraddy last
wGen q resolution was pissed declaring the
sense 81 the meeting TO b. IN favor of con-
ttnnlng the New Hampshire compact was
shown 10 various local insurance agents.
They have ~ been clolely Watching the
movement OF events, II I'm the passage Of the
valued policy inv III New hamushire sew
ernl years ago TO the recent breaking OF the
New England compact by the ~ IA Conf
pany with hu indicated following by sew
ARA cther companies In the l4tter's course.
A prominent asent remarked to u Ga
zETIE reporter the othaT dag that tho new
law will he detrimental 70 farmers, no. TO
city people. Agents doHn safe are send
inR risks here, 10 Philadelphia md else
whore. A number Of companies have
already withdrawn from business In the
lower counties. Among those VINO remain
there Il not much anxiety to take risks
and fam buildings and manufacturing
policies are being uuuaronsly refused.
The farmers nre bestirriug themselves Ia
regard TO Insurance but are met with re-
suits nc stated above.
However, wherever there exists an efa'
cieut fire department there will be nu
ex lius al the stock Insurance com.
pAnies. AS the yalId policy lay calls for
the full paymsnt Of the policy where there
has been = total loss the presence Of AZ
effective tlte department worgs IN the d.
Teetiou OF only partlal losses which Is the
rue ia Wilmington rs In nil cities, thus
neutra!aing the action OF The enactment
which IS soon to become tho law, Farmers
ara trying to reentet the companies thsY
w6re formerly Insured in. but their proffers
ats being destined. In some instances
before accepting their policies the agents
ask an incrPass OF 90 per cent on rates and
are not anxious for the business Gt that.
Down State tho general rate increase on
| the business referred to Is from 20 to %
per cent. Aud this to the poor fEcmeT Ia
| equivalent almost to prohibition OF the
luxury OF fire Insurance. The fact is their
main resource IL the mutual companies or
cooperative companies. These have
promise OF being loaded up more they can
carry and the prospect is that by the end
Of December that they will naturally dis.
criminate, take only the best business on
the ordinary risks at gradually increasing
| rates,
1t is stated that very few OF the existing
risks will be ordered cancelled, they will be
allowed to run out. As q general picture
OF the position the stock companies will
NEE. the new Delaware Valued Policy, law
next January by increasing rates and ac-
ceptlng only preferred risks, that Ia to say
they will touch only the cream OF the busi-
ness. Insurance. men are not disturbed, as
the bulk OF valuable Delaware risks are In
this city and here we have fire depart
ment which attends to It's duties very well
whereby the great msjority OF this fires are
not total loss ones aud consequently moi
affected by the new law.
Another prominent insurance broker oil
this city considered tho results of the
Valued Policy law in New Hampshire as
indicative of what might he looked for 10
Delaware as soon as that enactment nn-
mad opportunity OF seting here. 0le result
In the northern state following the boy
cotting OF New Hampshire by tho big com
pnniss) was that II large number OF loca
companies sprung up Ike mushrooms
They prospered and did most lucrative
ousinesa. This showed that some of the
bad effects at least predicted by the op
posers OF tho Valued Policy law had beei
exaggerated. 1t is fact at present tina
numbers OF tue stock companies who hat
Joined the Nsw England compact regretted
rneir boycotting. Far Instance, the biz
EtGn Company, looking back az her pas
turoe years OF compact company and VIII
Messing tbs golden harvest which she ba,
thrown impulsvely from her tnto the lap
OF the new local companies, changed he
mind and gave the % days notice of he
withdrawal from the compact. Other larg
companies no doubt will soon follow he
course openly, a5 they no doubt hav
already secretly commenced doing.
The effect 10 This state, the broker con
tinued, OF the new law will be to driy
the stock companies from the country dis
ttlcts OF Delaware, that is largely th
lower counties, aud from points south c
Wilmington, Generally speaking the Ii
, surAues business do1e there Is undesirable,
me ars companies are poor. The expens
would be too great In scrutinizing risk
which the companies would DO driven
do under the valued policy law.
The broker believed that u number {
, companies will leave the State, He think
there ara too many existing here anyho
for the business that offers. Ii Is true thj
there are large Misunderstanding and CON
lnercial concerns In Wilmington that carr
very heavy ineuranee policies which neee
) sadly have to be divided up among larp
{ number of companies. Yet there are To
, many located hare, the result being thu
some cannot pay Office expenses. Even
the new law does turn out pernlc!ous
will not affect the companies holding tn
big policies. As regarding the last mel
!. toned risks in this city, It is not likely thl
I! the rates will be advanced In this city.
= The law originated down State anon
: those who were over insured. When IA I'll
: occurred the farmers asked for a sum e.
4 ceedlng the market value OF their propert
= The Insurance was greater. IL was IL
! fault OF ths agent and OF the system. He
I In this city there Inns been a little loosena
q Ia taking Are risks, but the character
. tho buildings is such that there are few tot
I. Losses. Hence tns action of the Value
. Policy law will have the feature OF inoper
1 ton 10 Wilmington. The mutual cor
:, panlos down state have already taken stel
y towards reducing the amount OF pollcia
y They are Kidding themselves Of more ar
70 are charging higher rites on others.
eyes, think the Valued Policy got
law" the broker continued. II Is la
which will compel insurance companies
u BIZ more particular to make contrac
IS which, eau be- carried out when loss
s. occur. II is going TO make the
/ surauce business more businessitke. Her
o totOre agents were only after commission
!, now they must verify their risks, mu
l. Know something Hbou- them. Tho publ
n cannot now put an inexaet valuation
r their property. Ia other words the a
9 pfalslus or assessing Will be done befo
10 the fra NOT af9r II. /. Will be better I
e around for the Insurer as we'll as The cot
H. paniss.
10 The broker, however, offered the predl
" tIon thaE tha law will be repealed ut I
r. next session OF the Legislature. IT Will
n done by tne people down state. They q
s already finding out that they are the on
p to suffer by it. II Furnishes them and III
r ara the tlrst to squeal. In the lower cou
IA ties outside OF cunainS iaetorl,
syAporator5, cav mills and few colt