Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1889-02-22
by the State Commissioner, Showing
Heavy Losses for the Companies.

by the State Commissioner, shown,
Heavy Losses for the Companies.
Nathan Pratt, insurance commissioner
has sent ont the fifth biennial report q
the state insurance department. Tn,
report is an excellent one and shows tn,
effects Of careful study. Among Other
interesting statements are the following
During the year 1887, the companies
incorporated by this state collected
premiums in the state amounting to
1914 ,OOs.S2, and paid for losses SOL.
2O3. 50; and the companies Of other
states and foreign countries having au-
thority to transact business in this
state, received premiums amounting to
| 1924, O59 6s, and paid losses amounting to
| SeS, 4Ol AZ. showing the total premium
receipts for the year to have been 1918.
ooo %. Total losses paid $40, Gil q. and
an average OF losses to premiums OF
sixt.y-eight and six tenths.
For the year 1883. TIE companies of
the state have not all yet filed their an
nual statements, and the amount of pre-.
miums received and losses paid, ana rates
of losses to premiums, cannot be stated.
The fire insurance companies Of other
states and foreign countries doing bust.
ness in the state, all of which have fled
their annual tatements-except such as
have discontinued business in the state
have received in premiums 1929, s24. Ga,
have paid losses to the amount Of 1885,
1853 90; showing on average ratio of losses
to premiums Of one hundred and twenty,
one per cent. This large ratio Of losses
to premiums is the result of some large
and destructive fires in the city Of WI.
mington, and think in no wise to be
attributed to carelessness or mismanage-
ment on the part Of agents or compa-
| MES.
Concerning the legislation proposed
known as the Valued Policy Law the re-
port says:
THE essential principle Of insurance
Is indemnity. To indemnify for loss is to
pay for what is actually lost, and what
ever is paid above that amount, is a
wrong to the company and the other in
surers. This law violates this principle
by making the measure of damages the
full amount written in the policy, even
though said policy should be for twice
the value Of the property destroyed
| Such law places a premium on over
valuation on the part of the owner, and
ON over-insurance on the part of agents,
is the intention of the law. IL further
encourages the tendency to over.insur-
ance and incendiarism, by relieving the
insured from all responsibility in the
matter, because he may not have been
criminally connected with the destruc.
ton of the property, though he may
have misrepresented it's value.
Zone Of the arguments in behalf Of the
Valued Policy Law, is that company
should be obliged to pay the whole
amount for which Il may have received
premiums, and that it is the business Of
the company to know, through their
agents, whether property is insured for
more than its value or not but may it
not be answered, that the owner knows
better than either agent or company
And should he be protected in wrong
doing at the expense of the whole iusur-
ance INTEREST," For we believe the pas
sage Of the law will make it much more
difficult, and more expensive TO obtain in
surance. These great interests must
suffer for the supposed benefit OF cases,
which could and would. be as well pro
tected by the courts: where all other
irreconeilable business differences are de.
cided