The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-04-12
FIRE INSURANCE IN MAINE.
The New Insurance Law and ITS Effect
on Maine Agents.

cations in some of the papers, that the
fire insurance companies doing business
in this state will withdraw from the state
owing to the recent laws passed by the
legislature. These journals have also
stated that owing to these laws ''there
will be general cancelling of policies
/ and many Maine business firms will be
unable to reinsure their property in the
companies that have long carried their
risks
The local agent of the German Ameri-
can Insurance Company in Biddeford
received letter from his company in
New York, as follows:
Dear Strive call your attention to
three bills now before your legislature
providing for the fixing of the prices on
which companies shall issue their poll
cies, the second aiming to prevent com
panies from combining fixed rates and
from removing cases to the United States
courts, and the third declaring that fire
insurance contracts shall cover the actual
loss or damage not exceeding the amount
insured.
If the first bill becomes law, it is
more than doubtful whether we shall
continue to be represented in your state,
and as to all three it may be said that
their unsoundness will suggest itself to
every underwater without argument.
New York. w. S. NEwHALL.
What is called the first bill in this let
ter, we are informed by the agents of
several of the best known fire insurance
companies doing business in Portland,
never passed the legislature. Mr.. Will
liam Allen, Jr. says it was abandoned by
the party presenting it to the legislature,
he being convinced that it was impracti
cable. But if it had passed it would
have caused every company to leave the
State Of Maine, for the effect would be
the same as if the legislature should pass
law that all the people in Maine should
purchase Pillsbury's flour at S. barrel,
and no other flour could be purchased at
any other price.
Mr.. Pinkham, speaking of the same
bill, said it provided for the appointment
of five adjusters, of which the insurance
commissioner should be chairman, to fix
declined to accept those rates it must
withdraw from the state. MI. Pinkham
said it was true that few companies did
send circulars to their agents in the state
like the one forwarded the Biddeford
agent of the German-American and stat
ed that if the bill referred to was passed
they should probably withdraw from the
state, but when that bill was brought be-
fore the legislative committee on insur-
ance they saw its absurdity, and it didn't
receive passage. Mr.. Pinkham added
the effect of the present insurance law
as passed will be that the rates in Maine
will be made by the local agents in each
place, subject to the approval of the
companies they represent, as regards
each special risk that is written by them.
The laws passed by the last legislature
will not go into effect until the 26th inst,
so that it is impossible for any local
agent to say, OF predict, what the action
of any of his companies will be in re-
gard to the new insurance laws. Mr..
Pinkham said all insurance companies
desired to do what is right, and he
thought the legislature foolish in med
ding with insurance matters.
A Saco agent says that he received
complaint, the other day. from one of
his companies because he did not attach
a Z clause to a policy placed on certain
piece of farm property. He wrote back
that under the new Maine law the
clause would not be binding in case of
loss, and that was why he did not take
the trouble to attach the clause to the
policy. The company is still puzzling
over the hint thrown out by it's Saco
agent in this matter Mr.. VIM. Allen,
Jr., says the clause refers only to farm
property which is considered by all COM
panies represented in the state as very
undesirable property to insure. There
is hardly desirable company that will
today write policy on such property
without inserting the clause.
Mr.. Allen further stated that all com
panies doing business in Maine the past
year didn't get enough to pay expenses
and losses by 1921, 200. He considers the
action of the legislature as adverse to the
interests of property holders and if the
laws are carried out it will result in an in
crease of rates throughout the state. The
cold fact is the companies have got to
get higher rates or go out of existence.
These views of Mr.. Aliens we find
shared by others who represent the best
known companies on this and the other
side of the water. Within short time
for lack of profit the Phoenix of London,
Traders of Chicago, Mechanics &
Traders of New Orleans, Union of Cali
fornia, Spring Garden of Philadelphia,
New York Bowery, the California and
the Boylston of Boston have had to with
draw from the state.
The following letter has been sent to
the insurance agents in Maine:
1.-THE recent amendments to the insur.
ance laws of Maine make it imperative
that some action be taken by the local