St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-02-21
ANENr INSURANCE. POLICIES.
Two Hours Debate Upon Senator
Davis Measure.

Two Hours Debate Upon Senator
Davis Measure.
Senate file 81 is certainly one of the
most important measures to the general
public that has been introduced the
present session. 1t is Senator Davis
bill, and it relates to the conditions i'm
posed in fire insurance policies. The
author gave clear exposition of the in
tent and purpose of the act, and his eX-
Of the insurance contracts. Mr.. Davis
stated that the present policies specific
ally recite that in case OF loss The in
Sured must get certificate of loss and
an estimated amount of the same
from justice of the peace or
magistrate. He cited an instance
in point. A gentleman opened general
store i'll Atw alter. and by SO doing he
merchants in the place. Rivalry became
rife and bitter. Inc stock was insured,
and after a few months fire destroyed
the properly. The nearest magistrate,
owing to the intense feeling that OBJ
tanned in the town, absolutely refused
to give any certificate at all. The case
went to the courts and then to the SUI
preme court, aid the decision was rem
dered that the insurance company was
not holden because the certificate OF
the nearest magistrate had not been
procured. One effect of the bill is to
forbid such condition in policy.
Another provision in policies is that
no agent can act for insurance cOmpa-
MES unless authorized in writing. This
is also stricken out i'll the Davis bill.
Agents may issue policies for years.
argued the author, upon verbal agree
ment, but when the insurance com pany
wishes to take advantage of the tech
nicality the policy is void unless the
agent shows written authority for acting
as such agent. Another provision is 10
do away with the system OF arbitration
in adjusting losses. Mr. Davis ex-
planned that a certain Minneapolis eX-
pert acts as adjuSter for nearly every
company doing business in the state.
He arbitrates with ordinary business
men, ana his skill and experience inva-
riably overbalanceS the efforts of the
other two arbitrators, and the insured
suffers in consequence.
Called Bad Legislation.
Senator Crandall thought the bill in
at least one respect was bad legislation.
tie was Ilrln believer III the prlnclpl6
of arbitration, because it comes nearest
the people, and he moved to strike out
the section relating to arbitration, where
upon Senator Sanb0rn moved dill amend
ment striking out all the sections. He
spoke at length in support of his posi-
ton. He held that section is most OBJ
jectionable for the reason that it makes
the insurance companies responsible
for the acts of their agents. He con.
tended that the object Of the existing
law is to give the insured valid insu-
rance at the lowest cost. While he was
opposed to the various provisions of the
bill, he was willing to have the question
divided.
Senator Tawney made strong speech
against the section prohibiting arbitra-
ton. He knew that it wonld be better
for lawyers, for it would increase litiga-
lions. Still, he held that arbitration is
to the interest of the assured. Senator
Davis retorted that he is not in favor
of class legislation. He is not in favor
of giving insurance companies privi-
5leges that are not enjoyed by any other
class of business interests. The decis-
ION of the arbterS is final SO far as the
amount of loss is concerned under the
present law, but it is not final so far as
relates to fraud. He believed, he said,
that the policy now in vogue had been
written by the insurance companies
themselves, despite the fact that the act
relating to the same imposed the duty