Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1893-03-21
IMPORTANT ACTION
TAKEN BY THE BOARD OF UNDERWRITERS
OF THIS CITY.
Business Men and Others Having Large Risks
Must Insure to the Extent of so Per Cent, or
Stand Their Proportion Of the Loss.

In many cities, since the recent Bos-
ton fire, Boards Of Underwriters have
made very marked advance in their
rates. the increase In Boston being
about $50 per cent. for certain classes OF
mercantile risks in the big business dis
trict. In other cities the increase,
while marked, has not been so large,
but is in line with the general intention
of insurance men to In some measure
protect themselves from the rapidly in
creasing fire loss Of the country.
In pursuance Of this policy, the local
Board OF Underwriters met Saturday
and devoted some time to considera-
ton of the situation. An advance in
rates was not considered necessary here
In Wheeling, where the fire loss is COM
paratively light, but 1t was determined
that something should be done for the
protection OF the companies as TO GER
tain class of risks-where owners OF
large stocks in valuable buildings car
ried but 30 TO so or 60 per cent. OF In
surance. and where, in case Of fire,
the loss was pretty apt TO be total so
far as the insurance companies were
concerned. The following motion was
accordingly passed:
'Resolusd, That from and after May l,
1898. this Board will require the following
50 per cent. reinsurance clause to apply 10
all insurance issued or renewed by men,
hers of this Board, covering on mercantile
stocks of all kinds, manufacturing works.
Ito include buildings, machinery ana stock
~; hull
churches and buildings occupied for mer-
camille purposes, and stocks OF merchan-
disc of all kinds, where insurance is not re-
ouired in excess of $4,000. viz
at is a part Of the consideration OF this
policy, and the basis upon which the rate Oh
premium is fixed that the assured shall
maintain insurance on the property covered
by each item of this policy TO the extent OF
at least eighty per cent Of the actual cash
value thereof, and that failing so to do the
assured shall be an insurer TO the extent
of such deficit, and TO that extent shall
bear his, her or their proportion OF any
loss"
1.-The effect of this will be- said a
prominent insurance man, yesterday,
that if a man has over $4,000 OF prop
erty, and only insures to the extent Of
say $40 900, he will be compelled to
stand his share OF loss on the difference
between the totals of his policies and
$40, 900, which would be the so per cent
spoken Of. He must insure himself to
the extent Of that $40, 900. With a big
fire in a $50, 900 stock of goods the loss
would be very likely to total to the in
surance companies on $40, 900 insurance,
while on $40, 600 insurance we might
get of with a IS per cent. loss, each
company standing its pro rata proper
ton. have in mind one concern,
valued at 5000 which only
carries $4,000 insurance. The
owner will have to increase his line TO
S4s, 600, or stand S25, 900 Of the loss him
self in the event OF fire-in other
words, he will assume 50 per cent OF the
risk and the companies Al per cent. as
the policies now stand. The effect OF
this will be one Of two things-either an
increase in our receipts from premiums
or a decrease in cash paid out on ac-
count of losses. AS matters have been
going, there has been an immense risk
for the companies, with small return
for premiums in certain class Of risks" "