The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-01-19

"a
agreement, under which the Pacific
Insurance union will be superseded by
the board of underwriters, a change in
both name and methods, are MagiIl, of
the Home and Phoenix, and Turner, OF
the Northwestern. 1t now seems very
probably that Captain MagilI will re
main out until Turner has signified his
Willingness to become a compact man
again. Certain it is that he will never
give up until the footing of all Pacific
coast agencies is equal. At present the
Northwestern is making some s,ashing
cuts in insurance rates and in many
instances it is being met by the Home
and Phoenix. Resident Agent Sinclair
has received instructions to take all
the Northwestern business he cam and
to meet that company on every desira-
bic risk. This stand makes it all the
more probable that Magi.l will stay
out OF the compact until Turner enakes
q switch and becomes a, good Indian.
WJnen this change has taken place then
the Home and Phoenix will, without
DOUBT, again become union members.
In the new constitution there are
many radical departures from the old.
one of the chief being that of the name,
winch Will hereafter he the Board of
FIRE Underwriters, a, return to- the old
name, for the Board of Fire Under
writer's antedated the Pacific Insurance
union. This feeling against the name
OF the organization is not new, for the
people have long associated the word
union" with trust" and it was de-
sired to have the business world Under
strand that the union is not a trust, in
the usual sense.
Membership, by the new constitution,
Is restricted to the principal represen-
t3tiVeS OF insurance companies trans
acting business within the jurisdiction
OF the ASSOCIATION, who shall. have
signed the constitution after election BY
tWo-thirds of its members. The juris-
dlctlon includes California, Oregon,
Nevada, Washington, Montana, Idaho,
Arizona, Utah and Alaska The func-
lions of the association are prescribed
as to the regulation of rates of premium
and policy forms, prevention of rebates.
compensation for business, premium
collections, non-intercourse and agency
appointments.
1t is provided that no insurance shall
be granted in any way at less than
regular rates, or in any form not
strictly in accord with board regula-
uons. and a report of every policy, re-
neWal or certificate, wheresoever writ
ten covering property within the juris-
dlctIon OF the hoard or the application
thereof, also a. report of every state
ment, rebate or other Endorsement on
policies, and every Cancelled policy or
voucher for the premium refunded
thereon, together with such references
or reasonable Notifications of each said
transactions as may be required by the
general manager, and every agents &C
count current shall be submitted to the
general manager within thirty days Of
hts receipt or issuance.
The section upon the prevention &C
reads as follows:
No rebate, discount, commission,
abatement, pecuniary or other valuable
inducement shall be paid or offered di-
rectly or indirectly to any insured per
son, firm or corporation, or to his or
their agent, or to any person not
by the terms of this CON
TO receive it,
The penalty for the violation of the
foregoing section is the cancellation of
the policy or policies, and prohibition to
write or place within one year the risk
or risks covered. Over and above the
penalty provided the rate or rates
affected shall be Immediately increased
TO the extent of 10 per cent This in
crease will apply to all of the policies
thereafter issued.
compensation for business is fixed by
commission exclusively, and then onrv
to agents and members, and not ex-
ceeding in the aggregate Is per cent on
the net premiums collected. In San
tranciseo the brokerage allowed
brokers' and between members shall NOT
exceed 10 per cent on risks on which
Che annual rate exceeds 2 per cent.
Regular salaries may be paid to regular
employees engaged partially or excI11
sively in soliciting, but the names of
such employees, their premium, income
and the salaries paid them, Shall he
registered in the Office OF the general
In Salt Lake, Sacranento-
Stockton and Sam Jose members SHAH
not provide their agents with office
furniture, and the rent and salary to-
getner Shall not exceed per cent of
The net premium. In lieu of the IL
per cent commission, 10 per cent and
o contingent on profits from the agent |
business may FDe allowed
The matter of .unnaid nr,anoi1,,,,e, g. !
settled sunmarily. The section ON. nre.
MUM collections provides that every
policy Shall have stamped upon it's |
ace and Endorsement stating that the |
policy shall become void on the 6f
.eenth day OF the month following the |
late of It's commencement unless tha |
premium is paid by noon on that dav |
On the eVentful 18th OF the succeed |
ng month all members will send to the
office a list of delindueuts |
Each member will then be furnished !
With copy of the whole list and no |
member Shall thereafter grant further
insurance on f'hC delinquent property |
II any property covering any interest |
whatever thereon of the delinquent per-
sons until the unpaid premium has
1een paid or the disqualification has
been otherwise removed PTer1jur7,c ~,
arms, Including growing grain, hops.
churches, and public proper
y may be paid by notes or warrants
'earing interest at z per cent per an
lum
There are various general provisions
egarding non-intercourse with non /
lnion companies. No member shall
mploy in any capacity the employee T.
# another member or a defaulting. l.
gent. The pledge binds the members
o both the spirit and the letter of the
constitution. Withdrawals may be
made on written resignation sent not
ess than fourteen days or more than
wenty-one days after service of notice
+ the intention to resign. designations
nay be demanded upon q two-thirds |,
ote of THE entire membership.
The adoption of this new constitution
md its endorsement by the general
gents will put at rest all the fears of
disastrous rate war. OF course, a con-
inued refusal on the part of CAPTAIN
1agiN to sign unless Turner becomes
compact agent may complicate mat i
ers somewhat although il is not be-
leved that the reorganization will be |;
even should both general
gents refuse to enter the agreement. |,