The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-05-27
WILL TEND TO LOWER RATES.
THE VENABLE LAW AND THE TAR
IFF ASSOCIATION.

Through Brokers and Through Lo-
cal Agents-The Operation of the
Nenable Law-Its Eject on the Tar
i'll Associations Rates for Swan
nah Watched With Interest.
The placing Of insurance in Savannah
by outside companies, through brokers.
is comparatively new feature Of the in
surance business here. Its effect on the
Southwestern Tariff Association is being
watched with interest
The question of recovery from an out
side company in case of dispute is being
raised by some of the local agents Mr..
w. P. Green OF W. p. Green & Co, insur-
ance brokers, says there is no question
about it,
In the first place" said Mr.. Green,
THE Venable law under which the broker
operates is very strict. No insurance
broker can be licensed under the Vena-
bic act until the company for which he
solcits insurance has been proven to the
controller of the state to be solvent and
worthy of business. The companies are
required to file with the controller an
agreement to abide by the laws in Geor-
gia covering fire insurance to be sued in
Georgia where the losses occur and to be
bound by the decisions of the courts Of
the state. The insurer who insures with
a broker under the Venable law is just
as thoroughly protected as If he insured
with a company having a deposit with the
state. Thn only difference between a
broker and an agent is that the broker
Is not allowed to issue policies by his
company. He forwards the risk to his
company, and if the company ac-
cepts the risk it forwards the policy
to the broker to be delivered by him to
the insured.
"There is a wide difference, however,
in placing insurance miscellaneously
abroad and in insuring through a broker.
Companies insuring through licensed bro
kers are subject to the insurance laws Of
the state and suit can be entered here to
recover for losses. Insurance placed
abroad with companies which have not
complied with the laws of the state AMI
are unrepresented here is not protected
by the laws and the insurers must TAX
their chances at recovering in case OF
dispute, as suit would then have to be en-
is located.
LAS to the Lloyds companies, there are
both good and bad. Lloyds is simply a
general name for companies operating
under certain plan, which originated in
England and which has been in practice
in both England and America for many
years. Lloyds companies are not organ.
lied on the mutual plan. In addition 10
paying in a certain amount of capital
agreed upon the organizers of a Lloyds
company bind themselves to become per-
sonally liable for a certain fixed amount
each, so that if the capital should be ex-
hausted by a disastrous confiagration
such the Chicago fire for instance,
the organizers of the company are per-
sonally liable for an additional amount.
Naturally the character of Lloyds COM
pany depends greatly upon the men who
assume this liability. If they are men of no
financial standing the guarantee is
worthless, but If they are men rated up in
the millions, as is the case with several
companies TO which l can cite you the
guarantee is as good as If this additional
amount of capital was actually paid in.
There are Lloyd's companies which have
| been operating in this country for over
half a century. / do not believe your in
formant can cite you to a single instance
of a failure of a Lloyds' Company of
recognized standing. The Venable law pro-
tects the insurer on this point and re-
quires that the controller be furnished
standing
of the underwriters of a LlOyd's COMPANY
before 1t is admitted to do business in
the state. Nor is it necessary to sue each
underwater of a Lloyds Company as
stated. By the agreement made with the
controller of the state on being permitted
to do business here a suit against one I'M
derwriter of LlOyd's Company is binding
on all the underwriters of that company
| The Lloyds Companies write business at
lower rates because they are not subject
to the heavy expenses borne by the COM
panies supporting the Southeastern Tar
iff Association for one reason, and for an
other, because they exercise greater care
in the selection or risks the moral risk
being regarded as of greater Importance
than the physical risk
You can depend upon 1t that the South
eastern Tariff Association will not increase
the rates of insurance in Savannah" said
Mr. Green. THE Venable bill has knocked
all that out. Now that outside companies
are enabled to come in and compete with
the companies composing the Southeast
ern Tariff Association the tendency will be
to lower rates. The way in which Mr. Ven
able came to introduce that bill. l under
stand, is this: He had a valuable piece Of
property to insure The home agents made
him rate of per cent He went to New
York and insured 1t with a company there
at per cent. He had hardly returned back
home when he received a letter from the
company inclosing his check and informing
him that under the agreement of the COM
pany with the Southeastern Tariff Associa-
tion it could not insure his property at
less rate than per cent. Mr. Venable went
back to New York and insured with a com
pany not member of the association at /
per cent. Then when the legislature ret
he introduced the bill which permits com
petition in the insurance business. The
Venable bill affords no encouragement to
wild cat companies. 1t Is very exacting in
its requirements. The only thing is that
insurers insuring in companies non resi-
dent in the state should be particular To
inform themselves that the company in
which they are about to insure has com
piled with the Nenable law"
MAKING VINEGAR AND PICKLES