The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1895-05-16
INSURANCE LAW CHANGES.
Of Interest to Everybody Carving Fire
Insurance of Any Kind.

Insurance of Any Kind.
The new insurance law for WiscOn
sin, the text of which will have to be
incorporated hereafter in the standard
policies Of all companies doing a fire
business in the state, and copies OF
which have just been received by in
surance men of this city, as we'll as
other cities Of the state, is only begin
ming to be made clear to agents and to
| be fairly understood by them, as we'll
! rs by business men who carry heavy
insurance. There are some quite i'm
portant changes and amendments to
the old or standard policy made by the
new law and that these will materially
affect both insurance companies and the
insured is very clear. The new policy
will practically do away with what has
been known as co-insurance. That is a
clause technically termed the three
quarter clause, +" which has been more
particularly used in the insurance of all
kinds of property in the country or be-
Of fire protection.
Under this clause the owner of cOun-
! try property became personally inter
ested because he had to sustain one
fourth of the loss caused by the de-
struction of his property. That is, if
he had house insured for $4,000, un
der the old policy he would have to
stand 81 900 of the loss in case of that
destruction and would only receive
So 900 on his policy for $1,000. This is
co-insurance and was put into the old
standard policy as means OF equaliz-
ing rates aud of protection to the COM
panies, which figure that fire in the
country means total loss nine times
out of ten. That the abrogation of this
clause will result in many companies re-
| fusing to insure country property and
in making it quite difficult for owners
of that class of property to get insur
ance is plain. The tendency, it is
claimed, will be to materially increase
rates of insurance-either that or no
risks will be taken by the companies,
agents say.
Another change will be in the matter
of the collection of the amount of the
policy. The law on this point is SO
amended that the companies are pro-
hibited from cancelling policy except
ON sixty days notice to the insured un-
| less with the consent of the latter. The
new policy says of this: Unless, dur
| ing the time in which the hazard shall
be increased solely by the act of God,
and in such case and during such time
of such increase of hazard, the COM
pany shall not cancel this policy eX-
cept upon sixty days notice of such
cancellation without the consent of the
assured" Just what is meant by the
act of God" the agents have not yet
determined, unless it relates to forest
| fires started from +" unknown causes"
Still another change is made in the
selection of appraisers. The new policy
declares that g appraisers shall be resi-
dents of this state, unless otherwise
agreed to by the parties hereto, the in
sured and this company each selecting
one appraiser within thirty-five days
after mailing proof of loss to said COM
pany, and in case the other party fails
to select an appraiser within such time
the other appraiser and umpire selected
may act as board of appraisers, and
| whatever award they shall find shall be
as binding as though the two apprais-
ers had been chosen" Another new
provision is that the loss shall become
payable within sixty days after notice
and approval of loss shall be received
by the company interested.
The effects of the new policy will be
that many persons residing in the coun-
try or beyond ordinary fire protection
limits will be unable to get insurance
unless by paying an increased amount, "
said one old-time agent. " Coinsur
ance is of course wiped out, and this
will place the matter of insurance in
peculiar shape, as the object of coin
urance was to equalize rates by MAX
| ng the insured partially interested.
They will have to stand the difference
this change will make"