Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1896-05-21
VALUED POLICY LAW.


surance Companies,
George T. Anthony, superintendent
OF insurance, Is after insurance com.
panies which have been dsrcgarding
the Kansas statute which Is commonly
known as the valued policy law
Mr.. Anthony has issued circular
letter to companies which is self ex.
planatory. 1t Is in full as follows;
1t has become so apparent as to no
longer admit Of doubt that an impor-
tant statute governing in certain poll
icy contracts In this State commands
neither respect nor attention from
the insurance companies 1t is ig-
uored so generally as to have become
practically dead letter; rs much so
as though 1t Ind never been enacted.
] refer to the act known as "The
Valued Policy Law" Its full text IL
as follows:
Whenever any policy of insurance
shall be written to insure any real
property in this State against loss by
fire, tornado, or lightning, and the
property insured shall be wholly de-
stroyed, without criminal fault on the
part Of the insured or his assigns, the
amount Of the insurance written In
such policy shall be taken conclusive
ly to be the true value of the property
insured, and the true amount of loss
and measure of damages Provided,
That any insurance company may set
up fraud in obtaining the policy as u
defense TO n suit thereon,
(9) This act shall apply to all poll
cies Of insurance hereafter made or
written upon real property in this
State, and also to the renewal which
shall hereafter be made, of all poll.
cies heretofore written in this State,
and the contracts made by such poll.
cies and renewals shall be construed
TO be contracts made under the laws
of this State,
(3) The court, upon rendering 1udg'
ment against an insurance company
upon any such policy of insurance,
shall allow the plaintiff reasonable
sum as attorneys fee, TO be taxed us
part of the costs, laws 1893, CHI. I02,
"a |, Z, and 3, Approved March 10,
1898, Published March 81, 1880
This law has been assailed in this
and all States where enacted, MS
against public policy, bid upon
human cupidity, and an incentive to
carelessness and crime on the part OF
the insured. If any one has had the
emerty to suggest 1t as prime ele'
ment of insurance contracts and the
measure of claims for loss, he has
been met with judicial frown from
insurance adjusters and told that II
was an infamous law" not only ultra
wires" but unconstitutional, null and
void"
This is not the time or the place to
discuss the merits Of this law, nor for
alleged unconstitutionality to be in
terposed to prevent its execution. II
is enough that it is the law, an express
sion of the sovereign will of the state
demanding and deserving respect and
obedience from us all, and this applies
with special force to insurance com
panies, who are themselves but the
creations Of law, dependent upon re-
spect for their existence as well as
their rights and privileges,
now bring this law to your atten
ton, reproducing its full text, for the
purpose of informing you that from
this date 1t must govern your actor
and command your obedience so long
as it may remain unimpaired by judi
cill or Legislative action. From thi.
on, then, resistance to claim under
a valued policy by any company, eX
cept by charging fraud in obtaining
the policy, or from criminal fault OF
the insured or his assigns" in connec
ton with the loss, will be accepted
and dealt with by this Department as
studied contempt and deliberate de-
hance Of the insurance laws OF
the State. In all such cases
positive proof that the property
insured has been wholly destroyed
must be accepted as final and con
elusive evidence of the obligation oil
the insuring company to pay the sur
named in the policy as 1.-THE true
amount of loss and measure of dam
ages" Any attempt to tamper with
or reduce liability, by arbitration oil
estimates of actual loss, will Oe held
and accepted as refusal to pay an
already adjudicated and just claim.
If 1t be true that you are incum
bered with overinsuring contracts un-
der this law, liable to bring loss tc
you under this Interpretation and ap
plication of it, the remedy suggests
itself in an immediate review of your
risks, bringing them within the line
of safety by reductions and cancella
tions, and then seeing. to 1t that greed
OF commissions and unreasonable com.
petition do not repeat the peril tc
yourselves and the public of overln
surance.