Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-01-16
VALUED POLICY BILL.
Insurancs-nsn Strongly Oppose II Be-
fore the Senate Committee.
AN INCENTIVE TO IxcESDIARIsM.
Argued That 1t Would Also Lessen
the Chance of Getting Country
Property Insurance-The Hepeai
Measures FavorabIy Passed Upon

The Senate Committee on General Laws
yesterday held two lengthy sessions. 10
consider the various insurance biis'
which have been introduced at this ses-
sion of the Legislature. The only generai
measure taken under consideration. now
ever. was the 'valued-policy BILL Oh
which Mr.. Williams is the patron. Inc
committee, after hearing the arguments
of several insurance-men, decided to re-
port the bill with the Recommendation
that II do not pass.
| At the morning session. MIR. Nirginius
Newton addressed the committee at length
upon this bill He warned the commit
tee that the passage OF the bill wouid
place incendiarism at premium, rnerepy
causing the insurance companies TO raise
rates on the better class OF properly III
the cities, and to decline all property not
under the protection OF fire departments
because of the greatly-increased NUMBER
of fires which would prove perennial
fruit of such legislation. He denominated
the bin as vicious in every particular.
and opposed to public policy.
At the conclusion of Mr.. Newton's ad-
dress. the committee postponed furthes
consideration OF the matter until o'clock
| in the afternoon.
THE AFTERNOON HEARING.
At the afternoon session Dir. j. b.
Moore presented to the committee IN
teresting and instructive statistics from
the few States having had experience
with similar laws, all of which showed
an increase in incendiarism SUFFICIENT 10
cause a repeal Of these acts. He READ
opinions from governors, State officials
insurance commissioners. the New YORK
Chamber of Commerce, and other bodies,
| setting forth the dangerous results OF
! any measure similar to the Dill under
! discussion.
MIR. Moore stated that his companies
found property not under protection Oh
fire departments so Improbable as III
sarance risks that they refuse 10 insure
country property for him, except in iso~
lated cases.
THE ASSOCIATIONS APPEAL.
MIR. Robert Lecky, Jr., presented the
following from the Virginia Association
of Fire-Insurance Agents:
we. the undersigned, representing the
business OF Insurance in our vicinity. beg
10 submit our request that you exert your
influence against Senate bill 100. known
as the valued policy bill, introduced oy
MIR. Williams, of Mecklenburg.
Numerous reasons against the passage
OF this bill can be presented. but. Tor
breyity. we name only three of the most
important:
1. That for the safety OF the villages In
| our State having no water-works or
fire department It is important that every
insurer should remain interested imam
clally In all his property to the extent OF
one fourth thereby reducing the liability
to CONGREGATIONS arising from causes
other than purely accidental
?. That the operation OF the three
fourths-yalue clause is not unjust, and we
ask that you read the clause for informa-
ton. noting that the clause does not
apply to partial destruction of property.
THREE-FOURTHs-VALUE. CLAUSE.
1t is a condition of this policy, that in
the event of loes or damage by fire to
the property insured. this company shall
not be liable for an amount greater than
three fourths OF the cash value OF the
same-not exceeding the amount OF SAID
policy-at the time Immediately preceding
| such loss or damage. and In the event OF
other insurance on the property insured.
| then this company shall not be liable Tor
more than its proportion of three fourths
| such cash value at the time of the fire.
g. That experience of years has demon
strated that property not protected can
! not be insured without this clause, ex-
cept at a loss in excess OF present
premium income, which loss will greatly
reduce the number of companies now con-
senting to carry this business for our
customers.
WOULD ADVANCE THE RATES.
Mr.. Lecky, speaking for the Virginia
| insurance companies, stated fhat these
I companies were insuring the greater part
of the country property in the State. and
| that the enactment of this law would
SO increase the loss ratio on the class
as to require an advance OF rates and
refusal to insure all except selected busl-
ness. beyond the protection OF hre de-
partments. Such a law would practically
! debar the country merchant from IN
surance protection.
He showed the great inconvenience 20
fobacco-dealers. commission-men, cotton
factors. and this class OF insurers, be-
cause they would have 10 insure by de-
signaling various packages, etc. by
| marks and numbers.
MIR. Lecky used illustrations from vari-
Gus cities and towns in the State TO sup
| port his argument.
Mr.. L.. j.. Warren explained the prac-
| fical application of the value clause, as
used i'm country property. and pointed out
with force the damaging result OF a
valued-policy bill, causing annoyance to
| honest men. and boon to incendiaries.
FOR THE COUNTRY MUTUALS.
Senator Keezeli addressed the commit
tee on behalf OF the country mutual IN
surance companies. stating that the
| enactment of the law would force them
all out of business. as their business is
conducted solely on the principle of not
| Insuring for more than three fourths or
the value of any property. He stated that
his company had used the three-quarter-
value clause for twenty-five years, and,
as a result. had been insurins their men,
| hers for rates much below Indt charged
by the regular companies
The committee then went into execu-
tive session. and decided to report the
| bill adversely, as stated above.
TO REPEAL THEIR CHARTERS.
This committee yesterday reported ia
vorably something like twenty bills. re-
pealing the charters of insurance COM
panies granted by circuit courts. Each
one was amended SO as 10 provide that
nothing In the acts shall be construed
| TO prevent the officers. agents. stock
holders. or directors from suing and being
sued
The following are the companies whose
| charters n Is proposed to repeal: The Ma
| tional Fire Insurance Company. OF Alex
andria: the Potomac Insurance Company,