Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1898-10-28
Our Vermont Insurance Interests
A Statement of the Reasons why They
Ought 60 be Placed In the Hands Of
single Expert Commissioner.


Single Expert Commissioner.
Editor of The Vermont PhGnic:-"Who
wants a single insurance commissioner, in
stead of two as now?" is question often
asked by those discussing the subject. The
answer is easy Observation in all local.
ties is convincing that it is wanted by
nine tenths of the citizens and insur-
ance officials whose duties call them to do
business with the department, excepting
only the personal friends of the present in
cumbents 1t would be as absurd to have
two governors, or two heads OF any state
department, and located at distant points
in the state, as to have two heads in charge
of our insurance interests. Every other
state has a single head controlling its in
surance.
"No one wants the change except those
who want the Office is also said, and it
entirely misrepresents general sentiment
in this state upon an important matter,
and for obvious reasons. With regard to
my personal connection with the proposed
change, the facts are these: From many
years of experience, and familiarity with
every part of Vermont, | have seen the
needs in this respect. have seen what
heavy drain our fire losses are upon the re-
sources of the state; how our people have
been duped by irresponsible fire, life and
accident companies, and have thought
much on the best me ms of helping to cor
rect this condition of things. The result
is that during the last few weeks have
spent much time studying and framing the
bill introduced into the house by Mr.. Car
penter of Rutland last week, compiled
from laws of other states, and adapted to
. 10 had
advice of some of the best legal, judicial,
and insurance authorities in Vermont. If
this becomes a law my only wish is that
the best man be then chosen to fill the Of
fee of commissioner and have charge of
the insurance interests.
Vermont needs more close supervision
of its insurance interests than can be given
by two commissioners each having i'm
portant personal business or profession,
needing their whole time. Adding the of
flee of secretary of state and state treasurer
this certainly leaves no adequate time to
devote to important insurance interests |
intend no personal reference TO our insur-
ance commissioners, past or present, when
| say that the Vermont law, as it now
stands, provides a double salary for the
two officials whom it places in charge of
our insurance interests. In addition to
their salaries of $1,000 each, as secretary of
state and state treasurer, they receive 90
per cent of all licenses and fees paid by in
surance companies for their compensation
as insurance commissioners This 90 per
cent amounted last year to $4OS4 40 or an
addition of S2047 20 to each of their sala
ries of $500. The bill in question limits
the expense of this Department. to $1,000
annually, and necessary official travelling
uhi al
present law.
No business is more closely allied to
every other kind of business than nsur-
ance, for it is a positive necessity to all
kinds of business. Whatever tends to in
crease or decrease its cost, directly affects
every kind of business, because it is di-
rect tax upon it, especially upon property,
and partially npon life
Last year insurance companies, legally
doing business in Vermont, wrote new in
surance in the sum of S74 gu ST, taking
from our people $1,000, 202 in premiums.
For the privilege of doing this they paid
into the state treasury SGS24 in licenses
and fees, and in corporation taxes about
10000. Is not this department entitled
to more close personal supervision than it
now has? The protection of the people of
this state demands it. and that the Office
be in the hands of some expert who knows
the details of the business. 1t should not
be subject to the changes which occur in
the other offices, and liable to be given to
men who know nothing whatever of the
business.
In Brattleboro, Bellows Falls, Burling
ton and Winooski alone, there is annually
written over S3,300,000 fire insurance by
companies which never pay a dollar into
the state treasury and they take for thi:
premiums amounting to S33, 900 annually
The same is true in other parts of the
state, perhaps in smaller degree. Many
companies of little reliability take premi
ums of our citizens for every form of in
surance, and our people never find they
are being duped until the losses come
Companies who bear the burdens of taxa
ton should be protected from this class, al
well as the insured.
Supervision that supervises would make
a repetition of the experience had a few
years ago with the Rutland Fire Insuranc,
company of Rutland improbable, if no
impossible. A company organized unde
our laws, doing business here and in othe
states, with no assets except worthless
Western securities, after few years o
business failed, leaving many claimants
here and elsewhere, and our state reputa
tion for supervision of its own cOmpanie
materially weakened. To quote simila
illustrations in life insurance, the Ba,
State Beneficiary association, and the Mas
sachusetts Benefit Life, two assessmen
organizations which failed recently, lief
many certificate holders in our state ant
many death claims unpaid, which, with al
insurance expert at the head of the de
partment, employing his whole time il
looking after the interests of our citizens
might have resulted less disastrously.
Fire insurance rates are inequitabe Of
the same classes of hazard, and accordn
to the experience of fires in the ditferen
localities in this state. An official eXpel
in his business should WELD an importau
influence toward improving this, standin
impartially between the companies and tn
citizens as whole.
Statistics regarding fires, their Origin
classes, causes and localities, properly tai
ulated are furnished by the department
of other states to the people and to I'll
insurance companies. These are of grei
assistance in securing equitable rates, cal
ing the attention of citizens to the grei
and unnecessary drain upon the common
wealth, showing where the drain is, what
consists in, and where the fire department
are inadequate. 1t is understood that tn
has material effect upon the fire loss
the attention given particular localities al
more care exercised and improvement