The herald., 1898-04-09
NO RATE WAR THIS YEAR
BOARD COMPANIES WILL GET
PUBLIC SCHOOL RISKS
Insurance Committee Of the Board Of
Education Does Not Like Its
Cut Rate Principle

AS far as the companies represented in
the board of underwriters of the Pacific
are concerned, there will be no insurance
rate war IN Los Angeles this year. For
a time things looked as If one might grow
out of the large amount of insurance to be
placed on the city buildings and pubic
schools. but the experience of the COM
panies doing business here three years ago
during the rate war was a lesson to them
and despite the fact that the amount of
insurance to be placed within three months
by the council and board of education is
nearly 100000. so far only one company,
the Northwestern National Of Milwaukee,
has done any slash,ng.
The board of underwriters however,
made the school board of Los Angeles a
special rate not long ago on the public
schools of the city, most of which risks
expire between April II and July I. The
Northwestern National has offered a %
per cent cut under this special rate, but
limits it's insurance to $500 on frame build
ngs and $4,000 on brick buildings. Meth
er the board companies nor other outside
companies have met this cut, and it Is the
general opinion in insurance circles that
it will not be met.
THE ASSOCIATIONS STAND
Mr.. Richards. manager of the board of
underwriters, speaking OF the situation to
a Herald reporter yesterday. said:
'"The insurance companies represented
in this board propose to sell fair indemnity
at fair rate. They do not propose to be In
competition with companies that get busi-
ness by cutting beard rates. Although the
Northwestern National advertises that it
makes it's own rates, 1t does not do so. 1t
simply ascertains the board companies
rate and then cuts under 1t. The North
western National is not the only company
doing business in Los Angeles that is not
represented in this board, but 1t is the only
one that Systematically cuts under our
rates. AS far as the board companies are
concerned, there will be no rate cutting II
the whole of the city and school insurance
goes to the Northwestern National, and SO
far as / know none of the other outside
companies will cut a cent to get the busi-
ness"
MR. CONREY TALKS
N. P. Conrey a member of the insurance
committee of the school board, speaking
on the subject. sa.d
Eyes, the Northwestern National Insur-
ance company has offered to insure our
schoolhouses at 20 per cent reduction.
When the regular rate given out by the
board of underwriters OF the Pacific was
$1.90 per 500 on three-year policies TO cover
schoolhouse risks, the Northwestern Ma
t.onal. offered to insure at $1.52 per 800.
exactly 20 per cent under the board COM
pan.es rate. AS we had about $240 000
worth of property to insure we went to the
board OF underwriters and asked its man
ager. Mr.. Richard, to examine the fifty
one school buildings of the city to see if
the companies represented in the board
could give us special rate.
"Mr. Richard complied with our request
and made us a rate of $3.50 per 500 on
three-year policies on most of the schoo
buildings. and a rate of 81 per 500 on few
preferred risks, such as the high school
and the Spring street school. This was
done for us in February. Estimates were
made on the theory :hat all of our insur-
ance would go to members of the board.
which includes nearly all OF the reliable
insurance companies doing business in this
state. A few days ago the Northwestern
National sent us Communication offering
us a new rate. which by a curious coiuci-
dence was exactly 20 per cent less tharthe
new rate made us by the board Of under
writer's. Presumably, IL the board should
meet this cut we would get another 20 per
cent reduction, as that seems to be the
method by which the Northwestern Ma
tiohal estimates the amount Of premium
for which it can afford to do business.
1.-THE offer Of the Northwestern Ma
tional," continued Mr.. Conrey, docs not
propose to take all our insurance on our
school buildings. Next January we will