The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1898-10-14

O. What is fire insurance?
A. 1t is a system whereby loss arising
from destruction by fire may be distrib-
uted evenly throughout the community
| instead of falling entirely upon the per-
son who owns the property DESTROYED.
10. How Is the system conducted!
"A. There are two methods now en-
EcSsn ranies. and the other through for
eieu stock companies.
@ How many such companies are do
ing. business in Kansas?
| A. According to the last annual report
of the Commissioner of Insurance there
were thirteen home mutual. companies,
one old-line home company. and fifty
seven foreign companies. a..
@. How is the business Of these for
eign companies conducted?
A. BY insurance agents and brokers.
@. What interest have the insurance
agents and brokers in the business?
A. They, have no real interest, pecu-
MARY or otherwise, in either the profits
Of the company or the reduction OF rates
to. the insured, They make their money
out of the commission charged for doing
business.
@. How much money did these fifty
seven foreign companies collect in Kan
sas during the year 1897 in premiums?
A. $1,5S6,1 04.61.
@. How much did they pay back in
settlement of fire losses?
A. $578, 667.39, or little. less than SO
per cent.
@. What was the aggregate loss to the
State for the year?
A. $1,OO7, 1872 In other words, the
State would have been over a million
dollars better off had there been no such
thing as foreign fire insurance compa-
MES doing business.
@. What became of this million of
dollars?
A. A part of it undoubtedly went to
the stockholders of the company, but
the bulk of it was used up in supporting
q large and useless army of Insurance
agents, adjusters and attorneys.
@. What is the great objection to this
system of insurance.?
A. It costs too much.
@. What remedy has been suggested?
A. The Peoples party Of Kansas pro-
pose to wipe out this expensive mach1n-
cry and furnish the people OF the State
insurance at cost as State function.
@. What would be the result Of estab-
fishing State insurance?
A. First, it would reduce the cost to
the insured at least one-haff.
Second, it would do away with the me-
cessity for foreign Insurance. companies
with all the expense of ohicers, commits
sions, advertising. lobbying, and legal
expense Of contesting just claims, and
compel these companies to furnish In
surance at actual cost or quit the busi-
ness
Third, it would be absolutely safe.
\ Fourth, its reduced cost would enable
more property owners to secure the benz
eflts Of insurance.
Fifth, it would have a tendency to
bring all the insured property Of the
State to the assessors books at its real
valuation. :
Sixth, it would do away with the the
DRY that when a policy holder met with
q loss that he must be considered guilty
Of burning his property until he could
prove his innocence.
@. What would be the cost of such In
sufance?
A It would be very low The expert
ence of the British deposit savings bank
system has been that 2.8 per cent. COW
cred the cost of administration (see
"New Time" volume 1, page 399).
@. Under State insurance would q
property owner be required to insure,
whether he wishes to or not?
A No: It would be optional with him.