The herald., 1898-09-20
NATIONAL CONVENTION OF IN
SURANCE COMMISSIONERS
SUPERVISION IS Defective
Inequalities Of the System-Soarcity
Of Municipal Securities-San
Francisco Savings Banks
OFFICE OF THE HERALD,

| Los Angeles Sept. 10, 1898.
Insurance commissioners representing
nearly every prominent state In the Union'
with the executive officers of the leading
life fire, accident and casualty insurance
companies attended the twenty ninth an
nual session Of the National Convention Of
Insurance Commissioners at Milwaukee,
Wis, on the 18th inst. The meeting was of
unusual Importance, because o. the ques-
tions or policy to be decided and the variety
OF subjects touching various phases Of sci
entiflc underwriting discussed.
| Governor Schofeld of Wisconsin and
Mayor Rose of Milwaukee In brief ad-
dresses welcomed the visitors. Commits
sioner Lambert of Pennsylvania, on behalf
Of those present responded. Stephen w.
Carr, insurance commissioner OF Maine.
presided.
| The feature Of the afternoon session was
the address of Edward F. Beddall of New
York. respecting THE Foreign Fire In
surance Company and IT'D Business Meth
ods" Mr.. Beddall reviewed the manner of
carrying on the business Of fire insurance
throughout tho world, reciting the import
ant laws and regulations governing the
companies In the United States and the
| leading countries Of Europe. In comment
ing upon the difference in laws and prac-
| tice, Mr.. Beddall suggested that If prop
erty-owners in this country (as In France)
were held responsible foL the consequence
| of their own neglect, losses by fire would
| be materially reduced. He spoke of the
good effect of the Massachusetts fireman
shall law. which empowered an officer to in
yestigate into the origin Of all fires, and
when necessary proceed against persons
suspected of arson.
| The enactment OF proper building
laws in towns and cities where an
aggregation Of values is found would, he
thought, tend to diminish losses. In this
| way property-owners would be benefited,
since reduction in premiums would newt
ably follow reduction in losses.
AS to legislation In the United States Mr..
Beddall said:
| In no other country in the world have the
powers of the underwater been so ham,
pered by legislation as in the United States,
every discontented policy-holder looking to
the legislature for the redress of his griev-
ances, imaginary or real A man in Vir-
| ginia suffering from defective vision, sue
ceeded in getting the enactment of a law
compelling the insurance companies to
print their policies in bolder and more
legibe type, failing to observe which the
| conditions were rendered null and void. In
many OF the states there exist valued policy
laws which provide that the sum insured
shall be regarded as proof of the value OF
the property described in and covered by
the policy, regardless of what its actual
| value might be. Another state requires
that not only the conditions OF the policy,
but the heading and all the printed matter
shall be printed by all companies in the
same type. and that the size of the policy
shall be uniform. This policy form, while
valid In the state demanding it, Is illegal
| II issued in neighboring state. Many of
| the states now have what are called resi-
dent agents laws, under which the COM
pany is made subject to certain pains and
| penalties for writing a risk in such state
| except through an agent resident in the
state. Indeed, 1t requirea Of the under
| writer the proverbial astuteness of a Phila-
delpha lawyer to determine what he can
and cannot do under the conflicting laws
| Of the various states as they exist today.
| Mr. Beddall then argued In favor of the
adoption of all states of the New York
standard policy. contending that what was
good enough for companies and property
| owners in New York ought to satisfy those
of other states as well. He characterized
that form of policy as lone Of the most per-
feet that could have beeH devised" In
Great Britain, with no laws governing the
insurance contract or specifying the
amount of capital a company should have
before beginning business, people looked
out for their own interests successfully.
The common law and the vigorous enforce
ment of it, Mr.. Beddall contended, would
protect the insured from the wilea of the
irresponsible company. Malefactors In this
country, he thought were let off too easy.
He said:
The strict enforcement of the criminal
CODE which could easily he brought about
when public opinion generally sustained 1t,
would be far more effectual In preventin &
insurance frauds than any civil enactments
devised for the purpose Of preventing them
Here our people are taught to look to the
insurance departments for protection
against the invasion of Wildcats and ir-
responsible adventurers who peddle
'cheap" insurance. while experience shows
that, Notwithstanding the safeguards pro-
vided by means of state supervision, such
so-called insurance companies will find "A
lodgment, and that the losses which the
assured make by placing their insurance
| in sucn concerns are fare heavier than
where they are left to take care of them
selves under the protection OF criminal
law rigtdly enforced. In Great Britain,
where this freedom exists the result
proves that there are fewer irresponsible
companies and smaller opportunity OF i'm
posing upon the ignorance OF the people
than here, where tho most elaborate laws
exist for their protection.
Mr.. Beddall said that under the present
system of state supervision companies were
Obliged to make up their annual statements
in a variety of forms, and asked why some
uniformity in laws, and methods of enforc-
ing them, could not be secured. Since the
ostensible object Of these statements was to
enable property -owners to Judge as to the
solvency of a company, 1t would seem to be
sufficient II an asset and liability statement
was supplied. Each year brought new in
quiries touching the internal economy OF
companies with which the people could
| have little concern.
Mr.. Beddall then took up rates Of pre-
MUM. which he said caused continuous
disputes" ever since the day that fire in
surance company was first established" {"
He told of the efforts made to adjust such
matters equitably, and claimed that the
combined action of insurance companies in
enforcing a system of rating based upon
scientific lines has operated, and will con-
tinue to operate, to the great advantage of
property-owners In the United States. Mr.
Beddall thought that the machinery of the