Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1898-10-13
O what is fire Insurance?

O. What is fire insurance?
A. 1t is a system whereby loss arising
from destruction by fire may be distrlD-
uted evenly throughout the community
instead of falling entirely upon the per-
son who owns the property destroyed
O. How is the system conducted!
A There are two methods now en-
ployed, one being through home mutual
comranies, and the other through tor-
eign stock companies.
o. 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 ntty-
seven foreign companies.
@. How is the business OF these TOT
eign companies conducted?
A. By insurance agents ana 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 pronts
of the company or the reduction OF rates
to the insured. They make their money
out of the commission charged for doing
business. "a
O. How much money did these fifty
seven foreign companies collect in Kan
sas during the year 1897 in premiums?
A. 81 ,5S6, 104.61.
O. How much did they pay back in
settlement of fire losses?
A. S578, 667.39, or a little less than 30
per cent.
0. What was the aggregate loss to the
State for the year?
A. 81 ,OO7 1922. In other words, the
State would have been over million
dollars better Off had there been no such
! thing as foreign fire insurance compa-
MES doing business
O. 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
large and useless army OF insurance
agents, adiusters and attorneys.
O. What is the great objection to this
system Of insurance?
A. 1t costs too much.
@. What remedy has been suggested?
A. The Peoples party Of Kansas pro-
nose to wipe out this expensive machin-
ery and furnish the people OF the state
insurance at cost as State function.
@. What would be the result OF estao-
fishing State insurance?
A. First, it would reduce the cost to
the insured at least one-half.
Second, it would do away with the ne
cessity for foreign insurance companies
with all the expense of officers, commits,
sions, advertising, lobbying, and lega
expense of contesting just claims, anc
compel these companies to furnish In
surance at actual cost or quit the bust
ness
Third, it would be absolutely safe.
Fourth, its reduced cost would enable
more property owners to secure the ben
efits of insurance.
Fifth. it would have a tendency Il
bring all the insured property OF thu
State to the assessors books at its rea
valuation.
Sixth, it would do away with the the
ory that when a policy holder met will
a loss that he must be considered guilt
of burning his property until he coul'
prove his innocence.
o. What would be the cost of such in
surance?
A. It would be very low. The expert
ence of the British deposit savings banl
system has been that 2.S per cent GOV
cred the cost of administration (se'
"New Time" volume l. page S99).
O. Under State insurance would
property owner be required to insure
whether he wishes to or not?
A. No; it would be optional with him