The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-01-27
WHAT INSURANCEHAS COST
Kansas in 90 Years Has Paid in Pre-
miums $25, 100000 More Than
She Got Back

E. c. Little has a pet scheme-State
insurance-and he firmly maintains
that the state should go into the insur-
ance business because the events Of the
past year have definitely demonstrated
that the state has the right and the
power to regulate insurance companies.
THE insurance companies he said,
seem to imagine because a state has
no right to secede that it has no rights
at all. Another fact brought in this
running fight was that there is a vast
ance companies. We have always
supposed that the great companies
were miracles of financial stability.
However, it appears that very fire.
Quently they are not in a position to en-
dure critical examination
Mr.. Little shows that the thirteen
New York life companies have vast re-
sources and assets, according to their
reports, but relatively speaking" he
says, they have no assets and no re-
sources except their debts He says
further: THE census shows that their
total assets December 81, 1889 were
$3.50 900, 900. The report shows that the
net present value of all the outstanding
policies in force December 81, 1899,
with per cent interest was $685., 900 600,
a small enough margin, which they de-
clared to be their liabilities. The real
facts were that their liabilities were
$2,113,OOO,0 900, as shown by the same cen
Sus. They figured out a percentage of
losses that showed that only 1857 900, 600.
of it was in any danger of being called
for, but they had agreed to pay over
81, 000, 600 900, of insurance and only had
$500 000, 600, with which to pay it.
The fire insurance companies were in
the same fix. The assets of the / 926
fire and similar companies were listed
at 1928, 900, 600, while the risks in force
amounted to SIS, 900, 600. Of course
many of these people won't die at an
incOnVenient time and much of this
property won't burn at an inopportune
moment, but those are the resources
and those are the liabilities of those
companies. The insurance companies
are not, never were and never will be
proper bodies to furnish insurance to
the people. Instead of being the sound
est institutions on earth they are the
most unSOund-pure wheels of fortune.
A few epidemics and instructions and
we would have no insurance in this
country.
During the year 1896. fire insurance
companies from other states and coun-
tries received 81, 544, 900. from the people
ses, taking $500, 900 out of the state. The
life insurance companies from a dis
lance collected premiums to the amount
of $1,3OO,OO0 and paid losses to the
amount of 1854 ,000 taking about $3.50. 600
out of the state. There is 81, SOC, 900 that
this state has paid out for which it
has absolutely nothing to show. Dur
ing the last 20 years Kansas has paid
S45, 000, 600 in premiums and received
$50. 100000 for her losses, losing S25, Co.,
600 by the transaction,-money which
absolutely left the state.
There should be, there must be some
way by which the people can receive a
reasonable insurance at a reasonable
rate. These great companies have
never shown any disposition to make
such a rate. While individuals would
suffer, it would be an absolute and def
mite gain to the people of Kansas if no
outside company was allowed to do a
dollars worth of business in this state,
even if no insurance was written. As
the business is now conducted, it may
be a good bet to insure property or life,
but there is no business about 1t. In
Surance is not a business proposition s
now conducted. man can do as well
at almost any game that has an ele-
ment of chance in it. OF course our
people have had the Insurance, but the
insurance companies get the money.
The whistles come too high"
Mr.. Little says the state of Kansas
would do well to take hold of the mat
ter and attend to the insurance bust
ness itself. Assessors could fix the
rates on property in this state and par
ties could pay their premiums in to the
county treasury just if they were taxes.
Unless a man wanted the insurance he
need pay nothing.
The scheme is summarized as fol-
''First-The rates that the people now
pay for insurance are so excessive that
the necessity for some Improvement
commends itself to the judgment of
.Second-The insurance companies
write risks so astOundingly in excess
of their capital that their business is
not a business, but an adventure.
'fThird-The principal of state insur-
ance inaugurated by Bismarck, has been
demonstrated to be a success for Is
years and ir<at least five countries.
''Fourth-Such profits as accrue
would enter the public treasury and
benefit the entire commonwealth if the
state should engage in the business.
"Fifth-The state can give its people
a cheaper insurance than they have
ever had.
the people a safer insurance than any
other possible and owes it to its people
to do so.''