The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-11-14

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insurance business of this State-tha
very things that have hitherto kept rates
up-and directed attention to the fact
that these evils could not be influenced or
comhatted without organization; organi-
cation compelling the labor and co-ope-
ration Of local agents in every county
seat and in tho important towns and viii
lagos; presenting Il united front to all
these who would demoralize the business
whether companies, agents or Legisla-
ture; alfording mutual protection and be-
ing of mutual advantage to the company.
the agent and the insured; teaching the
people that their interests, the interests
OF the agents and the interests of the
companies are not antagon,stic, but iden-
teal.
Accordingly Mt this meeting the North
Carolina Fire Underwriters Association
was formed; and to the formation of this
Association on these principles, and the
conscientious putting of them into opera
ton | attribute more than to any other
cause, this reduction in the insurance
rates of North Carolina
in what way has the formation of
this Association contributed to reduc-
ton of rates." | asked.
In several ways. The organization
was wise and beneficial. To begin with
it set an example for other States-for
only three or four States had such or
ganization when we formed ours. Now
there are about forty similar orgniza-
tons in the United States. Through
them the people in this and other States
are being educated along insurance lines,
insurance men are being brought to-
gcther and in closer relations; in short,
insurer and insured are finding out that
their interest are the same.
but in the legislation brought about
the North Carolina Association has ac-
complished it's greatest work. The legis
lation was enacted by the last Legisla-
ture, and is almost wholly responsible for
this reduction. Ii consists of an absolute
repeal of all pre-existing laws and the
re-enactment of legislation suitable to
present conditions. commensurate with
present requirements, framed and enact
ed in the light of modern development
and progress. The Willard Bill and the
Incendiary Act entirely remodel the in
surance laws of the State. OF the form
er | need but say it represents the COM
bined thoughts and labors of Mr.. Will
hard, Mr.. Boushall and other prominent
insurance men in the Legislature, and
of the Associations executive commit
tee. with the able assistance of Insur-
anee Commissioner Young. 1t affects the
agent and the company on the one hand,
and the insuring public on the other, and
embraces the matters of overhead writ
ing, anti-rensurance and many others.
The Incendiary Act vests the Insurance
Commissioner with power to ferret ont
the causes Of suspected incendiary fires
and prosecute the offender. There is no
doubt that this will save annually many
lives and much property. The wanton
and criminal destruction of property is,
next to the destruction of life, the most
serious offence against the well-being of
the State. This Incendiary Law Will
certainly make it much less frequent.
Such laws have been in operation in
Massachusetts, Maryland and perhaps
ether States and have given wonderful
satisfaction =
''There is another evil that the Ass2-e
citation has tried to stop and in which
it has in great measure succeeded. That.
is over-insurance Much incendiarism
was in former years due to this. dis
honest man procures on his property IN
surance in excess of its value. lt~is at
once a temptation and an incentive to
sell his property TO the company, though
he delivers naught but a pile of ashes
and worthless debris. We have tried to.
remove all the condition under which
the individual may profit by his fire,
and in doing so we have removed prac-
tically every particle of the moral hazard
from his risk, and thereby from every
risk connected with or influenced by 1t.
These are the main causes that have
led to the reduction Of insurance rates
in North Carolina.
THE past year has been the most sue
cessful to fire insurance companies the
State has ever known. This is due, |
think. 10 the new insurance law, especial
ly.the Incendiary Act. If we can get.the
moral hazard reduced we are sure Of
good results and it should be the duty
of every man in the State, when there
is a fire which is supposed to be incen-
diary to report it to the Insurance Com
missioner.
Our insurance law is generally recog-
nized as the best in the Union. The last
time / was in New York many prom-
nent insurance men expressed their APP
prevail of the law, declaring it the best
in the United States.
Il am glad this reduction in rates has
been made for North Carolina. | take
special pride in North Carolina being
the first State in the South to secure
such reduction. 1t is in keeping with
her record of always being first in all
good things
At the last annual meeting of the
Georgia Association of the Local
Agents, provision was made for the az
pointment of Il committee to present
present non-oyerhead writing bill to the
present Legislature of the State. This
committee has been at work on the
proposition and has evolved a bill which
wiz be offered in the Georgia Home
during this week. 1t is modelled close
" on the lines Of the North Carolina
bill, says the InsuranceF'ield, AMID will
contain ii provision that no company
legally interested in Georgia can reinsure
any of it's business of that State in a
company not authorized to do business
therein President Fred w. Coble. Of
the Georgia Agents Association, is III
charge Of the measure and is sanguine CT
its adoption by both branches of the
legislature.
This shows how the North Car o'inn