The times. [volume] (Richmond, Va.) 1890-1903, 1900-01-12
INSURANCE LAWS.

oo,,,,;ss;oner of Ohio, Mr.. II. q. Essex,
., the Lancashire Insurance Company,
in an address at Manchester, Eng, gave
n table of rates charged in different
foreign countries, in which it was shown
that in France the rate was only e'sh'
cents on the 500. and in no foreign coph-
try in excess of fifty cents. Willie III inc
Tinted States it was one hundred cents
on the 500.
This means, it is explained, that the
relative losses incurred are SO small III
France. that only eight cents per
500 is required to pay all losses and eA-
penscs of the company and leave ne
sides a reasonable dividend profit, where
as in this country it requires the payment
of one Hundred cents per each Sloo lhsui-
ance 10 meet the same obligations. we
do not know that these figures are cor
rect, but they are approximately so, and
the United States shows up oadl! iii
comparison 1t proves that the lire
loss in this country is unnecessarily
large. and that the public IS paying
largely more than the people OF foreign
countries are paying for insurance. rms
cannot be due to exorhtaut rates, but
must be due TO the greater losses in this
country.
In q series of articles OH this subject
we have been trying 10 Impress the TACT
that the only possible way in which! the
LEGISLATURE can help the assured is by
adopting some measure that will aid in
ri n fhn article II Cn
which we have quoted It is ,'oin,cd out
that in all those countries where the IN
surance cost Is smallest there are 10
valued policy laws. no anti-compact
laws and no anti-co-insurance statutes.
The insurance contracts are efr criirely
to the freedom of the parties making them.
The making of uniform rates is en-
couraged as a means Of fair treatment
tc both the assured and insurance COM
panics, and INSTEAD of valued policy laws.
public opinion strenously holds TO the
principle that insurance contracts are
for indemnity cniy, and under 10 cir
cur stances shall lead to profit. And
this is particularly interesting We
quote:
In France the owner of, or tenant oc-
cupying, a building in which fire orlsl-
mates must show to the court mat the
fire did not originate son account oil
defect in the building or from careless
ness or design before he is entitled to
any insurance. and then only the actual
loss or damage sustained at the time OF
the fire, if fully covered by the terms
of the policy and if he can not Go this
his insurance is forfeited, and besides,
he is held responsible for all damages
that happen to others OH account OF the
fire. In France, therefore. every mech
tive to burn property for gain is re-
moved, and even il he succeeds in get
ting over-insurance and evades detection
OF neg licence or crime. he cannot recover
more than the actual loss he has sus-
tanned"
The Times believes that insurance COM
pa,,:cs should be regulated by law. and
every safeguard of the law thrown
around them. but our observation is
that restrictive laws Of this kind more
often result in harm than in good. The
Legislature cannot force the insurance
companies to do business at price that
will not pay them and every legislation
which tends to that result VIII: drive
Oul the fSfulIulc companies $A'A oA1AAo
in companies which are irresponsible and
which will not be able to meet their obi.
cations An insurance policy Is worth
nothing unless the company IN which the
property is insured be fully able to REIN
burse the owner in the event of loss by
fire. 1t is absolutely necessary that
Virginia shall have reputable and re-
sponsible insurance companies. and The.
surest way to get the lowest rate OF in
surance is to reduce the moral and physl-
cal risk to the minimum. This Stale.
should have fire coroner In every local.
ity. whose business It would he to in
gyestigate every fire. and the punishment
OF men convicted OF destroying their own
property Cor the sake Of getting their
insurance should be SO severe as to deter.
dishones, men from committing this out
rageous crime.
yIHGlNIA,s LOST OrPORTUNITY.#
GOV. Voorhees,. Of New Jersey. In his
recent message to the Legislature. called
attention 10 the fact that the State was
out of debt and had on hand the greatest
i,,fi OF