The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-11-09
INSURANCE in INDIANA
AUDITOR HART SCANS THE HORIZON
WITH DILIGENCE.
Great Business of the Insurance De-
partment of His Omce-Pert-
nent suggestions Made.

cit may not be generally known said
State Auditor Hart yesterday, but the
fact is that the State Of Indiana suffers
an actual pecuniary loss whenever an in
sured person dies or whenever there is a
loss by fire in property that is insured.
This is because the laws of the State pro-
vide that each foreign insurance company
of any character transacting business in
the State must pay a tax of 2 per cent. on
it's net premiums, which permits companies
to deduct the amount of actual losses.
1.-The first six months of this year the
life and fraternal companies very gener-
ally reported more than an ordinary death
rate, but since the 1st Of July the mortuary
ayment nave scarcely been normal. The
dry summer and seasonable autumn have
been responsible for the light losses to life
companies. A prominent physician of Fort
Wayne told me recently that he has not
had enough sickness lately to meet his
ordinary office expenses and that the kind
of weather we have been having since the
1st of July would make most healthy con-
ditions for people of all classes.
I'm the case of fire companies. however"
continued Captain Hart, losses have been
excessive. and for the last six months
business in fire insurance the State will be
very largely the loser. The heaviest fire
loss sustained in Indiana during the year
was through the recent confiagration at
the G. H. Hammond Provision and Packing
Company's plant at Hammond, which
caused nearly half a million dollars worth
of property to go up in smoke and flame.
In spite of the losses the auditor said
that the insurance department of his office
is about to ciose the most prosperous year
of it's existence. The receipts for the year
he estimates will reach $275,OO0 which is
greater by $4,000 than those of any pre-
Vious year. In this connection, however,
Captain Hart sounded a note of warning.
Twelve companies that were regularly
licensed on the 1St OF last January In
Indiana" he said, have reinsured their
business since that time, and it is pre-
dicted that when the call goes out from
this office Jan. l, 1902, for companies TO send
in their financial ano appllca-
tions for relicensing consultations ana re
insurance will eliminate a number of other
concerns.
Fire losses in the United States" de-
clared the auditor, are now averaging
about $4,000 a day, which does not permit
of any profit being made by the inSurlng
companies. For this reason it is the inten-
ton of the insurance department OF TINS
office to scan very closely the financial
exhibits of all companies and TO promptly
refuse a relicenSe to any company whose
condition is in any way frail. The purpose
is to make the examination of financial
statements and policy contracts as rigid
as the law permits and 10 continue the
work of driving unreliable and questionable
insurance from the state"
The auditor said that Notwithstanding the
relentless war that has been waged against
wildcat insurance companies, the revenues
of the insurance department of his office
are nearly 500, 900 more per year than they
were eight years ago. 1.-The effect of driv-
ing these companies out of the State he
SAID. lis TO not only protect legitimate COM
panies that comply with the laws of the
State. but TO increase, especially in life
insurance, the number of persons who, hav-
ing full confidence in the ability of author
lied companies to meet their contracts, In
vest in larger policies and give the COM
| panies a more extended business"
Auditor Hart has given the rate question
considerable study. THE rates of fire In
surance here are altogether too high" he
said. but 1 do not see how they can be
lowered unless better protection can be
given, and this involves legislation against
the thousand and one acts of negligence
that lie at the base of what is termed 'un-
known causes Radical statutes would
| have to be enacted on the subject of care
llessness and defective building construc-
ton as causes of fires. If this country
had la WIS similar to those in force in France
there would be no reason why the insuring
public should not get as low rates as are
charged in that country, bur until legisla-
ton does intervene and applied electricity
| and slow-burning construction of buildings
are made matters of regulation by statute,
we need not expect materially lower in
Surance rates"