Waterbury Democrat., 1901-02-07
STATE INSURANCE MATTERS
Commissioner Scofield Makes
 Public Part of His Report.
Expense of Management Has h. creased Heavily-Loss on Under Writing Has Decreased-The Con- missioner Favors the Appointment of q Fire Marshall.


 missioner Favors the Appointment of
 Fire Marshall.
 Hartford, Conn. Feb 7.-Insurance Commissioner Edwin L. Scofeid today makes public part one of the annual report of his department for 19UO, re- launS to fire and marine insurance conpal alieS.
 The business of fire insurance for the year ending December 3l, 1900, shows ill some respects, says the re- port, marked improvement over 1899. Az appears from tables compiled from undsrwriJin: and investment exhibits, the loss en underwriting decrsased by the sum of Sv,1Zs. .o3o .4S, and an in- crease from Investment earnings ap- pears Of S5I2. .I2I.5.: dividends have dec eased $ g .294.o1 and surp US haS increased S1,+3. ,coo. .o4. The surpIuS increase is largely due, however. to the advance in securities arising from the generally improved financial con- ditionS. Some improvement Is shown to have been made in the adjustment of premium rates. and competition is decidedly less active than in 1889. The volume of business transacted shows a gratifying increase, and the losses re- mainins unpaid at the end of the year are considerably less than for the pre- cedins year.
 The expenses of management have, however, the report continues, largely Increased, and at q rate and to an amount wholly disproportionate to the increase in business. When the ratio of management expenses to net premi- umS earned and losses incurred reach es 8 point such as now exists, with un- derwritins carried on as it is. at loss. it would seem that the time is st hand for curtailment In the s1- penses of management.
 So long as companies continue to oyGr-insure risks and thus afford an in- ducement to fraud, and persist in all lowing q considerable portion of thetr risks to be inspected by local agents only, whose interests are of too per Sonal character to expect them to act with that fine sense of diScrim1na- ton such as safe and conservative manager would feel 1t his duty to en- ploy. rather than by persons whose qualifications especially 1t them for Judging and weighing the hazard in- volved, so long must they expect their losses to exceed their underwriting eI- pecta ationS.
 l plan Of rate making that does not include the risk involved in the par ticular property insured is one that ought not, in my judgment, to be countepanced, says the commissioner. Any plan will work injustice that re- quires an assured whose property Is protected to pay a premium based upon 2 rate equal to that demanded of an other whose property Is less favorably circumstanced. The inspection and rating of individual risks will afford encouragement to better construction and the exercise of greater degree Of protective care, because the as- sured will be ever conscious Of the fact that an immediate benefit will accrue to him from lower rate Of premium.
 The commissioner recommends the adoDtiCn by the present general aSSsm- bly of g ire marshall law, providing for tts appointment by the governor of 8 fire marshall, with a salary sufd- cfently large to insure good service. and that he be clothed with ample pow CT to thoroughly investigate or cause to be investig gated, the cause ana orlgln of every fire occurring within the state and if he finds that any fire originated through criminal agency. to take i'm mediatae and appropriate action 10 present the offender for prosecution and punishment. A bill smbody1ng this recommendation will be prepared and presented to the present general assembly.
 In reference to insuranc. brokers, the commissioner recommends that the present law be amended whereby the I,,1, o-,thnrivnI nf rOmnAnV legally admitted to do business in this state may without being deemed broker or procuring a brokers certih- cate of authority, place surplus insur- ance beyond the amount actually writ ten by the company for which he is the duly authorized agent, with any qualified domestic insurance company or it's agents, and with the authorized agents in thia state of any foreign in- surance company, duly admitted to do business in this state.
 The present law in reference to in- suranca agents, as l construe It, says the commissioner, contemplates the anpointmsnt of individuals only as such agents. Within the past two or three years there have been organized undar the laws of the state number of corporations with power to act as agents in the transaction of insurance business. 1 recommend that authority he given to tho commissioner to issue a certificate of authority to any such corporation permitting it to transact the business of an insurance agent for any foreign or nonresident Insurance company duly admitted to this state, and that by such certificate only such person or persons may solicit or pro cure writs in behalf of the corporation as the commissioner may approve, and further that the pepalties for q viola ton of any duty enjoined upon agents shall be of such character as are en- forcible against a corporation.
 From summaries of reports of the condition of various companies doing business in the state it appears from the report that the total admitted as- sets of stock companies increased in 1900 s, ,s33 .556.e7. Connecticut mu- tual companies decreased Ss6. 6.566. A, and the mutual companies of other