The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1901-02-09


Insurance is Made public-Expense
OF Management Havo increased
Out of Proportion to Increase IL
business.
Hartford, Feb S.-Insurance Com
missioner Edward L. Schofield to-day
makes public part I of the annual re.
port of his department for 1900 rela-
ting to fire and marine insurance COM
panies. The business of fire insurance
for the year ending December 81, 1900
shows in some respects, sage the re-
port, marked improvement over 1899
AS appears from tables compiled from
underwriting and investment exhibits,
the sum of $6178,635,4S and an increase
from Investment earnings appears of
$572,72157 Dividends have decreased
$1309,204.01, and surplus has increased
Sl,45l6s The surplus increase is
largely due, however, to the advance in
securities arising from the generally
improved financial conditions. Some
Improvement is shown to have been
made in the adjustment of premium
rates, and competition is decidedly less
active than in 1892 The volume of bus
mess transacted shows q gratifying in
crease and the losses remaining unpaid
at the end of the year are considerably
less than for the preceding year.
The expenses of management have,
however, the report continues, largely
increased and at a 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 reaches
a point such as now exists, with under
writing carried on as it is, at loss, it
would seem that the time is at hand
for curtailment in the expenses of man.
agement
So long as companies continue to
overinsure risks and thus afford an in
ducement to fraud, and persist in al
lowing a considerable portion of their
risks to be inspected by local agents
only, whose interests are of too person
al character to expect them to act with
that fine sense Of discrimination such
as a safe and conservative manager
would feel it his duty to employ, rather
than by persons whose qualifications
especially fit them for judging and
weighing the hazard involved, so long
must they expect their losses to exceed
their underwriting expectations.
The commissioner recommends the
adoption by the present general assem-
bly, of fire marshal law providing for
the appointment by the governor of a
fire marshal with salary sufficiently
large to insure good service, and that he |
be clothed with power to thoroughly
Investigate or cause to be investigated |
the origin of every fire occurring with
in the state, and if he finds that any
fire originated through criminal agency
to take immediate and appropriate ac-
ton to present the offender for exami-
nation and punishment. A bill en-
bodying this recommendation will be
to the general assembly.
In reference to insurance brokers the
recommends that the
present law be amended whereby the
duly authorized agent of any company
legally admitted to do business in this
state may, without being deemed
broker or procuring brokers' certifi-
cate of authority, place surplus insur-
ance beyond the amount actually writ
ten by the company for which he ssthe
duly authorized agent with any quail
fed domestic insurance company or it's
agents, and with the authorized agents Il
In this state of any foreign insurance
duly admitted to do business
N this state.
The present law in reference to insur-
ance agents, as I construe it, says the
commissioner, contemplates the ap-
continent of individuals only as such
agents Within the past two or three
years there have been organ ized under
he laws of the state number of cor i
)orations with power to act as agents 8
n the transaction of insurance bust
less. I advise that authority be given !
he commissioner to issue certificate ]
# authority to any such corporation
it to transact the business of
n insurance agent for any foreign or
insurance company duly {
Omitted to this state, and that by such
ertificate only such person or persons
hall solicit or procure writs in behalf
f the corporation as the commissioner =
nay approve, and further that the PEN Z
tiles for a violation of any duty en-
oined upon agents shall be of such a y
haracter as are enforceable against a
-
From summaries of the reports of the !,
of various companies doing -
usiness in the state, it appears from ?
ne report that the total admitted assets -
f stock companies increased in 1900
J, 1893, 556.67. Connecticut mutual COM =
anies decreased $3.50, 566. "A and the mu- =
lal companies of other states also de- y
,eased $14,055.06. The total liabilities !,
stock companies increased So, 1859 49,
, while the mutual companies of Con- T,
acticut and other states decreased ~
0S, haas. In surplus Of all liabilities,
lie stock companies increased S1,674.-
1905 while the mutual companies in -,
eased $S,0929S. ~
The total net losses paid by the stock in
of Connecticut increased in -,
90 1851, 01074, and the losses paid by II
mpanies Of other states also increased nc
S3,217S5. The foreign companies also al
stained 81, 421, SS350 more loss in 1900 Il,
an in 1899. Mutual companies Of Con- III
cticut paid 81 ,3310 6 more for losses in n,
DO than in 1885, while the losses of nu- co
al companies of other states de- ev
eased $16,Ss974. M