Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1901-06-05
FACTS
That PubIicShOuId
Know.
Ohio's Insurance Laws
Are Objectionable
To the Insurers and the
Insured.
Plan Proposed by the
Underwriters
To Call Attention to Some Nee.
essary Changes.

Every fire insurance agent in this
city will receive In q few days copy
of circular which has been issued by
special committee of insurance men.
This committee was appointed for
the dissemination of information rela-
tlve to a number of the evils Of the in
surancc business, made possible by
legislation which was Intended TO bene
fit the purchasers of the policies. In
stead OF working to their good It Is
claimed that ii has been an Injury to
all parties concerned. The letter
which is being sent out is as follows:
Dear Sir:
There are certain economic princi-
pies involved in the present system of
FIRE UNDERWRlTING in which
the general public are yitally inter
estcd, and of which they have little
knowledge, and because of this fact the
public mind has been easily influenced
against Fire Insurance companies, and
Individual interests made TO suffer. To
counter-act this influence, to remove
the public prejudice against the bust
ness and to mold public opinion so
that IN future, legislation that is in
imica TO the successful conduct Of
the fire insurance business may not
lie enacted, and that such laws that
are at present on the statute books of
the state of Ohio, that are hurtful
alike to the insurer and the insured
may be removed it has been thought
wise and proper by the leading Fire
Insurance companies and their repre-
sentntiyes in this state 10 lnaugurate
n campaign Of education i'm which you
are earnestly requested 10 cooperate
by giving us portion OF your time.
a moments study OF the results of
Fire Underwriting in the State for the
last few years viii convince you, like
wise your clients, that some plan Of
this kind must he adopted, II we would
preserve to You the capital now eu.
gagged In the business and furnish the
protection that is an absolute necessity
to the commercial world.
Fire Insurance Companies. to pay
taxes to the State, commissions to
agents, aud losses to the unfortunate,
must have money and the money must
be collected from their patrons. We
therefore propose plan of education
and dissemination of information, In
which all can engage who are interest
ed in the preservation of the capital
that is now furnished for the protec-
, tlon of those who have their means
invested in the commercial and manu-.
! featuring industries of the State. Be
! lieving rs we do In the universal fair
ness Of the general public and the
honest intentions Of the lawmakers
of our country, when once they are
| brought to rightful understanding
Of the Importance of fire insurance in
| the successful conduct of the bust.
ness interests of the State, we feel that
this movement will commend itself
to all fair-minded men who are inter.
ested In the welfare of, and the proud
position, the great state of Ohio now
occupies in the industrial world.
TO furnish 10 the insuring public
contracts of idemnity thar are abso.
lutely good ut fair and equitable rates
that will preserve the companies, and
at the same time produce fair pro
tit TO those who have invested theil
highest aim. That certain laws have
been enacted in the State that have
added an unnecessary burden to the
companies, and therefore to the policy
holders, Is well known to all who are
familiar with the business. To coun
ter.act the present tendency to adverse
legislation, and to familiarize the pub
| lie with the manner of conducting the
| business, and to have enacted such
laws as will add strength TO the com
panies. reduce the fire waste and there
by reduce the cost of insurance TO thu
public, Is our purpose.
1t is needless for us TO call your at
tentlon to the laws at present in force
in this State that have been unfaii
and hurtful to the business, and thai
prevent the proper application OF
economies principles familiar 10 al
good underwriters, for the same are
well known to you, but not so to thu
insurer. He has never been made tt
understand that the Valued Policy
Law has made the insurance contrac
contract of speculation, rather thar
a contract Of idemnity; has created |
moral hazard where none existed
has increased the fire waste and lik'
wise the cost Of insurance. That tn
coinsurance law depriyes the In
surer of the right of making II con
tract of insurance that is equitable
as TO rate and form and as demanded
In furnishing protection to the varies
Industries of this State; that the Anti
compact law prevents organization
of the companies for the purpose o
obtaining an equal distribution of th
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