The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-03-05
WON'T RAISE RATES
Statement of Greensboro Fire
Insurance Companies.
With Our Liberal Insurance Law They Con.
slider the Southeastern Tariff Association
Advance unWarranted.
Especial to News and Observer

especial 10 News and observer
Greensboro, N. c., March 4.-The
managers of the Greensboro fire insur-
ance companies have authorized the fol-
lowing statement in reference to the re-
cent Is per cent advance in rates:
When the recent % per cent advance
In rates was ordered by the Southeastern
Tariff Association we though there would
be nothing for us to do but fall in line
and exact the advanced rates. but after
very careful consideration, we have con-
Guided to adopt different course.
1T will be remembered that the pres
ent very efficient insurance law in North
Carolina was enacted in 1899, and that
during that year, in anticipation Of the
benefits which the insurance companies
expected to derive from the investiga-
ton of incendiary fires by the Insurance
Commissioner, as provided for by law,
reduction in rates on preferred risks
was made in North Carolina of about %
per cent.
During the years 1899, 1900 and 1901
the fire record of North Carolina has
been exceptional and the insurance bust
ness in North Carolina has been unusually
During the two years prior to the enact
ment of our present insurance laws, the
companies received in premiums from
North Carolina 81, 846, 1S9, and paid out in
losses $1,1OS,419, making an average loss
ratio for the two years of over 60 per
cent. For the two years following the
establishment of the office of insurance
commissioner the companies received in
nd nniA mt In,
losses $1.071 ,S14, making a loss ratio for
the two years of less than 43 per cent, or
to be more exact, the loss ratio for 1899
was 42k per cent, and for 1900 was 43
per cent. The figures for the year 1901
have not been published as yet, but all
underwriters will concede that. while
some companies have suffered more than
others, the fire record as a whole for
the last year was, perhaps, the most
favorable in the history of the business
in North Carolina. and will probably
bring the ratio for the three years down
to less than 40 per cent. Placing the
average expense ratio at 50 per cent the
usual allowance, the official records of
North Carolina show that the aggregate
underwriting profit to the insurance COM
panies from this State during the last
three years was IS per cent. or % per
cent per annum. We think we are safe
in saying that no section of the entire
country has shown a better fire record
than North Carolina in these last three
years under the new insurance law, and
that not even the Pacific Coast which
has been exempt from the advance in
rates on account of it's low loss ratio,
will show SO good record.
What we propose to do for North
Carolina is precisely what the insurance
managers have done for the Pacific coast
and for precisely the same reason.
1.-The insurance commissioner of North
Carolina has been laborng patiently to
secure better underwriting conditions,
and is continually extending the useful
ness of his department. A few days ago
one of our local agents in one of the
smaller out Of the-way towns advised us
that one of the town officers had recently
made a house to house inspection, ex-
aiming particularly into the construc-
tion of fiues, arrangement of stove pipes,
ETC., and this was done in response to a
notice sent out from the insurance de-
partment.
''Such being the present status of the
insurance business in North Carolina
it seems to us the height of folly to dis
turb it. If the State of North Carolina
was entitled to % per cent reduction
in rates for having enacted a wholesome
insurance law. she is entitled by every
consideration of right and fairness to be
exempt from % per cent increase in
rates, after the great value of such legis-
lation to the insurance companies has
been demonstrated in the fullest manner;
If generous legislation warranted the
Southeastern Tariff Association three
years ago in reducing rates. then the
splendid record of those three years war
rant us ten fold more in refusing to
charge the % per cent advance.
"A few days ago we outlined a plan
for bringing these facts to the attention
OF the Southeastern Tariff Association in
the hope of securing a Reconsideration
OF the order advancing the rates in North
Carolina, but We were advised by the
manager of another North Carolina COM
pany, who had already applied to the
Association to exempt North Carolina
from the increase, that the Tariff Asso-
citation had answered that they were
powerless to take any action in the mat
ter. and finding suchs to be the situa-
tion, after weighing the facts and the
consequences, and after consultation with
our directors, we have concluded to ex-
ercise the right of protest, in the only
way that is left open to us against an
iniquity, by refusing to be made parties
to it. We are reluctant to adopt policy
at variance with the concensus of under
writers and one inviting conflict, but our
deliberate conviction is, that this adj
vance in rates in North Carolina is I'M
warranted, unwise and unnecessary, and
we hereby authorize our agents to disre-
gard the Associations order of % per
cent advance in rates, and so long as