The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1902-03-14
WON'T RAISE RATES
STATEMENT OF GREENSBORO FIRE IN.
SURANCe COMPANIES.
With Our liberal Insurance Law
They Consider the Southeastern
Tariff Associations Advance In
warranted.

huNauec N
warranted.
Greensboro. N. c., March e.-The
managers of the Greensboro fire insur-
ance companies have authorized the
following statement IN reference to the
recent % per cent. advance in rates:
When the recent Is per cent. ad-
vance in rates was ordered by the
Southeastern Tariff Association we
thought there would be nothing for US
to do but fall in line Inc exact the ad-
VanCed rates. but artel very careful
consideration. we have concluded to
adopt a 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 anticipa-
ton Of the benefits which the insur-
ance companies expected to derive from
the Investigation OF lncendIarv fires
by the Insurance commissioner. as
provided for by law, a reduction in
rates on preferred risks was made in
North Carolina Of about 25 per cent.
During the years 1899, 1900 and 1901
the fire record OF North Carolina has
heen exceptional, and the insurance
business in North Carolina has been
unusually profitable 10 the insurance
companies. During the two years prior
to the enactment Of our present insur-
ance laws, the companies received in
premiums from North Carolina 81. S46.-
lS9, and paid out in losses S1.10S.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 commission
er the companies received in premiums
81, 500. 934, and paid out in losses S1.071.-
814. making a less ratio for the two
years of less than 43 per cent. or to he
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 rire record as a
whole for the lest 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 allow
ance, the official records Of North Car
DINA show that the aggregate under
writing profit to the insurance cum
ran1eS from this state during the last
three years was rs 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 insur-
ance law, and that not even the Pacific
Coast, which has been exempt from
the advance in rates on account Of :ts
low loss ratio. will show so good a
record.
What we propose to do for North
Carolina is precisely what the insurance
| managers nave done for the Pacific
coast and for precisely the same reason.
THE insurance commissioner OF
North Carolina has been laboring pa
| tiently to secure better underwriting
conditions. and is continually extending
the usefulness 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 off,
GERS had recently made house to house
inspection. examining particularly into
the construction of fues,
OF stove pipes. etc. and this was done
in response to a notice sent out from
the insurance department.
such being thu present status OF the
insurance business in North Carolina,
it seems to us the height OF folly to
disturb it. II the state OF North Caro-
lima was entitled to a % per cent. re-
ductfon in rates for having enacted q
wholesome insurance law. she Is en-
titled by every consideration OF right
and fairness to be exempt from a %
per cent. increase in rates, after the
great value of such legislation to the
insurance companies has been demon
strated in the fullest manner: IL gen.
erous legislation warranted the South
eastern Tariff Association three years
ago in reducing rates, then the splen-
did 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,
I IN tha hnno Of Sarr1YinO a Ye-CnnGidPY1-
ton of the order advancing the rates
in North Carolina. but We were advised
by the manager OF another North Caro-
lima company. who had already applied
to the Association to exempt North
Carolina from the increase. that the
Tariff Association had answered h q
they were powerless to take any acttol
in the matter. and finding such TO be
the situation. after weighing the facts
and the consequences. n after con-
s%ultation with our directors. we have
concluded TO exercise the right OF pro-
test. in the only way that is left open 10
US against an iniquity, by refusing TO
be made parties to It.
w are reluctant TO adopt a policy
at variance with the ~concensus OF IN
derwriters and n inviting conflict,
but our deliberate conviction Is, hat
this advance in rates In North Caro-
lima is un~warranted, unwise and I'M
necessary. and we hereby authorize
our agents to disregard the ~associa-
TONS order of * per cent. advance In
rates. and so long a the Is per cent ad-
vance in rates stands. to send thier
daily reports direct to us instead Of TO
any stamping Office. after giving such
notice as may be incumbent on them.
They are enioined. however. to maf1-
tain with the utmost care the full tariff
rates as they stood before the Is Per
cent. advance was ordered
I'VE began seven years & to build
up a firm Insurance business in North
] Carolina, and during that period U