The St. Louis Republic., 1902-02-02

Iat!on Is assigned as a secondary reason
and the recent act Of the State Legislature
in prohibiting the coinsurance clause from
entering into policies is especially COM
Dlained Of The effects Of these and other
minor factors In the situation have driven
many companies from the State. forced
others to dissolve and rendered 1t prac-
tically impossible for many large mercan-
tile and manufacturing concerns to obtain
all the insurance they require.
Remedies for the situation.
The remedies for the situation. in the
opinion OF insurance men. must be found
both by the owners who insure and by the
underwriters. The latter claim that they
must increase their rates to figure which
will! cover losses. The former must in
crease their vigilance and care TO reduce
the hazards. In addition. though no harsh
criticism Of the Fire Department is intend
ed. the efficiency of the department is
counted upon in making rates. and efforts
must be made. say the underwriters, to
reduce the percentage Of total losses from
the fires which do occur.
Howard A. Blossom Of the H. NJ. Bios
som Co. Insurance Company considers
the present situation very serious. In re-
viewing the conditions. he said:
THE fact is that, for about ten years
the fire insurance business in ST. Louis and
year twenty-five or thirty companies with
drew from the State. though most OF their
holdings were reinsured. Five or six com
panies. including the Traders Insurance
Company of Chicago. the National Insur-
nnce Company Of Ireland and the Citizens
Insurance Company Of New York have
withdrawn from st. Louis since January /
OF this year.
Two years ago $4,000 to $4,000 insurance
could have been secured here from any OF
the large companies on a good hazard of
the type of the Washington avenue whole
sale establishments. Now companies that
would formerly write $4,000 won't go be-
yond $4,000. and SO on in like ratio. Not
a large risk in the city Of St Louis can
be fully covered without going to under
writers who are not authorized to do busi-
ness in Missouri.
These risks 1 have mentioned are the
best. BY going to outside companies. they
are generally covered. but where the build
ings are not 80 good and the stock IS more
open. 1t is hard job to get the insurance.
Missouri COinsurance Clause.
THE anti-coinsurance law is partly re-
sponsible for the withdrawal Of some Of the
companies from the State. This measure
reduces 1t for the owner. On $4,000 prop
erty. II the owner tnsures for $50. 800 and a
fire occurs in which there Is $4,000 salvage.
the company must pay the total Of SlSO.o00
and does not share in the salvage, though
there may be coinsurance clause in the
policy. Special rates are given owners who
erty. or who. failing to do 30, are their own
insurers for the amount not covered. Under
the new law q contract to coinsure In this
manner, which will hold legally. cannot be
made. Such condition seems unfair to In
surance men. especially since the idea Of co.
insurance Is as old as the insurance busi-
ness.
"It was suggested twenty-five years ago to
the National Board of Underwriters that
the coiI,surance plan be adopted-that is
that in the event Of partial loss the COM
pany shall pay an AMOUNT in proportion to
the total value Of the property insured.
This was not favorabIy received, and, after
several changes, 1t was decided that the
company should pay in proportion to 30 per