The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-17
THE AGENTS LAUGH
In the Fire Insurance Situation Just
Now.
RISKS THAT ARE HARD TO COVER
Because Of Patronage of Brokers by
Certain Insurers Here
tOfOre.

Local fire insurance agents say that de-
partment stores, cooper shops and large
institutions are having trouble covering
their risks. The insurance men say this
with rather gleeful tone. When the
manager of some big institution comes in
for insurance, the agents are as chilly as
a turret nozzle spray. It's so smoky that
they can't see the applicant.
For years certain brokers with no regu
lar Offices got these big risks, laughing,
as they did so, at the regular agents. 1t
seems that to secure this insurance 1t was
necessary to "whaek up with the in
| surer. The result was the companies
were not paid the premiums. The brokers
gave their commissions to the insured as
bats. and having to live someway, they
consumed the balance Of the premium. In
time the companies "got on" and COM
menced to cancel for non-payment. The
brokers quietly left town, leaving the in
sured in the lurch. Now succor is de-
sired at the hands of the regular frater-
nifty. L.. I'D
If the agent refuses to write a risk, al
though no direct understanding is had,
repulse is assured at the hands of all
other companies.
1T isn't bitterness, nor is it a desire
for revenge, that prompts the turning
down of the applicants for insurance; it
it this way" says one: "If we commence
to write these applicants in regular in
stead Of in wildcat companies they will
patronize US until the brokers feel it safe
to come to town again; then the old story
will be repeated. The brokers will dizzy
up and we shall get the cold shoulder as
before. So what's the use." ..f
Good Farm Risks.
Another queer feature Of the present
insurance outlook is the Inability Of the
board companies to get certain kind of
insurance which they would be glad to
get-frst class farm risks. They abso-
lutely cannot touch them. The town mu-
tual companies absorb all this business.
Farm insurance, like the Gaul, is divided
into three parts: First, the good kind,
which the 140 town mutual companies in
the state absorb; second, the kind which
the town mutuals don't care for where
the owners object to assessments and
prefer to pay the premium down; third,
the kind where the mortgaged property
is rented to- tenants--the last nobody
wants.
The town mutual plan attracts the
farmer. The expense Is little, losses
occur infrequently, because the owners
are thrifty, take every precaution against
the dangerous element and fight it like
everything with the aid of neighbors,
when by chance it gets start. o..
About the only company that has a
farm insurance department is the St..
Paul Fire and Marine, which writes a
good deal Of the business where the farm
er prefers to be relieved of ever immi-
nent obligation by paying fat premium.
ive-year plan has been adopted in
which the payment is made in Install
ments
The third class of risks is undesirable
The tenant has no especial interest in
keeping the property up; the neighbors do
not care enough about it to help fight
fire, and the owner sometimes sees more
value in loss settlement than in heavi-
ly mortgaged farm property.
All stock companies would accept the
gilt edge farm risks if they could get
them.