Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-02-20

for ten years prior to the passage OF the
valued policy law was so cents per an
nun on each 500 and that since the
massage of the law the loss ratio had so
greatly increased that standard COM
NAMES we're refusing to insure fire
risks even tho the rates had risen to
SO per annum on each 500.
From a list of so policies. which the
governor referred to by number OF
policy and name of insured, issued in
the northern tier of counties in Mis-
souri it was found that the rate was
3is per cent for fire insurance alone on
six year policies and from another list
of ~ policies, referred to by number
and name, issued in the southern tier
OF Iowa counties it was shown that the
fire rate on six year policies was only
~ per cent all the policies represent
ing insurance on farm property.
Governor Shaw's veto was no in
novation in valued policy legislation for
he supported himself in his veto mes
sage by statements from other gov
ernors showing that the governors OF
Pennsylvania. Illinois, Colorado. Utah.
and Nevada had all vetoed the same
kind of law. The insurance commits
ry
law was in force, wrote in one of his
| reports THE rates have steadily in
I creased since the enactment of this
Jaw, clearly showing that the honest
people in the end are compelled to pay
| for the dishonest losses The insur-
ance commissioner of Michigan in 81
stated to the Michigan legislature III
1 (the valued policy law should be en-
titled AN act to encourage incendiarisn
and facilitate the business of selling
out to insurance companies at inflated
prices
| The agitation for a valued policy
4 law, for the most part kept up by the
radical press, is based on a misconcep-
4 ton of the purpose of insurance
/ Properly all insurance should be mere
lly contract whereby the insured car
receive indemnity for his loss, can be
I relieved of the danger of losing all ht
owns on earth when his property burns
T,, oh ON
chance for gain. The property holder
should not receive more than the actual
amount of his damage and the insur-
ance should be kept below the value OF
the entire property so as to prevent any
dishonest person selling out to the in
surance company by burning his in
sured property and perhaps starting a
fire that will destroy adjacent property
of innocent parties with no insurance
BY no means should the law make II
possible for man to recover from an
insurance company more than his
property is worth merely because he
was tricky enough to get 1t over
insured, and this is what the valued
policy law aims to do. Business men
all over Iowa who do not care To pay
insurance rates based on this kind OF
business are interested in killing the
valued policy bill and should write
their senators and representatives
about it. 1t looks like popular thing
TO compel insurance companies to pay
their losses without quibbling and liti-
cation, but the valued policy law would
make companies pay inflated prices for
property deliberately burned by dis
honest men in order to obtain the in
surance, and the insured public, hon
est property holders included, would
have to pay the cost of these increased
risks in higher fire insurance rates. In
surance can never be sold below cost
any more than can groceries be so sold.