Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-09
Withdrawal of Insurance Com
panies Inconvenience the
''Big Line Risk" Owners
HARD TO SECURE INSURANCE
Many Companies Do Not Like to Risk
Large Sums and Thus the Insurance
on Large Property Has to Be Wide
Iy Distributed-Claim Business Is Mot
Profitable.

DeS MoineS, Dec. 9.-Ihe withdrawal
of insurance companies from Iowa and
the probable withdrawal of others
threatens to make it difficult for the
owners of what are termed big line
risks" to secure enough insurance TO
cover their properties.
Within the year no less than forty
companies of recognized standing have
out on a claim that the business was
not profitable. Recently two big Buff
falo concerns have pulled out. claiming
the Iowa insurance laws are unfair.
Their complaint had to do especially
with the section permitting the insti-
tuition of suits against them to enforce
payment of insurance placed with Wild
cat companies and spread upon risks
upon which the regularly admitted
companies have policies. This is the
reason given for the withdrawal of the
Commercial and the German of Buffalo,
and for the threatened withdrawal of
the big Glen Falls Company, as well as
of several others.
One of the agents said: You proba-
bly, understand that on the lines we
have in Des Moines a company does not
care to risk over $4,000, and many Of
them not to exceed $4,000 oftentimes
in lists of insurance the Liverpool,
London & Globe, the Royal and other
big companies are listed as having $10,-
600 or $4,000, or even $4,000 and $780,
900 on a risk when. as matter of fact,
they probably retain not to exceed $5,-
600 on the risks. re-insuring the bal
ance with other companies.
"In view of this, suppose a concern
would come and ask me to place a line
of 100000. That would mean that the
insurance would have to be distributed
in probably nearly eighty companies.
for but few of them will take over ST.
500 on a single line and retain it. OF
course, the client would want all good
and all authorized compa-
MES. DO you know it would be mighty
hard work to place such a line at this
time with authorized companies of good
standing? Ii the companies keep on
it will make it more diff
cult than ever.
'Then there is another element en-
tering into the insurance business.
There are excellent companies doing
business in the state and many of them
who Will not write business on certain
lines For example, some companies
viii not take department store business,
others will not insure drug stocks. still
others will not take printing office risks,
and so on, SO that 1t is hard to distrib-
ute the insurance.
1--WE have more risks than one would
imagine where the owner desires to
place from 100000 to 100000 insur-
ance and number of instances where |
combined stock and building risk will
.un over $250,000. Some of these are
now having hard work to keep up their |
insurance and 1 could name you bust
less institutions that aim to carry SIS
per cent of insurance and that are now
Unable to get over go to 70 per cent in |
what they consider first-class compa- |
lies.
1t is my judgment that the fault is
lot so much because of the big losses,
,ut because of what the companies I
ERIN unfavorable insurance laws. The I
,hief complaint, so far as am able to
scertain it, is the law with reference !
o wild cat companies. There is objec-
ion to the clause permitting suits
against regular companies to recover
Wild cat insurance. think the enact
nent of a law refusing to give insurer
II insured, where the business is thru
companies, standing in I
curt would remove the i'll feeling +
legitimate companies should not be
allied upon to pay insurance for which
hey have received no premium. We all 1
eel that something must be done to
make more secure the position of the
egular companies or there will be I,
that will embarass bust
less."