The Republican journal. [volume] (Belfast, Me.) 1829-current, 1905-02-09
THE INSURANCE QUESTION.

EDiAoh LIE OF JOURNAL
The present policy of fire insuranc,
companies is known as the eaStandar r,
pollcy. In case of loss the adiuste,
and insured. if they cannot agree AZ I,
the amount of damage, have an oppor
tunlty to refer it. The representative
of the company offers three names one
OF which the insured can select and the
insured offers three names. one ot
which the adjuster selects. These two
can award the damage and the amount
that the company should pay. If thew
cannot agree they can select a third
member. If they do not agree upon the
selection of the third member, then the
insurance commissioner can act. This
can all be done in few hours and the
verdict is the amount that should be
paid. If fire occurs in the winter
months, destroying the roof and part
of building, it is very important to the
assured that quick adjustment is
made so that repairs may be Immediate
ly attended to. Under this mode of
policy it is very easy to bring the thing
to a point. The loss is adjusted and
the insured can have his money to
promptly 60 on and make the necessary
repairs.
There is tendency among certain
class to have this law repealed and 20
back to the old mode; that is, if the
company does not pay what the insured
thinks proper he can begin a suit and
let the court determine, through jury
or otherwise, what the company shall
pay.
In case of a loss the adjuster may
say to the insured, think your loss is
$3.50, which we are willing to pay. The
insured honestly thinks that his loss is
$3.50 or 5000, in which case there is no
opportunity to settle. The adjuster
says, well you have your redress In law
and all you have to do is sue the CON-
pany. In case the insured is man of
property and able to wait until the
courts shall adjust the loss, it is per-
haps no great hardship. although he
must employ attorneys. If the jury's
verdict is not to the liking of the COM
pany it can be carried up to the Law
Courts, where even if the verdict of the
lower court is confirmed it will require
year or more: and the insured, mechan-
lc or farmer, can perhaps ill afford
the legal expenses, and the delay of ad-
justment is more to him than the ex-
pense, SO that by repeating the Standard
policy clause there is no opportunity to
force the company to prompt adjust
ment. 1t is said that this is in the in
terest of the companies, and yet upon
the face of it appears to be no more so
than to the insured. 1t is true the
companies do not like the expense of
employing attorneys to defend their
rights: and this applies also to the IL
sured, who if the loss is not adjusted by
an agreement must flee to the courts,
employing an attorney and trying the
case before jury, who may or may not
be acquainted with what would be a
reasonable amount for the insured.
1t is said this matter is to come up
before the present legislature. Here
tofore the companies, through their
representative have undertaken to
show to the committee and the legisla-
ture that the present policy was an
equitable, safe and prompt manner of
adjusting losses. In fact, they have
shown that the recourse to this arbitra
ton clause of the policy was very rare
ly used. The adjuster and the insured
We're enabled as a rule to make settle
ment satisfactory to both parties. 1t
is now intimated that the companies
do not propose to further oppose the
repeal of the Standard policy clause,
leaving it with the legislature to take
such action as to them may seem fit
1t is for the readers of The Journal to
carefully read their policies and deter
mine for themselves whether or not the
repeal of the present arbitration clause
is not detrimental to their interests,
and then advise their representatives
in the legislature as to their wishes in
relation thereto. 1t is of course under
stood that every additional expense to
the insurance companies must in the
end be paid by the insured.
PUBLlCO.
The State of Trade.