The Nezperce herald. (Nezperce, Idaho) 1900-1957, 1905-04-20

One Of the most important features
in selecting risks Is to be certain
that everyone insured shall carry II
least one-third OF the risk. II is 4
well known fact that over insurance
increases the hazard. The moral
hazard in the insurance business
is considered by some 10 be greater
than that Of lightning. Over insur-
ance, to say the least. tends to make
people careless.
The careless use of lanterns is
another great source of loss. Reck-
less smoking is another. II should
never be allowed and is strictly
prohibited by our company.
In all kinds and classes of FIRE in
surance the assured pays, not only
his share of all losses. but the ex-
penss of management as we'll.
Where there are large numbers of
high sslarisd officers the expense
account must be large. Old line
companies provide for this in the
high rate of premium charged. Co.
operative companies ask the mem
bers. who are in reality the com
pany. for their share of the losses
as II is actually needed. In New
York state, during the last ten
years, the losses BY FIRE have great
ly increased. For the past few
years they have averaged fifteen TO
twenty-five million dollars annually.
On this account stock companys,
which have numerous risks on farm
property, refuse 10 reinsure this
class of property. except at consid-
cradle advance over formsr rates.
They claim that risks on farm prop
ery are more hazardous than com
msfcial. village or city property.
!, is also claimed that the best risks
have gone. largely. into cooperative
companies during the past ten years.
and that ], has increased the hazard
on general farm risks now held BY
stock companies by fully twenty-five
per cent. forcing the rates higher on
all -his class Of property. In sup
port OF this claim as regards risks
being absorbed by cooperative COM
panies. VIC have but TO refer TO oar
own company. which has increased
in amount Of risk carried Al the rate
Of -four;hs Of a million dollars
a year, for the pas, four years Al
the same time the average cost has
decreased.
After a careful examination Of
reports VIC find the average cost Of
insurance for three years. in several
OF the cooperative companies. to be
less than one-haif the rates charged
by stock companies. on farm prop
erty. The cos; Of insurance in any
company canno, be determined by
the high or low cost In one year.
bu, must be based on a term Of
years.
A bi, Of history Of company or
ganised ia 1877 on the honor plan
for term Of years is interesting
Il was reorganized in 1882 under
the statute Law governing corpora
tive companies. The first assess
ment levied was In 1879: the second
In 1882 the third not until 1885.
This vas a black year and TO pay
the losses Of this year required three
assessments amounting to s4.s7 per
$1,000 insurance. This frightened
many policy holders and they with
drew. AT this time there vas but
s66s,i4o insurance in force. but ali
losses we're promptly paid. From
August Is, 1886, until October Is,
1890, no assessment was paid.
Those who stayed by the ship fell,
happy and those who deserted felt
sorry. Perfect confidence having
been restored and success assured.
together with the ever increasing
rates Of stock companies. applica-
tons for membership in the oranges
began pouring in, this being
grange company and requiring
membership wherein before being
insured. The company made rapid
strides in the increased amount of