The Cairo bulletin., 1906-05-28
INSURANCE men TO.
EvADE FRISCO
PAYMENTS
SOME COMPANIES RESORT TO
TEcHNlcALlTiEs TO ESCAPE
LIABILITIES.
RESORT TO QUIBBLES
In Order 10 Wrig9Ie Out Of Their just
obligations-LcoisIsture May
Take it up in Special
Session.

| San Francisco, May 81 Notwith-
stand.ng the appeals made by the in
surance companies for fair play. de-
spite their repeated asseverations that
they intend to meet their just obliga-
| tions In full and without disconnt or
demnr the evidence thar at least some
OF these corporations intend 10 resort
to every kind Of technlcaiity allowed
by law and by Their intricate contracts
accumulates daily.
| A policyhclder In The AtlaHta Bir-
minham Fire Insurance Company re
ceiyed communication from that con
cern the other day o the effect that
the company was about to withdraw
from the Pacific coast and desired it's
patrons to surrender their policies.
Letter to policyholder.
The letter read in par as follows
Dear Sr: In view Of the damage
hy earthquake and of the provision II
tho policy Of this company issuel ~
YOU reading: If q building 0r anv
part thereof fall excerpt as the reEtlls
Of fire. all insurance by ho policy
on such building, r It's contents, hall
Immediately cease
This company desires that its policy
issued to you be surrendered and can
celed and is willing that Il be surron
dered as of the date Of the earthquake.
April Is, 1906.
If the oarhquake made your build
| ing or any part of Il fail your policy 4,
by its terms already vold and u =
did not. VIC * II request its surrrrfder
as the company viii not continue its
business In California.
Only a Chimney Fell.
The policyholdcr presented himself
al the offices Of the company In OAK
land, handed biz policy To the COM
pany's representative and said: my
building is uninjured. save that =
chimney fell. Did the fall Of that
chimney void the policy"
1T did replied the agent at first.
Then he qualified his answer by stat
ing that if only few bricks fell out cf
chimney, involving no wreck OF any
kind. the company would have no
right, he thought. to AVOID payment:
but If the whole chimney fell, or y
sufficient part of II 10 do some dam
age to the building, there was an Inn
mediate ccs atien of all insurance on
The building, no wthstanding that the
whole structure was subsequently de-
stroyed by fire.
The policyholder immed ately SUR
rendered bis policy and received back
his pro rata premium paid for the
unexpired portion of the term for
which It had been issued.
Resorting TO ouibbIes.
The in. tanee related serves TO show
hat some of the corporations intend
to resort TO all sorts of on bibles 70
wriggle cut of their just obligations.
Regarding the clause 70 which refer,
ence is made. 1t has been held by the
court that this mus be construed mo-
favorably to the insured and that by
building or any part thereof is
meant an integral part Of the siruc-
ture. the loss of which would maze tho
whole Incomplete and untc8abie.
The revelation that it Is seriously
contemplated by one company. at
least to contend that an outside chin
uoy is "a part thereof within the
meaning of the law. g. not welcome
news to the mass Of policyholdefs
in san Francisco.
Insurance Commissioner Wolf has
been told 4 Instances where a policy
holder has visited an insurance Office
TO give notice Of hla loss and has been
told: IAN right. That will do. Wen
send you an adjuster." No word ahout
a proof Of iess. which the law says
must be felcd within sky days
Legislature May Act.
The policyhoider goes away he
liaving that al Is right and shipshape.
and lay mself open 10 denial of
liability on the part Of the insurer on
the ground that be did not fll the re
quiremen-s Of the law in giving the
company pr Of as well as notice of
bis loss
The insurance situation Is 20 be cali
sd 10 the attention Of the state leglsla-
lure Ia the call Tor a special ssc-
on 70 he issued by Governor Pardee
xin be included. N all probability
liu in compel insurance companies "a
produce their books and exhibit their
fste Of r,ofiefes vnor being rnoucsfcI
70 DO ~ hy the Insurance Commit sion
.r. Comm 'ssiener Wei has laid ths
natL.r hafnra The cnmm-ilce On sler-