Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-05-28
INSURANCE RATES RISE.
A1out All New England Must Here
after Pay High Premiums.

Boston. May 21.-The long expected
advance in the rates for fire inSuranc"
in consequences Of the san Francisco
confiagration materinliZed ut the meet
ing Of the New England insurance Elk
change Saturday when il authorized
it's executive committee to revise its
tariff schedules. The action of tie eX
change applies 20 the whole of New
England. with the exception of New
Hampehire which has its own rating
orgnulHtion, and Boston and 1rovi-
dence, K. L., which come under the
jurisdiction Of their respective boards
of fire underwriters.
Contrary to expectation, 10 an
nounccmrnt about the extent Of tn" add
vance, when or how ii viii De applied
Yves made to the members. The eXecu-
tive committee is simply vested with
authority to do what it pleascs i'll the
matter Of rates. 1t will not make any
ieI ort to the exchange of Of its ac-
tio,Is and those affected will only know
Of the increase in price of their insur-
ance when they are formally notified.
The meeting was long one ana
many questions We're asked by the
IncrIbcrs about the methods 10 be
;.durtcd. Pres. FurbuSh assured them
that it was the intention of the eX"cu-
tive committee. to revise the whole tar
III situation, ana that those cities ami
towns which We're defective. from Il
,n- protection standpoint, would bear
the bun den of the advance.
The CONDENSATION hazard Of the va
IiouS cities would be given the most
careful consideration, and the rates on
those classes of risks which had proved
hy past experience to be unprQttaDlc
hazards would assurcdly be- put upon =
moro paying basis. insofar as the in
.;ilra nee companies were concerned.
Nothing more definite was announced
to The exchange on the subject. After
this the meeting adjourned.
Pres. Gayle r. Folbush. when seen
after the meeting, stated that he hat
nothing to say, other than that the On
change had authorized its executive
committee to act according to its judg-
ntnt in the matter of raising rates. He
denied the statement that the exchange
was instructed to produce 50 much adj
ditiDnal money i'll premiums from the
New England field. and added that the
perccntaEe increase, On the whole, was
not considered.
1T WAS instructed. hcwevtr, that in con-
sequence OF the inroadS upon the re
sources of the fire insurance companies.
following tho San Francisco disaster, il
was necessary that pr, MUM reCciI is from
al over the country be materially aug
mrntcd, ana accordingly the cXchang"
Was doing its part Of this throughout
New ENGLAND No specific percentage
advance was in the minds of tn" commit
tee to which the subject is ntrIlSt.d, and
cities ana towns would he rated strictly
according to their merits.
The cOnfiagrdtion hazard will be given
more serious consideration than ii has
new tariff, this important feature viii
play an important part in the advance.
1t must be borne in mind that in the
scientific determining of rates, Il base or
| key rate is applied to every class Of risks
based upon underwriting experience,
with 50 much added for contiagration
hazard, exposure to neighborinS buildings,
| defective water supply and other feat
ures and 50 much deducted for sprinkler
| equipment and the installation Of IRE
protective appliances.
| The advance, where it is applied will
he principally in the percentage added
| for csnfiagration hazard.
! 1t is expectcd now that the Boston
board will take similar action at its next
meeting, although its officers declare they
have nothing TO say on the subject.