The Somerset reporter. [volume] (Skowhegan, Me.) 1868-1909, 1906-11-08
Lower Rates Promised.

A decision reached by tDe New Eng
land insurance exchange, at me, ting
held Oct. 81, partially repeats the emer-
genoy rate which was announced in the
early part of the summer, as applicable
to what was termed the "Conflagration
Area" of most of the large towns and
cities of New England This rate was
in the form of an increase of 20 cents on
each hundred dollars of insurance and
was in general way applied to the
commercial center or thickly built up
portion of all the towns and cities of
any size in the United States The
action of the New England Insurance
Exchange removes this buHien from the
the state of New Hampshire, and also
excepting frame buildings, used for
commercial purposes, and certain haz-
ardous stocks. Dwellings and their con-
tents, whether of frame or other con-
st1uction, and practically all brick
buildings go back to the old rate. The
contents of brick buildings, however, if
mercantile or manufacturing in their
nature, must pay the advance. Local
agents have been officially advised of
the action of the New England Insur-
ance Exchange and have the authority
to grant rebate, pro rata, dating from
November LIST, on all policies that have
been written under the advance. New
Hampshire is not included because that
state is rated by an independent board.
There is also a prospect that insur-
ance rates in Somerset county will be
somewhat further reduced. A. r. Fes-
sender of Boston, representing the New
England Exchange, has been in the
county for the past three weeks, making
a survey of all insurable property, and
he will be thus employed for two
months longer. When this report is
made, an entire rerating of the county
will occur and the impression prevails
with local agents that the general ten
dency will be for lower rates. A similar
rerating of Kennebeo county was com
pleted sometime since and one of Frank
lin county has Just been finished. The
result in those counties is In part the
ground for believing that slight de-
cline in rates is in store for this county.
1t would be pleasant for the REPORT
Err to believe that the present prospect
of lower rates, be the change ever SO
slight, was due In some measure to an
editorial in it's issue of July IL which
registered vigorous protest against the
advance of 20 cents per hundred, at that
time made public, but, while there was
certain satisfaction in protesting, we
presume our criticism had little weight
in the councils of the insurance board.
1t is not unlikely, however, that the
board may have felt the strength of
public opinion as voiced by the press of
New England at the time in opposition
to the advance. The chief reason for
the yielding in rates, present and pro-
spective, seems to be the fact that they
had been advanced to a point which had
stimulated the formation of new COM
panies and threatened to create formid-
able competition. A dozen or more
insurance corporations had been formed
since the rate was advanced, with mil
lions of capital, and it now appears that
the old companies prefer to slightly
modify their rates rather than continue
them at point which was sure to invite
further capital into the insurance field.