Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1906-06-25
Frisco insurance Rates
Were Based on
Water Supply
Earthquake Cut This OF and Com.
panies Now Want to Evade Pay.
mont Of Full Losses.

Considerable interest has been
| aroused in Lewiston by the report of
the fire insurance companies In Cali
| fOrnia that have been blacklisted on
account Of failure to comply with the
demands of the state insurance COM
missioner. Several of these companies
hold risks in Lewiston, and parties
holding these policies have taken par
ticular interest in the war that Is
being waged against what is termed
the "six-bit" companies
People cannot judge the strength OF
the company by the stories coming
out of California" said prominent
insurance agent this afternoon. There
are several reasons for the disturb
ance in insurance circles, and until q
further report is received no one will
know the exact conditions in the
] stricken city and the reasons that
companies failing to comply with the
demands Of the insurance commits
| siOner.
There are companies that can pay
| every loss without the least embar-
rassment that have refused to allow
the insurance commissioner to dictate
as to their policy when this will COM
pei them to vary from the contracts
which they have made with their peo-
pie. These companies have conducted
a legitimate business for many years
and have never been questioned as to
integrity, and prefer to withdraw from
the state before submitting to the or
ders of the insurance commissioner.
1T is stated the orders particularly
obnoxious are the supplying Of list
Of their policy holders in San Fran
cisco and the granting of 60-day ex-
tension in which the policy holders
may make proof of their losses.
There are other companies taking
the position that at least 25 per cent.
OF the loss was sustained by the earth
quake and that the policy holders are
not acting in good faith when they ash.
for the full payment of their losses.
This feature of the contention prom
ises to bring up a fine point Of law
that may make record in the Cali
panies take the position that their
policies were written under certain
protection by the fire departments and
water system and their rating was
based upon this representation. They
held that the destruction Of this pro-
lection established a new risk and
that this latter risk they are not obli-
gated to.
| "Then there are those companies
that are not financially able to pay the
losses and are sparring for time with
hope Of shifting in some manner %
as to preserve their credit and keep in
business
"All Of these conditions make It i'm
possible to estimate correctly the con-
dition Of the companies, and until such
an estimate is possible we will not be
able to Judge the status of the sew
eral companies that are mixed up in
the California trouble.
There is still another feature not
vet considered" continued the
speaker. land that is no one knows
what the companies mean who have
stated they will pay every dollar Of
their losses Does this mean they will
pay the entire amount Of their losses
on buildings destroyed during the dis.
aster or does 1t mean they will pay
their obligations, which would elimin-
ate that percent Of the loss sustained
by the earthquake?"
|