Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-08-23
.CHN@URANC[ IN IOWA
The Companies Are Anxious to
Have Some Laws Enacted
Upon the Subject
DANGER TO THE PUBLIC
Plan by Which Insurance Men Wish to
Force Property Owners to Carry
Risks Approximating Full Value Of
Property-How it Works in Case of
Partial Loss.
Special to Times-RepublIcan.


Des Moines. Aug. 23--There is every
evidence that the insurance companies
propose to keep up the agitation for
co-insurance law, or rather for the
repeal of the anti-co-insurauce law.
The Blanchard anti-trust law is too
popular with the public generally to
allow of any repeal Of that law unless
it is done surreptitiously and there are
too good lawyers guarding against the
repeal to allow of it being done sur
reptitiously. But the co-insurance idea
is one that is somewhat involved and
on which 1t will be easy to secure the
consent of large per cent Of the peo-
pie who will be readily}led to see that
there is, at least on the surface, an
element of fairness to the insurance
companies IN co-insurance law The
danger In it according to those who
are chiefly opposed to it is in the fact
that not one in a hundred will UNDER
stand 1t and thus the public will be
beaten.
In the arguments held out by the in
surance men it Is claimed that a co.
insurance law is only just and fair
to them. Co-insurance Is not known
with those people who carry but one
policy of insurance on theil. property.
1t is of consideration only with those
who have large properties on which
several insurance policies are carried
in several insurance companies
There are big business blocks In Des
Moines on which the owners carry in
surance not to cover any total loss but
to occur. In the modern blocks In
this city there are mot ten chances in
100 that there will be total loss
If there is a fire 1t will merely damage
the building d little. Insurance COM
panies wish Il law so that they can
write in their policy and make 1t a part
Of the contract that the property own
err will carry insurance to so per cent
Of the value Of the property. Then If
there is a fire they will divide the
loss with the other companies inter-
ested.
Now, under the present Iowa law.
the property owner insures for only
enough to pay for a possible damage.
and if the damage does come the few
companies interested must pay larger
sum than If the property was insured
for 8Osor 80 per cent of its value.
For instance, there is one Des Moines
property valued at 100000. On 1t the
owners carried insurance to the amount
of but $4,000 The chances are that
if there lis ever fire in the building the
damage will not exceed the $4,000 in-
suranoe carried, for the building is Of
brick and steel. But If there Is a fire
of $4,000, the two or three companies
carrying the policies would have to
pay the entire $4,000, while if co-in-
surance was allowed by law, and the
carry, say 100000, on the building,
then company carrying policy of
$4,000 would have to pay but one
tenth of the loss of $4,000, and the rest
of the loss would be paid by the other
companies interested in the rest Of the
100000 insurance carried.
1t is reported that one Des Moines
business block had but small amount
of insurance on it. The insurance COM
pany carrying the policy discovered
that the insurance carried was small
and SO Cancelled the policy. If there
had been 81 fire 1t would have had to
pay the full face of the policy.
Some property owners are taking the
grounds that co-insurance should be
allowed on the ground that with co.
insurance law owners of big buildings
could get insurance cheaper. They hold
that if a company knows that other in
surance companies up to so or 80 per
cent Of the value of the property are
interested in the building also. and that
the loss is to be divided between them,
they will make the premium rate lower.