Los Angeles herald., 1906-07-20
QUITS INSURANCE
AGAINST THIEVES
AN INDEMNITY COMPANY
REASONS WHY 1T RETlREs
FROM THAT BUSINESS
From the New York Post.

That few companies engaged in the
business Of burglary insurance are
likely to follow the example of the
united states Fidelity and Guaranty
company, which yesterday announced
It's Withdrawal from this line of in
surance competition, is the opinion ex-
pressed by many of those who solicit
this class of risk At the same time.
unless certain fundamental conditions
are changed, it appears likely that,
however much they may desire to cor
tinue, other concerns will soon have
70 decide the question as to whether
the game is worth the candle.
we do not expect to go out of busi-
ness right away" said Samuel y.
Brewster. treasurer of the Aetna In
demnity company of Hartford. at 6S
William street, this morning. But If
we remain In the field IL will be simply
because we choose our risks with the
greatest care and trust somewhat to
the standards of honor and honesty of
those with whom we deside to do
business.
Our policy does not protect us; 1T
rather leaves us at the mercy of the
man whose premium we take. This
may seem to you to be so strange that
you wonder why we should have such
policy. Let me explain.
Fully 30 per cent of the burglary
insurance written i'm New York is
brought to the various offices by brolS-
ers. Now the broker is the man who
Is agent not for the company. but for
the insured. He is looking out for his
client; he wants him to get all he can
at all times. Also. when he takes
ready-made business to an office, and
announces that that Office may take it
or leave 1t to its competitor you can
see that IN a case where he has 80 per
cent of the entire business he is more
or less In position to dictate terms.
'All of us who are engaged i'm this
business realize this. and at least one
effort has been made to meet the situa-
ton. About year go we had a meet
ing and drew up a reasonable policy,
which, while II was generous to the
person insured, also gave the company
some kind of a chance. We agreed 10
offer this policy at a reduction of about
% per cent from the rates in exist
enCe. But at the first break from this
understanding we were helpless for
the broker, knowing conditions, would
say to his client: Why think of do
ing business with the A company.
which restricts you here and restraints
you there, when 1 can get you a pol
icy in the company, which will mean
practically certain pay on any kind of
claim that you may present?
$50 back we all went to the policy
which is so wide open that l dare not
even discuss its items in newspaper.
for fear of inviting to dishonesty. Talk
of fire insurance frauds! Why, they
were clumsy and difficult compared
with what can be done without any
trouble and little risk to a burglary
insurance concern.
Police Not at Fault
mo. ii isn't the burglar of whom we
have to be afraid here. 1t is the aver
age man in the street, who takes out a
policy insuring him against burglary
or loss of property in his home When
he reads that policy he must feel almost
as though he is bound to lose some
thing, and at once it becomes a ques-
ton whether he has strength of mind
enough to forget the suggestion-a
question as to the moral standards of
New York.
And regarding the matter from this
point of view alone, I am bound to
confess that our experience has shown
us that here. New York, better policed
and less inclined to highway robbery
and housebreaking. is behind the west
ern city. For some reason there are
many more claims in this vicinity,
claims which have to he paid. but
which are settled with positive knowl-
edge that under stricter conditions,
with more sensible policy, they could
have been successfully disputed If they
had ever been made under such cir
cumstances-which itself is highly inl-
probable.
Let me give you an illustration: Not
long ago we We're notified of a claim
for watch and jeweled pin. There
was no housebreaking involved; SIM
ply the watch suspended from the pin
on a Jacket of a woman policy holder
had disappeared. On inquiry we were
informed that the watch had been left