Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-06-13
IOWA JAW ATTACKED.
Insurance Agents in Convention
Protest Against Statute Re
Gently Enacted
ITS WEAKNESS POINTED OUT
ITS WEAKNESS POINTED OUT
w. 3. Flickinser, Of Erie, Pa, Makes
Address Showing Up the Law as
, Unjust to Companies and the Insured
State Association Elects Officers
Next Meeting in Council Bluffs.

/
Next Meeting in Council Bluffs.
Special to Times Republican.
Des Moines, June 13.-"Low insur-
ance rates follow where the laws are
protective of insurance interests, and
high rates follow where they are an
tagonistic, just as certain as day fol-
lows night" declared w, B. Flickin-
ger, of Erie, Pa, chairman OF the
grievance committee Of the National
Association Of Local Fire Insurance
Agents, in an address in Des Moines
Wednesday, to the Iowa Association
Of Local Fire Insurance Agents. His
address was on the. subject, Insurance
Law and Its Effect on Rates." and in
it he arraigned restrictive Iowa ialsur-
ance laws. Including that which prohib-
Its the co-insurance clause, the anti
compact law and the recently enacted
Iowa standard fire insurance policy.
| = +. i 4 { Fl "a u.
anti compact laws are conceived in
selfshness and born of malice" he
said. IF the next legislature will en-
act the Massachusetts fire marshal
Law. putting the department in charge
OF competent and fearless man, en-
act new standard policy which will
amply and fully protect every honest
policy holder, yet making 1t difficult If
notimpossible, for the dishonest claim
ant ito recover from the companies,
enact laws requiring better buildings.
repeal every unjust, unfair and restric-
tive law, conditions will begin 20 be
improved, and rates will be reduced
and equalized.
Il am aware that there is a very
strong prejudice against insurance in
terests on the part Of the people, To
be fair I readily admit that much of
this unfortunate antagonism against
insurance companies Is due to past
methods of some of them. There was
a time when the itinerant fire insur-
ances agent with a supply Of applica-
Stions having an innocent looking note
attached, and in which the assured
signed away his rights, was on Il par
with the lightning rod agent and other
sharpers. These men knew little about
the science of underwriting and cared
less. Their interest in the business
was in Securing the greatest amount
Of business at the highest rate, get
their commission and then leave the
policyhoIder a loss occur-to
the tender mercies of the adjuster.
Frequently the adjusted was interested
not so much in ascertaining the act
ual amount of the loss, as In making
a settlement for the least money. 1T
is but fair to say, and 1t is in keeping
with the absolute truth, that this class
of agent and adjuster was the excep-
ton and not the rule; that both have
long since been put out OF commi ssion
by the ever increasing and exacting
law OF competition. The merchant
who gives short weight or measure
cannot long remain in business.
''In discussing the laws of this state
and their general relationship to the
business OF fire insurance, we must
bear in mind that 1t is a business Of
averages; that the experience of q. sim
gle company on single class, city
or state or the experience Of all the
companies In single year cannot safe
" be accepted as a basis for estab-
fishing the cost. The insurance BUSH
ness is unlike that Of any other in the
method of ascertaining the cost to the
companies. An insurance company can
only know the cast Of its policy after
the same has expired.
.'This was most strikingly illustrated
in the San Francisco fire when a. cer-
tain stock company accepted premiums
on its policies in the burned district
amounting to s14S,Ooo under which
they paid losses amounting to $6,767,-
900. Add to this vast sum the expenses
amounting to about $4,000 and you
would then have the cost Of these poll
.cies to the company.
Among the laws on your statute
books which am convinced operate to
the disadvantage Of your property
owners, Is the one which prevents the
use Of a co-insurance clause. No I'M
derwriter can determine what rate is
equitable without knowing the amount
Of insurance as to value Of the pro-
perry insured. To say that it is ,ieces-
sary to deprive the citizens Of this
state the right Of private contract, is
to say that they are not as competent
and Intelligent as the citizens of 9th
er states. Without the use Of the CO.
insurance clause the companies must
decline to accept a blanket form, the
use Of which is so important to many
property owners!
1T is interesting to note that in most
Of the European countries the law re-
quires the insured to carry fixed per-
centage, generally Is per cent Of insur-
ance, with the result that rates are ex-
tremely low and do not fluctustte as
they do in this country.
81 can conceive Of no sound reason
why the use of this clause is prohibited
by law. If the insured chooses to as
sumo portion Of the liability by car
rying less than the percentage Of in
surance agreed upon, he stands in ex-
actly the same relationship as the in
surance cmpany and can properly con-
slider himself paid at the same rate as
the company.
Rates now are very much higher
on farm and other outside property,