The Somerset reporter. [volume] (Skowhegan, Me.) 1868-1909, 1907-02-07
Equity as We View 1t.

We print in another column of this
issue an editorial from the Bangor News
on the question of the proposed investi-
CATION of the Maine Insurance Depart
ment which We think will commend it.
self to our readers as it certainly does to
us. The news is unquestionably correct
in its statement that the purpose of the
off ce of Insurance Commissioner, filed
for so many years by Mr. S w. Carr, is
to protect the people of the state against
undue aggression on the part of the
great insurance corporations, now band.
ed together, 80 far AS fire insurance is
ordinary individual can have little hope
Of successfully contrasting any point
against them II there is any ground
whatever, that be may have failed In
this respect, an investigation is certainly
in order. If the Cffice of Insurance
Com missioner Is to be used to fortify
the fire insurance companies in their
monopoly, it would he Satisfaction, at
least, to have it abolished.
So far as the compulsory arbitration
clause of fire insurance policies is con
cerned, it may be said that the fault is
more with the method provided under
the law than with the principle of arbi-
tration. No one would object to taking
the matter out of the courts upon agree
ment to do 80 between the Insurance
compelling a reference upon the demand
of either party. if the law provided for
an impartial reference board. The pres
ent Maine statute, however, after d.
rectipg that one referee be chosen by
the insurance company and one by the
insured, provides that these two ref
erees so chosen may agree upon third,
or, in case of their failure to do 30, that
the Maine Insurance missioner shall
serve as third referee. In practice 1t
is found that the referee selected by the
insurance company is always a man
trained by long experience to protect
their interests, and, if he cannot secure
third referee entirely to his liking, the
Maine Insurance Commissioner is called
upon TO act The opinion seems to pre-
vail that the interests of the insured get
very scant justice before reference
board thus constituted, the Insurance
Commissioner acting with the represent
alive Of the company and giving YER
dict practically identical with what
would be decided upon if the whole
matter were left to the insurance com
pany alone.
Another beautiful provision (from the
standpoint of the underwriters) is the
fact that, while they can compel refer
ence, the insured cannot, but must resort
to jury trial If the insurance company
80 elects. This particular point is sell
dom understood and of itself constitutes
such glazing injustice that it is hard o
understand how it ever became part of
the insurance law.
ihb LILO LEdl SUN
method of settlement is always to be
secured, the underwriters feel at liberty
to place insurance upon property far in
excess of its value. They go ahead and
collect the premiums year by year, max
ing no protest until loss occurs then
putting in the claim that they should
not be obliged to pay for any property
destruction of which cannot be clearly
proven, relying confidently upon refer
ence as above outlined to sustain their
contention. 1t is wrong practice to
allow any property to be over insured,
but if the underwriters cannot prevent
it and if they accept premiums on such
over insurance, the time is past for them
10 protest. when loss occurR.
If the statute providing for the COM
pulsory arbitration clause in the Maine
fire insurance policies cannot be so
amended as to secure an impartial ref
erence, it should certainly be abolished.