The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1908-08-14
KENTUCKY BOARD
OF UNDERWRITERS
WILL DISAPPEAR
New Independent Rating Blu
reau viii Take It's Place
in State.
Mr.. Rose Receives Notice to
Wind Up Work.
ABANDONED IN OTHER STATES

Forestalling any possible legisla-
tive antagonism, the Kentucky board
OF underwriters has notified its agents
throughout the state. and Mr.. c. G.
Rose In this city, that at the end Of
the fiscal year in November, its ex-
istenee will terminate Noting the
action OF many state legislatures in
making II unlawful for insurance
companies to rate their own business.
in common, the Kentucky Board Of
Underwriters anticipated similar leg
lslation from the Kentucky legislature
and will turn over the business to an
independent rating bureau.
For fifteen years the Kentucky
Board OF Underwater, an organize
ton created and supported by the in
surance companies in the state, has
rated all the fire risks its members
wrote. and Mr.. c. C. Rose has been
the agent OF the board for eight years
In Paducah. Whether he will be en-
ployed by the new independent rating
bureau that will come into existence,
following the dissolution of the Ken
lucky Board of Underwriters, Is not
known now. but his long experience
here and the eminent satisfaction he
has given In the position. practically
insure that he will continue in the
work.
In many states the insurance COM
panies maintained their own rating
boards until legislation made them
unlawful. but the Kentucky compan-
les are departing from that precedent,
and while no active hostility has been
shown TO the system in this state,
they thought It expedient to adopt the
independent system before they did
so involuntarily. The business Of the
Kentucky Board of Underwriters Is
to inspect every building or stock on
which insurance was desired. and fix
the rate at which the companies In
the organization could write the in
surance. The rate is determined by
the height of the building. thickness
OF walls. exposure from exterior fires
and other points.
This rate. ascertained by Mr.. Rose,
was submitted to the state central Of
flee, and ratified, IL correct. and waA
then promulgated among the insur-
ance agents. Every policy the agents
write mus be reported daily to Mr..
Rose who sees that II was written on
the rate he made. With rating bu
reau entirely independent of the in
surance companies. Inspections Will
be made and the rate promulgated as
before, but no daily reports would be
made to the bureaus local agent. The
difference in a nut shell will be, that
the companies. instead of writing
policies on rates made by their own
agents, will write on rates made by
an independent and disinterested bu-
reau.
While no tinge of suspicion has
been attached TO the operations OF
the Kentucky Board OF Underwriters.
Z is believed that the insuring public
will be better satisfied, II the rating
Is done by an Independent bureau,
which. having no interest in the com
panies. might be supposed to act with
absolute impartialhy. But no wild
cat rating agency would find support
from the. companies. as they will ac-
cept rates only from a bureau they
believe is competent to fix rates and
they will pay for this service like
business enterprises pay for the mer-
camille agency service.