The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1908-08-28
ROBBED OF
s6O,O00,O0OY YEARLY
IN PREMIUMS
ExTRAvAGANT EXPENSE Ac-
COUNT OF FIRE UNDERWRIT
ERs HAS BOOSTED RATES OUT.
RAGEoUslY.


their excessive expense disbursements,
are taking 100000, 900 a year more
from the American people than they
shoulc is the charge made by lnsur-
ance Commissioner Eugene j. Nc
Givney. OF Louisiana, In the ccnyen-
ton OF insurance commissioners and
actuaries In the Hotel Pontchartrain.
He advocates uniform laws N thu
various states regulating the expendi-
lures OF fire Insurance companies and
preventing extravaganza and laVorit'
ism.
The fire insurance companies claim
20 be acting as tax agents. In & way,
says Mr.. Mckinney They collect
premiums and pay fire losses dtstFib-1
u,ing the loss throughout the business
population They are entitled TO
fair profit.
But their expenses amount 10 40
per cent OF all the money collected,
which is far too much. This should
be cut To 33 per cent. The same laws
that control life insurance companies
could. with notifications, be adaptef
TO the regulation OF fire insurance conf
panies and the American people would
be benefited by millions" i
Mckinney contends that the records
of the fire underwriters show thar.
Notwithstanding the San Francisco
and other big fires, the loss percent
age is not greater than II was score
OF years ago when the expense Items
began TO swell and premiums TO grow.
Cost Higher Than Formerly.
Before the conception of graded
and contingent commissions and other
devices OF favoritism and extrava-
gance." he says. the companies fur
nished insurance indemnity al al
average cost to the assured OF Il
cents cheaper on each hundred dollars
OF risks written than the average rate
the companies have been charging
the assured for the past five years.
This u cents advance In the average
rate. based on the gross premiums col
lected for the year 1906, produced /
about 100000 600 from the pockets OF
the assured.
He gives the average dividends OF
fire insurance companies at IL per
cent, while some have declared divl-
dends as high as 40 per cent.
This paper produced a considerable
effect en=theAco convention and ACTON
NAV be taken by the proper committee
during the year to draft suitable laws.
Grouse Is New President.
BENJAMIN +. Grouse OF Maryland,
was elected president of the assocla-
ton: Commissioner Fred w. Potter,
of Illinois, was made vice-president,
and Actuary j. J. Brinkerhoff. of I'LL
nois, is secretary for the coming year.
The next convention will be held In
Colorado Springs, and Commissioner
Rittenhouse, of Colorado. was there
fore made chairman OF the executive
committee the Otner members or
which are: Otto Kelsey, New York;
r. II. Mcdonald. Connecticut: j. A.
Hartigan. Minnesota, and Joseph But
ton. Virginia.
The fraternal insurance committee
reported in favor of the associations :
working with the National Fraternal
Congress and the Associated Fraterni-
ties to secure laws by which fraternal
companies shall not charge less thasl
the Fraternal Congress rates. 1t was
stated that. il the fraternities be re-
quired to charge the same premiums
as the old.line companies. they should
give the same non-forfeiture and
!
tracts. The investigation OF the GER
tificates OF all fraternal companies by
the insurance departments was recon-
mended.
The legislative committee reported
that Michigan, Ohio. Tennessee and
West Virginia have adopted some or
the bills recommended, while Mary
HAND is-rey+sIsg -heE-!nsurance Laws
A radical departure In valuing the
securities OF insurance companies
was recommended in the suggestion
that the presideSt of the association
appoint a committee-of three to value
securities each year after Jan. and
that the various state departments
adopt this valuation In investigating |
the solvency OF companies. This ls
made necessary by the fact that mar |
ket values have been a poor criterion |
of real values during the past year
The insurance commissioners de- |
sisted from labor Thursday afternoon |
and toured the city In automobiles, |
later taking lake ride on the Sappho. |
Bonding Companies Attacked.
That some OF the surety and bond |
Ing companies which do an immense |
more solvent than the people they |
bond, was the startling declaration |
made in the Wednesday afternoon ses- |
sion OF the insurance commissioners |
f. T. Rittenhouse of Colorado, moved |
that committee OF nine be appointed |
to investigate the bonding companies |
and recommended uniform laws To be
passed in all the states providing for |
uniform methods of valuation and a |
general standard OF sOivency.
THE operations OF the bonding, H. |
deity and surety companies have In |
creased to a wonderful. extent IN re-
GEM years" explained Commissioners
Rittenhouse They have grown
faste.' than the methods of inspection.
In consequence the standards are
loose and fiuctuating
There are 40 many kinds OF liabil-