The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-05-03


Phillips and W. 2. Young
The organization of new board OF un-
dorwriters on FIRE insurance risks, with
strong executive committee, was effect
ed during the past week. a basis having
been found on which fire insurance agents
Of Washington could unite with advan-
tage 10 all concerned.
In March, 1907, the old board of under
writer's. after a radical disagreement upon
rates for brick and frame dwellings IN the
District based upon a ruling by the body
known in the insurance business as the
Middle District" dissolved. The new
rates went into effect in practice, owing
@ the general competition in business,
and the work of insurance went on about
Is usual, with the difference that the su-
peTvision of the board of underwriters
vas temporarily suspended.
Need of Underwriters Felt.
During the year agents felt the need
OF the work done by the board of under
writer's, and many conferences were held
and many plans proposed TO bring about
an agreement whereby new board could
be organized which would exercise the
functions and the authority commonly
accepted in these bodies in all the large
cities of the country
It is understood that the rates estab-
lisaed by the former board Of under
writers. namely. 10 cents on 500 upon
brick dwellings within the limits Of fire
protection, 20 cents on frame dwellings
detached. and 80 cents upon frames in
solid blocks. wiz be maintained by the
new board. Other regulations pertaining
u the relative rates # insurance, in
vogue for the past few years, will also be
observed The executive committee and
the board are hard at work upon the de
tails Of the new insurance rules, some of
which are yet undecided but which win
lot affect the general plan upon which
the beard is organized
Work of Board TwOfoId.
The work of a board of underwriters is
twofold-that which pertains 10 the insur-
ance business and that which pertains to
the public benefit in the way OF better
fire protection. Underwriters, for one
thing, maintain an inspection service
which gathers data upon which to base a
judgment upon special risks or upon any
44oh WHERE U4lr VI many GAt5tlOtiS may
arise. For example. two houses OF the
same size and coming under the same
relative rate may be upon Az entirely
different basis when viewed from the
standpoint OF insurance risk one Of the
dwellings may stand next to lumber
yard or within d few feet of some other
specially dangerous building while the
other may be separated from any such
Surroundings Naturally the rate upon
one house would be higher than upon the
other
The experience and judgment of the
board Of underwriters in such a case
establish the equitable rate for the more
dangerous risk. This and similar work
is what is done by the board for the in
suranee agent in determining the amount
Of premium in ali special risks.
Performs Service to Public.
The board of underwriters performs g
public service through its constant IN
speetions in all parts of the city and its
espionage over public Improvement. such
as the water service and general proven
tion of fire waste affecting the entire city.
In this field the board of underwriters
supplements the work Of the municipal
authorities, and it frequently happens
that the latter seek light and guidance
in the performance Of their duties through |
conference with the underwriters.
report made by the board Of national
underwriters Upon the water service in |
Washington q few years ago was prob
ably one OF the most enlightening and |
conclusive documents upon fire protection |
in this city that was ever published. It
has been the means of instruction alike |
10 the city government, Congress, and the |
general public.
The need Of an efficient board Of under |
writer's In Washington is recognized on |
all hands, and the organization OF the |
new body, with the officers at the head |
or II, Is In the nature Of a surety that |
the insurance of residents OF the District |
VIII be safe and at reasonable rate,
Rate Question Discussed.
In the past year there has been much |
discussion of the new relative rates upon |
dwellings, which. in Washington. consti- /
tutes the largest share Of the insurance /
business. The present rate-10-cent rate
IS exactly half the one that prevailed
prior to 1907. As one agent expressed Fl.
ne rate was made IS low as insurance |
could be written by the agent and live.
Certain elements entered into the re-
duction Of this rate and others In the rel
at this time. The board Of underwriters
found that Washington has streets i'm
the main ninety feet wide and wider; that
II is almost entirely free from the OBJ
structiOn Of overhead wires; that the ma
1ority Of its buildings are of brick and
stone, and that the type Of building
designated a brick dwelling is a better
risk to the insurance company here than
in almost any city in the United States.
Moreover. the facts of the business. ac-
cumulated for many years proved it. The
inauguration of the 10-cent and the other
lower rates was simply bringing them
down to the basis of the rates in PhiIa-
delphia and other large centers Of popu-
lation. The justice of the rate, 1t was
claimed, could be maintained provided
Washington could be opened to the free
competition of the larger fire insurance
companies.
Washington was at that time. and still
is, the home Of twelve local fire insur-