Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-03-16
CHANGE IN Rates
For Maine by New. Eng.
Insurance Exchange.
Important Action Follows Port
lands Recent Heavy Losses.
Application Of Reduced Rate Prin.
eipIe to Be Made.

Boston, March 15-The New England
Insurance Exchange held an impor-
tant meeting Saturday afternoon at, its
headquarters on Kilby street to con-
slider fire underwriting conditions in
the State of Maine. Pres. w. r. Rice
occupied the chair and there was a
large attendance of the members.
The heavy losses that the companies
have sustained recently in Portland
and elsewhere in the State have en-
phaSiZed what. according 10 the fire in
surance men, is the lack OF uniformity
throughout the New England States
over which the Exchange, with the eX-
ception Of New Hampshire, has juriS-
diction, especially in regard TO the ap-
plication Of the reduced rate clause.
The principle of the rediIced rate
clause is that Of guaranteeing to carry
Il fixed amount Of insurance in con-
Siderati ton Of Il reduced rate Of premium
ard is considered the most scientific
and accurate method of underwriting.
The reduced rate clause to q limited
extent has been applied in Maine, but
in view Of the heavy losses the con-
panieS have sustained for many years
there, and particularly during the past
few months, it is considered an ,ppor-
tune time to make the application Of
the reduced rate general throughout
New England, as it is in nearly all die
other states.
Frank H. Battilana, chairman Of the
executive committee. presented the
resolution, which was adopted by tho
members. 1t recommends that the
N1
local sub committees reported to the
exchange, having charge Of districts
which have been unprofitablc, to i'm
mcdiately reratc such districts with a
view to increased income and the in
PRODUCTION Of the usual reduced rate
clause rules of the exchange
The resolution also carried a recon-
mendatiOn that the exchange request
all other chairmen of local committees
in the State of Maine to SO rcarrange
rates in their respective districts as to
eventually bring about the same result
as to reduced rate clause rules. The
executive committee after careful con-
sideration believes that the same re-
duced rate clause rules that prevail
elsewhere on exchange territory should
prevail in Maine. but it does believe
that the application of the same should
be left in the hands of the local COM
mittees, believing that the state of
Maine chairman should act in conjunc-
ton in this work with due regard to
local and State conditions and thus ac.
colnplish in a harmonious manner the
results sought for by the exchange"
One of the prominent members of TIE
ln in discussing subject
that the resolution adopted contem-
plates making the same basis in the
State of Maine as in nearly all other
states-that is, a difference between
the fiat and the reduced rate of APP
proximately 80 per cent. 1t is the only
scientific basis, he declared, by which
the insurance companies can really de-
pend upon for getting adequate rates.
's.rhe loss ratio i'll Maine, he said, mas
been very high for several years, partic-
ularly in communities which are protect
ed by fire fighting facilities and it was
thought better to use the reduced rate
clause general throughout the State than
to impose a flat advance i'll the rates.
Risks having equipments of automatic
sprinkler service. street railway, manu-
featuring and other important Industries
involving large concentrated values, all
carry. from 50 to 90 per cent, of their prop
erty in snrance in consideration Of the
reduced rate inducement and it is the
purpose of the resolution adopted today
to make the practice general It must
be borne in mind that unprotected prop
erty, sucl: as churches. dwellings. farms
and similar lines, is not affected by the
measure
A special committee of three members,
consisting of John ]. Downey, Gayle T.
Forbush and j. j. Cornish. was appointed
by the president to draw up suitable res
olutions recording the death of John L..
Liecty, one of the most prominent MEM
hers, who died last week in New York.
1t was also voted to assess the COM
panies whose special agents COMPRISE the
exchange three-ouarters Of 1 per cent.
of their premium receipts for its main
tcinance in New England, less those paid
in New Hampshire. Boston and ProNl-
dence. over which the exchange has no
jurisdiction.