The Brattleboro reformer. (Brattleboro, Vt.) 1907-1912, 1909-11-12
INSURANCE RATES
UNDER DISCUSSION
Mercantile Real Estate Owners
Want Term Rate
THAT IS IN EFFECT ELSEWHERE
Local Agents Say They Never Knew
Until Short Time Ago that This
Privilege Was Allowed-Ares Now
Working For It.

Brattleboro business men have been con-
sideraby aroused during the past two days
because they have learned that Windham
county owners of mercantile real estate do
not have the privilege of getting insurance
on this class of property on a term basis
"a privilege which is enjoyed by mercan-
tile rea! estate owners in every other coun-
ty in this state and is said to be in effect
in the great majority of towns and cities
in New England and other portions of the
country. In Brattleboro owners of this
class of real estate are obliged to pay their
premiums annually, whereas in many other
places-some people claim almost every
where else-fve years insurance may be
had upon the, payment of three years
premiums in advance. just how long this
| term rate privilege has been in effect in
other places is not known, but there seems
to be no doubt that in st. Albans it has
! been operative for eight or nine years
| The local fire insurance agents deny that
Windham county's failure to have the term
rate privilege on this particular class of
| real estate is due to any concerted effort
on the part of the county board of fire
underwriters, an organization composed of
the county agents. They assert that until
last spring they were unaware that term
rates on such property were allowed any
where in the country. When the matter
was called to their attention, they say,
they Immediately took steps toward secur-
ing the privilege for this county and are
confident that the rating committee of the
New England fire insurance exchange will
comply with their request within a short
time.
The last insurance rate book for Wind
ham county contains a special memoran-
dunn, sent out in February, 1906 calling at
tention to the fact that insurance on mer-
camille real estate may be written on the
term basis, but the local agents say that
this was never put into effect here because
of an agreement they had with the rating
committee to continue the annual premium
plan on the understanding that rates in
Bratteboro would not be raised as the
agents say they were in many other places
shortly after the San Francisco confagra-
ton.
There are many local business men, how
ever, who do not understand why the local
fire insurance agents should not have
known that mercantile real estate was in
sured on term rates elsewhere. In spite
of their knowledge of the memorandum
mentioned,in the foregoing paragraph the
local agents say that they never had the
slightest Suspicion that such rates might
be in effect in other parts of the state or
anywhere else, until it was brought to
their attention last spring. They claim
that their knowledge of insurance matters
is confined solely to their own territory.
They are also inclined to doubt whether
the term privilege could have been secured
for this county before now, being of the
opinion that it might have been accom-
panied by general increase in rates. 1t is
conceded that insurance rates in
this town are low.
Residential property in Brattleboro has
for years been written on the term basis;
that is property owners have been able to
get five years insurance by paying three
year rate, or three years insurance by
paying two-year rate. This arrangement,
Of course, is advantageous alike to agent
and owner saving the former the bother
Of writing a new policy and collecting
small premium every year and saving the
after two years or one years premium, in
other words, 40 or 90 per cent. In the
,ase of mercantile real estate, however,
which is insured for large amounts on
which there are comparatively large prem
ums which are easy of collection, it is
Easy to see where it is to the interest of
he agent to have the annual payment
)lan by which he gets a commission on
zach years payment.
The fact that mercantile real estate own
RS in other places enjoyed the term rate
privilege was reported to the local board
If trade some time ago. and individuals
Connected with this organization immed-
telv began an investigation for the pur
,ose of ascertaining why this privilege was
lot within the reach of Brattleboro peo-
lie. The local agents say that the inqui
les of these investigators were what first
,rought to their attention the existence of
he term rate privilege elsewhere. 1t is
aid that one agent in the county has been
lowing the term rate privilege on mercan-
lie real estate for some time.
While the majority of local owners of
eal estate of the class that is subject
o the term rate elsewhere are not in
lined to accuse the local agents of DELHI
rate bad faith. many of them do hold
he opinion that the agents were lacking
n enterprise in not discovering that their
atrons were not getting all the benefits
hat people in other places were getting.
'ew people ever take the trouble to inves-
gate fire insurance rates or inquire about
ules. They leave the matter entirely
Continued on Page Four.)