Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1909-01-07

the company having received premiums
on that sum. In opposition to this 1t
. argued that the valued policy law
opens up great opportunities for fraud
inasmuch 40 the owner Gun In some
instances secure moro for his property
than 1t is actually worth. and It Is
claimed TINT this influence tends to
promote incendincisn.
other arguments In opposition to the
valued policy system Is thnt 1t in
crcasos Tho cost OF risks BY compel
ling tho Insurance companies to pro-
vido appraisers 20 ascertain tho value
Of the property when 1t is insured.
It is urged that the fro insurance COM
panics will not place as much insur-
ancc on property, desiring to be on the
enfe side. and that as "A result the
owner OF property can not secure rs
much insurance often as he In reality
ought to have. The fnct is cited that the
insurance company cannot AFFORD 20 give
what is in effect "A promissorv note 10
he paid under certain conditions foc
more than savings bnnk would loan
on tho PROPERTY, and that I'm event Of
IRE the owner Of the property loees
part Of the money he ought to have
received for his loss, and would have
received under the Indemnity form OF
insurance.
We confess We arc unable to reconcile
the argument thGt a valued policy will
promote fraud through tho securing
Of eXceasive insurance and tho claim
that owners can not secure insurance
enough on their property under a val
ucd policy system. II appraisers must
be provided 10 value the property in
advance. as is tho case. then Il is the
fault 81 the company or it's represent
atives. IL excessive insurance IS grant
ed. provided the law is so framed az
to prohibit the duplication of insur-
nnce beyond the valuation given.
Perhaps in this connection Vermont
may secure some light from our neigh
bors Of New Hampshire. which has had
a valued policy fire insurance law
since 1855. When the law was passed
tho outside insurance companies car
ried out their threat 10 withdraw from
tho Granite state. and The result was
Z m. fTr ,,,,t 81 ,.fo
panies 70 take care of the business
thus abandoned. At the present tirlc
We are informed that three strong
state comnanics have been burt MP III
that state. together with a number e
mutual companies so that there has
always been ample protection for prop
erty owners at reasonable rates, while
the Investments of tho people Of Now
Hampshire in insurance companies
have proved profitable.
One noteworthy feature Of tho sit
uation In New Hampshire 10 that the
outside companies. which carried out
their threat TO withdraw from the
STATE IN the event Of the passage of
the valued policy law, resumed busi-
ness there again in three years or 80
from the time OF tho change, and are
there to-day.
According to our advicNs from New
Hampshire 10 one seems TO think
there Is any more fraud In connection
with fire insurance than before the
valued policy law was passed It
tends TO make the companies more
careful about taking risbs. and mas
much as all the policies state the flll
amount OF insurance allowable on tia
property. the companies simply de-
cline to pay total in excess ~ that
SUM.
One result Of the operation Of the
valued policy law in New Irampshirc
Is said to be to make it more d'floult
TO insure farm property as II 80 ,os-,s
are usually total and tho fun amount
of tho policy has to bc paiN The nat
ural inference is that the cost ~ farm
insurance increases under this system.
There would seem to BE- no reason
why Nernonts law Should nor MAX,
possible both the valued policy ana
one containing the eighty or ninor-
per cent clauses. II IN addition to
this the proposed law embodied a pro.
vision that any property owner Sc
curing insurance In excess o.. the
amount Of insurance allowable under
a valued policy should forfeit his
claim In case Of loss ,h,rc would seem
TO be litue opportunities Tor fraud. Il
this combination Of provisiong could
be made, every person desiring n VAL
we'd policy could secur" one and those
who preferred to TAX advantage OF
the lower rates made possible bv the
eighty and ninety per cent clauses
alone would be In a position to do SO.
ana justice would he done all con-
ccrned.
CHhMPLtTN "Noy AGTS" AND
LAKE CHtNPLAIS.