El Paso herald. (El Paso, Tex.) 1901-1931, 1910-06-13

when made by the companies ana
whether reasonable or not are binding
until changed, according to the law OF
the companies or by the board, and that
for ar violation or failure to apply
such legal rates the offending agents
the guilty of a misdemeanOr punishable
by fine or Imprisonment OF both, and
the law plainly leclares that in such in
stances the commissioner Of insurance
and banking shall revoke the certificate
OF authority of the offending company
~The board held at the Fort Worth
hearing and has ever since held that
said rates and the collection thereof az
the times specified by the companies IN
their general basis schedules cannot le-
galIy be suspended or disregarded by
the companies
As commissioner Of insurance and
banking shall continue 10 so hold I'M
less and until the supreme court OF
Texas shall otherwise direct. and 1 shall
in every instance mold every company
and every agent in Texas rigidly ac-
countable for any violation OF the stat
ute as herein above construed by me.
This statement IS made solely in order
that my position in the premises may
not be misunderstood"
Adjustment to Require Long Time.
c. B. ROulet, state fire Insurance act
uary, says that more than a year will
probably elapse before any large
amount Of adjustment and adjudication
of rates can be accomplished by the
state rating board. This. he says. is be-
cause the state rating law of Texas is a
pioneer in its class.
Kansas has a law which established
an arbitrary key rate, it is admitted.
and some other regulation features. but
the Texas statute provides for a KEY
rate to be established after a full inves-
tigation of conditions, most of the KEY
rates IN force being temporary. or until
permanent rate may be set Even
this permanencS is not intended 20 be
actually Interchangeable The key rate il
10 continue adjustable to the conditions
In community. the insured getting the
benefit of smaller fire risks
One hundred and twenty insurance
companies OF the country are engaged
IN ascertaining and promulgating a KEY
Tate Tor communities and schedules for
insurance The key rate is base rate.
IL may be zero, IL conditions are perfect
The schedule OF rates is to be added to
the key rate, the schedule holding the
rate for each separate risk in each COM
munity-
1t is estimated that it will cost $780,
ooO 10 bring about the inspection. in
vestigation and PRONUNCIATION OF the in
surahce rates In Texas The payment Is
to be made, not by the state, but by the
companies and the insured.
II Is stated by lose engaged in as
certalning and promul eating the kew
rates and schedules that the companies
set the rates. the state rating board
either approves, or. disappearing. calls
FOR proofs. and may order another rare
This applies to either the kew rara a.
the particular risk Communities NAV
complain and petition as to the kew rate
any Individual may call for adjustments
of schedule rate
IL IS stated further that. while the 100
companies are tacity determined TO as.-
cept the rate which may be determined
and announced. that does not bind anv
other company which thinks tbat eny
other rate upon any property should be
dl1erent The fact that the rating
board may allow, and In permitting an
prove rate does not bind another com
pany 10 H. Any company may file any
other rate. but the filing must be made
with the rating board. If this boaru
thinks the later file is lust on the
showing made by the firm Derson or
company filing, then it may order or
approve that rate OF course the board
VIII then see to it that the older rate
Is made to conform 10 the new. If the
companies have business that can bear
the change In other words. it Is ex-
planned each company may file It's own
schedule Tor risks, and if the board is
convinced that the rate is lust 10 the
company 1t can not force the company
TO take lower rate. The insured
would likely take to the lowest COM
pany, ii is admitted.
But for the board il is stated. acting
for itself. without any sort of prece
dent or guidance in other states. it win
be necessary for the work of a year to
pass before there will be a wide basis
for the carrying on of its work so as TO
be just to all concerned.