The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-10-06

I
nave never been done. First. Demand
J ing classification upon the experience
or the state. Second. A classification
pased upon the general experience of
| the companies. The department of
| Kansas has made no demands upon
this proposition, but has given to the
| insurance companies the privilege of
making their rates upon whatever ex-
perlence they desire. There has been
no arbitrary or fixed rule by which
these conclusions should be reached
put these schedules have been required
TO be filed. If these schedules are
based upon improper experiences, or
made incorrectly, then it is not the
1ault or the Kansas insurance depart
ment. Some of these highly moral
purposed critics of the law. even in de-
nounc1ng the Kansas statute, permit
their special agents to traverse the
state, saying that they would gladly
write the business at a less rate than
is liked in the schedules if they were
permitted to do so by the state depart
ment. These men do not seem to com
prehend that they can file in the de-
partment any rate which they deem
sufficient
1T is also claimed that a great in
justice Is being done insurance COM
panies in making reductions on pre-
1erred business. In the name of de-
cency, in the name of fairness, in the
name of honor and square dealing. is
1t proper that the preferred business
and the small property owner should
bear the burden of destructive COMPETE
ton, rate wars, unwise business judg-
ment and inadequate ratings on haz-
ardous lines?
Discrimination Thing of the Past.
There is one thing that the Kansas
law does that is certainly noteworthy.
Under it's operation the greasy silver
dollar OF the working man, taken from
a pocket in his overalls, buys exactly
the same amount of insurance that the
crisp one dollar bill, taken from a
silken purse, buys for the rich man. 1t
eliminates favoritism, it makes the
business honest, and distributes itS
burden equally throughout the state,
and every citizen contributes his pro-
portionate share to the insurance tax.
In addition to these things which the
insurance law does, it is the only
statute in the United States which
recognizes the Importance of the local
agent.
''It seems to have become the custom
for insurance companies and insurance
departments to maintain a spirit of
antagonism. Al-tagonism begetS quar-
rels. Quarrels result in controversy,
and controversy causes disaster to any
regulated or established business.
These elements can be eliminated.
The spirit If fairness, justice and de-
cency; the spirit of cooperation, will
achieve this result Another remedy
which 1 think would be of value and
which I believe WIFI not be opposed
or contradicted by the most perverse
Yankee in the business. and what we
need today in the fire insurance bust
ness. more than anything else, is moral
courage.
recommendations to Legislature.
ct have recommended to the Legis-
lature of the State of Kansas that a
n w
missions paid local agents. BY this 1
do not mean that the compensation
of the local agent should be reduced,
but do mean the payment of excess
i've commissions offered in detriment
to the reserve holdings and the finan-
cial responsibility off companies in a
mad desire to obtain new business.
"I have also suggested that the
Legislature of Kansas should remove
the burden of taxation against the
premium receipts of insurance COM
panies. I hope to see the adoption
in Kansas of standard form
of policy. A law based upon the
decision of our Supreme court, making
agents responsible for loss on insur-
ance policies placed in non-admitted
companies. A law imposing the gross
premium tax and the Fireman's Relief
Fund tax upon individuals or corpora
lions placing business in unauthorized
companies, and law requiring the
"a law requiring a test of solvency
from inter-insurance medical protect
i've and other mutual plans which now
thrive in the absence of regulations.
"a law defining an agent for an in
surance company, with such provisions
as will eliminate the broker and re-
batter and direct to the regularly con-
stituted and appointed representatives
of insurance companies the business
which belongs to them; and a law pro-
hibiting the brokerage of business ex-
cept by and between the agents of
authorized companies.
Insurance companies want to de-
stroy the Kansas law and prevent all
future legislation of this character be-
cause of the fear of being compelled
to classify their business. To show, to
explain, TO tell what the experience has
been: Insurance companies are living
in the fear of being required to make
classificationS. as will be admitted by
any insurance company official or
manager who is not blinded by his pre-
judice 1t may sound populistic. If
it is populistic then be it so; but the
insurance corporations of this country
and the CORPORATIONS of every other
character may just as well gel their
house in order and prepare for the
new era in our history ir which the
people are demanding and insist upon
paying only a legitimate profit for
the things which they use