The Bridgeport evening farmer., 1910-12-20
DON'T like ACT
Of GOVERNMENT
State Commissioners Take I'm.
bragg at Federal Insurance
Inspection :
CONSIDER LOSS RESERVES
Important Session of Heads to Act on
Questions of Large Insurance
Moment.

Hartford, Dec 20.-Insurance Com
who Is the vice-president of the Ma
tional Convention of Insurance COM
rnissioners, spent practically all of
last week in New York city in con-
leultation with commissioners Of other
States and officers of insurance COM
tBanies relative to many important in
surancs matters. When seen at his
ONCE in the Capitol the commissioner
said that about 20 States We're repre-
scented and that probably the most
important work accomplished was the
adoption Of a new uniform liability
loss reserve bill.
Colonel Macdonald said:
"It has been evident for some time
! that the methods of calculating the
liability loss reserves were not cor
were not adequate. There wasIa time
when each individual outstanding LOSS
was estimated and a reserve carried
accordingly. About nine years ago
Michigan passed a loss. reserve law
which provided for calculation of
reserves by the method of loss ra-
tios. This was followed by laws in
New York State during 1903. 1904 ana
1905 based upon the method Of in
jury and suits which was advanced
by the Travellers Insurance company.
In 1908 laws were also passed in
Massachusetts,, California, Illinois and
Connecticut. The law in this State
was IN line generally with previous
Legislation. but added an alternative
method of loss ratios which could be
applied at the discretion Of the COM
missioner of insurance"
The commissioner said that various
methods We're devised and results
calculated which were presented to
the National convention of insurance
commissioners at Mobile IN Septem-
| Der. Since that time numerous con-
ferences have been held and a uni
fully considered and adopted with
some slight notifications by the
commissioners last week in New York
city. This bill is worded so as to in
sclude IN its scope Workmen's Com
pensation arising under Legislative
Acts.
Had the law been in effect last
year the reserve for companies do
ing business here would have been
about S13, 900 900. This result would
seem 60 practically justify Commits
sioner Macdonald's contention that
the existing liability loss reserves
were too small and sustain his action
The insurance commissioners, said
Commissioner Macdonald in New
York have evidence that they did not
wholly like the attitude of the Fed
eral Treasury Department toward
Surety Companies which are allowed
to go on bonds running to the Uni
ted States by appointing the Presi-
dent of the Convention. the Hon.
Joseph Button of Virginia, Vice-Pres-
ident Macdonald and superintendent
Hotchkiss of New York, chairman of
the executive committee to go to
Washington and interview the secre-
tary of the treasury, Franklin Mac
veagh.
'The object of the committee"
Commissioner Macdonald said. ''is to
explain to Mr.. Mac Veagh that the
State Insurance departments now
vouch for Surety companies and that
the Treasury department in compell-
ing the companies to submit to an
other examination as outlined in it's
circular OF September 81, casts re-
Election on State supervision and puts
the company to needless expense"