The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-02-19
A GOOD SHOWING
Supt. Barnes Makes Report on
New Insurance Law.
Gov, StubbS Much Pleased With
Progress.
SAVES HALF MILLION.
Reductions of 90 Per Cent Made
in Topeka.
Big and Little Policy Holders
Treated Alike.

Charles Barnes, superintendent of
insurance, today filed his report on
the working of the new insurance law
with Gov. Stubbs. The report shows
a saving to Kansas policy holders un-
der the new law for nearly half mil
lion dollars year. Gov Stubbs is
much pleased with the showing made
for the new law by this report and so
expressed himself
The new law has been in effect for
nearly a year and this is the first de-
finite showing of any good it has ac-
complished. In fact the new insur-
ance law has been batted about over
the state by policyholders like a base
ball on a townlot. This was espec-
tally true as regards the big policy
holders who had enjoyed rebates in
the past under the provisions OF the
old law. These rebates have been
cut off and the big and little fellows
treated alike under the new law.
superintendent Barnes stated today
that he had been asked for copies of
the new insurance law by officials
from a half dozen western and central
states and it is expected that this law
will be introduced in the legislatures
of these states next winter.
Gov. Stubbs, after reading the re-
port, said: 4 am very much pleased
with the showing made under the
new law. 1 had expected that the
saving from the new law would be at
least a half million dollars. 1 had
faith in the law while it was being
knocked the hardest. I felt that prop
erly administered it would prove to
be a good law to the majority of the
people of the state
Attorney General Jackson. another
friend of the new insurance law, said:
IF this is not a good insurance law
/ do not know what kind of a meas
ure could be devised that would be
a good law
Revision Downward.
superintendent Barnes report is as
follows:
Appeals for relief from oppressive
conditions as regards insurance rates
have heretofore been in vain. The new
law gives the department authority to
revise unreasonable rates and we have
disposed of hundreds of cases to the
entire satisfaction of the policy holders.
In fact, we have accomplished a revis-
ion downward.
During 1908 the fire insurance COM
panIes operating in Kansas received a
total of $4,071, ,531. About one-fourth Of
this sum is paid for insurance on dwell
ings, the remainder being applicable to
mercantile lines. One fourth of the to-
tai premiums is $1.017SS3. September 1,
by an order from this department the
exposure charge was eliminated, and
since that time Kansas patrons have
been obtaining this benefit, amounting
to 10 per cent of the total premiums
during the six months period, an act
ual saving to the people of Kansas of
S50,S S94. This amount doubled repre-
sents the saving for one year.
"Deducting the approximate sum, ST.,
OF. .SS3 which is paid for dwelling in
surance would leave $3,053,64S paid for
Mercantile insurance. A reduction of
u per cent in the premium charge in
the above in compliance with the order
of this department would be 1885,, ,437,
making the totai reduction for the year
$46S,225.
THE decrease in the cost of insur-
ance in mercantile lines is made on a
basis of IL per cent. About 800
towns in the state are rated. In COM
pairing rates which have been made
effective under the new law and the
cost of insurance under the old plan,
only 1877 towns have been handled.
The average rate for these towns un-
der the old law was $2.25. The rate
in force under the new law for the
same towns is S1.93, an average reduc-
ton in the cost of insurance in thees
1S7 towns of IA per cent.
deduction of 20 Per Cent in Topeka.
In Topeka, under the old law. the
average rate on two thousand mercan-
at this time is $1.0S, which is nearly
per cent in excess of the reduction
of IL per cent ordered by the insur-
ance department. In other words, the
business interests of Topeka are pay
ing 20 per cent less for their insurance
than was paid under the old law.
Under the old law a policy fee
ranged from fifty cents to three dol.
lars. This is eliminated under the
new law. Heretofore it has been
rule for some companies to issue no
policy for less than the payment OF
three dollars. In other words, a man
whose insurance premium on a small
amount of household goods would be
81 or $3.50, was required to nav a
minimum of three dollars. This extra
charge has been eliminated and the
small insurers pay the exact premium
which the schedule actually requires.
Under the old law the charge for
country school houses and churches
was from eighty-five cents to one dol
lar. That charge is now eighty-five
cents. 1t was also the custom under
the old law to charge an additional fee
on the personal property whose owner
did not own a farm or home. This
charge has been eliminated and this
additional tax done away with as a
result.
Big Policyholders Did kicking.
"In the Kansas towns where insur.
ance rate wars have existed and buSi-
ness was taken at figure not sufficient
TO cover the reserve required by our
statute, and where the large insurer
demanded concessions the new law has
caused complaint. But I am convinced
that the operation of this law will not
, only solve he problem of the con-
tributory cost of insurance but will re-
suit in a decrease of the fir waste in
this country, which is enormous, being
seven dollars per capita for the total
population of the United States.
POIicyhOIders Pay the Fees.
II desire to call especial attention to
the collection of fees and taxes This
department has collected, during 1909
S29S. .423 fees and taxes from insurance
companies. It is unnecessary to add
that all these fees and taxes are col