El Paso herald. (El Paso, Tex.) 1901-1931, 1910-03-24
INSURANCE RATE IN Fl PAsO MAY
BE INCREASED CONSIDERABLY
Ell Paso Insurance and Business Men Expect It to Be
High, But Advance Reasons as to Why Ell Paso
Should Have a Low One-State Board
Now Fixes the Rate.

Key rates are being prepared and an
nounced by the state rating board as a
basis upon which 70 fix fire insurance
rates for the cities Of Texas. The key
rate for San Antonio. as announced by
the state board is to be 80 cents. Dallas,
Fort Worth and other Texas cities have
been announced also and are equally
high. FL Paso insurance men say.
The key rate for FL Paso, upon which
all insurance in this city will be based,
will be announced within five weeks, ac
cording TO c. B. Roulet, actuary acting
for the insurance companies operating
in the state
Ell Pasos basic rate is expected to
be high. This in spite of the fact that
il is the most modernly constructed city
in the state, has an efficient paid fire
department. and also in spite of the fact
that FL Paso's fire loss is much less than
one-half the total amount of premiums
paid for insurance.
Local Fire Loss.
Last year, according to the report Of
the chief Of the fire department the
total loss by fire amounted to but $685.
799.40. There were 237 alarms, OF which
% were false alarms, and there were but
four really costly fires during the year.
The value of the buildings and contents
which were saved from the fire loss
during the year was $1,SS5,475. and the
insurance on buildings and contents
which were saved amounted TO s974255-
The total insurance on these buildings
over the losses amounted to SSS1,32O.60
Large Annual Payments
1t is estimated that there is $685. 600
paid annually to the insurance compa-
MES by Ell PasO for protection. This
estimate was based upon the valuation
of the property within the city, and the
percentage of insurance carried by
w. ar-<r
claim this is too high One agent says
100000 is a high estimate while another
says il is even less. These premiums
were paid upon the old basis rate by
which each building is considered sep
erately as a risk and the actuary of the
insurance company fixes the rate for
that particular building without any
basic or key rate to guide him.
Fixed by State Board.
The key rate is prepared by the state
rating board. acting upon Information
furnished 1t by the Insurance companies
through its actuary c. B. RouIet The
actuary in turn is supplied with a large
amount of data which is collected and
complied by the national board OF Fire
Underwriters Upon this data a ksy rate
is fixed by the board for each city in the
state. Should the rate be considered too
high. the interested parties have the
right Of appeal to the board. a hearing
will be arranged at which the various
points in dispute will be considered.
In fixing the key rate everything per-
tanning to the fire risks and fire pro-
lection is taken into consideration. The
actuary had force OF men here last
fall testing water mains and Inspecting
the fire departments and getting an es-
innate OF the number of inflammable
buildings within the fire limits. In adj
dition to this investigation the National
Board of Underwriters also made a sup
inspection of the various
factors entering into fire protection and
fire risks, the benefit of which will be
given the insurance companies operat
Ing within the state through c. B. Rou- (
let. the actuary representing the COM /
panies.
Allowance of Credits
When this key rate is submitted and
accepted, all insurance rates are fixed
upon IL as the basis. Credits are al
lowed for improvements in fire fight
ing, deficiencies are counted for I'M
proper fire protection. overhead wires
and other conditions which tend to IN
crease the fire risk. Ell Paso. with Its
brick buildings. paid fire department
and paved streets. should be given
KEY rate much below that which mas
been fixed for the other cities OF tne
state. When the representatives OF the
state board and the underwriters were
lere they spoke favorably of the fire
lighting department, and also IN gen
raj OF the local conditions. These
Kings are all being considered by the
state rating board at the present time.