The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-05-19
INSURANCE MEN
GET HIGHER PAY.
New Scheme Seems to Evadc
Virginia Law in Interest
OF Local Agents.
c Q NJ MISSIONS UNIFORM
Southern Agents Seek Better
Pay After Years OF
Discrimination.

! Insurance agents throughout vir-
ginla will probably receive a higher
rate OF commissions. as the result Of
new agreements which are being made.
The commissions in the South have al
ways been lower than those In other
parts OF the country, and efforts are
being made to unity them.
In order to do this. what is regard
ed as an exceedingly clever evasion
of the Virginia law forbidding the com
binations OF companies to n;> commits
sions has been evolved The scheme 1s
worked in th sway:
Insurance companies send out letters
TO agents, calling attention to the new
proposition for an Increase In commits
sions The old fiat rate is 10 per cent.
OF the premiums graded scale is
now proposed, varying from Is per
cent. on some classes of risks up to
% per cent on other kinds Of property.
Agents Must Apply.
The letters to the agents distinctly
say that the latter need not accept the
terms. nor. indeed are they made in
the form of offers from the companies
The agents. IL they desire TO adopt the
new scale, are TO sign blank applica-
tons which are furnished them. In
these applications they agree not to
represent any company which pays
item any different rates of commission.
The agents may accept business from
such other companies If they desire,
but they promise to at once notify the
companies in the evident agreement
in case they do so
While the new rates are not what
The agents want. 1t is understood that
they are being taken advantage Of for
they Involve an Increase of comrs,nsa-
ton.
Insurance Commissioner Button was
asked for a ruling as to whether or not
this scheme violates the Virginia Law.
After consulting legal authorities
Colonel Button rendered an opini On to
the effect that as criminal statutes
are construed strictly he hardly
thought the deal would be held TO con-
trorert the law
Local Concerns withdraw
However this put the Virginia COM
nanies In an urenvia BILE position Out-'
side companies might AFFORD to take
the risk, and in the event OF revocs
ton oil their license. they could stand
exclusion from this State for year.
But the home companies If suffering
revocation Of license, would meet the
same fate in all other States, and thus
he put out OF business.
Consequently. the Virginia state In
surance Company and the Virginia Fire
ana Marine Insurance Company decided
not TO take the chance Because Of
their unwillingness to run the risk.
they have withdrawn from the South
eastern Underwriters Association,
which Is supposed to have engineered
the plan for the increase in commits
sions it
'lny Not increase Hates.
AS TO whether the new plan OF pay
Ing agents Will result in an increase
OF premiums 10 Virginia policy holders
is problematlcal Insurance experts
hope his will not be the case since,
With the reduction of commissions in
other states. the cost OF doing business
the country over will be rather re-
'lureti than enlarged
Tho entire proposition Il the outcome
OF eforts made for years TO have a
uniform scale OF commissions. At the
meeting OF the National Association or
Insurance Commissioners. held in Mo-
bile in September. ,oio,sa special com
mittce 10 Investigate the expenses of
iire insurance companies made 4 re-
port. This committee had found that
in certain sections Of the country
graded commissions OF 10, 20 and IS
per cent are paid on d 'Terent classif-
cations: hat iii certain other sections
(notably the SOUTH nat commission
of "a per cent. on All classifications is
pnid. while In certain so-called ex-
cep;ed cities the preferred classifca-
lions ray as high as %, 80 and even 30
per cent. OF the premiums 10 agents.
Wants Uniformity.
The committee, in view OF these
facts. made the following rccommen-
dalton.
we therefore recommend the sub
stitu,ion by Uniform company action
II possible, but II not possible. then by
statute, OF system by which local
agents shall be compensated by
/. Hat commission and II commission
contingent upon the profits Of their re-
spective agencies, the rate OF Nat and
contingent commissions &c be uniform
throughout the country Heing in
.tcrcstcd in the PROFITS Of line business,
transformed into an army of inspec-
tors and moved tn cooperate in all
movements des' snld 10 improve con
ditions AMI reduce fire waste. The
greater the activities of the agent
along these lines the greater would
he his compensation and the greater
the benefit TO the general public
through the lesscnins of fires"
1t is largely as Il result OF these
that the companies
throughout the country are cndeayor
ing to secure IL uniform Scale OF com
lcnsation TO agents
--------------- 4
TRIALS SET FOR MAY 20.
Ten Men Charged With Violating Lnw
Governing Social Clubs.