Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1911-04-27
ARE INSURANCE
RATES REDUCED?
The so-called Reduction in Insurance
on Brick Buildings Has Many
Strings to IL.


third on its brick mercantile and OF
flee buildings. This so-called reduC
ton has so many strings to il
however, that 1t is really a disad
vantage to the property owner and
Of particular advantage to the In
surance company.
Here are some Of the strings Ia
their scheme, which may more prop
erly be called scheme than a re,
duction in rates;
First This reduction is only OBJ
tanned by paying the company three
years in advance for the insurance.
Second: The property owner is
required to carry insurance to the
amount Of 20 per cent of the value
OF the property, for which he would
be entitled to a reduction in rates
without taking the proposed three
year contract.
Third: Under the conditions OF
the policy furnished the property
owner is tied up for three years I'M
less he cancels at great financial
loss to himself and, consequently, he
is unable to take advantage of fu-
ture reduction of rates in this class
OF property or take advantage of
the more favorable terms that the
competitors Of the Board of Under
writer's have already been making.
Fourth: If the property owner sus-
tains a loss Immediately after the
policy is issued he forfeits the pre-
MUM for the entire term.
The object.
Why should a property owner be
compelled to pay the insurance COM
pany three years in advance to get
equitable rates? Certainly not be-
cause this money is so valuable to
the insurance company, as it cannot
earn more than 3 or per cent up1
on it. If their contract is favorable
to the property owner, as they
ilaim, why do they need to tie up
the property owner for three years
and penalize him by charging short
rates for cancellation?
The facts are, that the Board of
Underwriters know that the proper
ty owner can now place his business
to better advantage elsewhere, but
as all of the property owners have
not learned of this fact they seek
this scheme to get just as much
of the insurance as possible tied
up for a three-year term.
If any one has a special desire
to pay three years in advance for
any commodity. now that there is
a prospective reduction in the cost
Of living he need not confine his
transactions to insurance, for he
could undoubtedly get just as favor
able terms to pay for his groceries
DR. any other commodity for three
years in advance at present prices,
A Contrast.
Contrast the clever scheme of ty.
ng up the property owner as above
outlined with the liberal terms re.
'eived by the policy holders of one
II these mutuals, and then you will
lot wonder that the premium re-
'eipts of this company in the state
4 Washington are 80 per cent more
han the leading stock company.
This company, the Northwestern
lutual Fire Association, collects its
remiums only six months at a time.
living the policy holder the privi-
'ge of disseminating at any time
'ithout, financial loss. For this its
olicy holders have been receiving
semi-annual cash dividend of 40
er cent on the premiums paid;
len If the assured carries insur-
ice to the amount of 20 per cent
the value, as required by the
Oard of Underwriters under their
opposed scheme. its policy holders
ceive an additional reduction of 10
II cent. In other words. this COM
my does not find 1t necessary to
its policy holders up for a three
ar contract under heavy penalty if
ey discontinue. It leaves them
rfectly free to come and go as ..
ey choose.
II policy holder desires to dis B
ntinue his policy in six months it 4
uld cost him nearly three times 4
much for his insurance under q
proposed Board of Underwriters 4
leme as it does in the Northwest 4
Mutual. y
The property owner who has thor
'hly investigated conditions viii 4
tic up his insurance with any b
npany by paying three years in
anee.-Seattle PostInteliigencer,
ril s, 1911.
4