The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1912-10-24
LIABILITY COMPANIES CHANGE
Operation of the Workmen's Compen-
sation Act Now Expected to Make a
Reduction in the Premiums Charged
by Old Line Companies for Insurance.

lndica tlons for q forthcoming liza
bility insurance war in Wisconsin are
engaging attention in Madison Among
those interested in the prospective
rate smashing are the heads of the
insurance department and the indus
trial commission, chiefly those connect
ed with the operation of the work
men $ compensation act.
While for several months it has been
seen by the industrial commission and
the insurance deartment that the top
notch rates of the eastern liability in
surance combination would tumble,
the material proof that the warfare
had started, came with the fling Of a
document in Insurance commissioner
Ekern s Office.
When it is known that something
like dozen big casualty companies in
the east combined more than a year
ago in the issuing of a uniform rate
book applicable to all industries in
Wisconsin, the Importance of the com
ing break may be>realized. There are
about 1000 employers in Wisconsin
who carry liability insurance.
A great majority of the large com
panies operating in Wisconsin more
than year ago entered into rate
combination as soon as the Wiscon-
sin compensation act went into effect.
Although the risk under the act is
lower than the risk faced by employers
who do not elect to accept it's terms,
according to the closest students Of
the Wisconsin situation, the insurance
companies have taken the opposite
view. In the judgment of the indus
trial commission and the insurance
commissioner these rates on workmen S
compensation were so manifestly I'M
just and discriminatory that a formal
protest was made months ago to the
companies. Neither department. had
the power to force the companies to
withdraw these rates. The insurance
department, however, did exercise it's
power of requiring the companies to
withdraw the instructions issued to
agents as they were based upon mis-
understanding Of the law.
The large companies operating in
Wisconsin have from the first advanc-
ed the argument that workmen s com
pensation in England since 1896 has
been failure from an insurance stand
point. Despite this argument the
Liverpool, London & Globe Company
of England has entered the American
field under the name of the Globe In
demnity Company. The latter company
has behind it the ninety-seven million
dollar assets of the mother corporation
which has dealt in insurance for a
century. The document fled with the
insurance department by the Milwau-
kee agents of the Globe Indemnity
Company sets forth that the new COM
pany will write workmen's compensa-
ton in Wisconsin at the Massachusetts
rates. The most significant part of
the new company's program lies in the
fact that it will write insurance ac-
cording to the English method. In
stead of paying agents from 90 to 80
per cent of premiums as commissions
on business, the company will pay the
Wisconsin agent only per cent. This
low commission will preclude the pos
sibility of soliciting business. The
insurance therefore will have to be
sold cover the counter,' thus cutting
out expenses which have formed a
large portion of insurance premiums.
While the Forthcoming insurance war
in Wisconsin means resulting confu-
sion, it is the opinion of those chiefly
interested that the final result will be
of great benefit to Wisconsin indus
tries. Compilations made by the in
dustrial commission, it is said, prove
that the combination rates on work,
mems compensation in Wisconsin are
excessive.