New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-17
FOR STANDARD FIRE RATES.
State Insurance Department
Agitates Reform Methods.
HAS CANVASSED COMPANIES
Hopes by Symposium of Expert
ence to Effect More Uni.
form Classifications.

| Necessity for Improvement IN fixing hre
insurance rates and classihcations ID IN
-dicated in a statement just issued by the
state Insurance Department AS result oil
a canvas OF the various companies as to
business in and out of the state practically
none Of the companies maintains classi-
hcation as to rating association territory,
says the department. It's statement reads
In part:
The New York State Insurance Depart
ment recently sent out circular letter 70
all fire insurance companies writing busl-
ness in this state, In which IT indicated its
| intention Of collecting the CLASSIFIED expe-
| rience of the companies since 1900 on ousi-
| ness within the state as well as without.
| The companies were asked to make sugges-
| lions and TO give their views on the entire
subject matter Of the letter.
| There are four rating associations nxlus
| fire rates in different sections OF the state.
| Since supervisory powers were given 10 tne
| department over rating associations In TINS
| state, IL was learned that there were Wlde
divergences in rates, co-insurance requ IRE
ments, etc, within the state, each rating
| body having its own schedules taoleS Oh
minimums. co-insurance requirements, etc,
| II Is one OF the purposes OF the caH TOT
| statistical data to learn what basis, III any,
! exists for these differences In ratings In
various sections Of the state. For TINS rea-
! son the department expressed tne ueslI
| that the New York State hgures supnltteu
| be undivided 80 as to show the experience
! I'm the territory of each Of the four rating
associations Of the state 1t Is also deenieS1
| important to ascertain by means OF suSh
| statistical material as may prove 10 De
| available how the experience or the com
| panies on their business in tps state COLI
| pares with their business throughout 'he
! country. -.
practically none OF the companies main
| talus a classification "a TO rating ASSOCIATION
| territory The general negative TENOR ..
| the letters is interesting, inasmuch as !.
| sheds much light on the facilities or rather
lack OF them that the companies pOsSste cI'
| for giving the rating associations 10 WHICH
| they belong adequate information upon
which intelligent rate making h'sht Oe
Az 10 the value Of statistics and classih-
| cations the widest differences OF OPINION
| seem 10 prevail among the uhuer"iItv.,.o
| who have responded to the department
| INVITATION The letters range from those
! yoiciug unqualified approval and the WISH
| that the departments quest prove success
| fuI 70 those who are opposed 10 tne Goe
! Of statistics of any form as OASIS Io'
! rates and who maintain that no ClaSslIlgd-
! tion will ever prove or any value i, ue uo
partment believes that me rep, ,,on WIZ looking
| toward uniformity I'm classification Oh ~
! rcrlenCe.
The statement further gives report OF the
work Of the complaint bureau setting
! forth that a food OF complaints has been
received, although the bureau mas oeeh
! established only few weeks VI '"e
! complaints are enumerated
! Irregular practices by Insurance CON
| nauies I'm tho adjustment of losses auHi r' :
! tisement by individuals engaged ~ sel'.iS
J Insurance I'm wildcat companies, tne
! practice Of twisting hy the agents PRIV
{ ers undertakers, lawyers. etc, holdins
| Lrokers' licenses I'm violation or the requ!i
mont principally engaged In the ln suranre
| business" and the operation or uhauthoi
! lied I.loyds companies.
complete investigation has been mace
where the facts warranted and the results
have hecn very interesting, the statement
saws observing that the state civil Service
| Commission during the week has author'
tied the appointment Of i've investigator
~ check VI each Of tho ten Thousand w.
co,s.d brokers in the state as TO tn''r
"cop,petency and trustworthiness IL may
y. found necessary later to increase ,he
Investigating force. the statement remarks