Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-05-21
PRELIMINARY REPORT
Of Insurance Commissioner Touches
Upon Excessive Fire Losses.

The preliminary report of state In-
surance Commissioner Andrew T. Ha-
vey of sullivan mas the following to
say in regard to fire losses for the year
1911:
"The excessive fire losses in Maine
during the year 1911 demand our most
serious consideration Although APP
proximately 80 per cent of the total
loss of 1911 was due to the Bangor con-
fagra1i,n of April 80. yet aside from
this, the total would have been larger
than that of any previous year except
1909, when heavy losses in the city of
Portland We're responsible for the alb
normal loss experienced
"A very large percentage of the
causes of these fires are due to want
of care ON the part of property owners
and others. This may well receive the
serious consideration of the officers of
our municipalities. as well as the prop
efty owners, that some action be taken
or plan devised whereby needless fire
hazards may be eliminated
I'VE believe a campaign of discus
sion should be started that the people
OF Maine may become fully acquainted
with the conditions which lead TO the
excessive loss of property by fire and
with that view in mind we shall later
make some suggestions along the line
of fire prevention day. 1t is an OBJ
vions fact that the cost of fire insur-
ance could and probably woGld be- ma
terially reduced. if losses were reduced.
we believe that by concerted action
this can be accomplished and It shall
be our purpose TO work in conjunction
with municipal officers everywhere in
the State. until some definite plan is.
perfected. L may be that Investigation
III show that IL is a proper subject
for legislative action. in any event,
practically nothing has ever been Gone
by the State or the general public to
alleviate this distressing situation.
In regard TO mutual domestic fire
insurance companies the report says:
From examination of the books of sew
eral of these companies. of which there
are now 50 doing business in the State.
We are convinced that although some
of them are doing a successful BUSH
ness and undoubtedly saving money for
their policy holders, further legsla-
ton is necessary to oblige them to
maintain the standard that the statute
intended and place their business on q
firm basis
Conn. Havey alludes to the action
brought by the department against the
Equitable Mutual Fire Insurance co. Of
Richmond and the Hancock Mutual Fire
Insurance Co. of Bar Harbor. in which
receivers We're appointed and states
that other similar actions will undoubt-
edly follow. THE most glaring fault
discovered in the examinations. so far
as we have gone. is the failure to col
| leet assessments after they have been
Levied In some cases there has been
little. if any effort. in this direction.
The statute is strong on this phase of
the question. and ii is very evident
that if a party has insurable property
there is something sufficiently tangible
to enable the assessing officers to cell
lect the assessment. Disregard of the
character of the risk was the undoing
of these two companies and it is to be.
hoped that the remaining 80 will pro-
fl by their unfortunate experience
Such companies, no doubt, have a place
in The Insurance world but unless they
are mada to conform 10 the laws, they
are worse than useless and constitute
hazard 10 the insuring public, rather
than a benefit"
The report states that there is con-
siderable disparity of opinion as to the
Interpretation of the law passed by the
Legislature OF 1909 providing that the
insured shall pay to the State treas
urer tax of per cent. of the gross
premiums paid for insurance in COM
pnnies unauthorized to do business in
Maine. In many cases the tax has been
paid under protest, the law itself being
attacked on the ground of uneonstitu-
| tionality.