The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-11-17
MONDAY, NOV. II, 1918.
INSURANCE REGULATION.

I'm view OF the recent utteranCe Of
INSURANCE Commissioner Taylor re-
ig$fding the increase of fire insurance
rates In this state and the practical
ltllreat of state regulation of the bust
ness, the following from The New
York Journal Of Commerce will be Of
tspacial interest in North Dakota:
IA special committee OF different
state insurance commissioners has
theen holding a session in this city to
consider the general question OF state
'Teeulation or control Of fire insurance
rates. It was held some years ago by
the supreme court Of the United
States that insurance conducted by
the same company in different states
isEnot Interstate which can
~ibe8subject to national regulation. Each
state may regulate the business with
insjts own jurisdiction and the result
issa variety of laws in different states
with which it is difficult to comply
with due regard for equity among the
inquired and safety for the underwrit-
cr& Some system Of uniformity is
desirable and the presumed purpose
Iof$the commissioners is to seek that.
'Sogfar as it may be a~ttainable.
"The most ommon complaint
against insurance companies, as
hagainst most corporations with which
the public has to deal, is that theIH
charges arc too high and that they
enter into combinations T. maintain
them. They do not keep rates down
by competition. There is no. business
in which ~unrestrainod competition is
(1nore likely to be destructive, not only
Of the interests of the companies en-
gagged in it, but OF those whom they
fserve. than that Of fire insurance.
(which involves risks that cannot be
calculated beforehand with any pre-
~}cision.
premium rates should be reason
able n charged without discrimlna-
ton not justified by varying condi-
tons, but it is for the interest Of alb
that they should be sufficient. and
that they should be stable. To be suf-
ticient they must provide a surplus to
he held against exceptional losses, AS
we'll as meet all legitimate expenses
and return a profit adequate for the
security of underwriting companies
against insolvency.
lone object of attack has been the
bureaus of rates agreed upon by diff
ferent companies or by associations.
and one contention is that rates
should be controlled by official COM
I1nissioncrs or superintendent If the
interest Of the public. 1t is desirable,
If not necessary, that there should be
an organized agency for fixing rates
which shall be observed without I'M
due discrimination or variation. But
it should be constituted of experts and
have q secure tenure. 1t should be
subject to no influence or pressure in
conflict with a strict performance Of
duties based upon sound principle and
practice. Therefore it should not con-
! sist Of suhordinates of any public Of
dicial.
This does not imply that there
EShould not be a strict Off
cial supervision, accompanied by
publicity Of all essential facts
and conditions. Competition in
)the ordinary sense of the term is
inconsistent with safe insurance man
Iagement. Reasonable regulation is
necessary, but control of rates should
he in the hands of those conducting
the business, with every opportunity
for exposure of excess, inequity or
unjust discrimination"