The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-04-23
DEFENDS :
new HAIL Law
Declares Action of Hartford
in Withdrawing Unwar-
ranted by Facts.
ATTACKS A ON
STATE
Contends That None of the
Tax Goes to Common
wealth's Institution

Upon having his attention called to
an article in the United States Review.
an insurance publication, stating that
the National Fire Insurance company
OF Hartford had notified it's North Da-
Kota agents that 1t would write no hail
insurance In this state hereafter be-
cause OF the recent enactment of an
objectionable law. Commissioner of
insurance w. c. Taylor said:
I'm department. has not been off,
cial!ly notified by the National of Hart
ford of its purpose to cease writing
nail insurance in this state. but the re-
port. that 1t has reached that decision
is doubtless we'll founded.
Expects Few Withdrawals,
THE Objectionable law referred to
is Senator McBride's bill, which pro-
vides hat every insurance company
writing hail insurance in this state
be bound. and the insurance shall
take effect. from and after twenty-four
hours from the day and hour the APP
plication for such Insurance has been
taken by an authorized agent of the
company. This bill had a stormy voy-
age through the Thirteenth legislative
assembly. but finally reached port and
received the approval of the governor.
The twenty-four hour provision is
omewh drastic. but something of
the kind was necessary for the protec-
ton of the insuring public. Undoubt-
edly the law presents some difficulties
to the insurance companies. but they
are by no means insuperable. A re-
adjustment of the method of handling
applications Is all hat is involved. l
do not anticipate that many Of he
companies will follow the lead of the
National Of Hartford and quit the
game. There Is something fascinating
about the hail insurance business-the
chances Of winning or losing a consid-
cradle stake are so nicely balanced.
Without Foundation.
However. I would like to call at
tention to the fact that two of the OBJ
jections raised by the Hartford are
without foundation. It is true that the
act provides that no provision herein
shall apply to the state hail insurance
department. The reason for his eX-
ception lies in the very important fact
that the state hail insurance act spec
ifcally provides that the insurance
time of filing the application in the
office of the county auditor Many of
the applications are written by the
auditors themselves. in which case the
insurance becomes Immediately effec-
tive. And in no case should more
than twenty-fOur hours elapse between
the taking and the filing of the appli-
cation. There was no reason why the
Mcbride bill should have been made
to apply to state hail insurance. and
there is no merit in the suggestion
that the failure to make it SO apply
resulted in class legislation
Not Paid Into Hail Fund.
1.-THE Nationals second objection is
that the two and a half per cent which
the companies were required to pay
on their hail insurance premiums in
this state was diverted into the state
hail insurance fund. which has never
vet been able to pay its adjusted
losses The National is most egreg-
iously mistaken in this matter. Not a
penny of the insurance tax income
has ever zone into the state hail In
%surance fund. After deducting oper-
ating expenses. the balance of the to-
tai mount Of state hail insurance re-
ceipts becomes available FOL the pay
ment of losses-in full if the sum re-
naming is sufficient for that purpose;
If not. then pro rata. In short, the
state hail insurance department is alb.
solutely self sustaining.
II appreciate the fact that state in.
%surance. of whatever character. is
looked upon with frank disfavor by
the insurance companies. But there
is a widespread and insistent demand
for that kind Of insurance which will
not be denied. so we may as we'll make
the best Of 1t. Whether or not state
insurance Is practicable remains to be
6eforn,fnod