The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-08-28
ARE RAISING RATES.
And superintendent Lewis Is After
Insurance Companies.

Kansas fire insurance companies are
taking advantage of the drouth in
Kansas to raise insurance rates and
schedules in several towns in the state,
and Ike >. Lewis. superintendent of in
surance, proposes to hold an investi-
CATION regarding these arbitrary
changes in rates and classifications.
Complaints We're made with the state
insurance department today regarding
the proposed change in the classifica-
ton of fire insurance rates in ottawa
and Blue l.apids, and an investigation
regarding these changes in rates Will
be made at once.
Last spring the fire insurance COM
panies sought to raise the rates in At
Gibson by changing the classification
from second to third class. An invest1-
cation by the insurance department re-
vealed the fact that there was no oc-
casion for this increase in the rates,
which would have been general over
the entire town, and refused to accept
the proposed new classification. Now
Ottawa and Blue Rapids have been
marked for increased rates and it is
rumored that an effort will be made
to increase the rates in a number of
other towns. rovided the two new Or
ders are sustained by the superintend-
ent of insurance
In the ottawa case. the fire insur-
ance companies seek to change the
rates. The Blue Rapids change asks
that the rate be increased from the
fourth rate to fourth and half rate
classification. This means material in
creases in INSURANCE rates in each of
the towns. ts.4 -s
Regarding the change in these rates.
it is believed at the office of Superln-
tendent Lewis that the application for
new schedules will be based ON state
ments that water supplies and fire
fighting facilities in the two towns are
insufficient to warrant continuance of
the old rates. These matters will be
thoroughly Investigated and in event
the claims of the insurance companies
are established. it is probable that
change of rates will be allowed. The
asking for this increase on these
grounds during the present drOuth is
regarded by men interested in inSur-
ance matters as a move on the part
OF the fire insurance companies to re-
establish the rates which were in eff
feet in Kansas before the general re-
duction of fire rates was ordered I'M
der the administration of Charles
Barnes in -909. Superintendent Lewis.
however. refused to discuss the matter
at this time but stated that a thor
ough investigation of the proposed new
claSsifications would be made at once.
In event the rates as asked for are
sustained. then it is believed that in
creased rates Will De asked IN many
other Kansas towns which have Suf-
fered from the 1918 drOuth.
The new classiI4cations were made by
the Eldridge Rating bureau, which
complies rates and classifications on
insurance rates in the towns of the
state. Their new classifications make
sweeping changes in both Ottawa and
Blue Rapids and it is stated that in
several other towns material increases
on individual risks are recommended.
These new rates. though, will not be-
come operative until they are approved
by the insurance superintendent
Rates now existing, it is claimed
were accepted by the fire insurance
companies when their charters were
approved and the companies have since
been DOM business under these sched-
ules- Consequently a material change
and increase in rates at this time will
not be permitted until there is full
investigation as to the complaints of the
fire insurance companies.