The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-12-06

IhOn1aS Baker, IT, or Fargo was
of the principal speakers. Mr.. Bakers
subject was Promiscuous Appointment
Of Local Agents. The Forum repro
duces Mr.. Bakers excellent address as
follows:
Mr.. Bakers remarks were as fol-
lows:
Vision Has Seemed Obscure.
From time to time the fire insurance
agents have been told by men in au-
thority that we are engaged in a le-
Ultimate high grade, semi professional
business; that we represent companies
of high standing and of great re-
sources, who have entrusted to our
care interests Of great importance and
that we should be trained In the bust
ness, OF high moral character, of f.
nancial responsibility, and have the
respect of the people in the community
in which we transact our business.
Sometimes I have had visions which
seemed to confirm what we have been
told, and then my vision has seemed to
be Obscured, for looking over the To-
cal agents as I have found them, I
have been surprised at the amount OF
ignorance displayed among some Of
them, not only regarding the business
OF fire insurance, but Of business in
general. / know Of no other business
where generally SO little attention Is
paid to the training Of those who pro-
duce the income, as in the fire insur.
ance business as now conducted.
If a life insurance company is Look
ing for a local representative, it looks
for men who have had experience in
soliciting life insurance, and IL they
need further training, sends men who
work with them until they are pro-
ficient.
If a bond broker in New York wants
a local representative in another city,
he spends much time, and makes much
inquiry before making an appointment,
n makes it only because the person
he selects has standing and ability to
look properly afterh is interests.
A lawyer before being allowed to
serve his clients must spend long and
arduous hours in study and prepara-
ton, and we are sometimes told the
profession Of fire insurance is only a
little remote from that of the law.
A. banking house in a large city
wanting connections in other cities,
carefully the standing Of
those who will represent it, requiring
high grade standing and ability in
those to whom it entrusts it's large in
terests. IF as much care we're exer-
clsed in the selection Of local fire in
suarance agents as in other kinds of
business, the tome and standing of the
profession would Immediately be rails
ed to a much higher level.
Come From Study and Experience.
The congested values in large and
cities demand constant indemni-
ty from loss by fire; credits are large
~ based upon this protection and the
local agent is the nan who comes be-
tween the company and his custom
ers. He should be conversant with all
the various hazards Of the risks he
insures. He should be able to intelli-
gently Judge of proper rates; should
know intimately all the conditions of
the policies he issues. and be able to
construct policies upon which the
form shall cover the full interests of
the insured, and at the same time
properly protect those of the comptny
he represents. All these qualif1cat-
tons come only from study and expe-
rience.
In every town and city throughout
this broad land, there is to be found
at least one agent of standing and
character. He nay have been engaged
in building UP his business through
years Of toll; he may be carrying out
plans made by others long before he
engaged in the business. To such
agents, and them only, Is due what
high standing Is now maintained in
the business.
Cause Of Antagonisnn.
We have heard much of late relative
to adverse state legislation, much of
it a~ggravating to both agents and
A greater portion of this
legislation a been brought about
through misunderstanding between the
public on n side and the companies
on the other. Ny own personal ex-
perience in practical legislation has
been that when the average legislator
learns that the companies intend to
treat the public fairly, they are in ia
vor Of fair, n wholesome laws. Most
of the ~antagonism has come through
unfair rate making, unfair loss set
Elements. and carelessly drawn con-
tracts, brought about through the ig-
norant acts Of unframed insurance
agents. From a viewpoint of fair leg
islation, the companies should employ
only fair minded, trained, experienced
and educated men, not only as local
agents. but rate makers, special agents |
and adjusters as well. The influence
exerted by q good local agent in his
community Is far reaching, and may
have a tendency to check unfair legis-
lation, as we'll as bad practices in the
AA1C way AAooiu NSAAP1- |
MES hesitate, when making their ap-
to select old and trained
agents? The principal reason is be-
cause the excessive competition among |
for premium receipts has
them to APPOINT new and un-
trained agents, in order to secure a
more premiums. |
Limit on Number of Agents. |
1T has always seemed to me that no
person not exclusively engaged in the
insurance business should be per-
o|represent any fire insur-
company, and that a law should
be passed in each state to that effect,
or at least the number of agents in
any community should be restricted
by law. say n agency to every 5000
so, 900, and one to every 100 0 in
cities of over $4,000. We are engaged
in a business, possibly only by a Ii
cense, issued from our insurance de-
SO that restrictions in the
number of agents could easily be OBJ
by amendment to present laws.
Some states have passed laws making
appointment Of agents dependent
upon their ability, and knowledge Of
the busiess. Good laws, SO far as they
go, but not broad enough to restrict
Ail0lSCl ALLlllIdICN appointment "a LOO
many agents.
Rohbing Legitimate Agent.
The tendency to appoint banks,
trust companies, officers of building
associations, land and loan agencies, is
robbing the legitimate agent of a large
Of his preferred business, and
non-preferred, and il a concerted
could be taken by all the local
agents Of this country, the companies