Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-04-20
'Com'r Blunt Talks About
; lnsuranceAgents' Duties
And Also About Taking Insur-
dnCe with UnadmItied Co.'S
! annual Meeting Of Executive Com.
mlttee, Maine Academy Of Science
STATE HOUSE CALENDAR.
Regular Meeting of Governor and
Council Will Be Held at 10 A. M.
/ Friday, April "a.

In an interview Saturday State 'In-
4 surance Commissioner Wallace Blunt
of Skowhegan stated that many in
sances have come to the attention of
shis department that indicate on the
part of the agent lack Of his re-
sponsibility as the medium through
/, which the public obtains its insurance
and especially is this SO in certain
sections of the State in the writing
of fire insurance.
I'VE realize that competition between
different agents and agencies is es-
pecially keen,'' said Commissioner
Blunt, yet that keenness of COM
petition should never be allowed to
go to the extreme of obtaining COM
missions regardless Of the conditions
that such action on the part of the
agent may precipitate.
The agent owes a duty not only to
one client, but to the whole clientage
making up his business. When by rea-
son of over insurance he makes 1t
= possible for a few individuals In a
community to profit by dishonest fires,
then he is opening a gateway by
which his whole clientage and the
community may be caused severe
loss.
IF the insuring public would real
lie that they are directly interested in
the agency proposition from an in
isurance protection standpoint that an
agency conducted along rational bus
;. mess lines is the best one for them to
patronize, if they would take their
business away from the agency or
!. agent which shows a wilful disregard
for the community's welfare by the
tendency to insure anything for any
i. amount, We would secure better re-
suits.
In this connection the position of
= the company should be the position of
the public and they. through their
field representatives, should look care
. fully for risks carried by the agency
in which their company is represent
ed which are over insured.
There is a chance that an agency
with he best idea of underwriting and
i, with a proper regard of the duty 1t
owes its clientage and the companies
it represents, will, through error mis-
I representation, find 1t has over in
sured a certain property. But there Is
no excuse for any agency to be rep
, resented on loss after loss which has
: every evidence of being over insured.
1t is time that both the public and
. the companies realize that such an
agency is not the one with whome
they should do business.
1T is this disregard. by some agents.
of the welfare of the community that
is responsible for the enactment OF
legislation in some states winch
makes over insurance a crime with
a penalty for it's violation and 1t rests
with the agents Of this State as to
whether or not this department will
!. be compelled to advocate the passage
OF such legislation in Maine.
we believe that the agency sys-
! tenn in this State is generally on
sound basis as the tendency to over
insure Is not Statewide. 1t seems to
! be prevalent in certain sections only.
It is a practice that must be stopped.
This department will go to every ex-
IRENE to see that it Is.
The profit sharing plan as applied
!. to commissions would do much TO Sc
cure improvement Of the evil condi-
tons resulting from over insurance.
/. And in line with this, this department
believes that no risk should be writ
ten by any agency until some rep
resentative of the agency force has
personally seen the property in ques-
ton. This may seem like a hardship
, on tine agent, yet no business is entire
Nv without conditions which are re-
garded as more or less OF hardship
|, by those engaged in that business. If
this we're done It would make far bet
ter underwriting and would, in large
measure, combat the evil of over-in-
sirance.