The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-12-29

fIO) There has been an increase in the pre-.
miuns paid on the same property Insured for
the same amount. though the insurance COM
panies assert a reduction IN the average rate
for the State.
I'D The premium on n dwelling occupied by
the owner for a three year policy has increased
% per cent; a three year furniture policy has
increased 60 Il per cent: a three year tenant
occupied dwelling policy has increased so per
cent; a three year policy on furniture in a
rented house has increased g. II per cent.
These increases were illustrated IN the report
by particular cases. and the committee stated
it had many more illustrations. Two cases Will
serve to illustrate the increase: A man took
out q policy for three years on his furniture in
a rented house on November Is, 1911, for $3.50.
premium, $3.50; he renewed the policy on No
vember Is, 1914, for three years, premium,
s14.O5-difference, s6.55-increase. S7.4 per
cent. Mrs. A. insured her dwelling and furni-
ture November 20, 1911, for s4,10O-premium,
SAL. She renewed her policy November 90.
1914-premium, s53. 6O-increase. $12.6O or 80
per cent-no change in exposures. 1t will be
noted that both of these renewal policies are
dated since the reductions were made.
The large amount Of property insured, the
large amount of premiums collected, together
with the conditions found to exist by the inves-
tigation of the committee, justify the exercise
Of power by the State to take part In the maxi
ing Of the rates. The committee recommends
the Kansas Act, which has been recently sus-
tanned by the Supreme Court Of the United
States.
The committee calls attention to the fire waste
in the State and suggests amendments in the
present laws looking to a reduction Of the fire
waste, and on this question says:
"The fire waste in North Carolina is too large:
it should be reduced; more money and more
serious thought should be used to reduce it; the
loss of property by fire is not and cannot be
adequately compensated for to the State, and
the community and the assured by the payment
of the insurance money. However, it cannot be
reasonably expected that the fire waste will be
reduced when the people Of the State are ig-
nOrant Of how fire insurance rates are made;
what defects increase the fire hazard and how
much is added to the premium for such defects:
when, in fact and truth, the rates charged arc
arbitrarily fixed by the insurance companies;
when combinations Of large property interests
can be made, lower rates are secured; when
there is practically and substantially no COM
petition in rates; when the feeling exists that
there is, in the classification Of property unjust
and unfair discrimination; when there is and
has been an actual increase in premiums for
the same amount Of insurance on the same
property; when, although the net risks written
In the State by all companies for the year 1913
were $256,480,3 11.72 and the net premium re-
ceived s3,2S5,s65.91, no official Of the State, no
owner Of property insured has any voice in a.
ing and determining the rate to be charged or
in the classification Of property"
The committee also that a rate
analysis sheet be attached TO each policy, show
ing to the property owner how his rate is made
the basis rate, the charge for exposures, the
charges for defects. This will encourage the
property owner to reduce the defects and there.
by reduce the fire hazard. The report ought
to be printed in pamphlet form and circulated
that the people of the State may read it and
better understand conditions.
king or no king, you are my kind Of a young
man. a cartoon in the New York World makes
uncle Sam say to Albert Of Belgium, and it Is