The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1914-03-11
GOVERNOR SIGNS
INSURANCE BILL
Four Companies Cease
Operations Here
ANO SET FORTH OBJECTIONS
There will Be No Immediate
Effect Upon the Pol.
icy.HOlderS.
DISCUSSION OVER THE TITLE

Frankfort, Ky. March Almost
Immediately upon its being placed
before him, Governor McCreary this
afternoon signed the Glenn-Greene
insurance bill. within an hour after
it had been signed by the presiding
officers OF the two Houses.
Upon learning that the bill had
been signed, the representatives of
the Commercial Union Company, of
London and New York, the Palatine,
the Royal. the Westchester of New
York, and the Franklin of Philadel-
phia, announced to the Insurance
Department that they wouid sus-
pend business in this State. They
made no threat and expressed no in
tention of permanently removing
| from the State.
One of the most important facts
for the general public to understand
in connection with this bill. is that
| il can in no way affect insurance
|
discussion of the bill and the atti-
tude that the companies had assum-
ed, has led to. vast amount of APP
prehension that the passage of the
bill would automatically deprive
property owners of fire protection.
This is, of course. absurd.
The provisions of the bill, and the
reasons for the opposition of the
companies to IL. are interesting.
however, to every owner of insura-
Bile property.
! The bill in brief. extends the pow
ers of the State Rating Board to SUI
pervise the application of the sched
ules of fire insurance rates fixed by
the board, and which schedules are
now being applied by the companies
according to rates made by their
own actuarial bureau, to which all
the companies subscribe.
The bill levies a tax of one per
cent. on all premiums for the sup
port of the board and 10 defray the
expense of the broadened powers of
supervision. This tax will bring into
the board approximately $4,000.
The board may employ as many ex-
perts and clerks as it sees fit, with
the amount raised by the tax.
As finally passed. the bill is very
different from the measure as origi-
nally introduced. and so filled with
amendments and changes of various
kinds. that the labor of engrossing
was very slow and tedious. the en-
rolling clerks being almost at a
standstill until Ruby Laffoon, the
prime mover in urging the passage
of the bill, and who is also the chair
man of the State Rating Board, was
called in to assist in the correct en-
rollDent of the bill.
So many changes had been made
that il was reported that the bill as
passed would be imperative on ac-
count of the text not being in ac-
cordanoe with the title, which would
be fatal defect. Members of the
insurance board were present when
the bill was signed and gave assur-
ances that they were satisfied that
the measure went to the Governor
In proper shape.
The insurance companies claim
that their objection to the bill is its
political character. They explain
their manner of making rates thus:
They take the basis rate, AS estab-
lishel by the State Board. and which
Is now in operation, and with that
rate rs a basis. apply the various
penalties. allowances, rebates and
reductions as fixed by the actuarial
bureau. They claim that this bu-
reau's work follows absolutely the
so-called Dean system. highly
scientific and elaborate scale of rates
worked out by summarizing and
classifying the various risks and
losses of the companies for long
term of years.
They say the new bill will permit
the revision OF their rates by mex
perienced political employees; that
there win be substituted here and
there am arbitrary and inexperienc-
ed rating for the Dean scale. which
is based on actuarial experience.
They claim that II this is done it