The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1914-12-19
INSURANCE SCARS AS
NEW RISK BODY ACTS
Citizens Find Cost Doubled, or
Even TrebIed, When They
Renew Policies.
Continued from First Page

Z
The rate on brick dwellings now IS
. cents per 500. The rate on frame
dwellings, is IS cents per Sic0 The lowest
rate on household furniture is y cents
peT SlUJ This rate is for furniture in q
'IlcE house. Higher rates are charged
or contents OF frame houses, and for
houses IN outlying sections.
Business houses fare batter, il is be-
.eyso. under the new arrangement.
here Is no fixed rate for business
houses RIt minimum rate is arrived
- h- board experts FOR each class Of
business. groceries, hardware, clothing
torres. shoe stores. etc. Then this rate
= rSlsed according to the ffre dangers
hat exist on individual premises.
This rating is being carried on by
experts engaged by the Underwriters
Association. 1t is estimated the survey
VIII not be completed for q wear or
more. Properties on which there is
DUPLICATION for insurance take proceed
ence. Hundreds OF ratings for these
1lready have been determined by the
association. 1t makes no difference with
u hich company proprietors OF these
business houses are insured. The com
pang- viii first consult the associations
'allnG, then charge premium accord
ugly.
Hope To Reduce Risk.
The advantage OF this arrangement,
insurance men assert, is that any bust
ness man may reduce his own insurance
rate by complying with any or all of
the associations recommendation
When such compliance shall become
widespread. It is argued. the ratio OF
ire loss in the city will be materially
iessened. Insurance men point TO other
mites where this plan has been tried,
specially in Indianapolis, in proof OF
the possible lessening OF the annual fire
loss.
An example OF the working OF this ar
rangement was given by one agent who
handles the insurance Of q large subUr-
Det!tiye system this company mad been
paying 60 cents per 81 zoo. The asSocia-
ton fixed this company's rate at s2.10.
But by compliance with the associa-
lions recommendations, such as re-
rnoval of waste, of gasolene cans, re-
placing Of wooden doors by zinc-cov-
cred ones. introducing wire re-eHforccd
glass in skylights. the rate was brought
down to x.0e. While this rate is not es
low as that paid before the associations
survey, il IS asserted that II is about
The same charge made for similar
risks i'm other cities
Insurance agents uniformly approve
the new method Of rating business
state they believe the new rates for
dwellings and for household contents
are too high.
Ends Rate Cutting War.
The establishment Of an Underwriters
= ssociat!on here ends a long rate-cut-
ting war in the Washington insurance
neld. which agents assert was dis
sstrous TO many companies. More
than half the companies doing only a
local business have quit the field since
the old board disbanded about eight
years ago, it is asserted, and many
outside companies, not able to meet the
cutting of rates here, have abandoned
the Capital.
The rate war YVES brought about by |
the high rates, plus the high commits. !
sions, existing under the old board. |
These comm ss!oIS ran as high as 80
per cent. which brought large numbers
OF Inexperienced men in the field. and
resulted in extensive ''rebeting." To |
check this rebating by agents one firm
after another forsook the old board. |
and sold insurance at e lower rate.
Agents claim that this competition
resulted in writing business at ridicul-
ously low figures, in the case of many
'ected the Insurance business here. II
dwellings,, and TO make business men
Day for their own risks. that the new
2 association was formed, the agents
say.
9. F. Nesbit, superintendent of in
slrsnc- for the District. today stated
le had no control over insurance rates.
and, officially, WAS supposed to know
nothing about them The new associa-
ION. however, as il has made new
stes. has put them on file In his Of
Zee.