Grand Forks daily herald. (Grand Forks, N.D.) 1914-1916, 1914-09-02
STATE CONTROL
OF insurance
Rates IS URGED
Taylor Doesn't Believe in
Rate Making, But in
Strict Supervision.
Heavy Losses in Latter Part of July
Reduce Percentage Employment
of Actuary Believed Essential to
Proper Conduct of the Office.

Bismarck, N. D.. Sept. 2.-Matters
OF profound importance to the insur-
ing public as we'll as to insurance
companies are discussed in the annual
report of the INSURANCE. department
which Commissioner W. G. Taylor has
nled with Governor Ham. In view
Of the certainty that the Forthcoming
legislative assembly will have to deal
with the subject of the regulation or
control Of fire insurance rates in this
state. the comments of Commissioner
Taylor are especially pertinent Aft
er calling attention to the large num-
Der of complaints that reached the de-
partment during the year. Mr.. Taylor
says: ~.
Urges Rate Control.
That fire insurance rates should
be made by the state is, to my mind.
quite out Of question. 1T can't be
done The necessary data, expert
ence, machinery and technical knowl-
edge are not available. Nor is 1t desir-
able that rates should be made by
the state; that is not state function.
But fire insurance rates might well be
regulated. just as railroad rates are
supervised and regulated by state ana
inter state commissions. I think there
should be some official or board or
commission to whom inquiries and
complaints could be referred and be-
tore whom a full hearing of the mat
ters In issue could be had. I
trust that you will give careful con-
sideratton to this subject in your next
message to the legislature.
Wants An Actuary.
commissioner Taylor strongly urges
the governor to recommend legislative
authority for the appointment Of an
actuary, claiming that "the need Of
the assistance of one who is skilled in
actuarial science and in the principles
or lie insurance has long been felt
by this department" AS indicating
the need of such assistance and by
way of showing the rapid develop
ment Of the insurance business in
North Dakota. Commissioner Taylor
invites attention to the fact that the
receipts of his department In 1904
were $65.677; in 1909 they were $11S,-
27O, while last years receipts amount
ed to $l65,764. In other words. the
annual receipts of the department had
increased more than one hundred
thousand dollars in tho last ten-year
period.
Hail Insurance Payments.
Referring to the state hail insur-
ance department, which is under the
management of the commissioner of
insurance, Mr.. Taylor "very much re-
grets having to report that the hail
department will this year be unable to
pay its losses in full" Earlier in the
season the outlook was most favor
able, but heavy losses were sustained
In August. so that it is expected that
adjustments will be made on the basis
OF 20 to 80 per cent.
Calling attention to the fact that
North Dakota is the only state in the
union which engages directly in the
business OF hall insurance, Mr.. Taylor
says the experiment has been watch
ed with interest-sympathet cynical
or antagonistic. according to the view
point Of the observer" During the
hrSt three years losses were paid on
the basis of 70. s. and SO per cent
respectively, and it .is claimed that
this was by no means an unfavorable
showing in view Of the fact that rates
charged by the state are very much
lower than those charged by the
stock companies. The Commissioner
Is convinced, however. that all losses
could have been paid in fun II a large
number Of policies had been issued
and the risk widely distributed over
the state.
Up to Growers.
Failure OF the grain growers to
more generally avail themselves Of
the benefits Of state hail Insurance is
said to be due to lack of proper so
hcitation; the requirement that cash
must accompany the application:
doubt as to the success of the ventures:
antagonism to state insurance. on the
ground that the scheme is chimerical
and socialistic. In q message to the
Legislature, Commissioner Taylor will
call attention to the system of com.
pulsory hall insurance in vogue in the
province Of Saskatchewan. Canada.