Hopkinsville Kentuckian. [volume] (Hopkinsville, Ky.) 1889-1918, 1914-03-19
GLENN'S
SIDE OF 1T
Author Of The Drastic Insur-
ance Law Makes A
Statement.

III feel that the time has come for
me to give to the people of Ken
lucky my explanation of what | be-
lieve is the true insurance situation
in this State. It has been reported
in the daily press that something like
sixty companies have withdrawn
from the State. There have been only
four that have withdrawn, and they
are small companies; the others have
only suspended. There is wide diff
ference between the word suspen-
sion and the word withdrawal. When
a company withdraws it loses all of
its agency force all over the State
and cancels its licenses to do bust
ness, and if it should want to come
back in the State the Insurance Com
missioner could have it examined at
a great deal of expense to it, and it
would be forced to pay So for each
agents license; but to suspend costs
it nothing. Why are these compa-
mics suspending? This law does not
go into effect for three months, and
there is nothing in the new law, as
amended, that should interfere with
any insurance company doing a le-
gitimate business. The board has
no more right to cut rates under the
new law than under the old. The
features Of the new law are COM
mission to investigate the fire insur-
ance conditions of this state and cod
ify the present insurance laws, and
this commission the insurance COM
panies say they want; a hydraulic
and electrical engineer, whose duty
it will be to work in the cities and
towns and advise with the City Coun-
Gil in regard to installation of water
works and electric light plants (the
insurance companies also asked for
this provision); and three inspectors
whose duties it will be to go over the
State and educate the people how to
remedy the defects in their build
ings.
KENTUCKY FIRE WASTE.
The insurance companies state,
when you ask them the question why
the insurance rate is higher in Ken
tucy than in other States, that the
fire waste in Kentucky is over ST.
100, 900, and | agree with them, and
it is the purpose of this bill only to
do away with this fire waste, and |
believe that representative of the
State can and will do this. The in
surance people claim that they are
paying $25, 900 a year to accomplish
this and it has no effect. We only
ask for SIT 900 to do this same work.
The fire insurance loss in the last
forty three years in the United
States averaged So per cent; in Ken
lucky Sc per cent. The average in
surance rate in the United States
was 81 ,06; the average rate in Ken
lucky was $1.34. Under the above
figures our rate in Kentucky should
be $l.02. The policy holder paid to
the insurance companies last year in
premiums 5.39O,000 and the COM
panies paid out in fire loses So, 000,-
000; adding to that the cost of their
agency forces, taxes and Actuarial
Bureau expenses would leave them a
net profit of about 10 per cent. The
board has been trying to work with
the insurance companies for two
years, and | am sure will do nothing
that would work an injury upon any
insurance company, but rather will
work with them to the end that this
fire waste may be done away with,
the people will be benefited and the
insurance companies will not be in