The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1914-11-20

ards which experience had proved to
exist within well defined classes of
risks, and fiat rating gave way to
schedule rating, in which charges were
I made for defects and credits allowed
for improvements, and these are mum
crous IN every risk, it must he con-
ccdcd that comprehensive schedule
IS very extended and complex af-
fair.
Various schemes have been resorted
20 by underwriters in order to secure
uniformity in rates and practice on
the part Of insurance companies, their
agent and the public; such as the Ma.
tIonaI Board Of Underwriters, which
has supervision of rates in the cast
crn and some southern states and
Canada; the Western Union, having
supervision Of middle northern and
mlddle-western and n few Of the
southern states, and Insurance and In
specllon Bureaus, Actuarial Bureaus,
Local Boards. etc, are vested in great.
or or less degree with The rate-making
power. The object of these various
organizations is to collect, sft and re-
ducc to permanent shape the combined
wisdom Of all in matters relating to
rates, methods and practice, so as to
avoid determinations in various forms
and as u guarantee of adequate in
come with which to meet an ever-ris-
ing tide of fire waste, and to insure n
fair distribution Of insurance losses .
and expenses over regional division .
of the United States and Dominion Of
Canada, under the jurisdiction of the
given Board, Union, Bureau or Asso-
cation having the definite region un-
der observation.
Great perfection in classifying risks
has been attained through scientific.
and analytical inspections, and the
basis charges have been determined
with accuracy and fairness to all con-
rerned.
Meantime, schedule rating develop
cd rapidly. resulting in the publica-
ton Of the Mercantile Schedule used
chiefly in the east and the Dean Seized
ale, which is in use in about twenty
states. The Dean Schedule il used
IN Missouri and with its tariffs, basis
-ate tables, exposure charges, credits.
,lassifcations of risks, their occu-
oancy and contents, lists of special
constructions, charts, appendices and
additions, comprises volume Of about
700 pages of printed matter. This
schedule measures and analyses the
ire hazard in each risk, starting with
basis rate, applicable to the class
lumber of the city or town being
'ated, which basis represents the un-
lnalyzed hazard, and with that base :,
Is beginning, various deficiency and
exposure charges are added, these be-
ng definite percentage of the base
ate, according to the fire hazard of
he item charged for, and from the !,
ross rate so built up certain credits
or improvements are taken, also ex- :
ressed in percentages of the base
ate, which, when deducted from the
ross rate, determines the present net ;,
ate which the insurance company :
harges for their protection. =
The rate so determined has the 4
,erit Of exactness and the schedule :
Dyering risk serves to apprise the g
olicy holder of the manner in which +,
is rate is constructed, and he is al a
shown the extent to which his risk a
Iffers from standard fire-proof M
hiding. which defects, when remov- n
J. will operate to further reduce his n
tie 50 that q policy holder has It