The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-22
GLYNN WANTS CHECK
ON INSURANCE RATES
FavOrs Regulation Of Casualty
Company Risks by state
superintendent.
FEARS COMPETITIVE CUTS
Gov ernOr Says Stronger Firms
Could stand Loss and Thus
Hurt state Fund.

ALBANY. Jan. 21.--iov. Clynn asked
the legislature to-day to pass bill
which would not give the State Superin-
tendent of Insurance power TO interfere
With the state insurance fund premium
rates fixed by the State Industrial Com
pensation Board. but which would prevent
the casualty companies from forming a
combination at the outset TO lower rates
and thus disorganize the state fund. To this
end Gov. Glynn favors giving the Superln
tendent OF Insurance power to regulate
the premium rates Of only the casualty
companies
In his message to the Legislature Gov.
Glynn says:
AT the recent extra session OF the
Legislature Of 1919 bill was passed
which provided that insurance corpora
lions and associations carrying on the
busness Of workmcns compensation in
surance should file with the Superint endent
OF Insurance their classiicat lions ~ risks
and premiums, together with their basis
rates and schedules. and that these should
not take eject until the Superintendent Of
Insurance should have approved them az
adequate for the risks 10 which they
applied.
~ felt constrained to veto this bill
because felt that the State insurance
fund shortly 20 be inaugurated might be
regarded as being included among the
'associations' over which these large
supervisory powers were given to the
superintendent Of Insurance.
ut seemed to me undesirable that there
should be any conflict of authority between
the Insurance Department and the new
Workmen's Compensation Commission In
respect to this State fund.
This bill. modified so as to exclude
the STATE fund from ot,s.ra IN haynnt
any possible question. is about 10 be i'm
.rOduced at the present session and in my
judgment. II should be passed immedl lately
in It's present form.
The reason why the passage Of such a
NV is highly desirable AT this time is
plain. Experience has shown that under
| stress OF competition between different
insurance organisms inadequate rates are
likely to be charged and that in the end IN Is
1 is very apt TO result In an inability on the
part OF the insurers to fulfil their policy
obligations.
| AT the present moment we are about
TO establish in New York State admins
tered FUND TO insure compensation risks
IN competition with privately managed in
| surance companies and associations. II
| by % doing they could eliminate this
composition II 10 not unreasonable to sup
pose that some Of the stronger stock COM
panies would. at the beginning. be willing
i W SuHc uchNy ioSSes III their compensation
business by cutting rates TO . point which
| the state fund could not with safety
venture. II IL a possibility which should
| be guarded against.
| The proper solution. Il seems 10 me. is
that the Insurance Department shall
possess power OF APPROVAL OF tho rates
which shall be charged by the stock com
panies and nu ual associations. This Il
now being done In Massachusetts, with cx-
| cellent results. On the one hand the
charging OF excessive premiums by the
powerful companies acting In combna-
ton with each other Ia prevented; on the
other hand. the charging OF q sufflcien,
rate In insured. so that the Insurance will
remain safe and dependable.
I'm the case OF compensation Insurance.
the ultimate sufferers from unsafe in.
lsurance conditions are the workingmer
OF the State. I deem Il absolutely es.
sentiai In their interest that the Insurance
protection upon which 40 many OF then
will rely-that afforded by the stock com.
pan!es and the employers mutual assocl.
ations---shail be safeguarded In the man
ner provided for BY tho bill TO which
refer"