The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1915-01-07
Commissioner Ekern Holds That the
State Should Regulate Charges to be
Made in Order to Save Money for
the People of the State.

LudI all InSuFduC0 agents SuOuIu DC
qualified, and licenses subject to re-
fusal or revocation; that fire proven
tion work should be pushed; and that
cities should be made Immediately
fre-proof through sprinkler protection,
are among the recommendations made
in the report of Commissioner of In
surance Herman l.. Ekern, filed pre-
liminary to the coming session of the
legislature.
Summarizing the situation in Wis
consin with respect to fire insurance
the report states that:
The people of Wisconsin pay much
more than their share of the pre-
miums collected by stock fire insurance
corporations throughout the United
| States.
Losses in Wisconsin are being
reduced more rapidly than the pre-
miums.
Wisconsin leads in fire prevention
work promising still greater reduc-
tions in losses.
"The stock fire insurance business
has been profitable to its stockholders,
even through the ten-year period in
Guiding the San Francisco confagra
| ton in 1906.
Dividends, profits and gains have
constantly increased since 1906.
Continuance of present conditions
will yield excessive profits in the
| future.
THE fifteen largest companies tran
sact half the business and take two
thirds of the dividends, profits and
net gain.
Expenses are excessive and are
increasing.
Too little money is spent for rat
ings and inspections to prevent fires.
! "To much money goes for commits
sions and acquisition expenses. This
is growing. The policyholder does not
get value for his money.
"Fire prevention work, to be per-
manent, must be recognized by a re-
duction of premiums, including ex-
penses and profits, to keep pace with
the reductions in losses.
The right Of the state to regulate
fire insurance rates has recently been
/ put beyond question by the United
States supreme court.
",The companies and departments
should cooperate in providing data as
to losses and hazards, necessary both
for rate making and fire prevention
work.
"Cities can be made practically fire.
proof on eight years savings in in
| surance premiums.
The report then continues:
''The business of fire insurance now
| occupies in the United States, in re-
spect to the amount Of money handled,
| an Importance greater than ever before
and wholly unknown in other count
ries. This situation is not to our ere
/ dit, nor will it continue, indefinitely.
| 1t is probable that the volume of pre-
miums will in the future tend to de-
crease rather than to increase. From a
public standpoint, this is highly desir-
able. These facts must be taken into
account
The report summarizes the legislation
necessary to meet the situation thus:
Il. The abolition of the power of
local boards to make rates.
80. Authority to the commissioner
/ of insurance to make examinations and
report upon rate-making bureaus.
%. A requirement that all com
panies be members of some rate-makino
| bureaus.
"A. A prohibition of discrimination
IN rates permitting, however, any com
pany to vary from all the rates or the
rates upon any class of risks by such
percentage as it may fix in notice
! filed in advance with the bureau.
5. A prohibition of all agreements
| between companies with regard to
rates or practices other than such as
are in writing and fled with the bureau
with authority to the commissioner of
insurance to nuIlify by disapproval any
agreement contrary to public interest.
50. Authority to the commissioner
of insurance to review any rate, and
after hearing subject to court review,
to order the removal of discrimination
or to fix the proper rate
This should be supplemented by
such provisions as to administration
and court procedure for Wisconsin as
will make the practice conform to that
which has been so successfully worked
out and used in regard to the railroad
commission of Wisconsin. =
The report also contains in full the
recommendations Of the national CON
vention of insurance commissioners at
the New York meeting of December