Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-04-07
RATE REGULATION
IS PROTESTED BY
INSURANCE men.
Territorial Treasurer Believes
In Rate Regulation, But
After investigation

Members Of the Insurance Climb Of
Hawaii and local underwriters made
al organized attack upon Hales
house bill TO establish state-mad" in
surance rates at the hearing OF the
finance committee Of the house to-
night. {. J. Act arthy. territorial in
suranCe commissioner. was the Oniy
champion o. definite rate revision.
but h. does not favor Eiale's bill.
Mccarthy recommended that in
stead OF the powers OF ratemaking
being invested in the insurance com.
missioner, as the present bill SpeCi-
fees. board Of insurance experts
under territorial supervision look in
10 the matter Of rate-making. He
presented figures to show that Hawaii
is being Disseminated against in the
matter of rates.
For example" Col. Mccarthy said.
81 read in the insurance commission
er's report for the state OF Wisconsin
where he complains against the rates
in that state Those rates are less
than in Hawaii. although | found that
the paid losses in Wisconsin for
the past ten years were about $40
on the 800 policy. have compared
those losses with Hawaii and found
that for the past three ten-year Pc
RODS the losses were IS. $13 and $l4
respectively.
Il do not believe that the insur-
anCe companies are making any too
MUCH money, but the fault is in the
fact that no sufficient survey has
been made. The companies have left
the matter of rate making to the va
rious boards Of underwriters and as
a result in some states the companies
are losing through low rates and in
others the rates are too high, thus
balancing. What is needed is a ma
tion-wide survey and establishment
OF uniform and just rates throughout
the United States by one system Of
underwriting.
A. r. Gurrey, secretary Of the
board of fire insurance underwriters,
was on the stand and told how rates
were made. He said that all rates
were based on what he termed the
ideal city. This so-called ideal city
is not heated, has ample fire. protec-
tion and alarm systems, has no great
winds, no steep hills, no "conflagra-
ton district and has sufficient wa
ter supply. The rate for such city
Is Is cents. Lack Of any Of the quail
fcatops of the ideal city called for
an increase in the rates. For in.
stance, be said, in Honolulu China
town was classed as the conflagra-
tion district and 10 cents was added
to the ideal city's rate of Is cents.
making q. total of Is cents; and hills,
strong winds, ETC., brought the mini
mum rate to "a cents. a7s EHl I
In making the building rates, fire
walls, rubbish and the nature Of the
business conducted add to the city
rate, unless the building is perfectly
in accordance with the
views. Attorney Frank
Thompson appeared for the insul.
ance men. 81.
) Chairman Watkins took the oppor-
tunity to quiz Gurrey on the earth
quake clause. Watkins asked the
witness why 1t was that Hawaii poll
cies contained the earthquake clause
when the islands have never had an
earthquake disaster, when at the
same time the clause was deleted
from the fire insurance policies of
San Francisco, where already com.
panies have been heavy losers
earthquakesf Gurrey replied
that he believed the cause could be
from the Hawaii policies on
proper petition to the head offices.