The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1915-08-17

Instances were brought TO the atteD-l
ton Of the committee where this in
crease in rate seemingly amounted to
100 per cent. One man who had been |
uavinG IS premium on his building. |
had his policy renewed for the same
trriod and found a rate of t1S.
OF course this enormous increase
may have some explanation on ae-
count Of risk, but the numerous in
stances in which there has been large
Increase without any increase in the
hazard, causes me to feel that the
new rates promulgated are bringing
"a, the insurance companies largely
increased premiums.
Increase Not justified.
These increases in rates in North
Carolina cannot be justified upon any
theory that the risk is now more
b.zardcus than il has been. Recently
the State has enacted fire waste legis-
lation which has been beneficial to
the insurance interests in reducing fire
losses. Representatives of insurance
companies admit that by these sta
totes the State has done much toward
reducing fire waste. The companies
have even given publicity to the fact
that on account OF this legislation SO
favorable to them, property owners
in the State have secured reductions
NV w. iiHh aii' lotCS, Dut THESE re-
auctions, unfortunately for the
masses. have usually been confined to
some particular kind of building. or
some building having a certain kind
II roof or wall. Generally they have
been accompanied by increases which
collect more premiums from the peo-
pie than were collected before. It is
equally true that while these in
creases have been made, the fire fight
ing efficiency of your association has
greatly increased. Your president
insists that during the past five years
this efficiency of the fire companies
has been increased 100 per cent. AS
this efficiency has been brought about
largely by the purchase of fire fight
nag appliances, the establishment OF
paid fire companies and ~vOluntee,
services of the firemen. it would seen
rates should have been decreased
rather than increased.
'Brductions'' Do Not Always Rctiuc.
Some Of the rates which are pro.
uIl-ated as reductions and as givins
our people the benefit of lower ate,
are not SO in reality. For instance
Raleigh, Durham. Wilmington, an,
Charlotte have at the instance of tn
Insurance companies spent large sum
Ia equipping their fire department
fIf " iaNN tIlC
they are rated as first class cities
This equipment was secured by larg
expenditure of public money. In som
OF these cities it to man
thousand dollars, and was paid fror
taxes collected from all the people
They paid il willingly, because the
expected 20 get it back in reduced In
surance rates. But the fruit becam
ashes on their lips. Practically so pc
cont Increase WAS made nDOn tpnar
dwellings and furniture. Thus pee
pie who needed it most not no reduC
ton. Instead of paying $2.0O as be
fore. they found the premium on the
little furniture had increased to S3.0t
CO-Insurance.
by reason of this expenditure
lower rate per hundred dollars We
promulgated in "a limited distri,
called the. fire district. but in reailt
few people in these districts paid lie:
premiums. This was brought abo,
10y the attachment of the co-insurane
clause to the policies, and this pre-
vision is made by the insurance con
panies n the policy-holder mu
submit to it. q am not now referrir
to the effect of Act of 1879 !
can. of urSe refuse to insure, but
he takes insurance he must take
upon the terms offered by the inSu
anCe companies and these require hi
a. hc a co-insurer. Two illustration
VIII make this point clear:
4 owns a well-conStructed buildiI
IN a first class city, which cost hi
100000 90, being in the fire distri
ana well protected. The risk of
total loss is very small. The averai
shows that in ninety cases out of
hundred the loss from fire is parti
and not total. The owner of TT
hUlding feels that $4,000 90 insu
"tre will cover any loss which is liz
NV to occur from fire, and therefore
"tSIrcs protection to that l
ahlles TO an insurance agent for $
VHU 90 insurance. A loss occurs fro
VIC and the building is damaged
th' amount Of 81. 000.O 90. BY reas
az the Co-insurance clause which h
br"u attached against the owne
"3'"cs by the insurance company
ttr. collect only a third of the 10