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

ciass city gives him nominaliy a lower
rate, he pays TO the insurance COM
pdhles more dollars than he wound |
rave pald IN a second class CITY to
collect his IS, 900. @ O The rate for
thls p~oiicyholder is like the rate given
d borrower of money. The lender
oaiers 10 loan him money at 1 per
Iehh- interest, but stipulates that the
borrower must leave one-hah of the |
money IN the hands of the lender. |
His rate of interest is only 4 Der cent
under contract. but he pays SIS per
$l0e Tor the use of the money he
actually gets. Six per cent. would
be cheaper for him.
L nave not the time to state nor YOU
the patience to hear more of the CON
unions pertaining to fire insurance
business in North Carolina. The re-
port OF the Insurance Committed saws:
The increasing costs of insurance
upon certain classes Of property: the
dbl1ty OF large mbinatiOnS of pro
perry TO secure favorable rates: the
increasing number of business classes
that are organizing mutual companies
tC carry fire insurance upon their
respective properties at lower rates:
the lack of anything lii scientific
rating and classification of property:
the fact that the rates are not pre-
dlcated upon the cOlla bOrated eX-
p~erlence of all the fire companies OF
any Influential numbcr of them: that
the so-called basis rate does not rest
upon the actual experience of all the
companies; that there is great in
justice and discrimination in the rates
actually charged. and %freQuent errors
made in applying the present pres
cribed rates; the large interests in
Volyed and h magnitude of the
business demonstrate the need for d
change in method That which now
obtains is unsatisfactory to the insur-
ed and soon must be to the insurance
companies.
The State Must Exercise It's Power o:
Supervision and Regulation.
The remedy lies with the State. The
Supreme Court of the United States
: has sustained it's right to supervise
: the making of rates as well as the
: conduct of the business. Some de.
partment, and I think it should be the
Insurance Department, must have
control over the rates TO the exten'
r that no increase can be promulgated
by the insurance companies WithOu
the approval of that department. |
should also be authorized to lower tn.
rate when found upon investigation,
to be excessive. OF course it Shouts
have power also to increase the rat
= II fOund TO be TOO low.
: This power has been given to au
=, thorities in many of the States am
u sustained by the courts. 1t ought t
be conferred in North Carolina. I
; is the only means by which protection
can be given to our people againS
the arbitrary conduct Of INSURANCE
companies. The Joint Iegislativ
e Committee unanimously recommend
ed the power be conferred upon tn
y Insurance Commissioner
The Governor of the State made tn
50 me recommendation to the Legs
y lature of 1915. In substance he sal
there was no competition in fire in
- surance and called upon the Lagi:
lature to protect the homes and FAM
1t les of his State from a monopo.
> which exercised its power ~unrest;air
ed by law. He insisted that the rlle
:: of insurance were not equitable IN
just, and suggested that more 1--we
" be given he Insurance Commiss'or.
III order that the insuring pubs
a might receive better service. II
as called attention to the fact that fiji
ct insurance is the only monopoly no
ty operating in North Carolina which
SIS not controlled by the State, and urge
ut that it should be under some kind
ce supervision such as it now exercise
O. by the Corporation Commission owe
n the railroads. t~elegraphs and tel
st phones.
~ Statutes were drawn embOdyir
lie the recommendations of the Fire Il
if surance Committee and of the Go
it ernor and these were presented
r the Legislature. Under the ahle lea
n ership of Hon. Henry A. Page al
MS ION. A. A. F. Seawell, both of h
were members of the House Of 191
and also of the Fire Insurance Cor
IN mittee. the bills proposed passed II
ct House by large maiorities. They we
q radically amended in the Senate. al
by reason of these amendments
q department of the State governme
lal is clothed with power to make a
lis rate n change any rate or alter a
IT. penalty prescribed by the inSuran
e. monopoly. which controls the busine
in our State. Thus was this impOl
He ant LEGISLATION defeated.