The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1915-02-05
No Action BY the Commercial
Club Last Night
RESOLUTIONS WERE TABLED
Elwell Law Upheld; Preparations Are
To Be Made For Several Conyen.
lions Dated Later

WINE not uennltely lHuOIsiH6 the
movement for pro rata short term in
surance rates, the Mankato CONNER.
cial club, at last evenings meeting
in the city council chamber, seemed
generally i'm favor of investigation
into existing conditions of insurance.
The club tabled the following
resolutions, which were prepared by
u committee consisting OF A. NJ.
Stein, George L. Brett and J. A.
Smith:
Whereas, many manufacturers,
wholesalers and retailers would like
TO carry insurance proportionate with
the value of the stocks carried
by them from time to time, but
are handicapped by the high rates OF
short term insurance cancellation;
and
Whereas, many property owners
feel that the rating given their
property by the insurance companies
is unjust and disproportionate, but
have no redress; therefore be 1t
Resolved, that the Mankato Com.
mercial club requests Hon. S. ID.
Works, insurance commissioner OF
Minnesota, TO make an impartial In.
vestigation relative to the short term
insurance cancellation now I'm vogue
by the old line insurance companies,
at the earliest moment; TO the end
that ir such investigation reveals a
condition antagonistic and unfair to
the business interests Of the state,
a bill to remedy this condition may
be pressed for passage by the legis-
lature, TO provide for pro rata short
term insurance cancellation rates, to
take effect after policies have been
in force for sixty days, with 1--WE
per cent to the amount Of the
premium. sG
Resolved, that this club favors a
law that. would provide for CON-
mission of three persons. one to rep.
resent the people of the state, one
the Insurance companies, and the
third to be the state Insurance COM
missioner ex-officer, which commits
sion would have authority to hear
app"als from ratings OF the insur-
ance companies, and to take evi.
dence, and to have the authority TO
establish ratings according to the
evidence produced, Its decision to be
final" n
Some Opposition Develops. e
This move was not made without
some opposition on the part Of those
representing the insurance interest.
L. NJ. Zuel:
THE short rate table now in use
in the state of Minnesota Is practi.
cally the same as Is used throughout
the United States, and II has been
discussed and threshed out many
times. Recently the state of Iowa
made an exhaustive investigation in.
TO the subject, and finally adopted a
short rate table that is substantially
the same as is used I'm this state,
and is printed on the reverse side
OF all fire insurance policies. II was
adopted by the legislature OF that
state and is now one of their laws.
THE important thing in the short
rate table as II now stands from an
agents standpoint Is the fact that
IL tends to prohibit the assured from
kiting his business from one agent
TO another, merely to favor some
agent who may be his friend. Com
petition i'm the local agency system
requires that there shall be some
penalty Otherwise, the assured could
transfer his business two or three
times a year. with no particular ex-
penses to him but with added ex.
pense TO the insurance business.
Another point In support OF the
table Is that IL tends TO reduce the
expense feature. Suppose the assured.
for instance, took out policy for
sixty days. and at the end OF
sixty days he found II necessary to
haye another policy issued for sixty
days, and at the end of the four
months period he allowed the policy
TO expire. Then o little later he
takes out another short term policy.
You can readily see that In a case
like this. expense OF issuing three
different policies, clerical hire, etc.
would be quite an item as against
the man who took out one policy for
the entire year.
How Rates Are Based.
Another point that should not be
overlooked is the fact that all rates
of fire insurance are based on annual
business. and IL the short rate table
were changed, 1t would possibly
change the methods of underwriting
to such an extent as to force the
companies to change their present
plans Of operation. or In other words
they would be obliged to increase
their rates as at the present time
the insurance companies cannot
stand to have their revenue cut of
in one place. without increasing 1t
I'm another as all the COMPANIES com.