The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-11-01
IOWA'S NEW INSURANCE LAW
its Merits Set Forth In an Editorial In the sioux city

fair premium writing. Cut-throat COM
petition ragged. Big policyholders, or
policyholders with a pull, got lnsur-
ance below cost, while less favored
| policyholders paid rates that were I'M
reasonably high. There was a bureau
rate that could not be legally enforced
and was observed only when an insur-
ance agent was offered no inducement
to cut it. Under the operation Of the
new law, old board rates were re-
duced materially to establish a basis
for new uniform rates. They were
not, however, made so low as to cut
the rates which many pet policyhold-
ers were enjoying under the old rebate
plan. Most of the early complaints
against the new law have come from
communities where rate cutting flour
ished and from policyholders whose
rate was unQuestionably low. To bal
ance these complaints, there will come
expressions of satisfaction from pol
icyholders who had no pull and who
paid the high board rate under the old
law, but who have come In for the
benefit Of the reduction made in the
new board rate.
TT may be, however, that the new
bureau rates as a whole are too high:
that some Of the classiflcations are I'M
just and that some OF the class rates
are too high II this Is found to be
the fact, remedy is provided by the
new law. Any question Of this kind
may be taken to the state insurance
commissioner, just as complaint
against railway rate is taken to the
Interstate commerce commission or
state railway commission. 1t is the
duty of the insurance company to cor
rect any classification or rate found
to be unreasonable in effect.
THUS, 1t will be seen, the much
misunderstood new insurance law pro-
vides for state regulation as prefer
able to nonregulation. Eventually regu-
lation will make all rates reasonable
and uniform, doing away with unfalr
discrimination In the insurance field
as it has been done away with in the
transportation field. To contribute TO
this result policyholders who have
just complaint against any feature OF
the new rate schedule should take up
/, the matter with the insurance depart
ment. 1t is folly to talk OF going
back to the old system OF rate chaos
because the new regulating machinery
develops a little lost motion on the
trial trip. Eventually every state in
-
ance regulation based on the principle
back of the Iowa law.
"It is unfair to hold Insurance Com
missioner English individually respon-
sible for the new law. 1t was adopted
with the approval of Overwhelming ma
jorities Of both houses of the thirty
sixth general ssenlbly-ma jorities Sc
cured by such arguments as are out
lined above. Does anybody believe
the legislature could be fooled into
passing a law that really placed the
policyholders of Iowa in the grasp or
an insurance monopoly? Absurd. 1t Ia
hardly less absurd to suggest that
Commissioner English would play in
10 the hands Of such monopoly.
Incidentally. the anti-compact law
has not been repealed. It is still on
the statute books and forbids agrea.
ments among insurance companies.
Its rfgors have been relaxed only TO
the extent that the use OF bureau rates
Is legaIized, as the first step toward
state regulate Of rates" 7a7o