Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-09-30
CONSIDERABLE DISSATISFACTION
OVER WORKINGS OF NEW IN
suRANcE STATUTE.
DIRECTORS FAIL TO
BACK UP CRITICISMS
Insurance Department Not Formally
Informed Of Instances Of Unjust
Workings - Competition Eliminated
and Higher Rates in Force in Cities
Where Agents Fought For Business.
Special 10 Times-Republican.

special to ifneS-RepuDllCal
Des Moines, Sept 3o.-Dissatisfae-
ton with the workings Of the new fire
insurance rating law is being heard
from many quarters. The general
complaint is that the rates are higher
under this law than they have been
heretofore, that there has been a gen
eral raise in rates and that competition
among fire insurance companies has
been done away with
assYet. however no one has taken
up to the insurance department any
cases of rates thought TO be unjust, as
the law provides. The friends Of the
law say that if the rates are too nigh
the insured have recourse in an ap-
peal to the insurance department OF
the state which is authorized to in
vestigate the case and fix a rate which
is not discriminatory or unjust. This
ruling of the insurance department IS
subject to court appeal by any party
interested.
Friends Of the new rating law are
pointing out that this is the recourse
of the people and their safeguard
that they can appeal to the state in
surance department cases whore they
feel the rate IS too high and the ruling
of the department may he appealed %
the courts To this suggestion the
compartments AGAINST the law reply
that it IS not an easy matter TO estab-
nsn and prove that the rates they are
paying are too high and that there
fore they hesitate TO make such an APP
peal
Competition Disappears.
AS matter of fact. in those cities
and towns where there was keen COM
petition among fire insurance agents.
rate cutting was practiced quite gen.
orally before this new rating law Went
into effect. while in cities and towns
where the agents adhered quite gem
orally to the established rate. there has
not been any noticeable change in rates
under the new law.
1t is evidently the opinion Of many
business men as reflected in the re-
ports of the newspapers over the state
that the new Ian is more favorable 10
the fire insurance interests that 20 the
,eople. Why should there be any such
Jaw, anyway, IL the question being
asked? Why not let the insurance
companies fight out this rate question
among themselves as they always have
done heretoforeP
Fire insurance companies have been
coming before the Iowa legislature for
many sessions past endeavor!ng to
secure the passage of various meas
ures with reference TO rates and other
matters of especial interest to their
business These measures have heen
defeated. The present statute how
ever seemed 20 appeal to the ma
o,-y+- - - loo
eral assembly as being fair TO all
parties concerned and il passed with
goodly majority.
AS explained by the state insurance
department this new statute was
recommended by the national conven-
ton of insurance commissioners. This
organization. il is stated. spent several
years investigating fire insurance con-
ditions turnout the country. Laws
similar TO the new Iowa rating law
have been passed by Minnesota. Mis-
souri,. Oklahoma. Michigan, North
Carolina and Washington Kansas and
Kentucky have had laws on their
statute books regulating fire insur-
ance rates for some time.
New Laws Defense.
The friends of this system Of rating
declare tnat pubic ratiIIs u iiT+ IN
surance as we'll as railroads is more
fair than private rating. That there
should not be discrimination in fire in
surance rates any more than railroad
rates and that this is one Of the pur-
poses of the new Iowa iaw-to secure
fair rates 70 all without discrimination.
They say that with the rate cutting
that has been the rule in the past here
in this state, naturally there must be
many persons paying higher rate
now than they were formerly paving
while others are not paving as high a
rate.
Il Is stated that the motives Of the
commissioners who have backed this
legal legislation in the several states
We're to place fire insurance upon an
economic basis wherein the rate would
correctly reflect the loss experience
construction and occupancy hazard
II has been their idea that the rates
would be equalized nearly as the
degree of hazard will permit and all
policy holders treated alike