Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-05-05
STATE CONTROL OF FIRE IN
suRANcE RATES BECOMING
POPULAR.
REQUESTS FROM ,ELsEWEHRE
ON WoR,siNG OF Law
Iowa Statute Attracting Attention
Among Risk Companies and Policy
Observation-Disclosures English Ex-
plains That Regulation 10 Necessary
With Composition IN Rates Lacking.

Special to Ttmes-Republ1can.
Des Moines, May 5.-The new policy
of state control and regulation$of fire
insurance rates, adopted in Iowa, also
will be in force in Minnesota and Mis-
souri, soon, also probably in Wiscon-
sin, Indiana, Michigan and other states;
so that Iowa will not be alone in max
ing a start in this direction. Commits
sioner English is receiving many IN
quiries as to the operation of the new
law. 1t is attracting quite as much
attention among the insured as among
the companies. Regarding this sub
ject the commissioner says IN his re-
port this year:
1T is now recognized that insurance
is a quasi-publie business that rates
should be non discriminatory, that 1t is
necessary for companies to co Operate
in making the rates. and that this LEADS
in most cases to the charging OF
common rate. This makes possible a
legalized monopoly and tends to an
overcharge or exaction of undue profits.
1t follows that where competition has
so failed or ceased there must be reg
ulation. The simplest form Of such
regulation Is to require the companies
to make rates which shall be just. rea-
sonable, and nom discriminatory, and to
provide for their correction where this
has not been done. Public sentiment
has changed from regarding fire in
surance as a wager on the part of the
company that property would not burn,
against a wager on the part Of the
owner that it would burn. to a recog-
milton of the fact that the fire pre-
miums merely constitute a common
fund for the payment of losses. From
the latter point of view any discrimin-
alton in the common contributions to be
made to such fund Is necessarily un-
just.
Insurance and Freight Rates.
mo one would return to the out
lawed system of preferential rates for
transportation. No one now regards
it legitimate to take a rebate or pass
or frank. The old methods of favor
itism in transportation are outlawed
forever and will never again be toler-
ated by the public. A similar evolu-
ton in the relationship of the state
to the insurance business is now in
progress, and beneficial results have
already been realized in some Of the
states. Rate making bureaus have
been supervised only In the state OF
New York, and more recently in the
states OF North Carolina New jersey
and West Virginia. Such supervision
by state authority IL efs~the highest
Importance from the point OF view OF
the insured, the, public, and the COM
panies in assuring fair and equal
treatment to all persons and such con-
duct of the bureau as will encourage
the greatest possible reduction in losses
and a fair distribution Of the unavoid-
able loss"
Fire Losses Too Great.
Regarding the necessity of doing
something to reduce the fire hazard In
Iowa and lessen the number of losses,
the report of the commissioner says
There Is accommodating evidence that
the efforts being put forth by state
fire marshals, municipal fire wardens
and fire underwriters, to awaken the
public to the duty of reducing the pre-
ventable fire loss, are beginning to bear
fruit. Unquestionably the only way to
effectually and permanently lower the
cost of fire insurance is to stop the
present enormous fire losses, and thru
fire prevention activity improve the
actual fire risk, thus reducing the loss
ratio and inevitably bringing down the
price Of insurance. The non-burning,
careful citizen at present pays for the
careless, Indifferent, reckless builder
and occupant Therefore there should
be an aggressive fire prevention cam
paign waged under direction and SUI
pervision Of the state fire marshal with
ample funds and powers control the
man who insists upon imperiling his
neig property"