Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-09-01
REGULATING FIRE INSURANCE.

For bunch Of easy marks COM
mend us to she late legislature. This
wall OF woe is called forth by the fact
tina, we have Just had an insurance
policy expire and find that, thru the
paternal care OF the late general as
sernblv the rates have been raised from
$40 thousand to $3.50.
Wanting little company in our mis-
cry we started down the street and
listened to the tale of woe of others.
Here are few sample raises.
Variety store. 50 to s14.4s.
Dry goods, 50 to s11.50.
Clothing, $3.50 and 50 to s14.
Jewelry 50 to s14.
Drugs. 50 to SIS.
Shoes. SO to s13.4o.
Restaurant, 50 TO $3.50.
Dwelling house, five years, SO to
SIS.
And 20 on all over the business part
of Grinnell.
Asking the cause for this bolt out
Of blue sky we find that the legis-
lature, with a keen sense OF the dan
gers Of the competitive system, passed
a law that the insurance companies
should no longer be allowed to compete
with one another by lowering rates but
must charge the rates fixed by rat
ing bureau" Mind you the rating bu-
reau is moi a STATE hut nrivafe instf-
tuition. Any insurance company can
take the rate of any rating company,
making any rates they choose. OF
course the companies will get together
and take the same rates. In fact. there
is but one rating bureau in Iowa and
there probably will be no other. This
was established years ago but the in
surance companies, competing for bus
mess have been writing insurance for
about 60 per cent of the rating bureaus
rate Now they must write at their
adopted rate or pay the state fine of
from 800 to $1,000 for each policy
which they write below that rate.
So, on the start, the insurance COM
panies may adopt any rates they please.
and the law Of Iowa is the policeman
to make them keep up to those rates.
What redress is there if these rates
are exorbitant and unjust? The
state commissioner Of insurance has
the power TO examine the rates and to
say what rates are unjust and what is
proper rate. But, of course there is a
but, the commissioners decision is SUBJ
ject to summary court review" by a
court Of competent Jurisdiction. And
note this the state OF Iowa assumes
that the insurance rating bureaus rate
is more apt to be just than its own and
allows that to stand until the case has
dragged its weary way thru a dozen
courts. This scrap OF comfort is
thrown to the insured. After this legal
delay, -=H.:::c.. NAV not he over five
years. the insurance companies. II the
| final decis il In favor of the insured
are to return the overcharge. Many
people have q vivid recollection Of how
a similar law worked in freight rates.
Can business man avoid the raise
| in rates by insuring in mutual com
| pany? Th!. is neatly headed on BY
our benefcient legislature. Only
mutual insurance companies insufinl
churches, school houses, dwellings and
farm property are exempt from the
provisions Of this law.
! But what IL to prevent companiel
outside Of the combine from COMING
| in and putting in lower rate? Oul
beneficient legislature carefully looked
after this point. Every rating bureau
! engaged e making rates or estimates
for rates for insurance on property In
this state shall inspect every rate spe-
officially rated by 1t upon schedule
etc" A little study VI this article viii
show that It gives the present rating
bureau = practical monopoly, for It ha,
1 taken them years to get their rating:
thru the state.
row is it wOrkinS Ever since *:
|Register has been IN its present loca.
ton II has placed its fire Insurance d
SO q thousand. There was not N o.