Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1915-06-25
INSURANCE RATE IS CUT

Local insurance agents have received
from the General Inspection company
notice of a reduction Of rates on Ger
tain classes of building risks. It seems
however, that this was not the volun
tary action of the inspection company
nor the national board of underwriters
Instead they had figured on raising the
rates, but when it was put up to them
that the state insurance department
working under he law giving the state
the right to control rates, effective
July l, which was passed by the last
legislature, would see that there were
substantial reductions made, they came
across. This is good starter, and 9th
er risks not now enumerated in the new
schedule, will no doubt soon be taken
up.
In relation to this matter the Mime
apolis Tribune of June p, says: Of
ficers Of the several rate-maklny hu
reaus in Minnesota early in June mott.
fed Commissioner Works that the IA
tional board Of fire underwriters had
decided to raise fire insurance rates in
about a dozen states in the middle west
Mr.. Works at once notified them that
under the authority of the new rate
regula ton law he intended - resist the
increase in Minnesota.
A meeting with the national board
was arranged, but before comforting
with them Mr.. Works laid the whole
thing before Governor Hammond and
had his unqualified approval to resist
the proposed advance.
The meeting took place at Chicago
last week. The underwriters were in.
clined to rebel at first, but on notifca-
ton that he would invoke the aid of
the new rate regulation law to the linn
it and would force substantial reduc.
lions instead the officers capitulated.
Under the new schedules fire-proof
buildings all over the state are be re-
duced Is per cent. All other brick
buildings are to be reduced Is per cent
in the southern division of counties,
and 1917 per cent in the northern 1ivi.
sion.
Public buildings, both brick and
frame, are to be reduced Is per cent il
the southern division and 1919 per cent
in the northern division.
A reduction of 20 per cent is to be
and contents in all municipalities hav-
luS ulC P1OCCCC1Ou Int GCIu1 Iu1c, HOW
ever, is changed so that hereafter the
rate for three years will be two and a
half instead of two times the annual
rate, and the rate for five years will be
four instead Of three times the annual
rate. With the 20 per cent reduction
in the annual rate, the three year rate
will remain the same and the fve-year
rate will be increased about 62-3 per
cent. The number Of dwellings insured
on the fve-year plan, however, is neg
liyible.
Unprotected dwellings, that is, dwell.
linYs in villages having no fire protec-
ton, will be reduced ~ per cent in an
nual rates. With the new term rule,
this will mean an increase of 12H per
cent in the three-yyear rates. The total
value Of dwellings in unprotected! vii
lagos, however, is very small. 10 fur
Their aid insurers in small villages, Com
missioner Works is preparing a bulletin
shown" how, by installing Inexpensive
apparatus, they coulu obtain lower
rates. Unprotected villages at present
:aEe the class q rate, but by installing
apparatus costing about $500 they may
Ne rated in class 5. He will also point
out how those in class 5 may, BY i'm
proving their apparatus, be placed in
class +, which take proportionately
lower rate.