The Leon reporter. (Leon, Iowa) 1887-1930, 1915-10-28
ly make an investigation upon re-
quest and showing of any discrim-
inatiOn charged.

| You will be personally interested
in something of a review of my ex-
periences with the companies when
| the new law became effective.
| In view of the commissioners pow
err to review bureau rates, confer
ence was sought with the depart
ment with respect to rates to be fill
ed. The law does not require that
| the commissioner approve rates, or
! that they be filed with the depart
| ment. 1t does, however, confer upon
the commissioner authority to re-
quire filing of rates, schedules and
| any other information desired and
gives him ''power upon written
| complaint, or on his own motion, to
review any rate" etc. l directed
| that rates must be filed to be in
force and when the basis of those to
| be filed were discussed with me by
Representatives of the rating bureau
and the companies represented by
the same, it developed that the only
| survey of Iowa. properties in exist
| ence were those of the old Iowa In
| spection bureau at Cedar Rapids,
! which had been taken over by the
| new Iowa Rating Bureau at Des
| Moines 1t will take months, and
| even years, to survey all the proper
| ties of the state. Therefore, the only
| feasible plan or practical method Of
establishing rates would be to take
the old ratings as basis and fix new
rates by percentages of deviation
therefrOm.
When submitting to me prelim-
mary schedule of percentages, it was
apparent to me that the application
of same in connection with the new
term rule to be established would in
crease the average cost of insurance
paid by the people of the state. This
was unwilling to permit. l recOg-
nized, of course, that in the equaliz-
| ing of rates charged as between the
various properties by the application
of n-discriminatory schedule
some would necessarily be increased
and others lowered. My idea of a
that the amount paid by Iowa policy
holders as a whole should not be in.
| creased.
An investigation of rates being
charged by thirty-nine leading COM
panies operating in Iowa upon 49,
600 risks, disclosed to me that an
average cut of about II per cent
from the schedules of the old inspec-
ton bureau was in force. Some COM
panies were cutting but very little,
others more. Inasmuch as business
had been accepted voluntarily by the
companies on this basis, l held that
the department was justified in re-
garding same as adequate when ap-
piled without discrimination. In
view of this situation, took the pc
sition that unless this judgment was
accepted the department would be
justified in making an order putting
such basis in force. A new schedule
of percentages was therefore worked
out and filed by the bureau, and as a
result Iowa will at once enjoy lower
rates than probably would have been
promulgated had the law not given
the commissioner power to review
| rates.
During the time that has since
elapsed, l have had opportunity to
investigate rating schedules in force
in neighboring states, and learn that
| the rates obtained so far in Iowa are
lower than those of any other state
| where l have been able to secure in
forma ton, including Minnesota, Wis
consin, Indiana, Michigan, Missouri
and Kansas.
The trend of correspondence with
! property owners indicates new field
of opportunity to encourage the
elimination of defects in construc-
ton and hazardous exposures, there
by lowering the rate charged and, by
reason of the improved character of
the risk, secure a cutting down of
the fire. waste.
The authority gained by the state
by the enactment of this law is GER
tainly worth while, and the admins
tration of same by only an ordinarily
competent commissioner will result
in securing a lower level of rates
available to all property owners upon
an equal basis. Amendments to the
law may be found to be desirable,
but the principle is right and should
be retained whatever may be the at
Il tacks against it, That those who
have personally profitted by the old,
unfair conditions will seek it's re-
peal, doubt not, and l would not be
surprised if the companies would at
tempt to modify it's provisions along
lines originally suggested by them.
Neither should be successful.
Very few local agents have any
knowledge of the law or what the re-
suits are likely to be under its OPP
Grafton. They are fully posted as to
1 what advantage would accrue to the
companies under any anti-discrimin-
alton law only, but have no appreci-
alton of the checks to monopoly in
Guided in this law. Too much de-
pendence, therefore, should not be
placed in their analysis of same.
The full benefits of this legislation
to be enjoyed by the insuring public
may not be appreciated for year or
two. In the end, if state supervision
of rates should prove to be failure,
the state will, unquestionably, go
forward to the more radical propos-
al of Gov. Garst, and make rates it.
self in the first instance, and enforce
them. There is little likelihood that
we shall ever go back to the old, I'M
regulated conditions. The trend of
events is the other way.
] have no personal prejudice in the
matter, and desire the state shall en-
| joy the best possible conditions for
| itn nrOnnrfv owners have Snont