The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1915-06-25
PROMISE REDUCED
INSURANCE RATES
THREATENED INCREASE AVERT.
Ed, ACCORDING TO COMMITS
SloNER WORKS.
FIRE PREVENTION IS URGED
Bulletin Shows How Unprotected Vii
lagos Can Obtain Lower Rates BY
Installing Inexpensive Appara-
tus--Results of Activities

st. PAULA threatened increase in
ire insurance rates has been averted
and promises of reductions which will
save owners of dwelling houses and
business buildings thousands OF dol
lars have been obtained by the state
insurance department, according to an
nouncement just made by Insurance
Commissioner S. D. Works. The pro-
posed reductions will go into effect
July l.
These reductions are the first re-
suit of the fire insurance rating bill
passed by the last legislature, giving
the insurance commissioner power to
supervise rate-making within the state.
The negotiations which resulted In the
reductions have been in progress near
ly two weeks.
Early in June. officers of the rate
making bureaus in Minnesota noti-
fed Commissioner Works that the Ma
tional Board of Fire Underwriters had
decided to raise insurance rates in
about a dozen states in the Middle
West. Mr.. Works at once notified them
that under the authority OF Chapter
101, Laws of 1915-the so-called Ward
Bill-he proposed to resist the in
crease in Minnesota.
Fights Proposed increases.
Officers of the rating bureaus in
Minnesota told him they were power
less, since the increase had been de-
hu hn hoard
Mr.. Works asked them to arrange
meeting for him with officers OF the
national board. Before the meeting he
laid the whole matter before Governor
Hammond and had his approval OF
the plan to fight the proposed in
creases.
Commissioner Works met with the
officers OF the national board at Chi
cago last week He notified them that
instead of permitting any increase In
fire rates in Minnesota, he would, I'M
der the authority of the new rating
law, order substantial reductions in
rates in Minnesota.
Companies Agree to Reductions.
This would have meant a long and
expensive fight in the courts, and the
companies agreed to make some re-
auctions. The whole matter was then
opened up and the changes to be made
agreed upon before Mr.. Works left
Chicago.
Fireproof buildings all over the
state are to be reduced Is per cent
,,odor tbo nau CnhoHuloa All other
brick buildings are to be reduced 10
per cent in the southern division of
counties, and 12k per cent in the
northern division.
Public buildings. both brick and
frame, are to be reduced Is per cent
in the southern division and 1914 per
cent in the northern division.
Reduction of 20 Per Cent.
A reduction of 20 per cent is to
be made in the annual rate on dwell
ings and contents in all municipalities
| having fire protection. The term rule,
| however, is changed so that hereafter
| the rate for three years will be two
| and half instead of two times the an
nual rate, and the rate for five years
will be four instead of three times the
annual rate With the 20 per cent re-
duction in the annual rate, the three
| year rate will remain the same and
| the fiye-year rate will be increased
| about 6 2-3 per cent. The number of
dwellings insured ON the five-year plan,
| however, is negligible.
Unprotected dwellings, that is,
dwellings in villages having no fire
protection, will be reduced 10 per
cent in annual rates. With the new
term rule, this will mean an increase
of 12H per cent in the three-year
rate. The total value of dwellings in
unprotected villages, however. Is very
small. To further aid insurers in
small villages, Commissioner Works is
| preparing a bulletin showing how, by
installing inexpensive apparatus, they
could obtain lower rates. Unprotect'
ed villages at present take the class
6 rate, but by installing apparatus
costing about $500 they may he rated
in class 5. He will also point out
how those in class 5 may, by improv
ing their apparatus, be placed in class
4, which takes proportionately lower
| rate