Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-12-30
FlNE FOREIGN RISK COMPANIES
- ia K sour LICENSEES TO 10
BUSINESS IN IOWA.
RULING ~ ENGLISH
OPENS DOORS TO THEM
Havins Effect Of Bringing Down Rates
-cemmissiensr English to Ask For
Change ia Law to Permit Mutuais to
Be Organized in Substituting Dis.
ersm,natss Asainst Home Concerns.

Especial to Ttme9-Sepubllcan.
Des Moines, Dec. 30.-Since May "a
of this year when Insurance Commits
lsioner Emory English ruled that the
lowa insurance law did not prohibit
foreign mutual companies from doing
business in this state, as had been pre-
kyiously held to be the case, five foreign
Einntual insurance companies have TAX
len ont licenses to do business in Iowa.
This is having the effect to bring down
Rates on the part of the stock COM
panies.
The mutual companies which have
taken out licenses in the state are the
following: Pennsylvania 'Lumbermens
Mutual, Of Philadelphia; Central Man
ufacturers Mutual Insurance Company,
|of Want Vert. Ohio; Ohio Farmers In
&surance Company, of LIE Roy. Ohio;
humber Mutual Fire Insurance Com
pany, Of Boston: Indiana Lumbermen s
Mutual.
The Thirty-fi first general assembly
passed a provision which prohibited
the organization of fire insurance COM
panies under the mutual plan in this
state. The legislature in passing this
Flaw was evidently honest enough in its
purposes as were the trainers of the
law. The state had bten having SO
much trouble with the mutual fire in
surance companies that it cut them out
altogether. And after that the state
department held, that since Iowa COM
panies were barred by this law from
|'crganizing, outside companies had no
right to come in and do business be-
cause an outsider could not enjoy
privilege in this state which was de-
MED to citizen.
Passes II to Courts.
Insurance Commissioner English in
/ his ruling, however, held that it was
me courts business and not the insur-
ance departments business to pass on
I t ne cons tutionaiity OF the law and
THAT the law itself did not bar outside
Etmutuals. So ne let them in.
4 Now the insurance commissioner will
&9go before the coming legislature and
Flask that the law be amended so that
mutual fire insurance companies under
proper regulations may be organized in
! this state He maintains that the
| present law is unjust and unfair. He
says that the coming in. Of the outside
| companies has had the effect Of cut
ting fire, insurance rates and that with
! more mutual companies organized in
! rile state the rates may be still further
[reduced.
Commissioner English is answering
fmany questions from incoming legislat-
nrs now with respect to the fire rating
ElaW@ which took effect July 4. 1915, and
lis getting information ready in a handy
Eform for the assembly. He is taking
lop fn cyiv
but all the information he can as to its
kOrkings.
ii. t. Ekern former insurance COM
missioner Of Wisconsin. regarded by
Insurance interests as a radical. prais-
d the Iowa law in a recent address.
IN. this law he said:
"The Iowa rating law provides for
aving the rating done by bureau
representing a number of companies.
rhe bureau is supervised by the insur-
ance commissioner The Iowa law
PERMITS variations from the bureau
Rates and thus does not wipe out COM
petition among companies.
Zone company may file variations
from the bureau rates but they can not
become effective until fifteen days aft
Eerwards. II the company could file the
Schedule one day and change it the
next. II might be able to write some
particnIar risk under that schedule and
fthus discriminate.
Il insist that the insurance commits
sioner should have the, power to sub
stitute a just and equitable rate for an
Eunjust and inequitable rate. The rail-
roads and public utilities fought this
principle for years. You have got 70
have that in any law that is going to
be permanent