Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-12-08
FIRST INSPECTION COMPLETED
BY STATE INSURANCE
DEPARTMENT.
STATUTE AGAINST WHICH
THERE is COMPLAINT
Gained From Inspection
VIII Be Presented to Legislature
Bureau Maintains Twenty Two Men
in Field, in Addition to Office
Force,

Special TO Times Republican.
Dies MoineS. Dec. S.-The state in
surance department has just made an
examination Of the Iowa rating bureau
of Des Moines. which was organized
/" hen the new fire insurance rating law
went into effect July /. 1915. and in
which many of the fire Insurance COM
pGnies doing business in Iowa are as
s0ciated. The bureau has been operat-
iIs a little more than a year and this
is the first inspection made,
The law which requires all insurance
companies TO be members OF 3 rating
bureau or adopt the rates OF a bureau
is as follows:
Section 1851. Every insurance
company or association or other in
surer authorized to effect insurance
against the hazard of loss or damage
by fire. lightning. windstorm or hail in
his state shall be a member OF a rat
Ing bureau or adopt as its basis the
rating of a bureau making insurance
rates upon property in the state OF
Iowa
This is the law against which there
is so much complaint and which in
coming legislators threaten to repeal,
because. they declare, 1t has resulted
IN higher fire insurance rates. The
examination of the Iowa rating bureau,
however,s not only done to comply with
the law which requires such examina
tons, the state insurance commits
sicner says, but also TO furnish the
legislators with information concern
h.,rn ~,
the state There are twelve bureaus
operating in the state, however:
The Iowa rating bureau is one Of
twelve bureaus operating in Iowa
under this statute and was organized
in June. 1914. as voluntary, unin-
corporated body" explains the report,
and is conducted on a mutual plan,
It's service being available TO any in
surer in this state"
The bureau has its main office in
Des Moines under the mauagement of
X. L. Waning ana publishes rates for
the entire state, maintaining branch
offices in Cedar Rapids and Sioux City.
\ resident inspector is located in
Mason City The method of operation
of the bureau and the meeting OF its
expenses are in compliance with the
provisions of section 1851 as fol-
lows:
The expense Of a rating bureau
consisting of insurers shall be shared
in proportion TO the gross premiums
received by each member during the
preceding year on fire risks located in
this state and to which said bureaus
rates have been applied and each
Rates Generally Adopted.
In further explanation Of the man
aSement of the bureau the report
says:
The expense of operation was
found to be divided among its sub
scribers. each paying pro-rata share
Of the total expense, based on the
premiums as actually received on the
different classes to which such rates
are applied or fiat minimum share in
the case of a new subscriber with later
assessments"
One hundred and twenty eight OF
the general companies. both foreign
ard domestic. subscribe to, either in
whole or in part. the rates published
and filed by this bureau.
NO condition of the law requires
use of these rates" says the report.
However each company may not
orly use the rates Of a different
bureau, but may. by the fling OF
variation. deviate from any rates pub
lished either on one or more classes
and with a different per cent Of varia-
ton on each class as their own eX-
perience and judgment may indicate
as adequate and equitable. The rates
furnished by this bureau are manda :
tory only to such Of its members as
are insurers and under the provisions
of Section 1851 Of the Iowa code.
file such rates with the commissioner
CT insurance. The bureau has no con-
tract with the companies, merely
letter in which the company applies
for it's service and the privilege Of Al
ing rates thru the bureau.
At the time this examination was
made 207 cities and towns had been
entirely re-7atsd and 1880 risks
re-rated turnout the state. There are
twenty-five men in the field, in add
ton 10 the office force, who are now
doing this work
READY SALE FOR BONDS.