Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1916-03-08
Statement From MIR. E. J. Nor
ris Concerning New Insur-
ance Law.

aNCG Law.
To The Public:. Many people
have asked me about the Fire In
s,rance situation in South Carolina
and l give herein somewhat a re-
view of fire insurance affairs now
existing. About the end of last year
the insurance commissioners reqnlr
ed all companies to take in their
then existing policy blanks and
made them have more printed as per
form prescribed by him This was
quite an expense to the companies
but they made no complaint,
Under the influence of the com
missioner the late legislature passed
an act of law of which these are
few points; Section l forbids the
companies entering in combina-
tion to write at same rates. Section
directly contradicts the first and
provides that mo fire insurer and
TO fire insurance agent either di-
,rectly or indirectly, shall make or
permit any difference or distinction
in rates." In the first section they
are forbidden to agree to write at
same rates aud in the 9Th they are
forbidden to write otherwise, that is
at different rates. At the same time
the act is full of fines, Jail and peni-
tentiary provisions. The companies
are to be imprisoned for offences
but it is not known whether the
president, secretary or the whole
company including stenographers,
stockholders, janitor and all, are to
be imprisoned, or whether in this
or what state.
The act gives the insurance COM
missioner the power to revise any
rate where there is a complaint.
The companies would feel that this
law with one man over them with
the big stick indicated that they
were set of thieves. There Is no
objection to competition but to be
so completely controlled by one
man is more than the profits war
| rant.
The home insurance company &C.
cording to the commissioners last
annual report collected for premi-
ums in 1915 about $l4l, 100000 and
paid out for fire about $ll5,000.0O
in this state. The burning of one
block of some South Carolina town
would have wiped out all the profit.
In Georgia the home collected pre-
miums to amount of 800 thousand
and paid for fires 2so thousand, in
Alabama 296 thousand losses 270
thousand, in Texas 900 thousand
losses ss4 thousand, in Louisiana
the fires amounted to At thousand
more than the premiums.
In my own agency for the two
first months of this year, my COM
panies have lost by fire namely,
Mr.. J. K. Corley, Mr.. Robert Tim
norman and Mr.. E. p. Winn about
sseoo.oo and the premiums for the
same time not over II Of the loss.
Section 9 looks after the interest
of the factories and cotton mills ex-
empting them from the law. The
! formers of the act did not know
that they were protecting the
wealthy and probably leaving the
others without indemnity. These
factories and mills were provided
with automatic sprinklers, that is
pipes galore. running through the
top of the building with waxed ENDS
and when a fire starts the wax is
melted and tons of water is copi-
ously forced into the building put
ting out the fire at once. The facto-
ry insurance association if allow ed
to do business in this state can well
afford to- take these risks al the
very low rate charged, and make
money, as whoever heard of cot
ton factory burning where protected
with automatic sprinklers? Even at
the very low rate. the factories pay
from 100000 to a oout $4,000 90 for
their insurance. This is the
kind of insurance that is exempt
from the act and heretofore written
by the factory insurance association
and warehouse commissioner Nc
Laurin. This is almos, as good as
insuring mill rock under water in
the pond. Millions of dollars here
tofore cheerfully invested in this
state will no doubt be Withdrawn
with the fire protection. / have
been writing fire insurance for ls
years and I have never detected any
dishonesty or unfairness IN the COM
e