The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1916-06-03
New Law Has Resulted In Lower In
surance Rates, According to
Report Issued by Commits
sioner English.
CAN CORRECT CHARGES
State Commissioner Has Right to
Make Changes II He Considers
That the Case War
rants Il.

Property owners Of Iowa practically
control their own fire insurance rates.
and a lower range of rates has been
secured through the operation of the
new insurance law, according to the
annual report of Emory H. English,
state insurance commissioner.
The commissioner pointed out that
no two companies are required by law
to charge the same rate upon any
risk, as has been charged by some OF
! the critics of the law.
Rates Optional.
It Is entirely optional with any COM
pany, says the report, what rates they
| adopt, but it Is required that all prop
critics of the same class be given the
same rates upon the Same basis by
i the same company. Competition has
not been eliminated by any means,
but the rates Of companies to be in
| force must be filed with the state de-
partment.
The Blanchard anti-compact law
was not repealed, points out the COM
missioner, as the new law expressly
provides that it 'is in addition to any
laws now in force relating to and
regulating such business" This eff
fectually prevents any agreements or
combination between companies, and
any concerted attempt to enforce
rules, regulations, permits, ETC., In
which the hazard of the risk Is not
effected, is still unlawful, and not per
| mitted by the new law.
.
Credit for improvements.
Property owners may now obtain
copy of the survey of their risk to-
oofh witt nf a
charged. and any part of charge made
where the hazard does not exist or
is removed shall be corrected.
mot only may insurance rates be
reduced this way" says the report,
"but the proba bility of fire materially
| lessened, which will assist in even
| tually reducing all rates in the state.
Many property owners who have COM
/ planned of high fire insurance rates,
have secured substantial reductions
| in same by correction Of defects in
the construction of their buildings or
removal of quantities of gasoline or
other dangerous hazards.
1.-THE rating law makes public the
bac:s of every rate fixed. The prop
city owner may know the exact items
| in the rate represented by deficiencies
| in construction, occupancy and ex-
4
| in the correction of such deficiencies
both in his own property and in that
of his neighbors. When such defects
are corrected the rating law compels
a corresponding reduction in the
rate"
! Power to Correct Unjust Rate.
"The law simply authorizes the
measuring Ct the hazard" continues
the report, land provides means for
enforcing an equitable rate. Under
the power given the commissioner of
| insurance, a discriminatory or unjust
rate may be changed. Tor the first
time in the history Of the common
wealth regulation Of rates has been
vested in the state, and the new law
granting this authority stands out as
| the greatest piece of constructive in
surance legislation enacted in Iowa
| in a decade"
Rates Range Lower.
| The continued lowering Of the aver
age rate charged per one thousand of
| insurance in the state, shown by the
report, indicates that the operation Of
the law has in fact equalized rather
than increased or materially lowered
rates.
A computation shows that the fire
premiums in 1915 exceeded those of
1914 by S72,346.76 with relative in
crease in liability assumed of s40,3s6,-
O74.60. The average rate per one
thousand insurance in 1915 was
S1o.12 as against $1O.36 in 1914 and
s1166 in 1913.
n