The Pickens sentinel. (Pickens, S.C.) 1911-2016, 1917-10-04
INSURANCE ISSUE
AGAIN TO FRONT
INCREASE IN RATES NEW BONE
OF CoNTENTloN-McM
ASKS Why.
DISPATCHES FROM COLUMBIA
Doings and Happenings That Mark the
Progress of South Carolina People,
Gathered Around the State Capital.

Columbia
T.. II. McMastcr. state Insurance
commissioner, issued the following
statement with regard to the in
crease in fire insurance rates. which
the South Carolina Inspection and
Rating Bureau will put into effect III
this state on October 1:
GAS is knowl. by those who have
read the law passed at the recent scS.
sion OF the legislature which repeal
ed the Larey. OdOm act, the insurance
commissioners has no moro power ovc.,'
fire insurance rates than amy 9th :
citizen Of the state. All that he may
do is to refer alleged discriminatory
rates to the South Carolina commits
sion Of three to me appointed by the
governor. This any private citiZcl.
may do on his own account. In re-
spect to excessive and unreasonable
rates, the commission of three itself
is bound by a formula in the law we'll
nigh impossible o. effective applica-
tlon having under consideration the
various requirements Of the formula
''rhc commissioner may inquire Of
the bureau the reasons for the in.
crease in rates This the commits
sioner did do on September | and in
rcply thereto the bureau gives the
following information:
That tho data Oh which the in
crease were based. gives results OF
thc experience OF 80 or more OF the
inn nj III,
in the State OF South Carolina ior the
preceding five years, as follows:
Mercantile buildings. loss ratio.
1924 per cent; contents OF mrrcan-
tile buildings. loss ratio. 90 per cent:
dwellings and their contents, loss ru-
ito. 10S per cent.
1.-The other classes upon which ill.,
creased rates are TO apply October 1
are nOtoriouslv unprolitablc This is
so well known to the underwriters
that they did not deem it necessary to I
get too great labor in preparing de-
tailed statistics to demonstrate Il fact .
well known. Therefore. we have no
data giving in detail, the experience
with these classes
"The commissioner does Not doubt |!
the accuracy OF the figures given in
this letter and under the crcum- !
stances and under the provisions OF
the act OF 1917 does not sec how the !
South Carolina commission to be ap-
pointed may do anything.
"But the insurance commissioner is |
OF the opinion that the fire insurance
companies and their agents are re-
sponsible for these excessive loss III,
tios. He calls attention to the fact |
had withdrawn from the state that
the loss ratio Of the South Carolina
companies for the year 1916 was only
20 per cent and OF tho companies
OF other states which did business In
South Carolina in 1916 their ratio was
35 per cent. The commissioner states
that these figures may not be taken
fact that the large mass of the busi-
ness was writtcn towards the latter
part OF the year and il would bo neces-
sary to extend the record far into
1917 to get an accurate idea Of the
actual loss for the premiums written
In 1916. But from the best obtainable
information. the loss ratios OF this
business are remarkably low. This
tho commissioners tributes to the very
careful writing by the companies last
year and the more careful selection
and supervision OF the agents by tho
companies themselves.
THE commissioner adds also thai
COMPANIES find it necessary to charge
81 per 800 for fire insurance whel
the mutual companies in this state
ON the average for the past ten year!
have written not only fire insurance
but windstorm insurance on farm
dwellings,. barns and tenant houses. q
All average rate OF about 45 cents pc
800 And yet those farmer agent
arc not supposed to know anything
about insurance.
Likewise there are a number q
mutual companies known as inter.ir
surers which are said 10 be writin
selected lines throughout the stat
"lu SF'i6 iNsu''o iiSoihpdiapiS iCN
than the stock companies. which. how
ever. write everything ana seemingl
anything The commissioner state
that so far as he knows that only on
town In this state, Charleston, ha
anything like accurate records OF IL
fire losses These we're recently sta
~>~>~><A>>~>>>>>>><>~~~>
Forethought Will Prevent Fires.
Several suggestions to reduce flr
losses have been made by +. II. Nj
Master. state insurance commissions
in letters which have been sent o,
from his office. One Is that at tn
season OF the year a piece OF old shet