The herald and news. [volume] (Newberry S.C.) 1903-1937, 1917-07-10
NOT-IN COMPLIANCE WITH
THE LAW SAYS McMASTEh
Insurance Companies File Agreement
With Regard to Making. Fixing and
Collecting Fire Insurance Rates.

Columbia, July 5.-Fire insurance
companies included in the membership
of the recently established South Car
olina inspecting and rating bureau this
afternoon filed with Insurance Com
missioner McMaster their agreement
Wit hthe regard to the making, fixing
and collecting of fire insurance rates.
The commissioner announced to-
night that he does not approve the
agreement as compliance with the law.
All previous instructions issued by
the bureau will be recalled. The bu-
reau Will remain closed until the COM
panies decide what further action to
take.
In Conference.
Insurance Commissioner F. H. Nc
Master was in conference today with
representatives of the Atlanta Office OF
the Southeastern Underwriters asso-
ciation in regard to the inspection and
rating bureau recently established
here.
The commissioner was assured by
Messrs. W. R. Prescott, F. M. M1keil
and Hughs, of the Atlanta Office, who
had requested the hearing, that the
failure of the inspection and rating
bureau to file the agreement among
the companies had been due to an oy-
ersight and not to any intention on
the part of companies or agents to
violate the law. They stated that the
agreement would be filed immediate
lv. Failure heretofore to comply with
the law, they said, was due largely to
the fact that Mr.. Dam B. Harris of the
Atlanta office, who had been entrust-
ed with the duty of seeing that the
law was complied with, had died re-
Gently, and after his death they said
the matter had been overlooked.
The law requires that any agree
ment between the companies as to in
spection or rating must be filed with
the commissioner, and is subject to his
approval. 1t was brought out recent
ly that II of the IS stock companies
in the state had become members OF
the inspection and rating bureau here
without having filed such agreement
with the commissioner.
Following a statement by the COM
missioner, the bureau advised him
that it had suspended operations until
the law should he complied with.
1t was also stated by the commls-
sioner at the time that his understand
ing was that the companies were pre-
pairing to increase rates generally IN
the State. The commissioner has no
authority in the matter of rates. The
act of the legislature provides for
commission of three to whom rates
NAV be referred. This commission
was required to Re appointed by the
governor within 80 days from the ap-
proyal of the act-one member upon
the recommendation of the insur-
ance commissioner, one member upon
the. recommendation OF the rating Du-
reau having the largest membership
at the time, and one member of the gov
ernor's selection. Although the W
days expired more than month ago.
the commission has not yet been ap-
pointed. The insurance commissioner
recommended one of the members with
in the required time, but, 50 far as ls
known, the rating bureau has not as
vet made it's recommendation. In an
opinion rendered several days ago by
the attorney general, it was stated
that the appointment of this commits
sion was a matter of great Importance.
The attorney general held that the
commission could yet be appoint
ed, notwithstanding the expiration OF
the 90 days, and that if the bureau
failed to recommend the governor
should go ahead with the appointment
of the two other members. The at
torney general also held that II the
companies did not comply with the
law as to filing agreements the COM
missioner was empowered to revoke
their licenses. and further they would
be liable under the antitrust law.
The proposal to increase fire insur'
ance rates has raised a storm of pro-
test throughout the State. The only
control which the State has in the mat
ter is vested in the commission to be
appointed by the governor and which
the governor has not yet appointed.