The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-07-04
INSURANCE RATES AGAIN AN Is.
SUE.
Insurance Commissioner Advises Un.
derwriters to Ignore Letters OF In
strwction sent Out.

struction sent Out.
Underwriters are being advised hy
y. III. McMaster. state insurance
commissioner. to ignore letters OF In
struction being sent out by the South
Carolina rating and inspection .bu.
reau. Mr.. McMaster holds that un-
der the statute no representative oi
tho bureau has authority to issue in
structions TO agents to make. fix or
ollect rates. Insurance companies
are also derelict In that only Que
company has fled with the commits
sioner copy OF the agreement. as
required by the statute. Mr.. McMas-
ter's opinion In given In q letter to
an agent OF the state. The rating
feature of the present insurance
statute was the compromise In the
recent Insurance Generalization incl
dent to the passage OF the Laney-
odom act OF the legislative session
of 1915. Mr.. McMaster's letter reads
Replying further to your tele-
gram OF yesterday asking me what
course the local agents should pur-
sue In regard TO increased fire insur-
anco rates. I would repeat as 1 said
yesterday that have no authority
to interfere with any instructions
which m agent receives from O. COM
pAny or companies represented by
him. Each company has perfect
right to make such rates as 1t
chooses. but no company or rating
bureau has any right to enter into
or act upon an agreement with re-
gard to the making. nxing or collect
ing Of any rate for fire insurance
upon property within this State until
after ssuch an agreement shall have
been fled with the insurance COM
missioner and be subject to his ap-
provtL
Therefore no representative of
any bureau has any authority to is
sue instructions to agents In this
state TO make. ix or collect rates.
and In accordance with the opinion
Of the attorney general given me this
day. any company which fails to
comply with the terms of the act Is
subject to having Its license sus-
pended or revoked.
Therefore since the South Caro-
lima rating and inspection bureau or
In members have not compiled with
the laws of this state. In my opinion
no agent should obey the instructions
ef such bureau unless he receives
direct instructions from his company
10 do %. and In case he does
would be under obligations to such
agent to give me the name Of such
company. for no company has filed
with me a copy Of an agreement in
accordance with the law with the ex-
ception of one company which has
nled partial agreement.
Furthermore. as understand the
second letter Of instructions issued
by the South Carolina Rating and In
spection bureau. II makes the rate on
q new farm shingls roof dwelling not
heretofore insured s19 q thousand.
whereas the rate ON q dwelling pre-
viously insured Is S12 a thousand: |:
,--.d on q new brick mercantile metal
roof store not previously rated O
rate OF $3.50. whereas another. store
Of tho same classi fcation previously
written receives a rate Of SIS In n
fourth class town. Therefore In fol-
lowing such instructions an agent
would be violating the law of the
State and may be proceeded against.
MY advice. therefore. to you Is
that you ignore the letters received
from the South Carolina Rating and
Inspection bureau. following only the
instructions from your companies un-
til the companies have complied with
the law and the South Carolina Rat
Ing and Inspection bureau Is legally
authorized to make. fix and collect
rates.