The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1918-03-21
MIR. OISNESS EXPLAINS.
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ject, that this experience will prove
a mighty factor in favor of State in
surance.
Please Note the Following.
The Bankers Insurance Co., during
the past season wrote about $780,
900 of insurance in North Dakota.
The rate of premium vas 10 per cent,
making $3.50, 900. The local bankers,
who wrote the insurance received a
commission of Is per cent on the
premium receipts, which amounts to
a handsome little dover of $42, $50.
In addition to this the state agent at
Fargo, had a contract with the COM
pany by which he was to receive an
overhead commission of S per cent on
premiums, which would yield another
$14,250. These r by no mean un-
usual rates Of commission paid by
hail insurance companies.
A carefully compiled table of prem
iums received and losses paid by the
| ll1lC CO1l1p0lllCS 1O1 Vic ldSC O years,
prior to 1917, shows the average over
head expense of the state hail insur-
ance department for the four years,
1913 to- 1916, inclusive, was only 10
per cent. This in spite of the small
amount of insurance written. If the
state hail insurance was patronized to
a greater extent the expense ratio
would be considerably lower.
According to data compiled by this
office $1O,479,279.9 5 was paid in prem
iums for all kinds of insurance by the
people of North Dakota during 1916.
Over two millions Of this consisted of
hail insurance premiums. Figured on
the ratio Of 80 per cent for expense,
means that about 100000 leaked out,
and was not available for paying
losses. Fellow farmers! Please note
that herein lies the secret in favor
of state hail insurance, even under
the present plan.
The disastrous experience with the
crop insurance, of last season, will no
doubt open the eyes of a great many
to the urgent need of the only rem
edy-to place crop or hail insurance
under the state, where it belongs. It
is an ill wind that doesn't blow any
body some good.
A few things accomplished by the
Farmers Insurance Commission dur
the first year of administration:
BY Way of Legislation.
Effort made during 1917 session of
legislature to pass H. B. 10 providing
for supervision of fire insurance rates.
This is the Minnesota law and gives
the Insurance department power to
hear complaints from towns or indi-
viduals and to adjust rates, subject
of course, to appeal to the courts.
In other words this law would
place the Insurance department in
the same category as the Railroad
Commissioner of the state. Our eff
forts were defeated by a strong in
surance lobby and a Senate friendly
to them. .
Passing H. B. 275, making assess
ment accident and health insurance
companies deposit $4,000 with the
Insurance department before license
can be obtained.
Making it easier for county and
state mutual insurance companies, of
which we now have As in the state.
Have written articles in press, advo-
eating mutual insurance, as we'll as
explaining and urging state hail in
surance.
/" Legislation Recommended.
Will do everything possible to get
law passed raising the minimum
amount of capital a fire or hail insur-
ance company must have to organize
and get charter from 100000 to
$250,000 at least, and compel hail in
surance companies to leave certain de-
posits either with the state OF local
banks for protection of policy holders.
The latter may be unnecessary how
ever, if next legislature gives us a
compulsory state hail insurance tax
law, which I hope they will.
By such measures we could prevent
the organization and admission of so
many small concerns, which spring
up, do a big business, and fail, like
the Bankers Insurance Company, last
summer, and the Northern Fire and
Marine of this state, in 1916, and 9TH
ers before that.
Would also recommend a law pro-
hibiting taking a commission of profit
Of any kind for the sale of stock in
organizing new insurance companies.
In that way only would it be possible
to check the unholy desire of indi-
vidual exploiters to organize new COM
panies for their own selfish gain re-
CARELESS of whether there is any need
of such company.
And I point with pride to the fact
that, although inexperienced myself
and with partly new help, we have
managed to get along with one less
clerk than the customary force since