New-York tribune., 1918-03-01
large Gain in
Life Insurance
Written i'm 1917
I2.nenay Insurance Com
panies Discussed in Super
.nIendent's Report
Com

AfBANY, Feb. 2S.--Notwithstandin
,he entry of the United States into the
war. the percentage of increase in life
insurance business written by private
corporations and associations in 1917
was ut least 40 per cent greater than
the increase in 1916. according to the
annual report OF the State Insurance
Department submitted to-day to the
Legislature by Jesse S. Phillips, Super
intendent OF Insurance
In the field of fire insurance, Super
.ntendent Phillips refers to the work
necessitated by the proclamations of
the President of the United States af-
fecting insurance companies OF enemy
CT ally OF enemy countries, which finally
prohibited such companies from doing
any further business in the United
states. On account of the first proclaim
alton of the President, under which
such companies were permitted to con-
tinue business subject to the rules and
regulations to be prescribed by the in
surance supervising officials of the
states In which the principal United
states offices of the companies were
located. Details are present of the
companies affected by the Federal edicts
and their annual statements as of De-
cember 81, 1916, Of the United States
branches OF these companies show total
insurance in force OF So ,656,3 sic; as
sets amounting to. S3S, LA. 1926; and
total premium income for the year $780,
49,593.46. Attention is called to the
TACT that the insurance protection af-
forded by these companies must be alb
sorbed by other companies, although at
the present time the insurance facilities
are severely taxed to meet the greatly
augmented insurable interests, owing
to the large increase in valuation of
property generally.
Superintendent Phillips also calls at
tention to the fact that on January 1,
1918, the new standard fire insurance
policy went into effect and is now being
used by all fire insurance companies
transacting business in this state other
than cooperative fire insurance cor
porations. Considerable space is de-
voted to the question OF fire insurance
rates, on account OF the numerous rate
increases which have been effected dur
ing the last year, eliminating recently
in an additional general advance Of 10
per cent on all fire insurance rates
throughout the state. superintendent
Phillips believes that the entire rate
question is and always will be
troublesome one, but that there is lit
tie hope of appreciable improvement in
the situation for the present year. be-
cause Of the great volume of fire loss
cs, largely due TO the ever present fire
waste which has come to be regarded
as a trait OF the American people. He
believes also that statutory reduction
Of rates or state rate making will not
solve this perplexing problem, for, if
fire losses are TO be paid, it is essential
that sufficient premiums in the aggre-
sate be collected fov that purpose, as
we'll as TO provide against the ever
existing ccnfagration hazard, which
can never be entirely eliminated. At
tentlon is again called by him to the
tact tnat he IS powerless to regulate
rates under the law, and can only act
where unfair discrimination is shown
In discussing the workmen's compen-
sation insurance field, the Superintend-
ent expresses the opinion that the sit
Lation demands broadening of the
cccpe CT the state fund, that it may be-
come IN fact, as we'll as in theory.
rorthy competitor of the private com
panies. BY furnishing, in addition to
workmen's compensation insurance, in
cidental employers liability coverage,
and also that it should be permitted 20
incur and meet legitimate expenses
from Its own resources. On the other
hand, he reiterates his opinion ex-
pressed in previous reports that the
rates of the state fund should be sub
Jec. to the same supervision as TO ade-
quacy as are the rates Of stock and
mutual carriers, in order to avoid the
grave danger that at some future time
condition of Insolvency will arise,
suck that the security of benefits there
urder Will dc defeated and working
men be deprived Of their protection.
The report calls attention to the
enormous proportions Of the group in
surance business, showing that on De-
oerber 81 there was estimated to be in
surance Of this class in force amount
ing TO $500 600 ,0oO
Recomme ndation is made in the re-
Port for the enactment Of law to
control the transfer Of the capital stock
OF insurance corporations, as we'll as
the election Of their directors, TO meet
the serious defects in the law SO forc-
niy presented by the Pittsburgh Life
snc Trust Company scandal, which is
discussed ut length. A bill has been
prepared by the Superintend which,
IT Is believed, will prevent a repetition
of such a scandal.