The Bowbells tribune. [volume] (Bowbells, Ward Co., N.D.) 1899-1969, 1919-05-16
HAIL INSURANCE
Plan OUTLINED

! /. . + -
Bismarck, N. D., May 10.-Or-
ganization of the North Dakota hail
4 insurance department under the
semi-compulsory act passed by the
last legislature is proceeding under,
the direction of s. A. Olsness, COM
missioner OF insurance, who has ap-
pointed Thomas J.. Sheehan, in
charge of the department for some
time past, to become manager of
the department under the more
,comprehe plan that was adopt
ed by the assembly.
In the administration of the de-
pertinent, four districts have been
created, each district to be in
charge of supervisor, the heads Of
the districts being appointed by Mr..
Olsness. .45 :
The state experiment in hail in
surance on the broad plan that has
been instituted by the assembly will
be watched with keen interest by
the people of North Dakota, as we'll
as by the people of other agricul-
tural states that are subject to crop
losses by hail. ~
On each acre of ti1lable land in
the state, whether such acreage is
actually cultivated or not. the state
will levy a fiat tax or three cents an
acre. Estimates made by Mr.. OILS
ness on the basis Of information
available place the total acreage Of
,tillable lands between Is and 80
million acres, with the probability
that the first figure is more nearly
correct.
On the basis OF Is million acres
OF tillable land, tho state, through
the three cent tax, Will create
fund OF about $75O,O00. This func
becomes a sort of foundation for
the whole hail fund, and out of it
are to be paid the operation costs.
The Scent tax will be collected
from the hand owners along with
the taxes that are due on December
I, this year.M.
Every acre of tillable land will
be listed by the township assessors,
who were supplied with the neces-
sarv blanks some time ago. The
farmer must show how much acre
age he has of each crop, and he must
indicate the exact location OF each
different crop.
The indemnity tax that is levied
at the close of the hail season to
create fund from which to pay
losses sustained during theS year.
will be levied against every acre OF
cropped land that is not specifically
withdrawn from the state system by
the owner, in case the owner oper-
sstes the land himself, or BY the
owner with the consent of the ten
ant. in case the land Is rented. Ihe
withdrawal notice must be mailed
to the commissioner of insurance
prior to June 15. /.
When a land owner withdraWs
from the fund, he exempts hlmse!l
from benefits under the state nali
fund, and he also exempts himself
from the indemnity tax, which may
be up to SO cents an acre, depend
ent upon losses.
withdrawal from the fund does
not exempt land owner from pay
ment of the 3-cent fiat tax.
With the likelihood that the hg-
ures will disclose about 18,OOO,OOO
acres Of cropped land. the greatest
total that the state will be able to
collect for payment for losses will be
about $9,0QO,OOO in addition to the
S75O,OOO fund previously cited.
Payments are made on the basis
Of 81 an acre, which Is comparable
to the $12 limit insurance that
atock hail insurance: companies will
write.
with the possibility Of q so cent
tax. the rate of premiums that may
be paid under the state system runs
to about $7:14 per cent, whicn IS
comparable to the average OF apout,
z7.5 per cent rate charged last year
by the stock companies, and unoer
( which rate they lost heavily, accord
ing to reports filed with the COM
missioner of insurance. J,
When farmer suffers nall
loss, he gives notice of such loss 70
the insurance commission. who N
turn notifies the local ladjuster OF
losses. The notice Of loss must %
i mailed to- the state commissio OF
!. insurance within five days after the
/ loss is sustained. and must be ny
registe tered mall. IS
Payment 81 the losses may be
made by the. state treasurer from
/ any fund that sts yailable, and when
the indemnity tax collections come
In. the funds which have been util-
/ 1xed in paying losses are TO De fes Is-
4imbursed ss
@-,sT Under. the law, no losses less than
1 10 per cent will be allowed: y This tEls5
( ~ interesting In the light Of exper-S
I fences sof stock insnr ance compan
I about s o to 40 per cent of their Ell hall
losses, being rated a. less than ~, g
per cent y. .s;s
suffering = loss that Is rated at over;
~ nor cent would; be given the 70
Dor cent loss settlement. In case e
81 81 ~ 8 s. per cent Toss, O. sreatAeslr,
&c win sbe regarded as total @loss; !,
Losses viii be- adjusted BY local
Sad1usters, working under the lEl dir !:
!. .ection of the district superint;e'snl.d1- q !.
sents. In case . farmer e dissatis- IA,
!, ,1ed. With III "a Justine int, he may 'ap-3
peal 10 the commissi oner OF insur- 1I y
#anlce, An arbitra tionS board then isf ilE|
appoint ca lby the con p mmtstsi y g on. J, :.
81. one Nv the farmer, the two 20
select third II and ;tsie decision .of
%1,nao fhrfoS Il n inatnra Will be 9flnal. j5E