The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-02-14
REPORT OF THE HAIL
INSURANCE BOARD
CONTINUED from Page Two)


harvest had been hindered the two
weeks previously by numerous show
ers, SO that the grain was ever ripe
and the resultant damage was much
greater than it would have been had
harvest proceeded as usual.
Need of Surplus
Hail insurance in order to be the
most value, must spread the risk ov-
er a large period of years and also
over large area. It is only by main
tanning a substantial reserve fund
that this can be assured. The bust
ness of the State Hail Insurance over
the years 1917-1918 clearly shows the
possible fluctuation in losses. In
1917, collection Of twenty-six cents
per acre would have paid all losses
and in 1918 it would have required q
levy of $1.330 per acre to pay all the
losses in full.
A comparison of the experience of
the stock companies shows that in
1917 they returned twenty-eight
cents (28c) out of every dollar col
lected to those insuring. The pre-
liminary reports of their 1913 bust
ness shows that they will pay the
farmers little more than they col
lected. The records Of the State Au-
ditor covering the business Of the
stock companies from 1910 to 191!
inclusive, in Montana, show that they
have returned to the farmers sixty
two and one-half cents (6214c) of ev-
cry dollar collected for hail insur-
ance. The variations shown in 1917
and 1913 are not peculiar to Mon
tana, but are typical of experience
in the Dakotas and the Canadian
provinces as well.
The above records are cited to
show the necessity of having re-
serve to equalize the losses over the
good and bad years.
Figuring from all available records
it is estimated that an average rate
of eighty cents (80c) per acre woulc
be needed to pay $1,000 per acre
losses. On insurance at $1,000 per
acre, seventy cents (70c) per acre
would be needed to pay all losses in
full.
Amendments to Law.
The operation of the law has been
carried on with general satisfaction
with the exception of the application
of the pro-rata clause in 1918. In or
der to make the law operate as eff
GENTLY as possible, we recommend
that consideration be given the fol
lowing points:
1. Provision to provide sufficient
revenue to pay the amount of insur
ance written in full every year.
2. An extension of the date or
which applications may be accepted
3. Amending the section provid-
ing for the appointment of the ap
praisers so as to take advantage Of
the experience of hail insurance com
panies long in the business.
a. Provision for more fully cover
ing the arbitration of all disputed
claims.
5. Provision so that in case the
loss does not exceed 5 per cent tht
claimant is to pay the expense OF ap
- p1aisal and no allowance is to be
made for the damage.
6. A provision providing for tht
deduction of the hail insurance ia,
from the amount due claimants where
the payment is made before the taxes
are collected, and the means of can
ceiling the tax on the county assess
,nent rolls.
The Inauguration of the State Hal
Law has added large amount o.
work to the county assessors office II
the agricultural counties. On thu
whole the work has been carried OF
accurately, and with the experience
of the past two years shorter ant
simpler methods of carrying on the
details of the work can be inaugur
ated.
Whenever any legislative commit
tees take up any legislation pertain
ing to Hail Insurance, the State
Board stands ready at any time t.
furnish any information desired ant
will assist in any manner possible II
order that the efficiency of the Hal
Insurance Law may be increased.
Respectfully submitted,
Bv E. X. BOWMAN,
Chairman State Board of Hail In
surance, Helena, Montana.