The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-08-08
ORDER SUR-CHARGES OFF
ON FIRE INSURANCE
Large sum of Money Saved Virginia
BY. Action of Commission


Colonel Joseph Button, State Com
missioner of Insurance, returned from
New York yesterday, where he had
been attending a meeting of special
committee, Of which he is chairman.
to consider the 10 per cent sur
charge imposed by fire insurance
companies At the spring meeting OF
the Insurance Commissioners con :
vention in st. Louis, Mo-, on April
18th, Colonel Button offered the fol-
lowing resolution:
Whereas, the Fire Insurance com
panies, during the war, increased
their rates. by adding a sur-charge of
10 per cent because of the abnormal
conditions existing. and in the opin-
ion of the Commissioners this con-
dition exists.
Therefore, be 1t resolved that this
convention put itself upon record as
advocating the abatement of this sur
charge and the Commissioners indi-
vidually and collectively are request
ed to take such action as they may
see At In order to bring about this
result"
In an impa ssioned speech he advo-
Gated its immediate adoption. but the
Fire Insurance interests asked that
the matter be passed by until they
could be heard upon 1t, and so a
special committee of seven was
named by the president OF, the con-
vention to consider the resolution and
grant a hearing upon It,
The committee so appointed was
composed OF Button, Virginia, chair
man; Phillips. New York: Young.
North Carolina; Harry. Missouri:
Hardinson. Massachusetts,: Ellsworth.
Michigan, and Brown Vermont
On May 14th Chairman Button
sent but a notice to all fire insurance
companies and rating bureaus. noti-
flying them that a hearing would be
held in New York on Monday, June
Q. and notifying them to present the
data upon which they based the nee
essity for the sur-charge and data
juctifying itG continuance.
Tho hearing was held at the time,
but the data presented by the COM
psnies was incomplete and unsatis-
factory. and the hearing was con-
tinued until last Monday. In the mean
time. the committee sent to the COM
pa.uies missionaries in order TO
elicit the information which the com
mtttee desired. and upon receiving
this information, they adopted the
following resolution:
Whereas. the fire insurance COM
|
charge Of 10 per cent on all fire risks
to cover. as claimed by them. the in
creased expenses due to war condi-
lions. and
Whereas. this sur -charge was
never imposed IN some states and has
been orderel off In other states hav-
ing laws regulating or controlling
rates, and
Resolved. that 1t is the sense of
this committee that this sur-charge
should be imm ediate1y be taken off in
all states.
This sur-charge was not imposed
in Vidginia unail March 10Th. 1918
and Notwithstanding the fact that It
was nit la effect during the entire
year the premiums paid by the in
suding public of vidginia In fire
premiums amounted to ss,o75,oT5.
so 4 can readily be seen that the
action Of Commissioned Button and
his associates on the committee have
saved the people of Virginia in an
nual premiums to Are insurance COM
panies more than 100000
This sur charge was not imposed In
| some states which had laas regulat-
ing rates-such law as has been
advocated by Commissioner Button
In the last two Legislatures. but
which was defeated by diiatory tao
tics on the part Of representatives OF
the insurance companies. II such a
law had been in effect In Virginia.
this arbitrary raise of 10 per cent
could not have been effected with
out the coneent OF the Insurance Com
missioner.