The herald-advance. (Milbank, S.D.) 1890-1922, 1919-01-24
State Hall Insurance.

Sl0lc ndu insurance.
Aberdeen American: South
Dakota's venture into the realm of
hail insurance in response to the
affirmative vote Of the people for
this state enterprise. will be upon
the basis of compulsory insurance
for all growing crops. This is the
fundamental ground upon which
the bill now being framed il based.
ignoring the governors suggestion
that townships be given the option
Of taking advantage Of the state
insurance or voting themselves out
side the benefits.
Representative Berndahl of Min
nehaha county is in cnarge Of the
new measure and is working hard
to frame an act which will not
only be practical but which will
maintain the hail insurance fund
solvent notwithstanding what losses
be incurred. Neighboring states
which have introduced state hail
insurance have failed to pay out
losses which were met.
Under the plan being considered
in South Dakota it is proposed to
divide the state into four zones ac-
cording to the relative frequency
of hail losses in these four areas.
This has been disclosed by COMPARE
son of losses during the last seven
years.
The rate for insurance will be
from 35 to 40 cents an acre for all
crops in cultivation and the maxi
mum liability loss will be limited
to $40 an acre. It is estimated
that the saving to the farmers Of
the state will be just about half
what they are now paying private
concerns for hail insurance.
Governor Norbeck suggested that
townships have the right to vote to
be exempt from the compulsory
feature of the hail insurance law.
] but the sponsors Of the new bill
object to that. They assert that
if this be permitted there is likeli-
hood that agents Of private COM
panies will be tempted to urge
townships in the zones Of least risk
to exempt themselves. and then
they will sell individuals therein
policies in competition with the
state plan.
Once in operation the hail insur-
ance department promises to be an
enormous department of state busi-
ness, second only to that of the
rural credit board. Under the
state plan it is estimated by Insur-
ance Commissioner Van Camp that
seven times the amount of hail in.
surance now written in the state
by private concerns will be the
business Of the state.
In 1917 approximately SIS, ,O0O,-
600 worth Of hail insurance was.in
force in South Dakota. Twenty
companies wrote this and farmers
paid them $783, ,626 in premiums.
The losses during the year which
the companies paid amounted to
$427. .637. The expense OF doing
business is estimated at 40 per
cent Of the premium 90 that this
toll added to the losses paid indi-
Gates that the hail insurance in
this state has not been q, profitable
branch Of the business. The asDer-
tion is backed up by the opinion cf
some Of the largest agents in the
state.
The income to the state from
hail insurance taxes 10 estimated to
be $500. 900 annually. This 10
based upon insurance Of all the
II, 900. 900 acres Of crop which are
grown each year ii the state.
That premium compared to the
three.quarters Of q million now
paid for. hail insurance indicates
the magnitude Of the new depart
ment which the state is creating IA
its plan for state hail insurance.
Instead Of costing 40 per cent Of
the premium for expense Of hand
ling the business. the experience
Of the private companies, the state
expects to cut this cost to 10 or is
per cent.
Pierre. S. D.. Jan. l1.-State
laws which will prevent the recur-
renee Of conditions brought 10
light during the resent influenza
epidemic il South DAkota may b
enacted By the present legialafure.
Many suggestions have been made
TO legiSlators that lswa should -
enacted providing Tor tho conotruc4
tiou and maintenance of copntv
hospitals. House and senate me,1,-
beEs aid several bills are pndoe
preparation that will provide loeal
- ~ . .