The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-07-17
STATE ENTERS
ON INSURANCE
FIELD AUGUST /
Protection on All Public Build.
ings to Be Carried in
State Fund
NEW PLAN IS COMPULSORY
Officials Can Be Held Liable for
Payment of Premiums
Exacted

On August / the state Of North
Dakota will assume another huge
business enterprise, that of insur
ing against loss from fire, tornado OF
cyclone the millions Of dollars worth
of public buildings in North Dakota
ranging from the little one room
country school house of boards to the
majestic temples Of granite and mar
BILE in which some of the higher in
stitutions are housed. The new de-
partment is already "functioning' in
the office of Commissioner of Insur
ance Olsness, with Sergeant Harold
Hopton, recently returned from over
seas, in charge.
The new state Are and tornado
fund is created under the provisions
of Senate Bill 80, introduced by
Cahill of Grant county. It is provid
ed that ION and after Aug. /, 1919, no
officer or agent of this state and no
person or persons having charge oil
any public buildings or property OF
the state shall pay out any public
moneys or funds on account of any
insurance against loss by fire or tor
nado, or shall in any manner con-
tract for or incur any Indebtedness
against the state on account of any
such insurance upon any of the pub
lie buildings, furniture or fixtures or
property of any kind whichever be
longing to the state, except in the
manner hereinafter provided"
. Custodians to Report.
The act requires that within thirty
days after it's passage every custo'
dian of public building shall report
to the commissioner of insurance
each policy of insurance which shall
then be in force upon such proper
ty. . On or between July and Au-
gust 1, 1919, and annually thereafter
the commission is required to pro
vide for insurance in the state fire
and tornado fund of all state proper.
ty subject to destruction by fire or
tornado, for an amount not to ex.
ceed 80 per cent Of it's actual value
The amount of insurance to be car
ried by the state is to be certified to
the state auditor, with a statement
showing the amount Of premium due
and it Is made the duty of the audi.
tor to draw a warrant on the state
treasurer for the payment OF such
premiums.
On or before August 1, 1919, and
annually thereafter, each county and
city auditor, town, village and school
district clerk shall report to the com
missioner each policy of insurance
then in force upon any property un-
der control of such auditor or clerk,
and insurance is to be provided in
the same manner by the state com
missioner and certified, with the
amount of premium due the state, to
the auditor or clerk, who is required
to draw warrants for the amount
payable.
Policies Allowed to Run.
The commissioner is not to cause
the cancellation of any policies
which may be in effect August 1, but
shall increase through state insur-
ance the amount of protection to the
maximum of 80 per cent provided by
the new act. Insurance policies as
they expire, are to. be replaced 'by
state insurance Town, village and
school district officials are held joint
ly liable under the act for the pay
ment of premiums due on state in
surance, which must be paid within
60 days from date Of certification.
Should there be an insufficient
amount In the state fund to pay a
fire or tornado loss when presented,
the claims shall be presented to the
state auditing board, and upon its
approval shall be made payable 80
days following the next session of
legislature. Until paid, the warrant
will bear interest at per cent.
The state fund is not to carry any
single risk in excess of 100000 with
in five years after this act goes into
effect, but the insurance commits
sioner may carry 100000 of any risk
and insure the balance with any re-
liable fire and insurance company
and shall collect from the state or
political subdivision the entire
amount of the premium, paying on
his warrant the company or compa-
MES carrying the excess insurance.
Some Property Exempted.
The property of any town or
school district located outside of the
incorporated limits of city or vii
lage is especially exempted unless
the clerk, at the direction of the
town or school board, as the case
may be, shall file with the insurance
commissioner a. written application
for protection under the state fund.
To date there have been reported
to the state insurance department
risks on four or five court houses
and perhaps fifty other public build
ings.
WAR RISK INSURANCE