The county record. [volume] (Kingstree, S.C.) 1885-1975, 1919-08-28
sURCHARGE TO COME OFF
Revision Of Fire Insurance Rates
To Follow.

the national board Of fire under
writers in New York that the 10 per
cent surcharge added during the
war to certain fire insurance pre-
miums about 1s months ago is to be
discontinued September J., but re-
commends that rates be revised in
"unproftable classes" This taken to
mean that the effects Of the addi-
tional 10 per cent surcharge will be
Offset by rates revisions which may
produce as much as the 10 per cent.
surcharge.
> About two weeks ago committee
of the national convention Of insur-
ance commissioners to whom the
matter had been referred after hav-
ing had several hearings and listen
ed to The showings made by the fire
insurance companies passed resolu-
tons severely condemning the 10
per cent. additional charge and re-
commencing its immediate discon-
tinueance in those States in which
it had been imposed. It was expected
that the additional charge would be
Immediately discontinued, but such
was not the case, and it is not to
come off until September l. and rate
revisions to offset it are to follow.
The following is the account given
by The Journal Of Commerie OF the
matter:
THAT the 10 per cent surcharge
on fire insurance rates should be
taken off on September 1, is the rec
ommendation of the surcharge COM
mitteeof the national board OF fire
underwriters, adopted at q meeting
held on August 20. The committee
holds that as rne surcharge was an
emergency measure, intended only
to be temporary, and as the high
level Of costs appears likely to con-
tinue for a long time, the rating
bureaus take steps to revise rates on
unproftable classes and in unprofl-
table localities with a view to secur-
ing to the companies sufficient
premium. The minutes adopted by the
committee, to be sent to all MEM
bers, is as follows:
The surcharge or fiat additional
premium charge Of 10 per cent: for
fire insurance was instituted as an
emergency measure to meet, to some
degree, the abnormal increased cost
Of doing business, including taxes
imposed upon fire insurance in COM
mon with other business, as a result
of war conditions. 1t was designed to
be as nationwide as the conditions
which made it necessary, and to ap-
ply generally to all classes OF flre
risks rather than as a discInriminat-
ing Fate making or. risk measuring
procedure as in the case OF usual
.ate making processes
1t was contemplated as a tenn
porary measure to be simultaneously
and everywhere applied and subject
to similar action for, its removal
when conditions should again be-
come normal and similar to those
existing when the prevailing rates
and schedules were established This
intention was prevented in q few
States by circumstances beyond our
control, but it has benn quite gener-
ally accepted as a warranted and
necessary increase in price, notably
moderate in comparison with the
much higher cost IF every other
product, commodity or service
brought about by the severe disloca-
ton of affairs in consequence OF the
war.
"Inasmuch as it now appears to
be the expressed opinion OF recog-
nized judges of business and eco
nomic conditions that the existing
high level Of costs of all kinds will
be materially altered for some years
to come. 1t seems appropriate to
discontinue the emergency charge
which was intended only to be tenn
porary and to obtain the necessary
premium to enable the companies to
meet losses and expenses and main
tain adequate reserves by appro-
pirate application of schedules to
classes and localities. Accordingly 1t
is recommended to all rating experts,
bureaus and associations, that the
collection of the 10 per cent. sur
charge be discontinued by September
.1s 19ss, and that !. s.eopsid derstIp be
leissa IS sseh J revision M q N rates
3 IS !shs e q g