New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-31

The Tribune Merit Week
{ IAN you visualize the distrust
- among policyholders-equiva-
lent almost to panic-that would
have followed the San Francisco
conflagration of 1906, with its un-
precedented loss, had it not been
for the confidence of the people
everywhere, in the good faith and f.
nancial integrity of stock fire in
surance companies?
During three days time that dis
aster wiped out insured property
values greater by some sixty or
seventy millions of dollars than the
aggregate surplus of all the stock
companies then licensed to do bust
ness in California.
Was this confidence of the people
misplaced? No. AS stated in one
Of the earlier Sketches, the COM
pany failures were negligible and
stockholders promptly responded to
the call for the restoration of de-
pleted capital and surplus Golfers.
Stock fire underwriting, quite as
much as if not more than banking
IS dependent on the confidence of
the public, and that which DESTROYS
confidence works almost irreparable
damage so insidious is the progress
of calumny and so difficult is it to
overtake and refute.
Until fire comes policy contract
seems of bat little Importance and
often is tucked away and forgotten.
Hence it is of first importance that
those who buy fire insurance to pro-
tect their property interests, and as
sure the peace of mind which leaves
them free to prosecute their own bust
ness affairs, should have nothing but
the best the market affords. Any form
other than "stock" fire insurance puts
the policyholder in the insurance bust
ness himself, with all its hazards and
responsibilities, and merely creates for
him new liability; not relief from
one already existent.
In public conception, all branches
and classes of companies are too often
Jumped together, even though they have
nothing in common and are vastly Diff
ferent in organization requirements,
methods, practices and operation. The
impression exists only because they are
called insurance companies"
Let me divide the groups Of COM
panies first into those indemnifyng
for CD property damaged or destroyed;
CD accidents and injuries to people;
CD failure in surety or fidelity; and
(4) death, naturally or accidentally.
They are known broadly as fire and
marine, casualty, surety, and life insur-
ance companies. Again these are sub
divided into classes-stock and mutual,
Each branch, and each class in each
branch, is governed by separate insur-
ance statutes of the several states and
in every case, except life, the reserve
requirements for stock companies are
the highest and their standards of SOL
vency the most rigid. In life insurance
alone-an entirely distinct service and
with no relationship whatever to other
branches-both stock and mutual COM
panies are required to reserve under
identical standards.
This explanation is made in answer
70 inquiries that have developed since
the publication of these Sketches was
undertaken. | am. of course, speaking
only for stock fire insurance companies
and am trying to make plain that few
principles and few statutes applicable
20 other branches properly could be APP
picd TO them. The functions and emer-
eency requirements in our branch and
class are peculiar to US alone.
You will have observed in these arti-
cles, Of course, that no attempt has
been made, except by mere reference,
70 touch upon outward and visible ser
vices OF fire underwriting such as tho
adjustment and payment of fire losses.
on meet that every day, and know all
about It, can say, however, with the
certainty Of expressing no more than
exact truth, that every stock fire in
slrance company seeking the conf
dsnce Of the public, earnestly desires
20 pay !ts losses promptly and honestly
and in accordance with the policy pro-
visions. The honest man has nothing
to fear. ever as every legitimate CON-
pany VIII gladly assist him in getting
his just due when loss comes.
The policy contracts issued TO you.
which guarantee indemnity for losa to
tne property specified, are more for
your protection than ours. For MANY
years these contracts have been pre-
scf'ocd by statutes Of New York and
many other states both as to insurinp
conditions and restrictions, and to sizo
OF type They are STANDARD Policies''
~ TACT as well as in name, the pro-
Fissono Tor our common protection hav-
my been clarified By court decisions
until there is no doubt Of their intent.
Before loss occurs, as previously
stated. policy Of fire insurance seem
'ngly is Of little Importance but after