The Bismarck tribune., 1921-11-05
EXPLAINS STATE
INSURANCE
WORK THIS YEAR
Manager of Department Details
What Has Been Done in
the Season of 1921
LOSSES HEAVIER THAN 1920
First Year in Which Additional
Insurance Was Permitted
Under Law
by Martin $. Hagen
lDenartnlInt NaIlagerl

\HtuiItHINHl .NHHISCl)
The levy for Hail Indemnity Tax was
made on October 9th after enough
figures had been gathered, ana
partial recheck made Of acre
age insured and amount OF
indemnity allowed. AS was eX-
pected the Hail Tax comes a good
deal higher this year on account Of
the ircreased number of losses. In
1919 the Department had between
twelve and thirteen thousand claims
for. indemnity; in 1920, fourteen
thousand four hundred Q4,40O claims
and in 1921, over twenty one thous-
and sixty (21,0G0) Or an increase Of
six thousand six hundred (G,600)
claims. The average amount allowed
per claim is somewhat smaller this
year than it was in 1920. However,
with such an enormous increase in
number of losses, the total indemnity
necessarily must be greater. 1t was,
therefore, found necessary to levy an
indemnity acreage tax OF 44c per acre
for $500 per acre protection, and
10 cents an acre for $500 an acre ad-
acre for the $1,000 per acre insur-
ance. This in addition to the 9 cent
per acre flat tax levied on all tillable
land in the State, excepting lands
within the plated portion of any in
corporated city, village or. town, and
tax free lands such as Indian Lands
and Homestead Lands mot patent
ed). The total increase will thus be
seen to be 10 cents per acre, which,
Of course, is quite an amount, but af-
ter all the Premium for the insurance
is only G.3 per cent and it is after
all only matter Of what this rate is
compared with, whether it is high or
low. We understand that the Private
Hail Insurance Companies are not
making much money this year on the
rates they charge which are all the
way from 1-2 to IA per cent. de-
pending on what part Of the State
and what kind of grain. The only
mutual Hail Insurance Company in
the State, (besides the State Hail
Fund.-, is the Alliance Hail Association
Of Jamestown, and their rates, we are
informed, are this year over IL per
cent. Nobody regrets more than the
management of the Hail Insurance
Department. that it was necessary to
increase the Hail Indemnity Tax, but
after all the premium is in. certain
cases less than ore-half of what the
same protection could be had for in
any other company, so there is no
reason to be pessimistic about it. We
really do believe this has been an
exceptionally severe hail season, and
trust that next year 25 cents levy
will prove sufficient, as it did in 1919
and 1920
The fact that the last legislative as
sembly made q provision whereby it
is made possible to create a surplus
within the Hail Insurance Fund in
order to pay losses more promptly
promises to be great boon as the
only serious drawback has been the
inability to pay losses promptly. The
9 cent flat tax will now for five
years, 1921-1925 inclusive, be put into
a surplus fund. This. by the way is
an additional reason why the levy
had to be made higher this year as in
1919 and 1920 the $3.50, 100000 derived
from the cent tax was used for pay
ing losses direct whereas, now the
Hail Indemnity Tax alone must pay
for all the indemnity. This alone
makes for an increase of approximate
ly cents per acre. 1t should be borne
in mind, however, that after the Hail
Insurance Fund has once been built
up, the fact that indemnity for all
losses will then be paid in the fall,
will more than make up for the sacri-
flee the cent flat tax for five years;
as after 1925, the cent tax will be
discontinued.
Certifying Losses
The Department is now certifying
the losses and for, the following
counties the lists ARE completed and
will be in the State Auditors office
by November 3rd: Adams, Barnes,
Benson, Billings, Bottineau, Bowman,
Burleigh, Burke and Cass, and war
rants will be sent out about the first
of December, if not before, not only
for the above named counties, but for
every county in the state, if possible.
Warrants draw interest at per cent
from December 1st till they are call
ed for payment by the State Treasurer.
The State Treasurer handles the
Hail Insurance Fund, and makes pay
ments on warrants drawn by the State
Auditor. From reports, it appears
that some people in the State are un-
der the impression that the Hail De-
partment is responsible for the nom
payments of the outstanding Hail
Warrants. The fact is that nobody
can help it. The County Treasurers
remit to the State Treasurer all Hail
Taxes collected for the month, and the
State Treasurer calls for payment
warrants to the extent of such col
lections. If all the Hail Taxes had
been paid in, the State Treasurer
would be in position to call in every
outstanding hail warrant; as it is, he
must naturally wait till more money
comes in from the different count
ties. We understand that the war
rants for Logan County are the last
ones called, this is up to and in
Guiding No. B 1886.
The new Hail Law. Section 10, pro-
vides that the Hail Tax is to be de-
Quoted from the indemnity before
warrants are issued. This is indeed
wise Drovis on but entails an end
less amount of work for the Depart
ment, as over 21,O00 claims must be
re-checked and taxes figured on ev-
cry, description of land in the State.
insured with the Department and on