The chronicle-star., 1921-02-25

This was finally accomplished after
somethink like SO life insurance com.
panies had operated for sufficient
number of years to determine what
an adequate rate was, expense OF
management, considered. The com
bined experience thus created, worked
out in detail, resulted in what is
known as the American experience
table of mortality, and, later, as the
actuaries combined experience table,
the two being very similar, but vary
ing in some minor respects.
The laws of this state specifically
provide that, in valuing their certif-
Gates, one or the other of these stand
ard tables shall be used by life in
surance companies. Why? To in
sure safety.
1t took the fraterna world some
what longer to appreciate the abso-
lutte necessity of a reliable standard,
so that insurance would not be sold
below cost, to the undoing of the So
cieties. AS a result, this state, and
nearly all other progressive states,
have adopted what is known as the
national fraternal congress table of
mortality as a minimum standard for
the valuation of fraternal societies,
permission being given, at their op-
tion, to use a higher table, but one
OF the other must be used.
Having said this much in relation
to these most important lines of in
surance, what can be said for the fire
situation?, Unfortunately, the fire in
surance world has neither an Ameri-
can experience table, as used by the
life insurance companies, nor the. ma
tional fraternal congress table of NOR
tality, used in the fraternal world, but
is either forcel to inspect each risk
separately, at an immense cost, or to
have the service done by central or
ganization, similar to the Mississippi
Inspection and Advisory Rating Com
pany of Vicksburg, at minimum
cost.
Either that company, or similar
company, has been operating in Mis-
slssippi ever since fire insurance was
offered for sale herein. Prior to the
organization of the Vicksburg COM
pany in 1902, identically the same
service was performed for the fire
insurance companies by the South
eastern Tariff Association, which as
sociation continues to operate over q
large part of the SOUTH but does not
operate in Mississippi, the same serv- |
ice being rendered by the Vicksburg
company.
The insurance commissioners, at |
least since 1915, have recognized the
necessity for company of this kind, |
and have adopted a uniform law for
enactment in all of the states. Many |
of the most progressive states spe-
require that insurance COM !
panies shall use service of this kind,
because of efficiency and economy, to
the end that all people purchasing in
surance obtain their insurance at the
same rate.
The Legislature has declined to
place the Vicksburg company under
supervision. 1t cannot supervise it
self.
From 1902 to 1915 the fire insur-
ance companies paid out for property
destroyed by fire 64.4 per cent of the
premium receipts. From 1917 to
1919, the three most favorable years
n the states history, they paid out
or fires 1872 per cent of the premium
'eceipts. Average for the period 500
Der cent.
From Best Insurance Report, con-
'idered standard authority on all
matters of this kind, the underwrit-
ng expenses, including agency COM
missions, special and local agents
'ees and taxes, amounted to AL per
,ent, which, added to 500 per cent,
makes the total of $1.04, which means
or the period covered from 1902 to
-9l9, inclusive, for every dollar of
insurance collected from the people
If Mississippi, companies pay out [
'tO4, nearly all of which was paid
o the people of Mississippi. This is
N average. The figures for the
arger and conservative writing com
anles show up more favorably. {
As matters now stand, all hopes of ,
settlement of this most important =
uit out of the courts has been aban- :
oned. Several efforts have been
,ade to accomplish this settlement,
ut all have failed. AS you under !
tand, when questions of this kind J
ct before the courts, no man can {
Dretell when a final decision will r
e reached. The case will not be dis N
osed of before the chcancellor until o
une, the regular session of the chan n
cry court, and it is safe to say that a
hatever the decision may be an ap- =
cal will be taken to the state su- =
RENE court, where it is more than !,
kelly that several more montns will ,
E required for final settlement. In y
le meantime, the people of this state I
i'll have to get their insurance the
sst way possible, and desire to as
ire them that they will have my
sarty cooperation, but to warn
EN-. under no circumstances, to buy
or insurance solicited 9
Al 1