Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1921-11-19
NEW SYSTEM OF
STATE INSURANCE
Perlman Submits Plan Providing For
Separate Fund to Protect The
States Property.

AS a guide to the Board of Public
Works in determining the best meth
I'd which the State can employ in
,..acing insurance on its various prop
critics, Philip b. Perlman, Secretary
of State and also secretary to the
Board, has compiled data showing
the practices in 10 other state of the
Union. Mr.. Perlman has transmitted
his findings to the Board of Public
Works in a 16-page document.
The Perlman researches show that
four States-Florida, North Dakota,
South Carolina and Wisconsin-have
passed legislation under which public
property is insured in State fund
by the same method employed in
insuring with private companies.
Fund Ii Cumulative
About the operation of the plan in
South Carolina, Mr.. Perlman reports
as follows:
provision has been made to insure
the property of the state, as well as
the counties, cities, villages and
school districts. Premiums are paid
by the different departments and To-
calities to the State fund in the same
manner as if to private companies.
Starting with S7375 in 1900, the
fund has grown in 90 years so that
it now reaches almost 100000. When
the surplus reaches S1,000,000, the
income will be so large that all State,
county and municipal property will
be insured free of charge. The state
limits its liability to $4,000 on an
individual risk of brick or stone
buildings, the balance being reinsured
in private companies.
Premiums Gradually Decrease
"Similar provisions are now in
force in North Dakota and Wiscon-
sin. In these states, however, the
fund insures individual risks up to
100000, the balance being reinsured
in private companies. When the
fund in South Dakota reaches 10 per
cent. of the risks, the premium rate
will be lowered; until then the prem
ium rate is the same as that charged
by private companies. In Florida
premiums are to be paid only until
the fund reaches Sl50,000."
The South Carolina plan has been
attracting considerable attention in
Maryland and the adoption of such
a plan, "in principle at least, by
this state would not be surprising.
Mr.. Perlman suggests, however. that
"if the system of insuring in private
companies is to be continued, all of
the insurance be placed by the State
Treasurer or by the Board of Public
Works and the premium be paid out
of one appropriation"
Mr.. Perlman finds that l3 states in
sure state property in private insur-
ance companies; that Is states carry
no insurance. He says:
Pennsylvania Has Permanent Fund
"Of the states which carry no in
surance. ten have provided emergency
funds, from which fire losses may be
paid without awaiting action by the
Legislature. They are California,
Illinois, Massachusetts,. Michigan,
Minnesota, New Hampshire, Pennsyl-
vania, South Dakota, Tennessee and
Washington.
"Of the above states, three have
set aside fire insurance funds. used
for no purpose other than to replace
losses. These are Minnesota, Penn
Sylvania and Tennessee.
at should be noted that Pennsyl-
4
from different permanent sources of
revenue. When the fund reaches
81 900 900, the excess is to be trans
ferred annually to the general treas
ut.v