New-York tribune., 1921-07-24

nation as to the rental price but l
would want to know what fire insur-
ance rate ! woslld have to pay. While
no guarantee against destruction by
are, of~course, low premium rate in
dicates that the construction is good
and the danger from fire miniInized.
There is nothing like modern scientific
rating by schedule to strip off the gin
rerbread and make building trans
parent
Schedule rating is your fire insnr-
nnce balance sheet of debts and
credits. On the debit side are the fire
breeding and fire spreading dehcien-
cias, ON the credit side the FIRE resist
ing, fire preventing and fire extinguish-
ing factors As these matters are
largely under the control of the
owner, we call this Self-eiertive rat
ing system. 1t is rightly named
Pause for moment and imagine the
thousands of ramifcasons that must
enter into schedule rating. No two
buildings are alike; no two occupan-
cies alike; fire resistive and fire breed
ing conditions are all different
Designed at first for mercantile and
manufacturing properties and other
large structures used for business pur-
pSses, schedule rating has been ex-
tended to apartment houses of larger
area. though not yet generally to aver
age dwellings 1t takes into considera-
ton VARYING features of each lndl-
visual risk and looks also to the con-
lagration possibilities and probabili-
tias of the city IN which the property
is located, including width and grade
81 the streets. police and fire depart
r-Ant efficiency and other factors that
rfight have bearing upon damage
ability" from fire.
gThere is nothing secret about the
way YOUR rate is made. 1t is set forth
IA this balance sheet Of debts and
credits Gail printed out in detail and
expressed in dollars and cents) and
y5u or your authorized agent or broker
ray have a copy In fact you should
sgudy this balance sheet carefully If
you would know how your premium
rate may be still further lowered by
improving the fire resistive features OF
your property.
-Four schedules are not perfect-~no
man made system is-but we are sin
cerely trying to perfect this Self-elec-
tive plan Of rating for your sake as
we'll as our own. 1t is one of the ano-
Rallies of fire insurance that we, as
underwriters, would rather insure low
than high rated risks. So we bend our
cherries toward inducing you so to
perfect and safeguard your property
that a low rate will be produced Every
time we can by this method prevent q
fire loss-and every fire in large city
is the seed of q confagration-we re-
,iuce the cost to you, furnish an ex.
ample to others, conserve the resources
&C the country and possibly make some
money ourselves. Yours is the short
but ours is the long road to profit.
About the only classes of properties
today not generally rated by schedule
Are average dwellings and risks Of like
character. Logically ali such proper
ties fall into certain groupings baaee
,ipon construction and take the same
nr q fixed or fat rate. We term 1t {
isTainirnum" rate It is quite expen
sive to rate dwellings by schedule
there not being enough oitferent'atio'
in the individual risks, which arr
grouped by grades OF constructor
called "classes," to make an appfec1a
ble difference, and the premium rate Il
so low to start with that the variation
is likely to be only a few cents eithe
way. The trend, however, is towar'
Che application OF schedule rating tt
cven these few exceptional classes.
The machinery for schedule ratin
is enormous. Practically every fir
loss in the United States sustained b.
stock COMPANIES is now classified as t
cause, construction of the building
occupancy--everyth ything 1t is a hercu
lean Job. We are learning to measur
tho "damageability" of property o
the many kinds Chow susceptible t
fire and water damage it isl; tn
BORIS property); what breeds fire
spreads fire, and what puts out fire
All this is reflected in basis rat
which may be termed our manufactur
ing cost for better understanding. I
this we must add our home Office eS
penses; the charges we have to pa
for public supervision, and fees an
licenses, to the forty-eight states o
the Union; taxes, Exceptionally hig
taxes they are too), and the cost 0
inspections, reinspectioos and wha
not, all of which may be iikened to tn
"jobbingD of manufactured article,
though there is. OF course, much dii
ference. Our retailing process come
when the finished product-the polio
contracts delivered to you at
given rate through local agents Q
brokers. In addition to all this, @
course, comes the constant stream c
FIRE losses and their adjustment an
payment.
Every agent and every broker al
lending their influence TO induce yo
to make the changes that will mab
your property safer and thereby secui
credits in your premium rate; induc
ments that make the cost to you lowe
Every rating organization in the coul
try has an expert staff that lis ey,
at your service for this specific pu
pose.
II you know of any other busine
that is SO ready and so willing, eve
so anxious to give you imm edlate co
cession ia price for doing your obvio,
duty to yourself, your community al
your Nation--well, would like to kno