The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1921-12-29
HAIL INSURANCE
: DEP DEPARTMENT REPORT

NOfJn QakOta increased from lZ,UOO
in 1919 to 14,140 in 1920 and Fl 1,O69 in
1921, according to the preliminary re-
port for 1921 issued by Martin S. Ha-
gen, head Of the hail insurance depart
ment. Every county in the state suf-
fered from hail losses during the 1921
season, Williams and Dunn suffering
to the greatest extent, with 1,615 and
1927 losses respectively. The total
number Of adjustments for hail losses
made by the state for the 1921 season
was 20,983 and the total amount Of the
adjusted loss was $4,874, ,36O.32. -.
The increase of $500 losses in one
year caused a severe strain upon the
machinery Of the department, espe-
cially as the losses came in one Of the
shortest growing seasons ever exper-
fenced in North Dakota. It was neces-
sary to place extra adjusters in the
field, to train them by a series Of
schools and inspectors trips and with
an insufficient number Of adjusters ~
complete the work as soon as possible.
Hit by Crop Failure
Another factor that entered into
the trouble Of the hail insurance de-
partment was the crop failure in the
western part Of the state. In handling
this phase of the conditions the report
says:
"Especially in the western part Of
the state~thousands of acres Of grain
that on June Is promised a yieE suf-
ficient to warrant protection by hsur-
ances were, in a few days, literally
burnt up. The time for filing with
drawal for such crops had passed, un-
less an extenson of time had been re-
quested, and Their when hail later oc-
cured and loss reported, the depart
ment was put up against the PROPOSE
tion of whether or not. to allow in
demnity on such grain that naturally
would not have yielded enough to pay
for harvest and threshing. In order
not to penalize the farmer who put in
his crop and carried the insurance in
good faith and in fairness alse~to the
rest Of the taxpayers who contribute
to the half fund, but who had no losses
a ruling was made to the effect that
adjustment would be made irrespec-
tive of stand of grain or value of crop
at the time loss occurred, provided
the claimant gave proof he had work.
ed the land in husbandmanlike man.
ner, with the further provision that
no indemnity would be allowed for
loss on abandoned fields. oricrops too
poor to harvest, if loss occurred
after the time such crops would have
been harvested had they been worth
it. The fairness of such a ruling will
readily be understood, if the state
hail department be considered great
mutual institution.
Laws passed at the last session of
the legislature to make mere effec-
tive the working of the previously
passed Legislation is commended in the
report. One Of the laws, however,
added largely to the grief Of the de-
partment by stipulating that taxes
should be deducted from the indemnity
before the amount of the loss is paid.
In speaking Of the working of recent
laws, the report says:
New Law Commended
'The new state hail insurance law
passed by the last Legislative assem-
bly, is in many respects great i'm
provement over the 1919 law. Many
ambiguous provisions of the old law
were made plain,~ such as sections 9
and II, which relieves the department
from liability for loss on crops grown
on. lands not listed for indemnity tax
as provided by law. This was former
ly much disputed point and the only
action in which the department has
been made a defendant was brought
for the purpose of recovering for loss
when lands were not property listed.
The supreme court held that the de-
partment was not liable and thus put
a stop to what might have been an
endless amount of litigation.
"The new law carries several very
important new provisions, such as the
privilege Of filing application for ex.
tenson of time for withdrawal from
indemnity tax; to apply for So addi.
tional insurance and to insure crops or
homestead and Indian lands. It also
specifics amount Of penalty and in.
terest on delinquent hail taxes, makes
provision for accumulation of thu
three cents per acre flat tax for five
years into a surplus fund and discon.
tinuing the flat tax after the yeal
1925. This last provision is by far thu
most important change in the law ant
will prove Of great benefit as withir
three or A years the department vii
be able to pay all the indemnity tht
same year in which the losses occur.
"Section 10 Of the law, in part, pro
vides that the department is to de
duct from the indemnity the hail taxes
1 This is a wide and fair provision, bu
nevertheless, causes the department
a great deal Of grief trouble and un
/ forseen expense. To check $4,000 ad
Ejustment for percentage Of indemnity
correct acreage, withdrawals, exten
sion Of time, additional insurance; Z
figure the hail tax on each description
covered, to deduct such tax and to Ger
4 tify such deduction to the various co
unity auditors, to distribute the balanc
Of the indemnity in proper proportion
! to owner, tenant or the assigness, T
4 certify the claims to the state audito
tand to finally mail out the warrant
I to the respective claimants is q tas