The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-08-01
INCENDIARISM
IS CAUSE OF
BIG FIRE LOSS
Heavy Increase in Losses of
Insurance Companies Dur
ing 1921 Is Shown
DEFALCATIONS ALSO
Increase Shown in Losses of
Surety Companies During
Readjustment Period

Incendiarism has caused immense
losses to insurance companies oper-
ating in North Dakota in the last
year, it is shown in the annual re-
port of S. A. Olsness, commissioner
of insurance. Losses during the year
1921 to fire insurance companies far
exceed those of other years in amount
and percentage Of the risks carried.
The condition, II; is pointed out, ls
not confined to North Dakota but is a
sequence of the rapid descent from
peak prices of 1919 and 1920, and is
general throughout the country.
The report shows that the stock
fire insurance companies of the coun
try operating in North Dakota COL
lected $3,491 ,531.53 in premiums dur
ing the year, 1921. and losses incur
red amounted to 4,0O3,439.84. This
is in contrast to the report for the
preceding year which showed the
companies collected $6,15O,474.69 in
premiums and incurred losses of 49,
626,1O8.2S The business included is
all that is written by fire insurance
stock companies, including hail and
tornado insurance.
Coincident with the losses sustain
ed by insurance companies is an in
crease in losses during the year 1921
for fidelity and surety companies,
the number Of defalcations being lar
ger than usual. The total amount Of
losses paid in 1921 was $181, ,04362 az
compared to $86,45O.27 in 1920, while
the amount Of the premiums collected
was $257,11O63 in 1921 as compared
to $s6,45O.27 in 1920.
Discussing the Increased fire loss
es the insurance commissioner says:
"Heavy fire uosses are complained OF
by all private companies writing this
line of insurance, except farm mu-
tuals. That incendiarism is playing
a large part in said increase of fire
losses is conceded. That the deaa-
ton in values of property insurance
at peak war prices is responsible for
and inducive, to such incendiarism is
also evident" I
Recommendation. a
Old line life insurance companies,
the report shows, wrote $35,341, 1880
worth of risks in 1921 as compared
to $63,2O8, 1890 in 1920,> while the
Examinations, which includes lapses,
death claim payments and cancella-
tions, was $49,ll2,947.9O in 1921 as
compared to $31, ,s74,629.15 in 1920.
The decrease for the last year Is said
to be due chiefly to lapses. However,
the number of new insurance COM
panies in the state during the last
year was 13 and it is anticipated that
the number will increase this year.
Recommendation made by the COM
missioner are for the most part re-
iterations Of previous recommenda-
tions. He urges, as did Insurance
Commissioner w. C. Taylor in 1914,
authorization for employment of an
actuary.examiner. He also urges a
law providing supervision over in
surance rates similar to the Mime
sofa law, the establishment of one OF
two standard classes of accident pol
icies, that the state provide accident
and sickness protection either as
separate department or as an extern
sion of the Workmen's Compensation
Bureau, that the standard policy of
life insurance be revised and that tho
insurance commissioner be made re-
ceiver for defunct insurance com
panies.