Perth Amboy evening news., 1922-08-10
gUT LIABILITY
POLICY RATES
|eeping Reductions in En-
|pioyer's Insurance Rate
| Announced by futile.

TRENTON, Aug. 10.-Sweeping
auctions in Employers Liability
hsurance rates, averaging 20 per
Int were approved and promulgat-
by William L. futile, Jr., state
anking and insurance commissioner
yoday. The new rates go into effect
Beptember first, and are applicable
Dot only to policies written after
That date, but also to all policies
{how in force.
n The material reduction in manu-
fa~cturer's overhead costs, which, it
is estimated. will amount to $1,000
pc annually, as a result of these
3eductions in liability rates, is likely
to have the net result of making
possible the passage of a law next
II winter increasing the benefits award
ed workmen who are injured in in
#dustry. Last winter Assemblyman
Hershfield, of Passaic, got a law rails
ing h benefits through the assem-
bly,, but it was killed in the senate
d on the plea that increased compen-
4 sation insurance rates would result.
The reduction in those rates an
nounced by Commissioner futile to-
day nov that objection.
The reductions, averaged over all
classes of industry, amount to 20 IL
per cent. according to A. r. Law
renee, special deputy in charge of
the compensation rating and inspec-
ton bureau, which formulated the
new rate schedule. The average re-
duction for manufacturing
tons is II 1-2 per cent; for contract
ing occupations, "a IL per cent; and
for all others, 23 per cent. The ave-
rage premium charged at present is
90 cents per hundred dollars of pay
roll; after September 1, this will be
reduced to rs cents per hundred
dollars of payroll.
The revision does not include
~stevedoring OF maritime occupations
which involve legal complications,
and will be consideredtlater. Chemi-
cal occupations are also omitted,
since they were reduced about 20
per cent about a year ago.
This is the first time reductions of
great importance have been made
since the compulsory liability insur-
ance law went into effect in 1917.
There were reductions of about 5
per cent in 1919 and a yea later.
The cut announced today is the first
ne to be based exclusively on the
Experience of the New Jersey Bank
ing and Insurance Department, US
ing figures obtained in New Jersey
industries.
Heretofore declared Assistant
Deputy Commissioner c. A. Cough,
IT was net felt hat Now Jersey
had had sufficient experience with
employers liability insurance on
which to base rates which would
be certain to be safe. After five
years, however, it is now felt that
New Jersey can stand on it's own
feet and need no longer depend
on the rating experience of other
states. Commissioner futile in
sisted, said Mr.. Cough. hat while
the new rates should be high enough
to give absolute certainty that no
company would fail to pay claims
against it. still, they must also be
reasonable, 50 as not to place any
saIpnecessary burden on manufacture
erA,-ahd through them, on workers
and consumers.
While The rates for most occupa-
tions are reduced under the new
schedule, /. was found necessary in
twelve classes to increase the rates
from 6 to 26 per cent. Seventeen
C-ccupattoilal classes were left at
the present rate. while the reduc-
lions are spread over about 500 re-
naming classes. The largest single
reduction is that for coal dealers
shipping by water and using power
machinery. Their rate is reduced 70
per cent.
That some classes had to be raised
in spite of the general reductions, is
accounted for, according to the in
surance officials, by the fact that at
the start considerable discretion had
Ito be used in fixing rates, subject
o later revision in accordance with
Vthe lessons taught by New Jersey
experience.
Copies of the new rates have been
prepared and are being sent to in,
surance men throughout the state.