The New York herald., 1922-12-06
STODDARD HALTED
Big INSURANCE WAR
State Superintendent Tells
How Casualty Companies
Submitted to Threat.
TO RAISE AGENTS. STATUS
Underwriters in Convention
Here Prepare Bill to Be Sub
mitted to Legislatures.

! Casualty companies checked them
selves on the brink of an insurance war
here this autumn, Francis r. Stoddard.
Jr. State Superintendent of Insurance,
told the national convention Of Insurance
commissioners executive committee, In
midwinter meeting yesterday at the
Hotel Astor.
Peace was made on the basis of
sweeping reforms in cost and manner
OF getting new business, which Mr.
Stoddard pronounced among the great
est strides the Eastern business had
taken. His recommendation that the
New York plan be adopted nationally
to make casualty practice uniform was
referred to a special committee of six,
of which he was named chairman:
| Insurance commissioners of thirty
| States attended the convention. Unani-
| nous approval was given to the draft
Of law to demand higher qualifications
| for insurance agents and to weed out
| incompetents. This was submitted by
Thomas B. Donaldson, Commissioner of
Pennsylvania.
The Donaldson plan, It was said, was
worked out by the National Association
of Insurance Agents, who met mean
while on another floor. The convention
voted to prepare bill for submission
to all State legislatures
New Insurance Laws Urged.
Laws to forbid conversion of mutual
into stock companies and to authorize
State supervision of fire and casualty
rates were among recommendations
made by the committee on laws land
legislation.
Other insurance groups also meeting
yesterday at the Astor included the In
surance Federation of America, National
Association of Insurance Agents, Ma
tional Association of Mutual Casualty
Companies, National Association of
Casualty and Surety Agents. Group Ac-
cident and Health Committee and Cas-
ualty Information Clearing House. The
Association OF Life Insurance Counsel
met at the Bar Association AZ West
F'orty-fourth street. Most of the ses-
sions will continue to-day.
The Association of Life Insurance
Presidents will meet tomorrow.
Legal problems presented by the risk
business were discussed at the meeting
of the Life Insurance Counsel in adj
dresses given by r. B. Alberson. asso-
ciate counsel, Bankers Life Insurance
Company Of Des Moines; l.. l.. Bonn
berger. general counsel, Northern States
Life Insurance Company of Hammond
Ind; Harry w. Reynolds, attorney,
Aetna Life Insurance Company of Hart
ford, and Walter II. Eckert, general
counsel, Peoples Life Insurance Com
pany Of Illinois of Chicago. The annual
election will be held to-day and the
annual dinner at the Waldorf-Astoria
tonight.
State Superintendent Stodaard de-
scribed for the National Convention OF
Insurance Commissioners how the Of
fering of bonus to agents by one of
the Eastern casualty companies. follow
ing protracted cutthroat competition
throughout the field, had produced a
crisis. Though not related by Mr.. Stod-
dard, this bonus was known to be $40
on and above 5000 new premiums, Sl2
on each additional 500 new premiums
and $3.50 as a grand prize to the agent
| or broker writing the largest volume
of new premiums.
Other Companies Accused.
The company justified itself to Mr.,
Stoddard, he said, by accusing the other
companies Of similar practices.
Il have always had theory" Mr.
Stoddard said yesterday, that an in
surance company could get more busI-
ness by rendering more service than by
offering more to the middleman. A
war threatened among the companies
and i called their representatives to-
gether and asked them to settle the
question or-themselves and without
State interference. / told them II they
did not settle 1t. would.
There was a lot of disagreement at
first on the report drawn up, but II
was eventually ratified by forty casualty
companies. although three were dissatis-
fled. The matter goes into the question
of production costs. insurance manage
ment and other cost problems.
The ultimate hope is 1t will mean
better service TO policy holders. It will
cut out the scramble for business and
lessen the number Of agents. 1t will
mean more service at cheaper prices.
But the work will not be done properly
II it is not extended all over the United
States"
The conference. where the houseclean-
ing took place. and which based reforms
upon what was described as a new
system of rating exchanges for the vari-
Gus forms Of insurance. was held the
latter part OF October, at 120 West
Forty-second street. Jesse s. Phillips.
former Superintendent of Insurance, was