The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-01-15
NEW METHOD OF
REACHING HAIL
RATE PROPOSED
Zcning System BY Counties
Based on Experience Urged
BY Department
FLAT TAX PROPOSAL
Department Would Restore
Two Cent an Acre Tax
Levy on All Lands

A bill providing for complete re-
vision of the hail insurance business
of the state has been prepared by
the state hail insurance department
and submitted to some members of
the legislators in the form of a sug-
gestion. 1t is probable some changes
will be made should the measure be
introduced, according to Martin Hag-
en-, manager of the department.
The proposed measure would pro-
vide two cent flat tax, to be used
both for building up a surplus and
paying indemnity losses in any one
year; maximum hail insurance rate
of IL percent of the risk of the de-
partment is fixed, and a zoning sys-
tenn provided under which each coun-
ty would be placed in one of four
different classifications, according
to the amount Of risk.
The previous zoning plan worked
out by the department-dividin the
state into four districts--is aban-
doned under the new plan. The hail
insurance flat tax. formerly three
cents an acre, now one cent an acre,
would be raised to two cents an acre.
The permanent surplus Of the de-
partment is set at S5,OOO,OOO.
The measure provides that there
shall be four districts for rate-mak-
ing purposes and the per acre costs
of the nail indemnity tax shall be
based on the following proportions
between the districts: First district,
S; Second district, 6; Third district,
Z; Fourth district, S.s
Establishing Rates
The bill provides the following
method for establishing the district
rates: provided that for the pur-
pose of levying the acreage indem-
nifty tax, the state is hereby divid-
ed into four districts, the compost
tion of which to be determined by
the Insurance Commiss ioner and the
Manager of the Hail Insurance De-
partment at the time levy for such
indemnity tax is made. Provided
further than the basis for district
ing shall be the actual cost of the
indemnity allowed and the acreage
insured within the county. Provid-
ed that District No. shall be com
posed of all such counties showing
for such year an actual cost Of not
more than 3 percent of the risk car
ried; District No. 9 over 3 percent
but not more than percent; Dis
trict No. 3 over percent but not
more than Z percent; District No.
over Z percent. Provided further,
that when such levy for hail indem-
nifty tax is made, each of the four
districts shall be considered unit
and the rate and actual per acre
costs of such indemnity tax levied
shall be based on the following pro-
portion between the Districts: First
district, S; Second district, 6; Third
district. z; Fourth district, 8.
The bill provides that the hail in
surance permanent surplus shall not
exceed $5.OO0,O0O on October 25 in
any one year when the levy for the
hail indemnity tax is made. When
the fund exceeds $5,0OO,OOO, "any
such excess shall be turned back in
to the state hail insurance fund to
pay indemnities for losses for the
then present or next succeeding year
and, the two cents flat acreage tax
shall thereupon and thereafter be
used for paying indemnities for loss
es for that or the succeeding year or
years"
Using Surplus
"Provides further" the bill goes
on, after giving the district rates,
that if the amount necessary for
such indemnity tax for any one year
equals more than IL percent Of the
risk carried by the Department for
such year, in order that losses may
be paid in full, the Commits sioneI of
Insurance may use any monies in
the surplus Of the Hail Insurance
Fund to pay such difference between
the monies actually obtained by the
levy for hail indemnity tax and the
amount actually needed to pay all
such legal indemnities for each year,
and the Commissioner of Insurance
shall in the following or any sue
ceeulHE year or years Wnen the IN
demnity for hail losses as above pro-
vided is not in excess of an average
of IL percent Of the risk carried by
the Department, included in the levy
for hail indemnity tax such sum or
sums that may be necessary to reim-
burse the surplus fund for such mon
les borrowed from such fund. Pro-
vided, further, that the Commission
er Of Insurance is hereby authorized
to use any necessary amount out of
the surplus fund to pay in full the
indemnity for losses suffered during
the season of 1928, and such neces-
sary amount is hereby expressly ap-
propriated out of such surplus"
NAMED COUNTY AUDITOR
n