Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-28
INSURANCE LIMIT
URGED BY BALDWIN
Would Keep Monthly Benefits
Within Income of Insured
to Prevent Fraud.

A recommendation that life. health
and accident insurance companies take
steps to prevent individual policy hold
ers from taking out insurance carry
ing weekly or monthly benefits in
>eoccess of the total income of the policy
holder. Is made by Thomas M. Bald
win, superintendent of insurance of
the District, in his annual report to
the Commissioners today.
when such policy holders know
that they can obtain unlimited benefits
for accident or illness many times
they yield to the solicitation of I'M
scrupulous agents and an a result take
out more insurance than they can pos
sibIy pay for. This means the lapsing
sooner or later of policies, thus caus'
ing trouble and financial loss to both
the companies and their agents, as
we'll as dissatisfaction to the insured,
he said.
Cites INSCRIPTIONS Doctors.
super,ntendent Baldwin further as
serted in his report that there are
doctors in the District who tor a
consideration will make out nctltous
sick or accident claim blanks, charging
anywhere from 81 to 50 for eecn, anu
as II usually takes but snort Wnhe
to fill out a blank, IL means hi"ne'
very easily made.
NJ baldwin expressed the belief
that some insurance companies give
their representatives too much iaIi-
tude in the payment of claims. II
one agent can pay claim more
promptly than his competitor the
s,,perintendent said. IT means q new
business to him many times.
IAN agreement should he made De-
tween all these insurance concerns as
To the maximum amount of weekly OF
monthly benefits that will he paid 10
any policy holder, which in no case
can exceed the total income OF the
insured" the superintendent recon-
mended. Each application for insur-
ance should show the total amount
of insurance in force, as well as the
name of each company, and Wnen IL
is discovered that there Is over-insur-
ance, the benefits should be pro-rated,
and accordingly reduced to the proper
basis"
Disapproyes Compulsory Insurance.
Mr.. Baldwin told. the Commission
ers In his report that the subject of
compulsory automobile insurance0will
in all probability be brought up in
Congress in the near future.
Discussing this statement in his re-
port. Mr.. Baldwin stated today that
he was opposed to compulsory auto
mobile insurance. The reference to
this question in his report follows:
Massachusetts has a compulsory
automobile insurance law which goes
into effect January next and which
is causing no little concern to that
State. Up to a very recent date no
agreement had been arrived at as to
adequate rates. 1t is the opinion OF
those who have made a very close
study of this question that the solu-
ton Is not with insurance compa MES
but with the police court. Jeiling
reckless drivers for long sentences.
1t is believed. will do more to reduce
accidents than any other method pos
sible. Mention is made here OF this
matter to call your attention to what
is being done elsewhere"
The report shows that during the
calendar year 1925, insurance COM
panies in the District collected total
of s22,S19,645.2 in premiums and paid
out $6,619,S97.6S in losses. The cor
responding figures for the previous
year were 1857, 322.5S in premiums
and 13,Ss4.33 in losses.
An improvement over the precedin &
year in the percentage Of fire losses
to premieums Is shown by the report.
In 1924 fire premiums amounted to
$2,234029, with losses OF 1871 .674, Civ
ing a percentage in losses Of 80 per
cent. For last year fire premiums
amounted to $2,521,79S. with losses of
SS47, $3.50, or a percentage of only slight
ly more than 33 per cent.
1.-THE District of Columbia enjoys
very low fire insurance rates, owing
to the fact that we do not have any
large industrial or manufacturing
plants found In other cities. and
further, because we have wide streets
and up-to date. well equipped and
efficient Fire Department and no
overhead or dangerous electric
wires in the congested section" Mr..
Baldwin said. with the installa-
ton Of the proposed new high-pres-
sure water system in the more haz-
ardous sections there is no reason
why fire Insurance rates should not
be even lower in the District"
The superintendent expressed re-
gret that a new insurance code was
not enacted at the last session of
Congress, but expressed hope that
the various groups would get to-
gether before the next session opens
lHe pointed out that the life insurance
groups were in agreement on their
portion of the proposed new code and
that~a separate bill liz now pending