Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-21
INSURANCE RATES
HELD EXORB|TANT
District Chief Tells House
Committee Premiums
Here Too High.

After District Superintendent of In
Surance Thomas NJ. Baldwin haC
charged that the National Board OF
Fire Underwriters in the past had sent
"a lobbyist down to Capitol Hill tC
defeat proposed legislation which
would put control Of insurance rates
in the hands of the Districts insur'
ance department, removing them from
the control of the Board of Under
writer's, Chairman Gibson of Vermont
ut a hearing of the subcommittee OF
the House District committee into To-
cal governmental administration last
night assured him that the subcom-
Inittee would assist in every way in
pushing some insurance code for the
District toward final passage.
I'VE may not get it through at this
session" Mr.. Gibson said, but we will
try. 1t seems incredible that city
of this size, with the insurance bust
lIess transacted here attaining the
volume that it does, should have no
insurance code"
From Mr.. Baldwin the subcommit-
tee had learned that during the last
year fire insurance companies had
taken in some $22,319 GAS in premiums,
sustaining only $6,619, S97.67 in losses.
Checking further into the matter, 1t
was learned that in Washington, de-
spite the fact that absence of large
industrial enterprises mitigateS the
risks involved to a considerable extent,
the losses were only 34.5 per cent Of
the premiums paid for insurance.
Premiums Too High"
1.-THE premiums are too high" Mr..
Baldwin said.
do you think that these insurance
.av,fn trEF iy1Cr
profits" Mr.. Gibson asked.
Il think so, Mr.. Gibson" replied
the superintendent of insurance.
Representative Houston Of Della
ware questioned him about the general
fire protection afforded in Washing
ton, and Mr.. Baldwin replied that this
city would be the best protected in
the country when a high-pressure
water system was installed and con-
nected with fire plugs.
There are no big industrial risks
here" Mr.. Baldwin pointed out, land
consequently this is a safer city with
respect to fire hazard"
ut is elemental" Mr.. Houston inter
jected, that the rate of insurance
should be comparative to the hazard !"
With the proposed insurance code
and the passage of bill regulating
life insurance companies to broader
degree Mr.. Baldwin said that all steps
needed to meet the present situation
and to remedy defects in the system
at present could be met.
He pointed to the inadequacieS of
the present laws For instance, he
said, the insurance superintendent
Fas empowered to issue licenses, but
Tas without power to revoke them,
tegardiess of the situation arising, ar d
this had been decided by courts. The
Insurance Department could do moth
ing, he said, to prevent further opera
ton In Washington of an insurance
company which the superintendent
might know to be on the very verge
of insolvency.
Washington'S insurance laws of the
present time are inadequate, he indi.
Gated. and the force which the super
intendent has to take care of the
duties of administering the regula-
tons is a total of eight persons, in
Guiding himself.
Last year the taxes OF insurance
companies, together with license fees
for brokers, general agents and insur-
ance solicitors, amounted to 100000,
Mr.. Baldwin said. The appropriations
with which his Office was conducted
fotaled about 100000, he declared.
And this, he added, in the face of the
fact that approximately 500 insurance
companies are doing well over $22,'
900, 900 worth of business in the Dis
trict every year.
The force cannot properly serve the
people of the District, he declared. in