Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-10
PROBE Of D. C.F|RE
INSURANCE URGED
Rates Too High, Says Super
intendent in Report to
Commissioners.

Expressing the belief that Washing.
ton is entitled to a reduction of at
least Is per cent in fire insurance
rates in view Of the present ratio be-
tween premiums and losses, Thomas
NJ. Baldwin, superintendent OF insur-
anCe, recommended to the Commits
sioners in his annual report today that
authority be obtained from Congress
tn appoint commission to investigate
fire insurance rates in the District.
After reporting that for the calendar
year. 1926. fire insurance premiums
here totaled s2,771 .390.32, as compared
with losses amounting to $90o,To7.2l.
the superintendent said:
"The National Convention OF lnsur'
ance Commissioners some time ago ad-
vocated a per cent Underwriting
profit on the fire business. IL the
average loss ratio on the basis OF oo
per cent provides for such a profit
if is certainly evident with even an
average loss ratio as high as 30 per
rent in the District that rates shouio
be reduced at least Is per cent.
Quotes Former Official.
Mr. Raldwin's report shows that
for 1926 the losses paid represehIeu
~ 2-5 per cent of the f1re insurance
premiums He also submitted tapu
latjon showing that for the ids1
80. tho average percentage OF
losses to premiums was SO i-lo per
cent. e. .,;s,-s
."rhe question of reratlns nre RISKS
IN the District has been aSltated for
quite a while" the superintendent
to1d the commissioners, ana as
earlv as 1918 former Supt. OF lhsut-
onoo NIosher called your board at
fention Ia this matter. In August
1918 reporting to your board ne
used the following language; MY IN
vastisa ton into the question Oh ilie
rates leads me to the conciusiol
that the District of Coiumnla
probably a more profitable neia lol
the fire insurance companies tiiai'
anv state in the Union.
s.Tn tha state of Virginia at the
nresent time a commission is at work
IN the question Of reduction or nre
rates in that commonwealth. II is
to your board tnat
mower be obtained from Congress Tor
tha anDointment of a similar commls
sion to investigate thoroughly the nre-
rate situation in the District, when
no doubt would be the fairest method
of arriving at a decision as 10
whether or not the District is enjoy
ing as low fire rates as it should"
Title Insurance Matter.
The superintendent also recon-
mended that the city heads hold
hearing soon to determine whether
the real estate title insurance COM
panies should be regulated under the
proposed new insurance code for the
District, which failed to receive action
at the last Congress, but when Is
virtually certain to be considered
again when the lawmakers reconVene.
The insurance department should
have jurisdiction over all fidelity and
surety companies doing business in
the District. except those dealing with
the Government only, Mr.. Baldwin
reported. He said the companies deal
ing exclusively with the Government
are supervised by the Treasury De-
partment.
The report again urges that Con
gress give the District an adequate
workmen's compensa ton law. one that
will not work undue hardship on en-
ployers. The superintendent called
the attention Of the Commissioners to
the Underhill and Bruce bills, under
which private enterprises would
assume the risks, and he pointed out
that they have the Endorsement OF
the Chamber Of Commerce of the
United States.
Premiums and Losses.
The total of all insurance premiums
paid in the District during the calen-
dar year 1926 was S23.S67 1886, while
the total of all losses paid was $7.131,-
220.67.
For the preceding year the totals
were: Premiums, 22,319 ,645.29. and
losses. $6,619, 9,897.6s. Thus in 1926
premiums gained $1.547.5 .5S6.27 and
losses increased $511, ,322.99.