The Washington times., 1927-11-02
Excessive Fire Insurance Rates
in the District

The Bureau of Efficiency its investigation Of District
matters has done notably good piece of work in its showing
that the citizens this city paying fire insurance premiums
that excessive and discriminatory to unusual degree
With the definite showing Of this fact long known in
general way the bureau recommends the Commissioners the
enactment by Congress Of modern insurance code that will
cohe the Commissioner Of Insurance with powers to put
end to determinations against the people Of the District
This code should recommended the financial
stability Of insurance carriers doing business here give the
District Government control of premium and settlement
Of claims and enable liquidation Of companies with impaired
capital.
The insurance department Of the District entirely in
adequate to perform the duties properly belonging to such
department Under law which will protect policy.
holders the bureau would be enlarged and equipped to per-
form its rightful duties.
District people will feel the marked injustice of fire in
rates here when they read that Or the period 1921
to 1926 inclusive the ratio Of fire losses premiums received
for the whole United States $685. while for the period
The ratio for the District 3S11.''
whole the companies retained 4 cents expenses Of
operation and profits while for the DISTRICT OF CoLUM
B1A THEY RETAINED 61.9 cents.
approximately the people of Washington are paying fire
insurance rates ONE-THIRD HIGHER than the average
throughout the United States taken from the viewpoint
premiums and losses.
There on this except that we have no
insurance code which gives the Commissioner of Insurance
right to put stop to it. Our insurance laws anquated
and almost useless to protect people against excessive
rates or financially weak insurance of any kind
The Efficiency shows that Washington maintains an
excellent fire department. that served with adequate
supply Of water and that fire hazards favorable
compared to other jurisdictions In nearly all ways they
far favorable because there the dense
on Of valuable commodities here found commercial
dustrial centers.
The insurance companies know and recognize this for the
insurance rates here $780, lower than in most cities
This does not remove the discrimination shown in the matter
of premiums received and losses paid.
The suggestion Of investigation of the facts by
mission before action by Congress- poorly founded The
facts already known They probably will not be disputed
by the fire insurance companies We need modern wise in
laws regardless of what the may be- The
Commissioner should be something than figure
head He should have power to act justly between the
people and the insurance companies whatever their line Of
business may be.
There is wasting time investigations by COM
mission Congress usually pays attention to the
mendaons and reports of commissions. 1t prefers to make
its own investigations.
Let Congress take this subject up and dispose of it, after
hearing the representatives Of all kinds of insurance
panies and the representatives of the public.
Nobody wants to injustice done the insurance COM
panies fair insurance law should not permit injustice any
where It should guarantee justice and fairness companies
and policy holders.
The question is not much of fight on fire in
companies which, doubt feel that in giving the
District much lower premium rates than given in most
cities they doing the right thing is question Of the
District having insurance code that will dscrmna
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