Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-10-07
MONK DEFENDS OWN STAND
ON MOTOR INSURANCE RATES
Massachusetts Commission
er Answers Lieut.. Gov.
Alien in Fight.
Says He Consulted Private
ACtuary in Determining
CIaSSificati0ns.

Commissioner Monks side of the case
in reply to Lieut. Gov. Allen.
Commissioner Monks letter to Lieut.
Gov Allen is as follows:
II assure you that have given much
serious thought and consideration to
the suggestions you have made to me in
our conferences and in your letter OF
August %, 1928, but I regret to say that
1 cannot agree with you in your con-
illusions.
THE compulsory motor vehicle in
surance law provides that the commits
sioner of insurance shall, after due
hearing and investigation, fix and es-
tabliSh fair and reasonable classical
tons of risks and adequate, Just, rea-
sonable and discriminatory pre-
MUM charges to be used by all COM
panies, and from time 10 time may,
by writtenSorder, after due hearing and
investigation, modify, alter or :evise
such claSsifications or any part thereof
or increase or decrease any premium
charges whenever he deems it proper,
eXpedient or necessary to secure or
maintain fair and reasonable classical
tons and adequate, fair, reasonable and
non discriminatory premium charges.
:'The sole responsibility for action
under this law is upon me, and me
alone That duty am now perform
ing to the very best of my ability and
experience.
II have found that in order to pro-
vide adequate and non-diScriminatory
rates, a revision is proper and neces-
Sary, and the proposed rates for the
year 1929 are the result of that revi-
sion. These rates are based on the
reported experience of the insurance
companies, from whom such expert
ence must of necessity be obtained, and
that fact is so recognized in the law.
I have been guided by sound insurance
rate-making principles and was adj
vised as to the soundness of those
principles by an independent consult
ing liability insurance actuary en-
ployed by me in 1926 and paid $500
for his expert services by the State,
and also advised by the attorney gen.
eral in an opinion rendered June 6, 1926,
on my authority to make rates on a
territorial basis.
THE experience data and an analysis
of the reported figures and facts
demonstrate that the rate level now in
operation Is not producing adequate
revenue-that is, enough revenue to pay
the losses, loss expenses, other rea-
sonable expenses, and under reason
able profit, which factors are the test
of adequacy, These figures and facts
also show conclusively that there are
great many instances of group dis
ordinations to which many motor We
hicle owners of the Commonwealth
will be subjected if the present
schedule is allowed to continue. To re-
move this inadequacy and these dis
examinations is, therefore, my sworn
duty, and is the purpose of these re-
visions.
Il am well aware that a great many
complaints are made because many in
creases are found necessary In order
to carry out that purpose On the other
hand, may I point out that in eliminat-
ing these determinations there are
many thousands of motor vehicle own
erS who are entitled to and will receive
reductions in their 1929 rates or whose
rates will remain the same or will be
slightly increased.
"On the basis of the 1927 figures as
to the number of cars insured for
full year, the following will receive de-
creaSes: 143,l56.3 private passenger cars
made up as follows: 84,553.6 w cars
50,326.4 * cars and 8,276.3 'Y' cars,
65,O37.9 commercial cars, 2,9954 public
tClAC4CS, WIl6OcIl OU a SDcClIlGQ car
basis, and 6,85O.1 miscellaneous vehicles,
which figure includes 6,l4I2 farmers
trucks.
Those which viii remain the same
number '894.1 motor vehicles.
Those that will be increased no
more than 81, as a maximum, number
42,855.7, total of 261, 1895 motor
vehicles.
THE total number Of cars of all
classes and types insured for a full
year in 1927 was 550,8289.
Figures Significant.
THE percentage of all cars either
receiving a decrease, remaining the
same, or not increasing more than 81
is 47.526 per cent of the total number.
These figures are significant.
ut may be of interest to compare
the new rates with rates charged prior
to the compulsory insurance law for
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