Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-27

that 10 make the rates as 1a1r as pos
sible to everybody, the State should ap-
proach as nearly as it can to individual
or merit rating 1t Is impossible now
to fix individual rates, it will require
several more years in the ordinary
course to obtain the data that will make
it possible to say that Owner A shall
have earned one rate because he has
had no accidents resulting in claims
while owner B shall have another rate
because his cars have been involved in
accidents from which claims have
arisen.
There will be, however, in all proba-
bility another approach toward this in
dividual classification through rear
rangement of the groupings Of the cities
and towns. When compulsory insurance
became effective in 1927 the State was
divided into three territories or zones
This arrangement was continued for
1928. For 1929, however, the number Of
zones was increased to five and for 1880
to eight The change that was made
about year ago for 1880 was accom-
plished largely through the splitting up
of the old zone /, setting up Chelsea,
Revere and Boston as separate zones
from Cambridge, Everett, Somerville
lowed study of the accident expert
ence of motor vehicle owners in those
cities.
Determination of Rates.
During the past year, according to
Commissioner Brown, some other
places have reached the point where,
as he puts 1t, they can determine their
own rates. This means that there are
sufficient data available to make pos
slble the determination Of rates with
~ 49, anfF lwftvza -
certain municipalities or groups. Set
ting up a new zone does not mean that
the rates in that zone will be increased,
as was the case In Chelsea and Revere
last year. 1t may mean that they will
be lowered or will stay the same. while
other neighboring communities will be
affected either up or down. How many
new zones there will be Is as yet i'm
possible to tell, but it seems most likely
that there will be several.
Commissioner Brown has continued
the plan that he introduced In 1929 of
having special examiners study the
original records of the insurance COM
panies to check the results obtained by
the bureau, through which the COM
panieS' make their reports. year ago
last Spring Mr.. Brown secured the
consent of the Governor and council TO
the appointment of these special exam
liners numbering 10. They went into
the Offices of the insurance companies
land looked up the experience of those
companies with claims. The plan
worked so well that this year it has
been made a permanent feature of the
departments work. The result is that
the commissioner will have at hand
presently not only the findings of the
bureau but also the reports of these
special examiners. With three years
experience with compulsory insurance
to work upon, the determination of the
zones and the establishment of rates
will be upon much more definite
basis than ever before.
Many Cities Studied.
Included in the special examination
the past year Is the results OF compul-
sorry insurance in % cities. In these
places the examiners have followed up
individual claims and thus have OBJ
tanned exact information upon which
the commissioner may work in de-
termining the rates that are to be given
those cities This is the nearest APP
proach that has yet been made to in
dividual rating. The cities were chosen
In preference to the towns because the
larger centers Of population most quick
ly supply the information that is needed
for rate making.
An advance is also being made In
another direction, which is toward de-
termining for rating purposes the ex-
perience of fleet owners. This applies
more particularly to fleets of trucks,
BUSES and taxicabs than to passenger
cars of private owners. Data has been
obtained as to the accident record and
claims arising from fleets and this is
being studied for the purpose Of learn
ing what rates shall apply to such
fleets. 1t is possible to obtain the in
surance experience of fleets much more
quickly than that of individual owners
Accident Averages.
The average driver of a car, it has
been found, has an accident once in
1872 years and consequently eight out
of 100 have an accident each year.
Three years is not long enough time to
try by this system TO give each person,
a merit rating. A vast amount of cal
culating is necessary to get the expert
ence for rating purposes of city and
town, more to learn feet experience
and still more to determine individual
experience. With three years results
behind it, however, the Department of
Insurance Is in q stronger position than
at any time in the past to establish
zones and fix rates for them.
commissioner Brown empnaS12eS the
fact that the efforts that some of the
cities and towns have been making
the past year to improve the reputa-
lions in the matter of accident claims
of their inhabitants will not be of much
effect on the 1881 rates. The setting
up of rates for separate cities began
only last Fall with the placing OF
Chelsea, Revere and Boston In zones
by themselves. The efforts that have
heen made, especially in Chelsea, to
secure q better reputation have there
fore, been almost entirely in the present
year. In the making of the 1881 rates
the present year will not be Included.
because there Is no complete data. The
commissioner and his department will
consider the experience of 1927. 1928
and 1929, following up the disposition
Of claims made IN 1929 up through the
first three months Of 1880. The COM
missioner will take into consideration,
of course, any data that any city or
town can present at the hearing, but
in general. what has happened this
year will not have much bearing upon
the rating for next wear 1t will how