The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1931-01-14

nOunced, OlSneSS sail. The states
share IF the loss will be 500, TAI. ~,
according to the same revision. max
ing the total insurance from all
sources $733, 741.77
Olsness said he will tell the legiSA
lature that the fire insurance fund.
during the IL years it has been in
operation, has paid out $736 900 in re-
insurance premiums, figuring inter-
est at three per cent on the pay
ments. At the same time it has COL
lected $723 900 from the insurance
companies, including the capitol
building loss and $50 600 collected on
other buildings. On this basis, he
said, the state could lose a capitol
building every IL years and still be
ahead of the game as a business
proposition.
It has eve been his contention,
0lsness said, that the state should
carry its heaviest risks without as
sistance from private companies.
What he does seek. he said, is re-
vision of the law to permit the de-
partmcnt to handle reinsurance of
its public buildings on q business
basis.
In his statements to legislative
committees, Olsness said, he has al
ways contended that reinsurance
should be carried on such heavy risks
as the state capitol building and the
Irvine plant at the state prison. II
the law were changed, Olsness said,
he would place a five-year policy on
the Irvine plant and q few other
heavy risks but would carry all the
minor risks in the state fund. He
feels that when the five-year policies
expire the state fund would have
made enough money to assume all
the risks alone. If, for any reason,
this were not true, the state could
again reinsure its major risks. he
said.
Under the present law, he said, the
state is forced to reinsure some build
ings on which the state fund has
policies not in excess of $1,000. Pub
lie buildings on which reinsurance is
granted are valued at about $4,000
600. Olsness said.
Challenging a statement by H. +.
Murphy, local insurance man, that
the state fund had gained because
the legislature heretofore las chosen
to support him rather than Olsness
with regard to the reinsurance mat
ter, Olsness said this is not the case
and that the losses. to the Taxpayers
of the state will be heavier than ever !
in the future, now that the capitol
building hazard has been removed.
Murphy's interest, OlsnesS said, lies
in building up private insurance bus
mess rather than in protecting tho
state fund or insuring public build !
ings at the lowest possible cost. Be
cause Of this fact, OlsnesS said,
Murphy made q court fight against
Olsness' plan for the insurance de-
partment to place reinsurance di-
rect with the companies rather than
through agents living in the districts
in which the insured property Is 10
Gated. The idea, the commissioner
said, is that q heavy volume Of bust
ness should be handled more cheaply !
than business done in small lots. The
insuring companies agreed and grant
ed reductions In premium. In the
main these were made possible by
eliminating the commissions Of the
local agents.
The insurance department was sus-
tanned ~ the court. Olsness said. and
now is saving $4,000 annually by
reason Of the new method Of doing
business.
Olsness said the department could
reinsure all Of its big risks for about
SIC, 900 q year. whereas 1t will pay out
in reinsurance during the next two
years approximately SITS 900, most Of
it on small, widely scattered risks.
GOLF CLUB FISH POLE