Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-10
FIRE POLICY PLAN
/. AR0USES PROTESTS
New Form Covering JeweIry,
Furs and Personal Effects
Is Opposed.
BY ROLLIN M. CLARK.

Announcement that fire insurance
companies will write generally a COM
prehensive inland marine" policy in
surfing personal property, such as
jewelry. furs. art objects and other per-
sonal effects, against all insurable haz-
ards Is arousing vehement protest on
the part of casualty companies. They
view this policy as an encroachment of
the fire companies into the casualty
underwriting field, at least TO the ex-
tent that casualty hazards, including
burglary and theft, are covered.
New Form Developed.
Marine insurance has always been
written in this country by fire COM
panies. 1t is essentially transportation
insurance. covering property against all
hazards of the sea. When a need de-
velopei for protection against the risks
Of inland transportation, form of in
surance called inland marine was de-
veloped, and this too, was written by
the fire companies.
AS long as this remained strictly
transportation insurance, the casualty
companies did not object, but recently
there has been a tendency to issue
policies under inland marine forms
which in effect do not constitute trans
pcrtation insurance. Now such policies
have been, extended to inclu5e certain
casualty hazards
The casualty interests contend, first,
that this new form may not be per-
miSSible under existing State laws,
and second. if it is. they also should be
permitted to write it on the ground that
If fire companies can write casualty
coIerage, the casualty group should be
permitted to invade the fire field.
They point out that there are three
major divisions of the insurance busi-
ness-life. fire and marine and casualty
and surety. Each is designed to cover
different hazards, and under the various
State laws different Standa-d IDS are set
up for each type of company. 1t mas
been the American practice to keep
these lines separated, although there are
some students of insurance who believe
that the English system of multiple line
insurance, whereby single company
may write life. fire and casualty risks,
is preferable because of the possibility
of making UP losses sustained in one
branch through profits in another.
Single Policy Advocated.
Of late. in this country, there has
been advocacy of single policy cover
ing dwellings against all hazards for
which insurance may now be purchased
IN separate contracts. The personal
property form is of that type. The adj
vantage to the policyholder is that he
can get complete protection in one
policy and. because of the combination
OF beverages, there should be a saving
In aggregate premiums.
To write a combination dwelling con-
tract legal sanction must first be OBJ
tanned. Present State laws would have
to be amended. The personal property
form, however. may be authorized under
existing laws because it is classified as
| an inland marine contract. It is this
classification that is drawing the fire
of casualty executives.
While the actual business that may be
lost to the casualty companies through
TINS policy may be relatively small, their
business Is such at present that no de-
crease Is to be welcomed. In addition.
they see an opportunity of cutting into
the flre-1nsurance field if they can OBJ
tain official approval of their contention
tnat what Is sauce for the goose should
be sauce for the gander.
Copyright, 1917