Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-11-02
INSURANCE FIRMS
BOOST RATE HERE;
ACTION PROTESTED
Announcement Public Liabil-
ity Charges to Rise
Is Hit.
AMBULANCE CHASING"
HELD ONE REASON
But Bar Head Scouts Charge,
Asks for Specific In
stances.

Announcement that certain classes
of public liability insurance rates will
be raised here, because Of IAN increase
In claim frequency and loss cost,
drew vigorous protests today from Dis
trict leaders.
The announcement was made last
night from the New York office Of the
National Bureau Of Casualty and
Surety Underwriters. The rate boost
affects nearly 100 kinds Of risk CLASH
fications for owners, landlords and
tenants written on an area and 'front.'
age basis, including apartments and
tenementss mercantile and office
buildings. churches, clubs, hotels
schools and stores.
The increase was attributed to q
variety Of conditions" including am.
bulance chasing" To this assertion
Walter M. Bastian, president of the
District Bar Association, replied:
1T is very unfair to give such an
excuse as ambulance chasing for the
increase in rates. They will have to
have better reasons It Is very sig
nificant that not one Of the companies
connected with the national bureau
has ever entered any complaints of
such pettifoggery in the District, or
has ever given us any evidence of
anything Of the sort.
Asks Specific Charges.
II know Of no ambulance chasing
here In this city. and II there Is any,
thing of the kind, I would like to have
it called officially to my attention as
president Of the District of Columbia
Bar Association"
Col. John w. Oehmann, District
building inspector, denied that 1.-The
physical condition of properties has
been allowed to deteriorate."
In the District, Col. Oehmann said,
the general condition of buildings Is
very good"
Many factors have tended in the last
few years to improve the condition
Of buildings in the District and tc
decrease dangers from obsolescence
Col. Oehmann said. In the first place
he said the Government, both Fed.
eral and District, proceeded with big
building programs, in the course Of
which many old structures had beer
torn down and replaced with modern
and in some eases monumental struc.
lures.
Buildings Condemned.
I'VE condemned lot of old build
ings," he added, and tore them down
to remove hazards. The Alley Dwell
ing Authority Is spending half Q mil
lion dollars appropriated by Con.
gress in tearing down old structure!
and replacing them with modern
buildings.
Judge Nathan Cayton Of Municipal
Court, when asked about q charge
by the underwriters that there wa:
an increasing liberality Of court
and juries" in making awards, sale
he was mot conscious of such lib.
crafty"
The underwriters said that in max.
ing the revision for its member com.
panies the District has been estab.
lished as a separate territory"
Formerly" it was explained, "buy.
ers of insurance in the District wert
grouped with other buyers in q grour
of Is States, including North anc
South Carolina, Maine and Others"
Commenting on the rate and terri.
torial changes. the national bureau
made the following statement: Eek.
perience on owners. landlords anc
tenants risks in the District of Co.
lumbia has been developing adversely
for q number of years. It was ap-
parent in the data reviewed for the
revision announced today that result,
in the District of Columbia have beer
more unfavorable than those in the
territory of Is States with which II
has been grouped. In fact, the rates
in effect since 1894 for the District
have proved wholly inadequate and
II allowed to continue such a condi.
ton would operate to the disadvantage
of insurance buyers in other States
making up the territorial group.
District Set Apart.
"In consequence, the District Of
Columbia has been set apart from the
rest of the group as separate territory
for rate-making purposes. Since the
ratio Of losses to premiums in the
District has exceeded the ratio ex-
pected under the rates formely In
effect, it has been necessary to revise
rates with q view. toward providing
more premium for losses and the cost
Of adjusting losses. As q result the
general level Of rates has been in
creased with due recognition not only
of the aggregate experience for the
entire District, but also of the de-
veloped experience for individual
classifications. No attempt has been
made to recoup past losses.
In connection with the establish
ment Of the District Of Columbia as
a separate territory, it is pointed out
that liability rates should recognize
differences in the frequency and cost
Of claims. Between the District OF
Columbia and the rest Of the group
this difference has been marked.
IAN increase in claim frequency and
loss cost such as has occurred in the
District Of Columbia is attributable to
q variety of conditions. In some
cases the physical condition Of prop
critics has been allowed to deteriorate.
When properties are not properly
maintained or when insufficient at
tention Is given to the necessity for
removing or minimizing physical haz-
ards, the probability Of accident and
injury IS increased. From . claim
standpoint It il partly the result Of
greater claim-mindedness on the part
Of . large section Of the general pub
lie, partly due to the increasing lib
crafty Of courts and juries In making
awards in liability cases, partly due
to the activities Of MISUNDERSTANDING
lawyers and other individnals engaged
In other kinds Of fraudulent prac-
tices."