The Waterbury Democrat., 1937-10-29


 ment refusing to write any ir way of reinsurance, against tE
 Adherents to this singular in- ternational agreement include not only 127 British companies Cnclud- ing dominion and colonial com- panies) and Lloyd's underwriters but also more than 50 French conn., panies, some IS leading German companies and the principal Italian concerns doing business outside Italy. Business in Germany itself is already taken care of by legisla- tion, and the formal adhesion of the entire Federation of Italian com- panies is expected shortly.
 In addition, the pact covers the fire insurance companies of Bel gium, Switzerland, Greece and the Scandinavian countries. The po- sition in the Baltic countries and in Central Europe has not yet been regularized though correspondence is said to be proceeding. Czechoslo- vakia and Rumania, for example, have not yet completed their ar- arrangements, either among them selves or with their re-insurers.
 Burden on Governments
 Thus if Europe increases its drift towards war, the business commun- itieS of all the belligerents know today that they must meet their own losses from bombings as best they can, or alternatively look TOT compensation to their governments many of which in the event of war would be more or less bankrupt.
 Knowing that, the hope is that they will actively exert themselves to prevent such a calamity.
 This movement among fire in- surance companies is less than 10 months old but it has already swept virtually the entire fire insurance world except the United States and Canada. (Canadian companies have signed the agreement so far as their foreign business is concerned).
 In the literally flaming Far East, insurance companies of Japan, China and the Dutch East Indies and the Philippines have signed, while the adhesion of other Far Eastern companies awaits the deci- sion of the United States companies with whom they are in competition.
 In Central and South America adherents include Mexico, Argen- tine, Chile, Colombia and Peru. The Brazilian companies are still discussing it.
 American Firms Abstain
 kn short, the only important ab- StainerS are the 20 odd American companies doing foreign insur- ance business, and even they have in effect, agreed to it so far as their Cuban business goes.
 Hope among the European fire of ficeS is that American companies eventually will join, solidifying the financial pressure against the hurling of firebrands into the finder of in- ternational relations.
 The clause adopted by Lloyd's un- derwriters and by the British com- panies to give effect to the agree ment Applicable from Oct 1 to all old lire policies coming up for re- newal and incorporated in substance in all new fire policies) is as fol- lows:
 No liability shall attach to the company under this policy as from its first renewal date after Sept. 30, 1887, for any consequences, whether direct or indirect, of war, invasion act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, in- surrection, or military or usurped power, and any such liability which may have been undertaken by the company under this policy or under any endorsement thereon, shall cease and determine"
 Riots Not Excluded
 Damages arising from local riots, strikes or lockouts still may be cov- cred by insurance. The aim is to exclude damages arising from war, whether declared or not, and from armed civil strife.
 Broadly, the movement is based on the conviction that war risk on