The Waterbury Democrat., 1941-12-26


 SFaAsrnai or reciprocal, generally build up on the theory that under the law of averages risks can be 90 distributed that the contributions of the masses of insurers, when prop- eriy handled, can absorb oil tho contingent loSSes that occur and still make . profit for the business.
 In my opinion, the insurance business was never designed 90 as to absorb risks of war. Tn the life field, for instance, during the first World War, the federal government invited several qualiaed Actuarie6 and executive officers of large life insurance companies, on tho SuggeS- ton of the then Secretary Of Treas- ury, Mir. McAdoo, and there was de- vised what was known as tho Bureau of War Risk Insurance which issued policies to men in tho military service. When . man of military age in time of war seeks Q policy, he Is usually confronted with q go-called war rider clause, Tn England and some of the contl- mental countries In the old days, tho added risk of loss of life dur- ing a time of emergency was ab- soFhed by the companies charging aaa extra premium during the emer- gency but this has never been tho American method and during the flrgt World War, all the life insurance companies isSued war rider clauses. After the cessation Of hoEtilities, tho matter was further considered, and with rare exception tho cons panieS waived the continuation of such prohibitions, which meant that if Q man took out policy during the World War with e war rider clause in it and survived tho conflict and was again called Into service during the present war, the old war rider clause would not operate against him In tho present conflict,
 Wars are no longer declared and the bombing hazard creates new uncertainty In the present picture which has, naturally, had the at. tention Of the insurance comnliS. sionerg.
 NO AWVwbA0n FNAF
 While the fire companies during the first World War offered to the federal government the facilities of their engineering stan and their in. spection service for tho benefit Of national defense, there was no threatened invasion of our country ct that time either direct by land or by on aerial bombardment. The wisdom of creating Q separate gov- ernFnentai corporation to handle or absorb property damage arising out of bombing and war hazards has been suggested and the government has already taken steps to form such e corporation. one or two Of the fire executives, particularly on the west coast, felt that possibly the businesg Of fire insurance could, in fact, absorb the war hazard and 1t was suggested that, possibly, Q little too much haste precipitated tho formation of the governmental corporation. That would be oil right, if there could Do reasonable as. sirance that people gre too jlttery, but we have al watched tho prog. Tess of the art of aviation and there is no telling to what extent judg. fnetit Of desperation on tho part Of our Advergarles might ilnpel them Co do substantial damage in this country, if they could. One re. cent large fire in Massachusetts where the hazard was complicated by material congestion in Q plant essentially hooded for our defense program cost the companies . lot Of money. It may not Do true of that particular fire, but suppose the question Of sabotage is not entirely lacking in some Of these