The Waterbury Democrat., 1941-12-26
Insurance Companies
 Avoid War Hazards
PrOraCted Struggle, Possible Invasion Present Prob
 lens Writes State Insurance Commissioner

fires, even though it may he dif1- cult to prove le
 The National Association Of In- ssarance Commissioners has crested a special committee Co coordinate its activities with the dsfense ae- tivitieS of the federal goveEnmeat and already conversations had been had with prominent federal oaaoials, The association makes available Go the government what information it has on condition oe the companies but ib does not attempt to Impose any policy making ideas in the men charged with the defense.
 m England, the national govegza~ nlent practically absorbed, outside of he life field, all the war risk dam age on property, by Q ssnaN premium related to the rental value of the property itself. Apparently. cur government, ct least for the preg- ent, Intends to HnAk@ its c0veraga gratuitous.
 nudEe Dlsastsr
 The subject which is having the attention og the casualty Held runs aiong similar lines. Recently, in Connecticut, there was serious loss Of life and injury arising out of Q catastrophe in the construction work. Presumably, lt was caused by some flaw. The loss will be sub atantial. If the loss. however, had been created by c boFnhasVinenk which caused the same catastrophe, should the contractor who Is 0 self inSlror he compelled to pay the loss or should the federal government Inject itself Into the situationq m Connecticut, Q death or an injury that arises out of or in tho course oe employment, is oompensative. Suppose that one of our large in~ dustrial plants engaged in defense work was bombed and several men were Killed possibly the injury or death would occur out of and in tho course Of employment but tho overrlo4ng cause of gNsh c disaster would Do the war itself.
 The ocean marine business gen. erally has been able to carry its own losses wtth swift adjustment of premiums In ease travel in any part of the seven seas became extra hazardous. Every indication points to the fact that the ocean marine carriers still are able to handle their end Of the business.
 Tn normal times, the ordinary in. surance premium is made up of Q combination of clements into which enters the pure loss ratio, the ac- quisition cost, general overhead and claim expenses, taxes, and the like. The general theory is that the com. panieS can stand such and such Q loss ratio but if 1t goes higher than Q certain percentage In certain ielaSSeS Of business, that operates as A warning sign for underwriting or inspection divisions. It might be that the war will be 90 short in duration and the material damage in the United States 60 small that 1t would not mako Q dent in the buSinOsB as whole, but, naturally, there iB no assurance that thlS iS 90.
 Epidemic Recalled
 My own impression is that the first World War had no profound result on the mortality table inso- far as casualties were concerned but the influenza epidemic in 1918 which happened during the var made quite Q profound impression on the mortality table. Ono of tho prom. inant political writer's surveying the United States asene once remarked that to the American people c con- tingent danger IS no danger ct all. It hos to Do actual before they rec- ognize it. The reluctance of the insurance companies to ahSorh war hazards arises out of the fact that they recognize contingent danger.