Evening star., 1955-11-13
MARYLAND:
Self insurance Coins
Support Of PoIiticos
By GENE GOODWIN

Pressure seems to be mount
ing in Maryland for State and
county governments to adopt
programs Of self insurance on
public buildings.
The proposal has been kick
ing around in the Free State
for some time. but 1t was given
q big push last week after the
State treasurer's Office made
public a list of the 3i2 agents
who insure Maryland,s public
buildings and their contents
against fire losses.
on the list were several
prominent politicians, includ-
ing: United States Senator J.
Glenn Beall. Republican Of
Maryland; Mayor Thomas
D'Alesandro of Baltimore,
State Senate President Louis
I. Goldstein. House Speaker
John G. Luher and Delegate
Perry c. wilkinson. Democrat
of Prince Georges County.
or more significance per-
haps than the unSurprising
disclosure that politicians sell
insurance to the State were
the figures on how much Mary
land has been spending on fire
insurance. It amounts to bet
ter than 100000 a year.
Commissions to brokers on
general insurance of this type
are understood to run up to q
maximum Of 90 sometimes rs
per cent Of the annual pre-
lniums.
Treasurer Hooper s. Miles.
supplying the insurance infor-
nation on the demand Of Dele
gate Jerome Robinson, Demo-
crat Of Baltimore City. stated
that the State had paid out
S9l3,466 during the three years
ended June 80. 1854, to in
sure $l42 million worth Of
property.
During that time. it received
payments on losses amount
ing to $27O,3T4. or almost 80
per cent Of the cost Of pre-
sI1iiunaS. Maryland handles all
It's fire insurance through
eight master brokers'. They
then farm some Of it out to
md fidual agents designated
BY Mr.. Miles. who owes his
position to appointment by the
Legislature.
Present System Favored
Mr.. Miles favors the Mary
land system over the so-called
self-insurance plan. in which
the State would maintain g.
fund against possible losses.
He said that Of the 90 States
which became self insurers.
about nine have gone back to
scoverage BY private compa-
tiies.
However. Gov. McKeldin ap-
parentIy feels there may be
rome merit TO the self-insur-
ance idea. IN any event he
said ne would ask the Green
Commission to look into 1t.
This commission, harned after
its chairman, Harry ], Green,
IS now studying various prob
lens Of State administration.
Senator Goldstein and
i Speaker Luber said they would
support q seif-insurance pro-
gram for the State, II they
could be shown that it would
tbe feasible and economical
Also in the wake Of the
State treasurer,s disclosures.
Mayor D'Alesandro and the
Baltimore Board Of Estimates
suddenly decided To switch
the city to a self insurance
plan. The city now spends
about 100000 annually to
insure its public buildings.
The Federal Government
here carries no fire insurance
on Federal structures. pre-
ferring to absorb possible losses
rather than pay the high pre-
i1lialms that private insurance
would require.
Montgomeys Plan
Montgomery County iasures
itself for the first 100000 ot
loss ons any public buildings.
It carries so-calIed catastrophe
insurance on losses in excess Of
the amount.
Montgomery switched to its
program Of partial sell f-insur-
a1ce almost two years ago. II
asked bids on q catastrophe
policy for all county structures
and awarded d fIve-year policy
to the Firemen's Fund Insur-
ance Co. Of Washington,
The county pays an annual
premium Of about s27 900 fol
this policy. according to ri.
nance Director Alex Hancock