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Show ' V V C'. M the enterprise! I7 INTEGRAL fetters to the editor P O Box - 1 1645 STEEL STRUCTURES Pioneer Station Suit Like City. Utah 84147 REPORT THephorv (801)363-885- 8 Authorized dealer Arrnco Building Systems ARMCO v At jSSUe with Parker Nielson m ;.i Re: Parker M. Nielsons Counterpoint of May 15, 1978: I The direct or indirect purpose of the liberal approach to 14 American society seems to be to redistribute wealth from the haves to the have nots. If one interprets the function of this light, I completely agree with Wm. F. Buckley I insurance in Nielson. arid Parker But if one interprets the function of the insurance contract as as; primarily one of indemnity (which Webster defines j.. payment for loss, danger, or expense incurred...), then I yft think both the beyond reproach Mr. Buckely and Mr. Nielson are out in left field without a mitt. One of the cornerstones of t; insurance is the principle of indeminity the same after the loss ad before the loss. W y. -- v : ' warehouse g The concept behind insurance and the actuarial a lot process involves the theory of large numbers of people pay a premium to cover the calculated losses of a few. t;' There is no equality between premiums paid and a potential loss a company stands ready to pay. Take two examples: A 16 year old male with a ticket pays $330yr. for liability t insurance with my company. Assuming he paid that rate until he was age 80 (and we know his rate goes down as he gets older), he would have paid $21,000 during his lifetime. But during that period of time his r 'mpany had stood ready to pay $35,000 plus attorneys fees. Assuming the average new home in Utah sells for $40,000 arid assuming the homec wner buys an average, rock bottom priced homeowners policy cor $106yr., that person would have paid $5,300 for a 50 year per od. Assuming that everything went wrong at once and the insured collected the maximum he could from the policy, the company stands ready to pay $93,500 plus attorneys fees. Wheres the equality? Warehouse: 21 ,432 square feet 33 foot clear height Function: Building additionfabricating center and Where's the equality? $ Project: A.M. Castle Company Completion Date: 2178 rate-makin- Specs: Clear span, tapered beam structure with 10 ton Bridge Crane. A turn-ke- y project. Concealed fastener root system. Comments: We valued the excellent working relationship with I.S.S. They were dependable and responsible and they finished on time. Tome, that says a lot! Ernie ClaytonWarehouse Superintendent Aleatory in nature Being a lawyer, Im sure Mr. Nielson is aware (but has forgotten) that insurance contracts are aleatory in nature: Equal value is not paid in cash by each party. In other words the premium for the policy is not equal to the recovery amount which could be obtained if the property is lost. Some people (liberals and others) have the mistaken notion that they must collect all of their premiums paid in a claim or theyve lost money. What about the people who have collected far more than theyve paid? Where does the insurance company get its money, assuming this thought is correct? People pay for the knowledge they will be protected, as defined by the policy. Herein lies the problem the fine print. Ive heard it said that the insurance company gives you the world-u- ntil you have an accident. Have you ever wondered why? Could it be that because we insure for a specific loss we have to define that loss specifically? And if we arent specific enough, therell be a lawyer out there to find a loophole? And why are we concerned? Could it be that we have a moral as well as a legal obligation to all our policyholders? And dont doctors have their fine print with all the additional tests they require before they treat a patient? And dont real estate contracts contain fine print? Efficient? How about deficit spending? . ( ; 4 I take strong exception to Mr. Nielsons statement that the IRS, FBI, FDA, etc. are run far more efficiently than the insurance industry. Whats this deficit spending stuff I keep hearing about? Is that efficient? Mr. Nielson's statement about . . .the crass greed of the insurance industry in preying on the misfortunes of others... has got to be assinine. The concept of insurance is to protect people from the misfortunes of life in fact life as we know it would not exist without insurance. Are not doctors and lawyers guility of the crass greed more so than the insurance industry? Their costs have risen much higher than mine in the past three or four years. Society is examining the spread of risks via higher and captive insurance companies. deductibles, j Yes, Parker, I'm still out here; and contrary to some ' people, I don't speak out about things I know little or nothing about. . . ; self-insuran-ce, ames E. Kalke he Farmers Insurance sVi MIC Group Our shopping centers have a personality .. . (theyre easy to like.) i |