Show The Cost Cost- of Fire Insurance I Comm Commenting on this subject F F D I ton Layton ton Pl President ent of the National lire lre Insurance Company Co of Hartford IL Connecticut said Slid We arc are f faced with the ever pres ent nt of the cost of fire in- in in insurance An example mple was shown hown nt at ata ata legislative a 3 hearing before one of our legisla legisla- tive thc bodies A witness asked what ins bis fire insurance rate was replied q 1 dont don't know but it is far too high We have n a credible record of con con- constantly con constantly reducing our ayera average c ra rate ii over a period of more mOle than 20 years 11 J and this in the face of increased cost of nearly eer everything thin used by insurance insurance insurance ance j people and th the general public Fro the war pre level leel to Jan JanUary January uny Uary 1 19 1023 the average annual rate for fire insurance on a na- na nahon wid na hon ton ton-ide o id basis decreased about 17 per cent ent while the cost of living in ing g general increased more mOTt than GO per percent perc cent nt From Front an economic standpoint rates must cover losses expenses pense and n reserves and a reasonable margin of ef profit The I public can appreciate the reason for forthe forthe forthe the price of merchandise bc because e it t knows the materials labor l bor and the cost of marketing It d does 5 not un- un un understand why insurance rates are ne- ne necessarily ne made b by boards and bureaus or why the companies must mut charlIe charge approximately tely the same rates We are indebted to a judge ill m Western Vestern Penns Pennsylvania for a tere tor e cx- cx ex explanation of this reason He said in substance in handing down a deci dec decIsion decision sion Lion that when a man is is buying a barrel of flour he is interested in in bet bet- bett bet betting t ting 1116 it at the lowest price regard regard- regardless les less of the cost of production because c after he lie has bought the flour and for it the transaction is is closed in In the case of the purchase of or an insurance policy however it is vital to 10 the interest of the purchaser the rate charged be bs adequate ti to n able n able the insurer to maintain the of the industry provided un- un under under un under der the policy for at least th tha term thereof |