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Show INSURANCE CONDITIONS BEST IN UTAH HISTORY "WILLAED DONE, State Commissioner of Insurance. Commissioner Done Reports Business on Higer Plane Than Ever Before. By WILLARD DONE. AT the closo of another highly successful suc-cessful insuranco 3'car I take occasion oc-casion again to congratulate tw citizens of Utah on tho splendid conditions prevailing hero. Tho prosperity pros-perity of tho state and its various business busi-ness ventures has beeu reflected in tho insurance business. It is becoming more and more a recognized fact thn.t insurance insur-ance in buo form or another enters intimately inti-mately into tho general business conditions condi-tions of a community. It "affects and determines as well tho various branches of business and shows in its own results re-sults the commercial 6tatus of the people. peo-ple. There is no line of legitimate insurance insur-ance that has not shown a marked improvement im-provement over any previous year in the state. Gratifying increase of premium prem-ium receipts, local iuvestmenta ot outside out-side monoj', returns of dividends and endowments and other benefits pertaining pertain-ing ot this line of businoss havo been marked and uniform. At tho same time the business has been gradually rising in its ethical phases, until I am glad to say that it is conducted on as high a piano in Utah as in any other state of the union. Fortunate Conditions. These conditions aro not without their appropriate and logical causes. Conditions Condi-tions surrounding and determining the insurance business in this stato are of tho highest class; aud it is not surprising surpris-ing that tho business itself roflccts these conditions. In life insurance, Utah shows a death rate far below the gon-eral gon-eral average. Our healthful climate, the .frugal and abstemious habits of tho citizens, cit-izens, pure 'water and pure food, and tho free, invigorating outdoor life so many of our people on.ioy. have nil had their effect in producing this fortunate condition. To this may bo added the splendid work of state and local health officers, aud the self-sacrificing efforts of the medical fraternity in teaching tho people methods of disease prevention preven-tion and life conservation. This work has been supplemented by a number of the life insurance com; panics operating in this stato. Onq or these has a conservation commissioner: commission-er: his entire time is devoted to educating edu-cating the people in the value of human hu-man lifo and health and tho criminal wastefulness of preventable diseases and death. Another company issues periodical pamphlets on nursing and the care of the sick, especially children. Tt. has also instituted a freo nursing system among its Industrial poiioyhold-nrs poiioyhold-nrs whercbv diseases have boon checked and life prolonged. Other oompanies aro entering this splendid field and XTtah will share with other states m the untold benefits of this work. Reduce Fire Loss. So proprrtv has been preserved from the ravages of preventablo fire. Whiio the los ratio among firo insurance companies com-panies in Utah is lower than that of ma iv other states and ercatly lower than some, yot by activo cooperative effort this waste can bo still fuHhor reduced, Therefore public spirited cities cit-ies having taken it upon tlemjolvoj to institute -a campaign of education amontr the people of tho state and ob-pccially ob-pccially of tho larger citieB, as to sirn-Ilc sirn-Ilc moans of fire prevention by tho application ap-plication of which a .front deal of the present lire loss will doiibtloss bc aroid-ed, aroid-ed, public conscienco aud public intel-, "genco are awakening to tho fact that los-s by firo is completo and irreparable; that property destroyed is entirely de-' stroyed aud tho loss cannot bo cov-orcd cov-orcd by insurance. Thoy aro coming to understand that insurance distributes the loss among a largo number; whereas where-as it would otherwiso bo confined to tho ono person or firm owning the property. prop-erty. They also know that tho continuation contin-uation of heavy firo loss spells disaster, distress, panic, financial ruin. Therefore in teaching the fundamentals funda-mentals of fire protection and proven-, tion, a sorvico is being rendered by the firo Insurance companies, thoir agents and public men, to proscnt and future citizenship of this stato which will surely be reflected in the thrift and. prosperity of coming generations. Tho Utah insurance department has been active in this work not only here, but also in other states, and it is gratifj'ing to note the hearty response substantial citizens everywhere are giving to these appeals for their own benefit and prosperity. Accident Prevention. In accident proventiou active work is also being done. Tho increasing use of safoty appliances on railroads and other common carriers, tho agitation for greater care iu tho driving of motor vehicles, thcuso of greater precautions in mines and spelters, mills and factories, fac-tories, aro all leaving their impress iu the lowering of the average of wusto of human lifo and limb anil time. As theso aro subsidiary activities in which insurance companies and tho insurance department have interested themselves, it is thought appropriate that they should bo included in . n brief review of the insuranco work for the 3'car 1912. A number of important movements in insuranco have been instituted locally lo-cally and nationally in the recent past. Among tho most important of those may bo named the attempt to placo all lines of insurance on an increasingly increasing-ly scientific basis by tho friendly, but not oppressive, co-operation of companies compa-nies and their officials. This has led to tho establishment of boards and associations of companies and agents, whose main purpose is to gather and fetudy data and to secure thorcbv a thorough knowledge of conditions "affecting "af-fecting the business and to make safe rates and provisions for its continuance. continu-ance. Scientific Insurance. The bodies have not been confined to any one lino -of insurance, but their formation and activity havo extended to all fields. It is considered that "the first requisite of any kind of insurance insur-ance is absolute safety and security. It is .-justly thought that any warfare among companies tending to destroy I he safe foundation upon which the business rests endangers the whole institution. in-stitution. And yet the saving feature enters hero, that because indomnity of various kinds cannot be limited in its production either as to time, or -place, or company, artificial and arbitrary fixing and maintaining of rates is im-posFiblc. im-posFiblc. Thcrcforo tho boards or associations as-sociations referred to have reason for their existence in their determination of conditions affecting tho business and the .scientific application of those conditions in maintaining safoty and stability. fn lifo insurance, rates are fixed so definitely by scientific principles that associations of such companies arc formed merely for the purpose of ex-ohanging ex-ohanging experiences for tho betterment better-ment of the business. .In fire and mis-ccllaneous mis-ccllaneous insurance, however, rates are not so definitely fixed. Tho expo-rioncc. expo-rioncc. not only of years past, but also of each succeeding year, must be taken into account in determining those rates. 7t is here that boards and associations as-sociations do their work. Competition for Business. Wbilc the companies belonging to theso central organizations are contrib-uting contrib-uting their money and timo and energy to the common purposo of securing and applying scientific data and the results of experience, and arc obtaining thereby there-by tho technical knowledge required for determining and fixing rates, yet thcro arc companies outside theso organizations or-ganizations which aro keen for business busi-ness and use the information gathered by the associated companies in entering enter-ing into competition with. them. This prevents, if even the board companies wero inclined to attempt it, tho fixing of rates upon an arbitrary and unfair basis, to tho detriment of tho pooplo. And it is a noteworthy fact, that although tho fire waste of this conn-try conn-try is not diminishing, but seems to be increasing, yet fire insuranco is about the only commodity in tho business world, the price of which has not advanced ad-vanced recently. Towards Consolidation. It may bo opportune to say hero that very fow fire insuranco companies mako any profit whatever on" their underwriting. Thereforo nearly all tho small companies with limited assots to invest havo been forced out of business, busi-ness, because practically all tho profit tho companies can obtain is from investment in-vestment rather than from underwriting. under-writing. It appears that not only in firo insurance, but also in all other lines, the day of tho large company is approaching; and thereforo the marked tendencj', especially in tho last year, toward the consolidation of small companies. com-panies. Another movement is in the direction of publicity and education. This movement move-ment is being furthered by boards and associations above referred to, and also by tho National Convention of Insurance Insur-ance commissioners. This body is rapidly rapid-ly increasing in efficiency, bocauso of improvement in its personnel. Through its committco on publicity and conservation, conser-vation, tho convention is actively engaged iu collecting data to bo used in conjunction with tho other bodies referred to, iu giving tho public a more thorough and complete understanding of the underlying principles of insurance. insur-ance. As chairman of this committco, tho Utah commissioner has been given a responsible and important duty to perform. per-form. In this work he has been assured of the active support of his associates in tho convention, and the future is most promising. It is expected that aa a result of tho activities of this and similar bodies, the people will come more fully to know and realize their own relations to tho business of insurance insur-ance and the best way to protect themselves them-selves and conserve their interest?. The main purposo of theso cduca-lionaj cduca-lionaj activities is to create tho impression im-pression in the minds of the 7)C0ple that they are themselves in largo dc-greo dc-greo responsible for Tatcs of premiums in all lines of insuranco where the laws of nature do not oporate unchangeably. Fire insurance rates aro increased by preventable accidents; and eo on" down tho lino. At present chief attention is being given to diminishing the fire loss. Public Interest. Agitation against thy practice of companies and resolutions condemning their rates do not accomplish much. Permanent reduction of firo insurauca ratosan be secured only by reduciug the firo hazard. Utah in general, and tho largo cities of the stato in particular,, parti-cular,, are' very fortunately eituatod in respect to firo dangers. "But under the general and universal conditions governing the writing of fire insuranco, neither Utah nor any of its cities can stand alone in respect to premium rates. Insurance iu a business of averages; and whilo a well protected city, such as ours, receives credit for its fire protection facilities, and profits somo in its rates, yet unuor tho general law of average it must help pay for tho greater tiro hazards of ojthcr communities. com-munities. Under this rule of the firo insurance companies, there is being effected a considerable reduction in local fire insuranco in-suranco rates, and the gratifying ro-aults ro-aults of this adjustment will mako themselves manifest early in tho coming year. Another movement of great general aud local interest is tho attempt to sccuro an increasing standard of ethics in the conduct of the insurance business. busi-ness. Local associations of underwriters underwrit-ers have taken up this matter and have co-oporatod with tho insurance department in the betterment of conditions, con-ditions, and especially in the weeding out of questionable and disroputablo "ovum. Under tho .operation of the insuranco law enacted in 1909 practical!' all weak companies were driven from tho state; and an' company which passes the strict requirements of the Utah code is unquestionably secure. It is taking a Jittlo longer, however, to drivG out of the business tho floating population among" agent3 who drift into our communities, com-munities, fleece tho people until their real character becomes known, and then Ioavo for othor fields. Tho insuranco department acknowledges acknowl-edges a debt of gratitude to tho permanent perma-nent and high class insuranco men representing rep-resenting that profession in this state for ofticiont help In accomplishing this weeding out process. Ever' institution institu-tion must in tho end purif3' itself. Out-sido Out-sido forces can only help in this process. Tho insuranco business in Utah is working work-ing out its own salvation, and 'conditions 'condi-tions hero aro most admirable. Advice to Public. To tho people of the ttato of Utah, invitation has been given and is herewith here-with ropcatod, to place thoir insuranco difficulties and perplexities squarely be-foro be-foro this department. It was established estab-lished to help tho people, the companies and tho agents. Its duty to any one of theso classes is best accomplished by tho pcrformanco of its duty to tho other two. Tho companies aro formed by tho peoplo who insure in them; theroforo tho stato as an institution composod of the peoplo is in reality a largo corporation representing tho same people who own tho insuranco companies. compan-ies. If throup-h the efforts of this department depart-ment the peoplo can be mado to understand under-stand in tho fullest degree tho fact that there is a mutuality of interest in which, the pooplo of the stato and the company are equal sharers; if thoy can be mado to know that tho cpmpanies reflect whatever the peoplo put into them; and that undue antagonism to anv ono of theso interests is antagonism antagon-ism to all, I think it will havo accomplished accom-plished iu tho highest degreo tho pur-poso pur-poso of its organization. |