OCR Text |
Show 1 INSURANCE AS A CON- SERVER S. TIiq flro Insurnnt'o pollcv la Bolcly H ;i contract of Indemnity nuil docs not 'fl contompliito IncliiHlon of prospective S profits. As values arc changing and H cannot economically lo determined jB In advnnco property la likely to bo ill over-Insured or uncr-lnstirod. Ovor- Ijflj Insurance lends to produce moral em hazard. To avoid underinsurance &H the principal of co-lnsuranco is in- j rI (rod u cod. The only remedies ngalnst ,' lijH over Insurance nro tlio honesty of tho fjt Insured and tho wisdom and caution " of tho agent. With tho billions of' I I iloollnrs of Insurance In force, it is 1 fl of tlle utmost Impoi lance to loanors I I of money that tho solvency of tho Ij n companies furnlslilng that Indemnity WUU nhould he unquestionable Othcr- B)1, wlso, how can thoy meet tho shock KM of conflagrations Involving millions Hflj of dollars? Hi Firo insuranco business not only Mil has a closo relation to crodl'ts but It R is doing n vast work in conservation of credits and tho national wealth, both In tho socurlty It supplies ns collateral to credits and In constructive construc-tive measures toward tho reduction of dlro wasto. |