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 FRNATIONAL 
NDERWRITE 


"Count ‘em, folks, they're worth one hundred bucks apiece!” 


“Brad Foster, our insurance man, pulled 
an eye-opener of a stunt on us the other 
day. He dumped eighty oak leaves out 
of his brief case. ‘Imagine that each one 
of these leaves is worth $100’ he said. 
‘Eighty of ’em — that’s $8,000, the 
money you saved yourself by taking 
my advice.’ 

“Sure enough, $8,000 was what he 
saved us by insuring our house and fur- 
nishings for what they were worth. 
About 3 months after I’d increased my 
fire insurance, our placeg 


Every day you read, “Fire destroys 
home’”’, ““Burglars make $5,000 jewelry 
haul” or worse, “Car victim sues for 
$50,000!”’ Insurance and only insurance 
can protect you against serious losses 
from such hazards. 
a. x o * x 

Near you, there’s an Agent of one of the 
North America Companies doing a good job 
in the community. Put all your insurance 
questions up to him. He will carefully study 
your needs first—then give you the exact 
protection you require. See him now. An 
accident or a fire won’t wait.Why should you? 


INSURANCE COMPANY OF 


NORTH AMERICA 
COMPANIES, Philaclelphia 


HE STANDS BETWEEN 
YOU AND LOSS! 
Your local Insurance Agent 
con often sove you money 
while protecting you from 
fire loss, of almost any 
other hazard. When trouble 
comes, he's on hond to see 
that ycu get prompt satis 
faction on every just claim, 


Insurance Company of North America, founded 1792, oldest American stock fire and marine insurance 
company, heads the North America Companies which meet the public demand for practically all types of 


Fire, Marine and Casualty insurance. Sold only through Agents or Brokers. 


insurance Company of North America © Indemnity Insurance Company of North America . Philadelphia Fire and Marine insurance Company 


@ The Alliance insurance Company of Philadelphia 


THURSDAY, JUNE 24, 1948 








‘NA 











NATION AL'S 


FAMILY ALBUM 


SOOO 
ie. 

























INSURANCE PROBLEMS 





Venerable Victor. Dean of the local 


agents, the town’s protector. Has written every form 
of insurance at one time or another. Even the other 
agents ask him about insurance problems. Not rest- 
- ing on his laurels yet and the renewals continue to 
grow. A credit to the business. 


rs iT Wonderful Walter. His policy- voip 
id holders are constantly amazed at his interesting, ie 

mi competent service on insurance matters. His busi- 2 owl 

- ness is never threatened; he knows his forms. He a 


thinks it's a wonderful business too. 


xX-Y¥-Z. These are the agents at “the 


end of the list’. Small volume perhaps, and seldom 
in the spotlight, but always there with a modest, 
promising class of good business. “X-Y-Z" today... 
“A-A-A” tomorrow. 


* ¥ 
N. F. G. The Perfect Agent. Does all plan is 


these things and more. Sound steady protection and 
prevention service — all the time. 

























D 
W 
f 


May B. 





* National Fire Group agents, of course 
(—and that goes for our fieldmen too) 





NATIONAL FIRE INSURANCE COMPANY OF HARTFORD FRANKLIN NATIONAL INSURANCE COMPANY OF NEW YORK The 
MECHANICS and TRADERS INSURANCE COMPANY TRANSCONTINENTAL INSURANCE COMPANY tion 
UNITED NATIONAL INDEMNITY COMPANY 
EXECUTIVE AND ADMINISTRATIVE OFFICES, HARTFORD 15, CONN. 
WESTERN DEPARTMENT CANADIAN DEPARTMENT PACIFIC DEPARTMENT 
175 W. JACKSON BLVD., CHICAGO 4, ILL. 485 McGILL ST., MONTREAL 1, P. Q., CANADA 234 BUSH STREET, SAN FRANCISCO 20, CAL 


MEMBER THE ASSOCIATED AVIATION UNDERWRITERS \f nip ‘ 


























THE NATICNAL UNDERWRITER. Published weekly (with one additional issue in April Vati J i > f icati 7 ' i 3 
: L I ‘ | April) by The National Underwriter Company. Office of Publication, 175 W. Jack Blvd. A. Avie 
52nd year, No. 26, Thursday, June 24, 1948. $5.00 a year (Canada $6.00). 20 cents per copy. Entered as seccnd-class matter April 25, 1931, at the pest eflice at Chinn tit wits kar weve a, btm 











WEEKLY 
NEWSPAPER 
OF 
INSURANCE 









FieNATIONAL 
UNDERWRITER. 


JUNE 24, 1948 
52nd Year, No. 26 





ew |. U. B. Setup 
on't Be Effective 
by July 1 Deadline 


May Have to Use Binders— 
Industry Generally Ready 
for PL 15 Expiration 





NEW YORK — With the expiration 
= : torium on aasteitiea of the 
feral anti-trust laws to insurance July 
siness believes that after more 
ears of strenuous effort it has 
ise in pretty good order. With 
nly a few exceptions, organizations and 
es consider that their Tee aabialé 
rd with state rating legislation and 
ust and related laws that 
ver states’ books or that have 
ere since f bli law 15 

vas ss > e things may ed 


on that were not anion 








whole most of those in the 

jus are pr well s fied 
Th ide of the fire business 
possible exception of commis- 
On that, company man- 
g s that it does not need 
r sent, and if it does at 
I t uture, present laws 
vou r the purpose. Th 
rese oO let regional or- 
ganiza advisory scales dnd 
then companies can do what each indi- 


May Be Some I.U.B. Delay 


Underwriters Board late in 
its proposed plan of op- 
advisory organization t 
rating organizations in the vari 
he hope is that these bu- 
iS ¥ promptly file the plan with 
their insurance 


Interstate 
ay submitted 














departments and secure 

val However, this undoubtedly 
take more time than that left till 

1, and after that date, until the 

is approved by the states, the 
will not quote rates. Under 

ese ‘ircumstances fire companies 
light have to transact this type of busi- 


ness on binders for a while. 
In the meantime, I.U.B. has decided 
r its rvices to non-members, all 
iers, si that was one 
leveled at I.U.B. as an 
ganization by commissioners 
‘Anietic a’s individual schedule, 
been filed in various states, 
approved by any state 
North America, with 
insurers, appar 
yrred the idea of having 
an advisory org ranization. 
The idea of a national ratin g organiza- 
n for interstate business, it is re- 
explored in the past 
ents of this idea be- 


the appt oval of 





' ms “ts 
Vi weeK 
ther 


WoO or three othe 


as not fav 


large 


l, has been 
lavs Propon 


meet 


that write 
nes € problem as of | 
Much of the business is dated Jan. 1 or 
uly 1. It can on the latter date be 
d on binder, but many states don’t 
a binder to extend beyond 30 
has been pointed out in the 
ussions of the problem, insured could 
business in 
ympanies entered 
one or two states and therefore 
bject to regulation in 48 states. 
company is already set to 

low the latter method if it is neces- 
sary to do so. 

Aviation is not covered by rating laws, 


mpanies 
real 





writers of the 


i 
itry can use c 


one 


oe iS SS Ce. 
*. / 

©» - 

, 





., U. S. A 
rch 3, 1879. 









First Boston Corp. Issues 
Insurance Stock Brochure 


sing the belief that the stocks 
of carefully selected fire and casualty 
companies have distinct investment 
merit, First Boston Corp. has prepared 
a brochure oe their financial re- 
ports and the accounting yardsticks 
used to deutiion underwriting profits 


Expres 


and investment income. 
The study states that the present 
trend of underwriting profits appears 


to be upward and points out that the 


stocks of many companies with long 
unbroken dividend records are now 
available at large discounts from their 





vear-end liquidating values, at low 
rice-earnings ratios and at liberal di- 
vide nd yields. 
Explains Accounting Methods 
The brochure points out that the fi- 
nancial aspects and accounting methods 
of fire and casualty insurance compa- 
*s on the surface appear complex and 


ficult to understand, and then sets 
forth a simply worded explanation of 
he accounting methods of these compa- 
nies. The discussion includes the sec- 
ion entitled “Tracing the Premium 
Dollar” and explanations of the terms 
idjusted underwriting profits’, “under- 
ting ratios” “cas se basis underwrit- 
results” and Be ee names < values”. 





al aviation groups still are dis- 
‘ussing what changes they should make 
in their operations, if any, to insure 
‘ontinued operation on the present basis. 
They have received conflicting opinions 
is to the necessity of changing their 
yperations and proceedings, and as to 


what those changes should be, if any are 
necessary. 
The casualty business right along has 


the need for legalizing com- 
control, and it was expected 
acqui isition cost conferences 
sh a firm base for continu- 
the end of the month, under 


ssed 






expr 


hat the 
would estab! 
tion before 


New York law, a law that already was 
on the books. 
Interstate rating plans for most lines 





National Bu- 
Mutual 
etc. 


have been worked out by 
reau of Casualty Underwriters, 
Casualty Insurance Rating Bureau, 


However, in recent months an industry 
committee that includes both stock and 
mutual interests has been evolvi ing an 
interstate rating plan for fleet risks, par- 
icularly trucks, and have the work 
about completed. The problem was to 
set up the country in zones and to ar- 
rive at a rate making formula to reflect 
the interstate character of the fleet and 
ruck fleet sii. As this study was 
progressing, the automobile fire inter- 


and those concerned with motor 
k cargo insurance entered the nego- 
These two lines face a some- 
what similar problem, that of getting 
up an interstate plan, and, while in many 
spects the practical difficulties, par- 
cularly the base rates, differ from 
the casualty people, on certain 
believed there can be uni- 
rmity. For example, the location of 
he garage which houses trucks operat- 
re bet ween two fixed terminals, inter- 
ate, would have a considerable effect 
yn the fire rate, but would make no dif- 
ference in the casualty rating formula. 


Surety Men Set to Go 


ations. 


tnose of 


a 
mints it 1s 


Surety Assn. of America is set up to 
go under the various state laws. The 
nly thing in th?s field that will be dif- 


ferent is the abrogation of the Lloyds 
truce on bankers blanket bonds. This 
was not a matter that came within the 
operations of Surety Assn. but was an 
agreement between London Lloyds and 
the American companies writing the 
BBB. The American insurers have noti- 


The text is related to certain appended 
financial data for 1947 with respect to 
four fire insurance companies (Aetna, 
American, North America, Springfield) 
and four casualty companies (Aetna 
Casualty, F. & D., Seaboard Surety, 
J. S. Guarantee) so that the method 
of computations used may be related to 
actual figures. 

Another section is devoted to invest- 
ment income since the infrequent cases 
of fire and casualty companies which 
have encountered financial difficulties 
have been due with very few exceptions 
to unsound investment policies. 

Since underwriting profits fluctuate 
widely with changing business and eco- 
nomic conditions, whereas investment 
income in a well-managed portfolio is 
fairly’ steady, most companies, it is 
pointed out, adhere to the practice of 
paying dividends out of investment in- 
come only. Underwritir~ profits are 
generally retained in surplus to finance 
future growth and to absorb unusual 
underwriting losses without disturbing 
dividend payments. “It is this sound 
and conservative practice which ac- 
counts largely for the long, uninter- 
rupted dividend records of so many 
fire and casualty companies,” the study 
states. 


fied London Lloyds that they now con- 
sider the truce terminated. 

The surety business doesn’t appear 
worried by a possible war with Lloyds 
for this business, though aggressive 
competition by some London brokers 
may result. It is recalled that the threat 
of passage of the Hobbs bill in Con- 
gress, which would have barred Lloyds 
pretty much from the American market, 
was what worried Lloyds brokers back 
in the early "30s when the truce was 
established. 


Mich. Pond to 
Sponsor Herrick 
for Grand Nest 


Michigan Blue Goose at 
meeting last week at Traverse City 
voted to sponsor Clarence B. Herrick 
as a candidate for grand nest office in 
1950. The pond has not had a grand 
nest office since 1922. Mr. Herrick is 
Michigan state agent for Yorkshire. He 
is a past most loyal gander of the Mich- 
igan pond and is deputy most loyal 
grand gander for Ohio, The campaign 
for him will get underway at the annual 
convention in Montreal in September. 

New officers of the Michigan pond are: 
Most loyal gander, L. Irving McKay, 
Northern Assurance; supervisor, Den- 
ley I. Priest, Underwriting Adjusting; 
custodian, Robert J. O'Neill, Royal; 
guardian, F. R. Grosvenor, F. & G.; 
keeper, Elmer E. Sademan, Agricul- 
tural, and wielder, Russell P. Hein- 
del, London Assurance. The installation 
was performed by George L. Stone, a 
past most loyal gander. 

Delegates elected to the grand nest 
meeting were Mr. McKay and William 
T. Benallack. 

A feature of the meeting was the in- 
auguration of the Stuart Morgan golf 
tournament. .Mr. Morgan, who is state 
agent for Agricultural, is a past most 
loyal gander. He was elected a life 
member of the pond and elevated to 
high potentate of the floating lily pads. 

J. O'Neill, Royal, won the golf tour- 
nament and the cup. 

The Grand Rapids puddle, which com- 
pleted its first year with 72 members, 


the annual 


Fireman's Fund 


Moves to Add $14-15 
Million to Resources 


Present Stockholders May 
Buy Four Shares for 
Five at $30 


Fireman’s Fund announces a program 
of new financing that is calculated to 
increase its resources by $14 million to 
$15 million. 

The program involves the reduction in 
par value of the present shares from 
$10 to $7.50 and the offering to stock- 
holders of rights to purchase four new 
shares for each five shares now held at 
a contemplated price of $30 a share. 
There is no underwriting arrangement 
involved and shares not subscribed for 
by stockholders will be offered to the 
public or disposed of at private sale at 
or near the then market price. 

After the program has been com- 
pleted, the stock will be placed on an 
annual dividend basis of $2.60 per share. 

At Dec. 31, 1947, capital of Fireman's 
Fund amounted to $5,282,100 or 528,210 
shares of $10 par value. There has 
been an increase in the number of shares 
since that time because of the fact that 
Fireman’s Fund has been exchanging its 
stock for individually owned shares of 
Fireman’s Fund Indemnity on a share 
for share basis, but on the basis of the 
capital at Dec. 31, there would be offered 
to present stockholders 422,568 new 
shares which at $30 a share would pro- 
duce $12,677,040. 


Market Action Reviewed 


The stock of Fireman’s Fund has been 
traded lately at about $100. It .got up 
to about $107 but on rumors of the new 
financing, the market dropped to about 
$100. 

It is now anticipated that the market 
will drop to about $69 a share, and 
that the rights to purchase the new 
stock will be worth about $31 per share 

Fireman's Fund stock has been paying 
$3 a share annually. Thus a holder of 
100 shares has been getting annual divi- 
dends of $300. He will now have the 
right to purchase 80 new shares at $30, 
or a total additional investment of $2,400. 
On the proposed new dividend basis, his 
dividends on the 180 shares would 
amount to $468 or 3.77% on the parity 
price. This compares with the 3% 
yield that he has been getting. On his 
newly acquired shares he would receive 
a dividend of about 7% on his invest- 
ment. 

Fireman's Fund is the second com- 
pany thus far to announce such a step 
m what some market observers believe 
wili constitute a second round of new 
financing on the part of stock fire in- 
surance companies in order to accommo- 
date the avalanche of business that is 
engulfing them. 

Fireman’s Fund has withdrawn its 
share for share offer, as well as the ac- 
companying cash offer to holders of 10 
shares or less, for stock of Fireman's 
Fund Indemnity, as of July 6. 








elected William Van Wormer, Phoenix 
of Hartford, big toad; Roy Storrer is 
polliwog; Samuel Gray, 
McKay, 
keeper. 

There were 110 ganders and guests 
on hand. 


croaker; Robert 
Ww 


bouncer, and Page, 











2 


HeNATIONAL UNDERWRITER 





June 24, 15 








N. C. Mutual Agents 
to Hire Secretary 


Revise Constitution 
at Atlantic Beach, 
Beam Goes to Helm 


North Carolina Assn. of Mutual In- 
surance Agents held a well-attended and 
fruitful meeting at Atlantic Beach last 
week. Despite the distractions of per- 
fect weather and an inviting beach, the 
members packed each session and adopt- 
ed a revised constitution and by-laws. 
Among other changes, dues were it- 
creased and provision was made for em- 
ploying a secretary. The new adminis- 
tration, headed by E. L. Beam, Char- 
lotte, hopes to secure a part-time sec- 
retary in the near future, and eventually 
to have a full-time executive. 

Mr. Beam, who succeeded Murray 
White, High Point, as president, acted 
as voluntary secretary during the past 
year and his energy was widely credited 
with building membership up to 287. 
The new constitution is a tribute to Mr. 
White and G. F: Jones, Charlotte, chair- 
man of a special committee on that sub- 
ject. 


Well-Balanced Program 


The members approved a_ well-bal- 
anced program, which opened with 
Commissioner Hodges appealing for 
support from everyone in the new era 
of insurance regulation. Mr. Hodges, 
who was presented with an honorary 
life membership, said June 30, 1948, will 
be.as important a date in insurance his- 
tory as the dates of Paul vs. Virginia 
and the S.E.U.A. decision. Two rat- 
ing bureau heads, John Fletcher of 
North Carolina Automobile Rate Ad- 
ministrative Office, and Landon Hill, 
North Carolina Fire Insurance Rating 
Bureau, discussed their problems and 
answered numerous questions. Howard 
Russell, New York, Improved Risk Mu- 
tuals, told of the facilities of his organ- 
ization, including its recent entry into 
the tobacco and textile fields. 

P. F. Baldwin, Washington, of the 
National Assn. of Mutual Insurance 
Agents, asked for support in the 
N.A.M.1.A. public relations fund drive. 
At the dinner Friday evening, Mr. Bald- 
win announced that the award to the 
field men making the greatest contribu- 
tion to mutual insurance in the state 
had been voted to Clement Marshall, 
Charlotte general agent. Mr. Marshall, 
who had just been elected president of 
the Southern 1752 Club, was unable to 
be present because of sudden illness and 
Mrs. Marshall accepted it for him. He 
recovered sufficiently to deliver a report 
gn the liaison committee at the Satur- 
day session. 


Swigart Makes Awards 


W. E. Swigart, Huntington, Pa., past 
N.A.M.I.A. president, presented his 
awards, built around reproductions of 


old fire marks, to outstanding members. 


Mr. White received the 1948 award and 
Mr. Swigart presented retroactive 
trophies to Messrs. Jones and Beam 
and F. H. Craft, Greensboro, past pres- 
ident. 

J. C. O'Connor, Cincinnati, editor 
“Fire, Casualty & Surety Bulletins” and 
assistant editor THe NATIONAL UNDER- 
WRITER, conducted two forums, one on 


business interruption insurance and one 


on casualty exclusions. P. H. DuBuc, 
Shelby, O., agency secretary Shelby 
Mutual Casualty, introduced him. Col. 


H..J Hatcher, chief of the state depart- 
ment of highway safety, was the lunch- 
eon speaker. He appealed for support 
in his campaign for driver education in 
the North Carolina schools. 

Another feature was the election of 
the ‘first wotidn to the board of direc- 
tors. Mrs. Martha Toler has built’ up 
a splendid agency in Fayetteville’ and 
Has‘Been an éarnést dnd popular worker 
in the organization since it was founded. 


Duxbury Sees 
Continuing Vital 
Place for E. U. A. 


George H. Duxbury, U. S. manager of 
North British & Mercantile, in his presi- 
dential address at the midyear meeting 
of Eastern Underwriters Assn. at Man- 
chester, Vt., expressed confidence that 
E.U.A. can continue to serve a tre- 
mendously useful purpose in the insur- 
ance business. He said he looks for- 
ward with courage to the future, with a 
full appreciation that some _ business 
risks may be involved in the continu- 
ance of trade association work, Each 
activity will be scrutinized thoroughly 
in the light of its public benefit. 

He pointed out that within just a few 
days the moratorium under which the 
insurance business has been working will 
expire. Much has been accomplished by 
the business in. readjusting itself to 
the new concept of operating proce- 
dures. Every state in E.U.A. territory 
has enacted rate regulation legislation 
and in each such state where it has 
been permissible, E.U.A. has filed as an 
advisory organization. 

In addition to making recommenda- 
tion to rating organizations through 
study and research dealing with rating 
methods and levels as well as forms, 
clauses and rules, E.U.A. is carrying 
on other functions of a trade associa- 
tion. The question of what constitutes 
appropriate association activity has been 
scrutinized objectively. E.U.A. does not 
exercise police power over its members 
by the enforcement of what were for- 
merly considered necessary restrictive 
rules for the betterment of the business 
and the protection of the public. 


No More Punitive Measures 


No longer is the association a medium 
for applying what might be considered 
punitive measures to unfair competi- 
tive situations that involve constriction 
of freedom of action. There are no 
longer rules and regulations attempting 
to build within the industry protection 
for members against what might be con- 
strued to be unfair practices. 

The guide for future operations might 
well be the experience and activities of 
other trade associations that have long 
been bound by the same necessities for 
joint action that encompass insurance. 
If E.U.A. is to continue its role as a 
regional trade association it must re- 
view its activities objectively with the 
idea of being of utmost value to its 
membership and the public. 

While there may be twilight zones in 
trade association activities in the new 
concept of duties to members neverthe- 
less the organization should go forward 
without fear with a program that is de- 
signed for the best interest of the mem- 
bership and the public. The insurance 
business has been recognized by the 
public as one that is conducted under 
fair principles with due regard for the 
rights and equities of stockholders. 


Sees Fear Virus 


The insurance business, he said, has 
been innoculated at least to some degree 
with a fear virus and the epidemic may 
arrive when the moratorium expires. He 
said he does not share the view that 
the business will suddenly have descend- 
ing upon it all those who are standing 
on the starting line waiting for the gun 
to be fired. The insurance business is 
too important, too necessary to the pub- 
lic for administrative agencies immedi- 
ately to launch an attack against every- 
thing that has heretofore been regarded 
as essential to the advancement of the 
business and the protection of the 
policyholder. He recommended that 
E.U.A. proceed with its study and re- 
search into any phases of the business 
that have a public interest, that the re- 
sults of these studies be made known 
to the members and to the public. Fu- 
ture work of the association must in- 
volve study, research, and debate on any 
phase of the operations that will produce 
higher’ standards of business, ethics, effi- 


ciency and economy. The association 
must be ever mindful of the competi- 
tive equality of the membership regard- 
less of the size of the companies. Any 
trade practice that is not measured by 
its effort upon the whole industry and 
the public alike may not stand the light 
of scrutiny if it gives undue advantage 
to a few. 

Chris D. Sheffe, U.S. manager of 
London Assurance in his report as pub- 
lic relations chairman, reviewed the 
many activities that have been launched, 
including the distribution of 7,000 copies 
of the public relations manual, the mail- 
ing of public relations items to field 
club leaders, organization of a state fire 
prevention association in New Jersey 
and town inspections in other states, 
preparation of a guide on how to plan 
a town inspection, preparation of a 
booklet for distribution by field clubs 
outlining the general mechanical proce- 
dure of policy writing as an aid to 
employes of agents. 


Story of Rate Increases in 
15 States Causes Confusion 


Fire insurance men throughout the 
country were startled and confused by 
articles: appearing in many newspapers 
reporting that fire insurance rate in- 
creases had been put into effect in 15 
states. The story was sent out by a 
press association and was written in 
such a way as to indicate that this was 
something of a current nature. The in- 
surance fraternity had no inkling of 
anything of this kind, and it seemed 
strange that in this day of rate regula- 
tion any such program could be effected 
in that many states at the same hour. 
THE NATIONAL UNDERWRITER received a 
call from one of the Chicago papers late 
one evening desiring to get background 
information and the editors at first were 
chagrined to think that they were 
caught flat-footed on what appeared to 
be such an important story. 


Actually, this turned out to be a 
rather maladroitly handled story, re- 
viewing rate increases that have been 


granted in the past year or so. The 
facts were gotten from the National 
Board by one of the press services that 
apparently was prompted to mote an 
inquiry because of allusions to rate in- 
creases that were made in the presiden- 
tial address of J. M. Haines at the an- 
nual meeting of the National Board. In 
his talk he indicated how slight the in- 
creases have been in contrast to inflated 
prices for every other commodity or serv- 
ice. However, the story gave the dis- 
tinct impression that these were rate 
increases that were currently being put 
into effect rather than being an histori- 
cal review. Illustrating that this was 
the impression that was created is the 
fact that THE NATIONAL UNDERWRITER 
has received stories from gimlet-eyed 
correspondents throughout the country 
reporting that fire insurance rate in- 
creases have now been put into effect in 
15 states. 


Holland Heads Kentucky 
Fire Prevention Assn. 


Kentucky Fire Prevention Assn. at 
its annual meeting at French Lick, Ind., 
elected Smith Holland, America Fore, 
president, succeeding Kenneth R. Dun- 
kin, Travelers Fire; Paul Beattie, New 
York Underwriters, vice-president, and 
Parkhurst Blood, New Hampshire, sec- 
retary. 

Mr. Dunkin said some 15 or 20 men 
are carrying most of the work for about 
130 to 140 members, and argued for 
more active workers. He recommended 
that a committee be named to divide 
the state in sections and arrange for 
fire prevention meetings where they are 
most needed, and that, speakers be as- 
signed far enough in advance so that 
they would have time to prepare talks. 
He urged an immediate start on plans 
for Fire Prevention Week. 


A committee with Martin Bodeker, 
Royal Exchange, as chairman, was 
named to work out the suggested 


changes and recommendations. 


J. E. Rawling Named 
U. §. Marine Head 
Phoenix-London 


James E. Rawling has been name 
S. marine manager of the Englig 
companies of Phoenix of London | 


and marine manager of the Americy 
companies. He succeeds James Mathe 
who has resigned. 
effective July 1. 

Other changes in the marine depar. 
ment are: L. Wagle has been appoint 
deputy U. S. marine manager; R, k 
Smith and J. W. Wahl are assistay 
U. S. marine managers; E. J. Lindley; 
Ri, - marine secretary, and J. F. Sp. 
ponish is assistant U. S. marine secre 
tary. 

The appointments are also effectiy, 
for Norwich Union Fire and Eagle Fir, 
of New York, which are represented by 
the Phoenix group marine department 

Mr. Rawling joined Phoenix grom 
in 1915 at the head office of Union Ma. 
rine in Liverpool. He came to th 
U.S. in 1925 in the claims department 
and was appointed underwriter in 194 
He is president of the Phoenix grou 
of Quarter Century Club, the company 
25-year organization. 

Mr. Wagle has been with the gram 
since 1910 and prior to his new appoint. 
ment has been adjuster of marine claims 


The appointment ; 


Contingent Pacts 
Are Being Revised 


Increased activity is reported in the 
direction of adjusting fire insurance con- 
tingent contracts with agents, especi- 
ally in the excepted cities of the middle- 
west. 

A number of the companies are using 
the advisory contract of Western Un- 
derwriters Assn. that was developed 
with the counsel of accountants. How- 
ever, variations of this scheme are re- 
ported as being put into effect. 

Under the new W.U.A. advisory plan, 
the premium factor each year consists 
of one-third of the premiums written for 
the most recent year, one-third of the 
premiums for the preceding year, and 
a third for the second preceding year 

Likewise, the commission expense that 
is charged into the formula is based 
upon this one-third averaging. The 
charge for home office expense and 
taxes in the recommended formula is 
18% as against 7.5% that had been in 
general use. There is a two year carry- 
over of deficits. 

Some companies are blanketing the 
entire operations of an agency with a 
contingent, that is the contingent is fig- 
ured against fire and allied lines business, 
automobile and inland marine. Also, it is 
said some companies are carrying for- 
ward deficits for only one year and still 
another variation is to calculate the ac- 
counts on the basis of net premiums 
after reinsurance so that the agent 
would not get credit for the portion of 
the premium that was reinsured, but 
neither would he be charged with losses 
recovered from reinsurers. 


Brown Cleveland President 


Cleveland Field Club at its annual 
meeting elected Clarence D. Brown, 
Jr., Boston, president; Stuart R. Ter 
williger, Aetna Fire, vice-president; 
James D. Streich, St. Paul F. & M., sec- 
retary, and S. M. Klemm, Underwriters | 
Adjusting, treasurer. | 

aa | 

New officers were installed at the June 
23 meeting of Insurance Women of 
Akron. Mrs. Grace O. Lods performed 
the installation. A report on the Port- 
land convention was given by Miss Carol 
Sullivan, and awards were presented 
members who have completed the intro- 
ductory course of National Assn. of In- 
surance Agents. 





June 24, 


June 24, 1948 FieNATIONAL UNDERWRITER 


une 24, 19 








SS ee 


lamed 
lead of 
n 


been name 
the Englig 
20ondon grow 
the America 
ames Mathe 
ppointment ; 


jarine depar. 











een appointe/ ' / 
lager; R. K H. C. CONICK H. C. JOHNSON 
are assistany 

J. Lindley j UNITED STATES MANAGER 

nd i F. Sv. 


marine secre. 


also effectiy, 
id Eagle Fir. 
presented by 
- department 
10e€N1X = = group 


l K. p Kk 

= | O0 Ig ae, e00e 

yf Union Ma. _ 

came to the 

s department 

riter in 194) 

hoenix group 

the company 
| ARENT SE ETTORE DORIA EL EI * 





th the graup 
new appoint- 
larine claims 
















cts The continuous whole-hearted acceptance of “L. & L. & G." 
2 * insurance policies is, without doubt, a result of the integrity con- 
ised tributed by each “L. & L. & G.” Management throughout 100 
jorted in the years in the United States. - 
ae The men of today in whose hands rests the to- 


ents, especi- 
f the middle- 


morrow of the Liverpool & London & Globe Insur- 
ance Co. Ltd., have been trained to carry on the 
responsibilities heritage has willed them. Perform- 
ance and security for policyholders are such deeply 
imbedded traditions that no matter what changes 
may be in store for the industry, 
those traditions in the keeping of 
today’s Management will remain 
as constant as they have been 


during the past 100 years. 








ies are using 
Western Un- 
is developed 
tants. How- 
leme are re 
effect. 

dvisory plan, 
year consists 
is written for 
‘third of the 
ig year, and 
eceding year 
expense that 
ula is based 
raging. The 
expense and 


oe rut LIVERPOOL so LONDON :x0 GLOBE: 


anketing the 
oe INSURANCE C0. LTD 
ingent is fig- sf ‘3 
ines ee @ major unit of the ROYAL-LIVERPOOL GROUP + 150 William St., New York 8, N. Y. 
ne. Also, it is 
carrying for- 
year and still 
ulate the ac-} 
et premiums 
the agent 
1€ portion ol 
‘insured, but 
d with losses 





Tears in the United States 


‘esident 


t its annual 
D. Brown, 
iart R. Ter- 
ice-president; 
F. & M., sec-} 
Underwriters 








J. C. QUALMANN 


i at the June 

Women of 
is performed 
on the Port- 
y Miss Carol 
re presented 
ed the intro- 
Assn. of In- 











4 








Urges Plan of 
Superior Licensing 
for Qualified Agents 


W. O. Hildebrand, secretary-manager 
of Michigan Assn. of Insurance Agents, 
in addressing a district meeting at Bay 
City, advocated a superior agent licens- 
ing designation to be known as “certified 
insuror.” Such a license, he suggested, 
should be granted following a written 
examination after the applicant has been 
licensed as an agent or solicitor for three 
years. He indicated that Commissioner 
Forbes and Ray Des Autels of the 
license division concurred in large part 
with the suggestion. The matter of 
legislation will be studied by the execu- 
tive and legislative committees. 

Mr. Hildebrand said there had been 
marked improvement in the caliber of 
agency representation since the qualifi- 
cation law and subsequent amendments 
were enacted and since the educational 
program of the Michigan agents associ- 
ation was launched. However, prior to 
the time that the law became effective, 
thousands of improper licenses had been 
issued and they are still in existence. 

Mr. Hildebrand alluded to a pamphlet 


_ HeNATIONAL UNDERWRITER 








on fire insurance issued by “American 
Ecclesiastical Review” which was criti- 
cal of the agency representation of the 
billion dollar fire insurance business. 
[he agent was characterized as a pamp- 
ered pet of the company who knows lit- 
tle about insurance and it is difficult 
for the public to make a discriminating 
selection of agents because some are 
barbers, some undertakers, some life in- 
surance agents, some real estate men 
who take on insurance as a Sideline. 
The article blames the insurance com- 
panies for not setting up real standards 
for the agents. 


Hildebrand Comments 


Mr. Hildebrand said much of this 
criticism is justified. He said too often 
churches or lodges attempt to compli- 
ment everyone within the membership 
who has an agent’s or solicitor’s license, 
with a small piece of business. 

Another speaker was Russell A. Brad- 
ley of Ann Arbor, vice-president of the 
association, who emphasized the mem- 
bership campaign which is called “Af- 
filiate in 48.” Harry F. Chapin of Bay 
City was chairman of the meeting and he 
has called another gathering to estab- 
lish a co-extensive local association at 
that place. Clarence F. Graebner of 
Saginaw, member of the lower house of 
the Michigan legislature, gave a talk. 








FIRE | 


NSURANCE 
CORPORATION 


JOHN A. HEINZE, President 














FIRE 
AND ALLIED LINES 











90 SOHN STREET 
NEW YORK 7 
NEW YORK 














- 








F.LA. MAKES CHANGES 


Forristall Aid to 
President; Germain 
Eastern Manager 


Organizational changes are being 
into effect by Factory Insurance 

Vice-president F. D. Ross will 
tinue to have supervision of regional 
office activities, the handling of nation- 
wide accounts with units located in two 
or more regional offices, and such other 
executive duties as may be assigned to 
him by the president. 

W. 





put 
Looe 


con- 


Forristall, presently manager 
of the eastern regional office, will be- 
come assistant to the president. 

H. Germain, presently assistant 


manager of the eastern regional office, 
will assume the duties of manager of 
that office. 

Walter P. Fay, presently executive 
assistant in the underwriting depart- 
ment, will be advanced to assistant 
eastern manager, in charge of underwrit- 
ing and negotiation. 

Edgar H. Parker, presently executive 
special agent, will become superintend- 
ent of the underwriting division in the 
eastern regional office. 


Mr. Ross before assuming his duties 
as vice-president in 1945, acted as as- 
sistant to the president since 1943. He 
joined F.I.A. in 1926 as assistant man- 
ager of the Hartford office and was 
made manager in 1942. He was edu- 
cated at Massachusetts Institute of 


Technology and after naval service in 
the first war was with Underwriters 
Bureau of Middle & Southern States, 
New York Underwriters Agency in the 
special risk department, and with Scot- 
tish Union as superintendent of the spe- 
cial risk and brokerage departments. 

Mr. Forristall went with F.I.A. in 
1919. He became executive assistant in 
1940, assistant manager in 1942 and, in 
1945, eastern manager. He was edu- 
cated at Brown University and was in 
the navy in the first war. 

Mr. Germain joined F.I.A. in 1929, 
was advanced to special agent at Phila- 
delphia and, in 1939, was made field 
manager for the middle states, in charge 
at Philadelphia. He became manager 
of the New York City office in 1940 
and was made assistant eastern man- 
ager in 1945. He was graduated from 
Worcester Polytechnic Institute. 

Mr. Fay joined F.I.A. in 1914, fol- 
lowing graduation from Worcester 
Polytechnic Institute. 

Mr. Parker joined F.I.A. in 
lowing graduation from 
Polytechnic. 


First Five Month Fire Loss 
Total Is $332,018,000 


Fire losses for the first five months 
according to National Board figures are 
up $13,582,000 from the same period in 
1947. 

For the first five months the total is 
$332,018,000. Figures for 1948 thus far 


1921, fol- 
Worcester 


and the same period in the two pre- 
ceding years are: 

1948 1947 1946 e 
Jan. $ 63,010,000 $ 57,180,000 $ 49,808,000 
Feb. 71, 1,000 64,247,000 51,759,000 
March 74,236,000 72,435,000 53,252,000 
April 63,751,000 68,029,000 52,153,000 
May 59,256,000 56,545,000 45,094,000 





$332,018,000 $318,436,000 $252,066,000 


N. Y. Department Rules Home 
Freezer Cover Not Marine 


Alfred J. Bohlinger, deputy superin- 
tendent of New York, has ruled that in- 
surance against food spoilage in home 
deep freeze units due to power failure 
or mechanical breakdown does not fall 
within the purview of marine powers, 

Mr. Bohlinger points out that the 
writing of coverage on food stored in 
public cold storage lockers where the 
relationship of bailor and bailee is pres- 
ent constitutes a distinction. The ele- 
ment of transportation is present here. 


June 24, 19% 


—: 


Sheree Seow pu Amouy 
of Fire Business Is Term 


In view of Superintendent Dineey; 
advice to New York Fire Insurance Ray 
ing Organization to do something aboy 
term business, it is interesting to reviey 
a recent talk he made before the Insy 
ance Section of drags M anagemen 
Assn. In that talk, called attention, 
to the fact that an analysis of fire prem 








ums ‘itten by two large companies 
1945 de 1946 indicates that policies are 
distributed approximately as follows 
One-year policies from 39% to 43% 
three-year policies from 40% to 44% 
and five-year policies from 11% to 134 


As to premiums the distribution is ap 
proximately: One-year policies fron 


20% to 21 three-year policies frox 
53% to 57%, and five-year policies from 
20% to 21%. 

In this talk and in his letter to th 
rating organization, Mr. Dineen show; 
considerable concern about the up ani 
down characteristic of fire insurance 
profits and losses, and assigns a goo 


share of the responsibility to the lon 
term contract. He indicates that there 
ought to be a much quicker response of 
rates to experience than there has beer 
in the past. 

The casualty people avoid this prob- 
lem generally by writing annual policies 
he said. Indeed, some companies now 
are writing six month policies. Thus, in 
the present inflation, these companies 
were among the first to increase rate 
and by the same token were the first to 
reduce them, largely because the short 
duration of the policies enabled the mam- 
agement to keep on top of developments. 
Companies using six-month policies do 
not soaitine such policies semi-annually 
but usega continuous form of policy at- 
companied by semi-annual billi ing which 
reflects any rate changes made since the 
last billing. 


C. W. Varney, Jr., President 


Mutual 
elected 
succeed 


Fire of Rochester 
C. W. Varney, Jr. 
his father, who 
died in May. He has been a member 
of the C. W. Varney & Co. agency 
since 1935 and treasurer of Grange Mu 
tual since 1942. 


SEC Gives Green Light 


Old North State of Greenville, N. C, 
has announced the offer of 100,000 shares 
of capital stock for $1,500,000. Commis- 
sioner Hodges has issued a certificate of 
authority to sell the stock, and SEC has 
has notified it that application to regis 
ter the sale of securities has been at 
thorized as of June 15. The company 
was chartered in November to do a fire 
and casualty business with an authorized 
capital stock of 200,000 shares. 


Grange 
N..<fi., has 


president to 





New officers elected by Grand Ledge 
(Mich.) Assn. of Insurance Agents are: 
President, F. E. Luethjohann; vice 
president, Stuart W. Doty; secretary, 
Harry O. Culp, and publicity director, 
J. Riley Oles. 





CLAIMS 
MANAGER 


An outstanding opportunity for a 
qualified Casualty claim man. Must 
be a lawyer, age 35-45. This is a 
Home Office position with a Mid- 


western company. The man se- 
lected must have an_ excellent 
record in claims management. 


Starting salary $9000.00 per year. 


FERGASON PERSONNEL 


Insurance Personnel Exclusively 
330 S. Wells HARrison 9040 











June 24, 19% 


>= 


e Amour 
Term 


ient Dineen’ 
nsurance Ra 
nething aboy 
ting to reviey 
ore the Insy 
Managemen 
led attentios 
of fire pr em 
col mpanies ! 
it policies ate 


as follows 
9% to 43% 
10% to 44% 
11% to 134 


ibution is ap 
yolicies froz 
policies from 
porcsd from 


letter to th 
Dineen show 
t the up ané 
ire insurance 
signs a goog 
’ to the long 
es that there 
r response of 
1ere has beer 


‘id this prob 
inual policies, 
mpanies now 
ies. Thus, in 
se companies 
ncrease rate 
re the first to 
ase the short 
bled the man- 
levelopments 
h policies do 
semi-annually 
of policy at- 
billing which 
jade since the 


resident 
f Rochester 
Varney, Jr. 
father, who 
n a member 
Co. agency 
Grange Mv- 


Light 
nville, N. C, 
100,000 shares 
100. Commis- 
certificate of 
and SEC has 
tion to regis 
has been at- 
(he company 
r to do a fire 
an authorized 
ares. 


Grand Ledge 
. Agents are: 
ohann; vice- 
y; secretary, 
city director, 





5 
ER 


inity for a 
man. Must 

This is a 
ith a Mid- 
» man se- 

excellent 
anagement. 
) per year. 


)ONNEL 
clusively 
\Rrison 9040 
— 








June 24, 





1948 















Mexico, “Lan > oe 
Enchantment,” o ag 
ed 
_ 
“SS 






}) gold and silver. The state is replete with § 
| Indian lore and bissocical worne. = Spring S, 














estone Caverns and potash mines. Sang 
n Miguel are storied in song. Aztec’s preltistor 
uni’s Pedie Indian village, vials oF and | 







aed 


is . 
CES 






SON “i A ea 
Msi fo 





\ le. 4 


CRUM & FORSTER 


AGER 
EW 


Pi 2 we HD 


A \ 
AN 


[20 WELltiaM St ea ~ 


UNITED STATES FIRE INSURANCE CO Organized 1824 RICHMOND IN 
THE NORTH RIVER INSURANCE CO 
WESTCHESTER FIRE INSURANCE CO 


THE ALLEMANNIA FIRE INSURANCE CO 


} ) THE VA TTCOWN A 
827 THE WESTERN A 


d 
Organized 


Organized 1837 THE BRITISH AMERICA 


of Pittsburgh. Organized 1868 SOUTHERN FIRE INSUR 


WESTERN 




















Swelter Through Another 
N. Y. Accounting Session 


“NEW YORK — 


About 100 accountants, statisticians, actuaries, company and organi- 


zation officials attended the formal hearing on New York’s proposed regulation No. 30, 
which sets up uniform accounting for the fire and casualty business in the state, effec- 


tive next Jan. 1. 
problem of this complexity and magnitude, 














Principal objection of the insurance interests was lack of time on a 





and that some of the proposals for chang- partment a sound and pract cal approat 
ing present accounting procedures are to the matter. ; 
not realistic, or would cost more than James J. Higgins, senior 
they are worth. testified the department ha 

Deputy Superintendent Martineau expert accountants to assist in t 
swore in the witnesses to make the hear- preparation of the proposal. The ques- 
ing legal, in case the issue got to the tionnaires, he stated, were answered by 
point of judicial review, which the law 105 offices representing 253 fire compa- 
allows. Deputy Superintendent Morrill nies, and 90 offices representing 104 cas- 
produced 30 exhibits to back up the de- ualty companies. Exa ninations we 
partment’s view that the problem has made of 56 fire offices representing 69 
been discussed since 1945 and, there- companies, and 81 casualty offices repre- 
fore, ample time had been provided to senting 95 companies. This exhaustive 
consider the revisions. h convinced him there was a 





umerous meetings have been held of uniformity in accounti 
on the subject, he said. He described pr although this not 
the questionnaires submitted to the tl > practices were not good. _ 
companies, the revisions made after the spokesman for i 
answers wert received, and the field ex- Board, whic h represented stock fire 
uminations conducted to give the de- terests opposing the proposal 





+ 





Service to Agents 
is our Business 








LF INSURANCE COMPANY 


ATLANTIC INSURANCE COMPANY 














ae 


Of Every Description 


Domestic aud Foreign 
LEONHART az«COMPANY, %c 


40 EXCHANGE PLACE 


102Q ST. PAUL STREET 


BALTIMORE 2, MD. NEW YORK CITY 5 





Harold fe 
Liverpool 
made by 


Conick, head of the Royal- 
group. He quoted remarks 
Superintendent Dineen in a 
talk before Insurance Accountants 
Assn. in April, 1946, in which the com- 
missioner said: “Tf program is to 
success, it product of 

New 
prod- 
Dineen 
insurers 
neede qd, as 


his 
be a cannot be a 
the companies alone or of the 
York department or even the joint 
both.” In his talk Mr. 
cooperation 
try was 


stated of 


t 
t irougnout ti coun 


well 


as tne collaborati on of commiss io! 
rs. Mr. Conick’s talk then brought out 
that the New York proposal had been 

sidered at the recent N. A.I.C. meet- 








in Philadelphia and that that group 
took no action but re elie a sub- 
committee be appointed } 
tire problem. Part 1 
was agreed to by. the . 
with a few mod 
that parts 2 to 5, par ict 
lating to the allocation of expense 
groups, required much more study. 


Suggests Different Approach 


ae may be 
uniformity entirel 
ould be made, : 
ing his testimony, he 
was not broug! 


that for economy and 
y different approach 
stated. Conclud- 
pro- 
concrete 
lis year and that 
rt a time to er 
mit adequate study or suggestions to be 
and asked for more time. 
Magrath, Chubb & Son, 
Board representative, 
suggested the problem was 
be settled on a national and not 
a state basis because the changes affect 
the annual tatement required by 
N.A.L:C. He “cantered his objections 
the bunching of fire, auto, inland 
and ocean marine figures into one sec- 
tion and said that the figures produced 
would be worthless for analysis. At a 
meeting of the industry committee with 
the New York department a week ago, 
he said, many of the company objections 
to the proposal had been ironed out and 
he regretted that more meetings weren’t 
held, implying that much of the pres- 
ent difficulty could be met through more 
joint conferences. 

He picked the proposal apart step by 


an 
sho 
that the 


t out 


Said 





posai in 





wntil 
untill 


Was much 





+ 
t 

too s! I 
) 
made . 
Joseph J. 
was tne 
and 


mn 


second 
ne tnat 
e to 


on 


step, concentrating on the section re- 
ferring to joint expenses when one 
company is managed by another, the 


lumping of many expenses such as ad- 

vertising, premium collection and policy 

writing under acquisition cost, and the 
(CONTINUED ON PAGE 13) 


STOCKS 














By H. W. Cornelius, Bacon, Whipple & 
Co., 135 Se. La Salle St., Chicago 
June 22, 1948 

Par. Div. Bid Asked 
Aetna Casualty...... 3.00 82 85 
Aetna Fire .......... 1.80* 44 46 
oS See 2.10 50 52 
American Alliance 1.00* 21% 23 
American Auto ...... 1.20 40 42 
American Casualty... .86 11% 12% 
American (N. J.) -70 16% 17% 
American Surety 2.50 60 62} 
Baltimore American... .30* 74 Bid 
BNO sedis ccvesucce 2.40 65 68 
Camden Fire ........ 1.00 19% 21 
Continental Casualty. 2.00* 50 51% 
Fire Association ..... 2.56 554 57% 
Fireman’s Fund ..... 3.00 100 103 
Firemen’s (N. J.) 50 13% 14% 
Franklin Fire ....... 1.00 21% Bid 
Glens Falls ......... 1.60 45 46% 
Globe & Republic.... .50 9% 10% 
Great Amer. Fire.... 1.20* 31%, 33 
Hanover Fire .......- 1.20 27 28% 
Hartford Fire ....... 2.50* 111 114 
Home (N. Y.) .....--.- 1.30 28 29 
Ins. Co. of North Am. 3.00 100 103 
Maryland Casualty .. ... 15% 16 
Mass. Bonding ...... 27 29 
Merchants Fire, N. Y. 28 30% 
National Casualty 26 27% 
National Fire ....... 4444 46 
National Lib. ........ - 6% Bid 
New Amsterdam Cas.. 1.00 27% 28% 
New Hampshire ..... 1.00* 41% 43% 
North River ......... 1.00* 24% 25% 
Onto Cagesity ....... .80 40 Bid 
Phoenix Conn. ....... 2.00* 84 87 
Preferred Accident San + 444 
., AR SSS 1.40° 32 33% 
St. Paul F. & M...... 2.00 77. —s« 80 
Security, Conn. ...... 1.40 26% 28 
Springfield F. & M.... 1.90 44 4 
Standard Accident 1.45 32 33% 
PRVONER ccccccccecs 8.00 580 590 
Me, We Be & Guwcccccees 2.00* 50 52 
ce eae 2.00 53 55 


*Includes extras. 





June 24, 19% 


F.I.A. Makes Five | 
Changes at Chicago 





have been four promotior 1S ang 

lition to the western regional oi 
Factory Insurance n. at Chi 

cago. J. A. Wilson has been name 
executive special agent; C. J. Stalzery 
now superintendént of underwriting; F 
W. Robertson is superintendent of th 
loss department; F. J. Goodfellow gog 


to Cleveland 
James A. | 


as spec 


n northen 
S rejoine 













ganization as ive assistant, 
Wilson joine licago office 
when F.I.A 


Westen 





supervisor 






Mr. Robertson the business 
with New York Underwrit- 
ers in 1922 as ctor and special 
agent. He went *.1.A. in 19364 
Detroit, was in charge of eng ince in 
Cleveland and 1945 went 0 Chicage 
as engineering supervisor for ‘Ol 110. 

Mr. Goodfellow began in the under 


writing department in 1942 and then be 


came supervisor of nationwide accounts 

Mr. Davidson has been in the lumber 
business in New York state for three 
years after 15 years with F.I1.A. He 
graduated in fire protection engineering 
from Armour Tech in 1926 and went 
with Ohio Inspection Bureau. Mr, 


Davidson became an inspector for F.LA 
in 1929. He entered the underwriting 
department, became supervisor of the 
Michigan field and then superintendent 
of underwriting. He will now assist the 
management in underwriting matters. 


Graham Warns Against 
Too High Aviation Loss 


James R. Graham, Chicago, vice: 
president of United States Aviation Un- 
derwriters, warned those attending the 
Ohio aviation clinic at Bowling Greer 
that bad plane rental and other prac- 
tices must be eliminated by the avia- 


tion industry if a current trend toward 
prohibitive insurance rates is to 
halted. 

He cited tremendous increases it 
losses since the end of the war on al 
most every class of aviation risk and 
on all sorts of coverage from air lineg 
to private flyers. Mr. Graham called 
for greater vigilance by the industry 


in accident prevention and prevention 
of loss from such sources as fires and 
windstorms. The alternative, he inti 
mated, could be a decision by insurers 
to desert the aviation field entirely. 





Complete Coverages 
FOR 


BUSSES 
TAXI CABS 
LOCAL 


AND 
LONG HAUL 
TRUCKS 


KELSO & SONS 


General Agents 
1238 N. Wightend Ave. | Les Angeles, Cal. 


175 W. Jackson Biv im. 
Tel. nan 
“Satety & Engineering Service” 














tribut 
the s 

Loc 
olis 
condu 
the fi 
sided 
facult 


1D $4) 
’m tal 





was 
adopt 


grour 

Co! 
Robe: 
form 
legis]: 
eph | 


10n01 


Burk: 


June 24, 


1944 
a 


Five 
hicago 


romotions ang 
n regional gf 
Assn. at Chi 

been Name¢ 
. J. Stalzery 
derwriting; F 
endent of the 
odfellow Zoe 
nt in northen 
has rejoinej 
ive assistant, 
Chi icago Office 
ured Westen 
- started with 
1 1926 as w 
d to assistar 
doing special 
ago an d Wi 
oducti On ané 
ti re territon 
wi 1 Royal 2 
there in 193¢ 
g supervise 


the business 
il Underwrit. 
and special 
A. in 1936 at 
‘ngineering in 
it to Chicago 
for Ohio. 
n the under 
and then be 
vide accounts 
in the lumber 
ate for three 
| F.LA. He 
n engineering 
26 and 
sureau. 
‘tor for F.LA 
underwriting 
‘visor of the 
uperintendent 
ow assist the 
g matters. 


ainst 
Loss 


licago, vice 
Aviation Un- 
attending the 
ywling Green 
| other prac: 
by the avia- 
trend toward 
ss is to be 


increases if 
e war on al 
ion risk and 
rom air lineg 
raham called 
the industry 
d prevention 
as fires and 
‘ive, he inti 
1 by insurers 
d entirely. 





rages 


BS 





24, 1948 





BIG SPORTS. BUSINESS RALLY 
Record Crowd 


at Minnesota 
Field Roundup 


By ROY W. LANDSTROM 








\ ord attendance, four Min- 
eld groups gathered last week 
Lake near Brainerd for their 

Im roundup. New officers 

»y Minnesota Underwriters 

et t Bureau Field Club, 
Minnesota Fire Preventson Assn. 


flair was closed with a Blue Goose 








at Ww 1 contest prizes were 
vy president of the Minnesota 
I rwriters Assn. is George Va 
Wagenen Ws an Wagenen general agency 
f Minn apolis. Nick Dekker, America 
T 18 vice-prI resident a d. Neil ( 
Ss ge, Security of New Haven 
y-treasure Mrs. Gertrude 
S who has been s¢ tary of the 
ition for a numbe ort vears, was 
ed and received a bu from 
lan of the spe akers. 
New members of the M.U.A. execu- 
committee are R. W. c: arlstrom, 
ens Falls; T. T. Karlquist, Royal; 
W. Scodde, Home; P aul Olingér, 
Agricultural, and R. R. Hayes, Crum 
& Forster. 
Klinkenborg Reports on Year 
as Klinkenborg, Phoenix of Hart- 
rd, retiring president, in his report 
summarized the year’s activities, and 
emphasi ized the success the group has 





had 
lations work. 

Mr. Klinkenborg mentioned 
the public relations field, M.U.A. has 
divided the state into 15 regions with 
a field man and local agent acting as 
joint chairmen. The association 
creased its list of opinion leaders by 
nearly nine times last year. He gave a 
detail report on the radio broadcasts 
sponsored by the association and paid 
tribute to Paul Olinger, 
the schedules. 

Local agents in St. Paul and Minneap- 


that in | 


in- | 


in its fire prevention and public re- 


who arranged 


olis utilized the re of M.U.A. in | 


conducting two C.P.C.U. classes and 
the field men held a speech class pre- 
sided over by University of Minnesota 
faculty members. The field men gave 
32 talks during the year 
their radio broadcasts. 


Entertain 525 Firemen 


The group also sponsored a luncheon 
at the Minnesota fire chiefs’ conven- 
tion and were hosts at a smorgasbord 
for 525 volunteer firemen who attended 
the fire school at St. Paul. 

Mr. Van Wagenen, the new presi- 
dent, gave a report on the meeting be- 
tween the excutive committees of the 
Minnesota Assn. of Insurance Agents 
and M.U.A. He stated that the meeting 
was successful and a resolution was 
adopted calling for a meeting of the 
groups each year. 

Committee reports were given by 
Robert Belford, London Assurance, uni- 
form forms; Leonard Bell, Hanover, 
legislative; Mr. Dekker, treasurer; Jos- 
eph Brink, T. E. Linnell general agen- 
cy, C.P.C{U. courses, and Mr. Olinger, 
public relations. 

The association elected 
Mitchell, assistant manager 
Underwriters Inspection 
honorary member. 


Burke Is Bureau President 


Northwest Bureau Field Club elected 
T. J. Burke, Ohio Farmers, the new 
President to succeed H. W. Houd, Loy- 
alty group. E. C. Erland, Loyalty 
group, is the new vice-president. 


Clarence 
of Fire 
Bureau, an 


_The Fire Prevention Assn. elected 
Glen Schodde, Home, as president. 
Other officers are: vice-presidents, 


Leonard Hagen, Employers Fire, and 
Grant Buchanan, Agricultural; secre- 


in addition to | 













tary-treasurer, H. W. Houd, Loyalty liams, America Fore; Herbert Johnson, 
group. Duluth Rating Bureau. Shuffle board, 

Guests at the meeting were Armand David White, Home; Stanley Fried- 
Harris, commissioner, and Leonard lund, Sexton general agency; Jack 
Lund, deputy commissioner of Minne- Klinkenborg, a of Hartford. Ping 
sota, both of whom had _just returned pong, Glen chodde, Home; Atlon 
from the commi Ssioners’ meeting at Goodspeed, Worthefn of London; D. F. 
Philadelphia. They spoke briefly. Lennon, Royal. Blind bogey, Earl Mun- 

The sports contests, which are always son, Northwestern F. & M.; Donald 
a. big feature of the Minnesota field McLennan, Minnesota Rating Bureau; 
gatherings, started the morning of the John Landmark, Minnesota Rating Bu- 
first. day and were concluded with reau. Clock golf, -k Dekker, Amer- 
awarding of prizes at the Blue Goose ica Wore; R. W. Whitchurch, American; 
dinner. Awards were made by John E. Thomas Marron, Frank Rogers general 
Jackson, Home, and the winners were: agency. Darts, Roy Curwen, Royal; 

Rifle shoot, Car! Lill, Sun; Guy Wil- R. R. Hayes, Crum & Forster; Leonard 


A heritage 


that became 
a tradition 





“5 had 
2 3) ofc) TOON, 7; 


I, early-day San Francisco, the ’4gers 
again and again refused to take “ashes” 
for an answer as they saw their tinder 
community repeatedly go up in flames. 
This was the heritage which found ex- 
pression in the organizing of the gallant 
Volunteer Fire Companies, which in 
1863 inspired the founding and naming 
of California’s own insurance company, 
Fireman’s Fund. 

Events soon proved that this heritage 
of perseverance had become a tradition 
in guiding the destiny of the new Com- ashes” 
pany. For it was only a few years later, in 
the early ’70’s, that this pioneer Western 
company won the acclaim 
of the nation for overcom- 










ing seemingly insurmount- 
able obstacles to settle all its 
claims in the great Chicago 
and Boston conflagrations. 
And then came April 18, 
“They Wouldn’t Take Ashes for an Answer” — 
on illustrated brochure has been published and 


released by Fireman’s Fund in commemoration 
of its 85th Anniversary. 


7? 
= 
Hagen, Employers Fire. Quoits, An- 
drew Phillips, National Union; Grant 
Buchanan, sa ultural; Ted Valine, 
Connecticut Fi 
C.P.C.U. Course at St. Louis 
ST. LOUIS—A C.P.C.U. course will 
be offered this fall at Washington Uni- 


versity in cooperation with Insurance 
Board of St. Louis. The board also is 
offering a correspondence course on in- 
surance 

The S. Major Dent agency, Little Rock, 
has been merged with the dnsurance de- 
partment of Fausett & Co., realtors. Mr 
Dent is a past president of the Greater 
Little Ro ms Insurance Exchange 








Fireman’s Fund Corner, April 18, 1906 


1906 and the most severe test any insurance company 
ever faced. Again, like a voice out of its colorful past, 
came the resounding answer to the “challenge of the 
as Fireman’s Fund settled over eleven million 
dollars in claims to help rebuild its home city. Today, 
with the Strength, Permanence and Stability born of 
85 years of successful operations, Fireman’s 
Fund, now world-wide in scope, still carries on 
the heritage that became a tradition — “they 
wouldn’t take ‘ashes’ for an answer.” 


Fre em: LW 5 Tv A D Grot P 


FIREMS 


HOME FIRE & MAS 


SAN FRANCISCO - NEW YORK + CHICAGO + BOSTON + ATLANTA + LOS ANGELES 














8 





Mont. Cues Holds iene 
Barred in Tort Claims Act 


Another decision has been handed 
down in the highly important question 
of whether under the federal tort claims 
act of 1946 a subrogee has equal rights 
with an original claimant to bring “suit 
for recovery against the federal gov- 
ernment. Here the Montana federal 
‘district court, in Cascade county, Mon- 
tana, et al vs. U. S. A. held that the 
act does not cover claims of subrogees. 
Its theory is that no loss was suffered 
by the insurer because of the negligent 
destruction of the property, but that its 
loss, if any, was because of the contract 
entered into between itself and the 
owner of the property. The court held 
that in using the words claimant and 
claimants, Congress meant the original 
owner of the claim and nét one who de- 
rived all or a part of the claim from 
the original owner. It was held that 
subrogation is.an assignment such as_is 
prohibited by the assignment of claims 
act. 

The action was brought by Cascade 








county and Home in behalf of itself and 
71 other insurers, for loss of a barn 
that belonged to Cascade county and 
that was located on county fair grounds 
which was destroyed by fire after an 
army bomber crashed into it. 

There have been several decisions, 
some by appellate courts, holding that 
subrogees and original claimants enjoy 
equal “standing under the law. 





Colo. Agencies Move 


Lyman, Richie & Co., local agents of 
Colorado Springs, have moved to new 
quarters at 325 North Tejon street. This 
agency is owned by William F. Prindle 
and Ann G. Daly. Mr. Prindle is also 
vice-president of Lyman, Richie & Co. 
of Chicago. 

The Kirk Insurance Agency of Colo- 
rado Springs has moved to a new 
ground floor location at 325 North Te- 
jon street. The new location provides 
ample space for the expanded business 
activities. The agency was established 
Jan. 1, 1947. 

John M. Kirk, owner, 


man for the Community 


is general chair- 


Chest 


















tion. 


In 1893... 


. « America’s first gasoline 
buggy. made by Charles E. 
Duryea, had its first pulling test 
in Springfield, Massachusetts. 
Most onlookers considered it a 
dangerous and impractical con- 
traption. 

From that time forward, The 
Stuyvesant has supplied un- 
counted millions of owners of 
these * ‘contraptions" with sound 
and reliable insurance protec- 


Established 


=, 








1850 















i 


pee INSURANCE 


TL 


ty —y—— 





"I 


COMPANY 


STREET NEW RK 7 N Y 











Use the Fire, Casualty & Surety Bulletins 


This three volume Service provides authoritative answers to your ques- 
tions about fire, inland marine, casualty and surety coverage. 
standard information service for agents and fieldmen. 
ments keep contents constantly up to date. For full details write: 


THE FIRE, CASUALTY & SURETY BULLETINS 
(A National Underwriter Publication) 
os CINCINNATI 2, OHIO 


420 EAST FOURTH STREET 


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‘Walter insite re 
from Service of Buffalo 


Walter R. Ruegnitz, who has been at 
the head office of Buffalo for a good 
many years, has retired but he may en- 





WALTER R. RUEGNITZ 


gage m some insurance activity of a re- 
search nature. Until he went with Buf- 
falo he had been automobile manager of 
Springfield Fire & Marine at Chicago, 
and was active in the councils of the 
automobile underwriters there, and then 
for a time did statistical work for North 
America. He has always been absorbed 
in fundamental problems of the busi- 
nes, particularly in the automobile line, 
and has devised several innovations, es- 
pecially in collision insurance. 


Rating Body Studies Letter 
from Dineen on Term Cover 


The governing committee of the New 
York Fire Insurance Rating Organiza- 
tion at its meeting this week was ex- 
pected to consider Superintendent Di- 
neen’s letter on term discounts and the 
discontinuance of the 5-year term pol- 
icy. The suggestions in the letter will 
probably be referred to the committee 
on rules and regulations and be re- 
ported on at a later date. 

The letter is expected to crystallize 
opinion on the problem of term cover- 
ages and some action undoubtedly will 
be taken as a result. 

Companies have been thinking of the 
term preblem since the post-war infla- 
tion placed a heavy strain on their re- 
serves and surplus. Nothing has been 
done about it because the earlier efforts 
to sell term coverage might be miscon- 
strued by the public if they were dis- 
continued now. At least one of the ma- 
jor companies last year discontinued is- 
suance of new 5-year policies, confining 
its facilities in that direction to renew- 
als. 








Work on Fire Prevention 
Problem in Enemy Attack 


WASHINGTON —Leaders in the 
field of fire protection including a num- 
ber of insurance men, have been named 
by R. J. Hopley, director of the office 
of civil defense planning, on an advisory 
panel to help with particular reference 
to minimizing fire damage in event of 
an enemy attack. 

The group will meet with Frank C. 
McAuliffe, chief of the Chicago Fire 
Patrol and president International Fire 
Chiefs Assn., in the office of Secretary 
of Defense June 23-25 to discuss prob- 
lems in that connection. Chief Mc- 
Auliffe who is fire fighting adviser to 
the office of civil defense planning, will 
act as chairman of .the advisory panel. 

Representatives of insurance and re- 
lated interests on the advisory panel in- 
clude J. Robertson, Underwriters 





June 24, 194 
Laboratories; Alvin Lauber, National 
Board; Earl Smith, American Distrie¢ 


Telegraph, New York; Ray Bond, Na. 
tional Fire Protection Assn.; E. O. Hit 
ton, National Safety Council; Johp 
West, Associated Factory Mutuals 
Philadelphia. 


Loss Heavy in DC-6 Crash; 
Hull Was Self Insured 


A preliminary survey by Associated 
Aviation Underwriters shows that 13 
accident claims totaling $185,000 will be 
paid on the deaths of 39 passengers and 
four crew members in the United Air. 
lines DC-6 that crashed last week at 
Mt. Carmel, Pa. All on board were 
killed when the airliner smashed through 
a 60,000 volt power line while the pilot 
Was trying to make an emergency land- 
ing. 
United Airlines is self insured for 
crash relieving United States Aviation 
Underwriters of an estimated $650,000 
to $850,000 hull loss. U.S.A.I:G. has 
the ground coverage and the passenger 
and public liability and compensation 
for the air line. The amount of loss un- 
der these coverages is not yet known. 

There is no statutory limit to recoy- 
ery for wrongful death in Pennsylvania. 
The compensation loss will amount to 
about $30,000. 

The crash ranked fourth in U. S. air- 
line history in the number of persons 
killed. 

‘The DC-6 crash was the fifth major 
airline loss this year, but the first major 
1948 hull loss not borne by an insurer 
Three of the earlier crashes were in the 
U. S. market and the fourth in London. 
It was the first DC-6 loss of the year, 
the earlier disasters having been in Con- 
stellations and DC-4s. The DC-6 isa 
post war developed airliner and was in- 
volved in the Bryce Canyon, Utah, 
catastrophe last October when 52 per- 
sons died. 

Associated Aviation Underwriters 
points out that all of the accident poli- 
cies outstanding were discovered prior 
to a claim having been presented. In 
fact, as late as four days after the acci- 
dent, only one such claim had been 
made. 

Less than 24 hours after the crash, 
American International Underwriters 
mailed checks in full payment to the 
beneficiaries named in accident policies 
carried by two of the victims aboard. 


Little Clayton Act in N. J. 


The New Jersey legislature has passed 
a “little Clayton act,” permitting inter- 
locking directorates and common man- 
agement and the purchase of the stock 
of other insurers unless these practices 
substantially lessen competition genef- 
ally or create a monopoly. The insur- 
ance commissioner is empowered to is- 
sue cease and desist orders against com- 
panies after hearings. 


Henry A. Steckler Co., New Orleans 
general agency, held its annual picnic 
at Fontainbleau Park, with about 100 
im attendance. 











A PLACING OFFICE 
For Your 


UNUSUAL LINES 


INCLUDING 
TAXI CAB (coverace) 
LONG HAUL ( coverace ) 
PRODUCTS LIABILITY 
MAL PRACTICE 


We Invite Your Inquiry 


STAUNTON-GLOVER & CO. 
A-455 Insurance Exchange 
Chicago 4, Ill. HAR. 5807 























une 24, 194% 


—=>= 


er, National 
ican Distrie 
y Bond, Na 
. E. O. He 
uncil; John 
‘y Mutuals 


| Crash; 
ed 


y Associated 
»ws that 13 
5,000 will be 
ssengers and 
United Air. 
ast week at 
board were 
shed through 
1ile the pilot 
rgency land- 


insured for 
tes Aviation 
ted $650,000 
3.A.1:G. has 
lé passenger 
ompensation 
t of loss un- 
2t known. 

lit to recoy- 
ennsylvania. 
| amount to 


in U. S. air- 
of persons 


fifth major 
> first major 
an insurer. 
were in the 
in London. 
of the year, 
een in Con- 
» DC-6 isa 
and was in- 
yon, Utah, 
hen 52 per- 


‘nderwriters 
cident poli- 
vered prior 
sented. In 
er the acci- 

had been 


the crash, 
nderwriters 
lent to the 
ent policies 
; aboard. 


N. J. 

- has passed 
tting inter- 
imon man- 
f the stock 
e practices 
tion gener- 
The insur- 
rered to is- 
gainst com- 


-w Orleans 
nual picnic 
about 100 


FICE 
NES 














NEWS OF FIELD MEN 





—- 


Indiana F.U.A. 
Elects Ressler 


New officers elected by Indiana Fir 
Underwriters Assn. at its annual meet- 
French Lick are: President, Ed- 
vin Ressler, National Fire; vice- 
president, Ralph O. Hudler, Aetna 
Fire: secretary-treasurer, Elizabeth S. 

r, (reelected); executive com- 
mi R. W. Swanson, Royal-Liver- 
pool; Charles L. Rosenow, Phoenix of 


D 


onnecticut; Don. G. Kaga, Secured 
& M.; S. M. Albrecht, Phoenix of 
ndon; Clark W. Little, Sun. 
E. Bulau of Home, retiring 
in this annual address ex- 





pressed pride over achievements of the 
fire industry. “Within the past 12 months 
fire insurance has begun a march into 
a new era involving changes never ex- 
perienced before in a_ similar given 
period,” he said. 

Many companies have taken action to 
equalize an ever troublesome acquisition 
problem. Loss adjustment prac- 
tices have been improved. Laws have 
been altered and amended. 

He said it was his ambition when 
he took office a year ago to concentrate 
on public relations and educational pro- 
grams. Good results had been achieved 
under leadership of two committees, 
public relations, headed by Walter G. 
Dithmer, Ray & Dithmer, chairman, 
and educational, R. W. Swanson, Royal- 
Liverpool, chairman. 


cost 


Notes New Ind. Commission 


Indiana has been one of the leaders 
in these efforts, he said. Governor 
Gates has cooperated by setting up a 
state commission which participated in 
recodification of insurance law. Mr. 
Bulau anticipates that certain alterna- 
tives still may be needed to conform 
with federal acts. 

He urged that the membership com- 
ply fully with the association’s balance 
rule. “It now appears,” he said, “that 
a financial emergency is about the only 
situation which will induce a majority 
of our membership to take advantage 
of this credit data.” 


R. E. Baker, special representative 
Western Underwriters Assn., Chicago, 
appealed for full cooperation in the 


broad public relations program being 
set up by W.U.A. 
Among guests were Herbert A. 


Payne, vice-president, and Arthur J. 
Etzel, assistant secretary, Home; J. J. 
Hubbell, resident secretary Security, 
Chicago; C. J. Lingenfelder, assistant 
secretary America Fore, Chicago; G. R. 
Cundiff, farm secretary; John R. Mun- 
son, assistant manager farm department, 
and E. V. Smaidginnis, assistant to the 
manager, all of Home at Chicago; R. F. 
Irvine, manager, and G. L. Hanselmann, 
general adjuster, both of Western Ad- 
justment at Indianapolis; H. F. Per- 
kins, manager Underwriters Adjusting, 
Evansville, Ind.; J. T. Dalton, manager 
Western Adjustment, New Albany; 
S. K. Gray, assistant U. S. manager 
of Yorkshire. 

The memorial committee reported on 


death of Eugene H. Johnson, Home, 
retired. A message of sympathy was 
sent to J. C. Johnson, North British, 


who is in a St. Louis hospital recovering 
from an eye operation. R. O. Graves, 
Hartford, was master-of-ceremonies at 
the banquet in which there were no 
speeches. 

H. W. Montgomery of Ray & Dith- 
mer enlivened the proceedings in award- 
ng prizes to the winning athletes, with 
humorous stunts. 


Name Kan. Steering Group 


Howard S. 


Searle, Topeka, state 
agent of Crum & Forster, has been 
named chairman of the executive com- 
mittee of Kansas Fire Underwriters 
Assn. Committee members are H. R. 
Joyce, National Union, and W. E. 





Cobb, Loyalty group, supervisor; G. F. Company of Georgia build- 
Potts, custodian; Thomas E. Green, He is a graduate of 
Hartford, guardian, and John Park and he served in the 
Genera] Adjustment Bureau, keepe orces Recently he has been 
~ >; , > : arrison yusewort!l as reelected arolina special agent for Auto- 
Stewart, Fireman’s Fund, both of Harri on House orth was eele = Carolina ecial agent for Autc 
Nichi wieider Ost h las held tor man c 
Wichita; H. O. McIntosh, Hanover, W*@¢!, 4 post ne Nha , ‘eg ots ia 
and Earl Walker, North British, To- Y€4!S: , ; . ° ; 
] 1 > ; . é s rranad nest ar 
peka, and Merle E. Odell, America , we 8 M a yb ag Bu. Casile, National Field 
, a Ey he - Ra 
Fore. Kansas City. pOnT Niart standara F< u al 
‘ reau, and Mr. Arndt; alternates, Elmer Veteran, Is Retiring 
om Bons and F. L. Ingersoll = ; Miimate 
i me os : C. E. Castle, special agent in I[ilmois 
Arndt San Francisco Head J h : Hanover in Ga Ss availing himself of the opportunity 
New officers of San Francisco Blue #9 nson to r to retire from active duty under the 
Goose, elected at the annual meeting Allan B. Johnson has joined Hanover pension plan of National Fire. ; 
last week, are: Sig Arndt, Finn, Smith as Georgia state agent succeeding Mr. Castle has served National Fire 
3 Jr., with headquar nore t 34 vears, handling principally 


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nin 


March 30, 1867, that gave the United States a territory vastly rich 


Signing of the Alaska Treaty, Chew, Chief Clerk, § De- 


in resources for a payment of $7,200,000. Pictured are Robert S. ‘ : : 
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FeNATIONAL UNDERWRITER 


June 24, 194 








——. 





farm business in northern Illinois. He 
was honored at a luncheon given by 
Vice-president E. H. Forkel at Chi- 
cago where his friends and associates 
presented him with a gift. 

Marion Dace, who has served in the 
various underwriting departments. at 
Chicago, will replace Mr. Castle as spe- 
cial agent with headquarters at Chicago. 


La. Pond Elects Reese as 
M.L.G. at Outing Rally 


Austin Reese, Royal-Liverpool, was 
elected most loyal gander at the annual 
meeting of Louisiana Blue Goose at 
Colonial Country Club, New Orleans. 
Theo. Hickey, Godchaux & Mayer, is 
supervisor; C. A. Brown, Phoenix of 
Hartford, custodian; R. Moyer, 
Moyer & Co., guardian; W. S. Bizzell, 
manager Louisiana Rating & Fire Pre- 
vention Bureau, keeper; E. T. Miazza, 
fSeneral Adjustment, wielder. Mr. 
Miazza is retiring M.L.G. 

Four candidates were initiated. There 
was a _ golf tournament, horseshoe 
pitching and putting contest, with 
prizes, then a barbecue dinner attended 
by some 150 ganders and their ladies. 


Arkansas Blue Goose 
Names Marchall M.L.G. 


Arkansas Blue Goose has elected 
Clyde B. Marshall, Phoenix of Hartford, 
as most loyal gander. Supervisor is 
William W. Leigh, L. B. Leigh agency; 
custodian, Charles D. Swan, Jr., Spring- 
field F. & M.; guardian, Jack G. Par- 
sons, North British; keeper, R. A. Alli- 
son, Trezevant & Cochran general 
agency, and wielder, Ralph H. Baker, R. 
H. Baker general agency. 


N. Y. City Pond’s Slate 


The slate for the election June 25 of 
New York City pond of Blue Goose con- 
sists of Jack B. Quisenberry, Johnson 
& Higgins, m.l.g.; George P. Albiez, 
Pearl, supervisor; Walter W. Emely, 














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Automobile Adjustment Bureau, custo- 
dian; Walter E. Sheldon, Continental, 
Newark, guardian; Robert F. Stumpf, 
keeper, and Floyd C. Pickett, Home, 
wielder. The election will be held at the 
annual outing June 25 at Rocks Spring 
Country Club, West Orange, N. J. 


R. A. Kenzel Joins 


Caledonian in Wis. 


R. A. Kenzel, 
known as grand w 





who is nationally 
ielder of the Blue 
Goose, has resign- 
ed as resident man- 
ager for Phoenix 
of London at Mil- 
waukee, to become 
Wisconsin state 
agent of Caledo- 
nian. He takes the 
place of Victor A. 
Penn, who is en- 
tering the local 
agency business. 

Mr. Kenzel 
started in the busi- 
ness in 1916 at the 
head office of 
Home. In 1927 he 
went with National Liberty in the un- 
derwriting department and after being 
located for a time at Pittsburgh, joined 
Northern Assurance. He served at the 
head office and later traveled in the 
Wisconsin field. He had been with 
Phoenix since 1942. 


N. J. Fire Prevention Assn. 
Organized, Elect Fortman 


New Jersey State Fire Prevention 
Assn., which has been in the process of 
organization for the past month, met 
last week to elect officers and set up a 
permanent organization. Clemens A. 
Fortman, Fireman’s Fund, is president. 
Other officers are: Vice-president, Ed- 
mund M. Neary, American; secretary, 
D. Donald Hall, Corroon & Reynolds, 
and treasurer, Fred L. Bross, Yorkshire 

A constitution and bylaws were 
adopted, and the group plans to conduct 
town inspections starting in the fall. 
The meeting drew 180 field men to 
Newark. 


West Texas Pond Elects 


West Texas Blue Goose, now holding 
the grand nest membership cup for the 
largest percentage gain in membership, 
has elected Wick Mallalieu, Great Amer- 
ican, most loyal gander. He and C. O. 
Hall, Crum & Forster, were elected del- 
egates to the grand nest. 

Supervisor is Harry Pate, General 
Adjustment Bureau, Amarillo; guardian, 
Cliff Nott, Trinity Universal, Abilene; 
custodian, Ernst Zahl, Loyalty group, 
Amarillo; keeper, Herndon D. Johns, 
Home, Lubbock; wielder, Alton Hall, 
independent adjuster, Lubbock. 

Grand Keeper Beale presented Tom 
Hamm, Trezevant & Cochran, retiring 
most loyal gander, a diamond pin on be- 
half of the pond. Eighteen candidates 
were initiated. 


Sellars to Va. for Aetna 

Allen O. Sellars, special agent for 
Aetna Fire, is being transferred July 1 
from Rochester, N. Y., to Richmond, Va. 





R. A. 


Kenzel 











He succeeds E. Richard Lightfoot, re- 
signed. 
Mr. Sellars joined Aetna in 1941 in 


the fire, inland marine and special risks 
departments. After two years in the 
maritime service he returned to the 
company at the Rochester office. 


Ark. Preventionists Elect 


LITTLE ROCK—Arkansas Fire Pre- 
vention Assn. has elected Jack G. Par- 
sons, special agent of North British, as 
president; Barron Lange of Bird, Lange 
& Maris, general agents, Little Rock, 
vice-president; George Hawbecker, Fi- 
delity & Guaranty, secretary, and How- 
ard T. Shepherd, Shepherd & Co., gen- 
eral agents, treasurer. Carl S. Smalley, 

‘ 





engineer of Arkansas Inspection & Rat- 
ing Bureau continues as executive secre- 
tary, and George D. Suter, bureau man- 
ager, continues as a director. 


Sharpe Mich. State Agent 
for North British 


Special Agent James N. Sharpe has 
been advanced by North British to state 
agent in Michigan in charge of the ter- 
ritory formerly supervised by State 
Agent W. W. Ayrault. Mr. Ayrault re- 
cently went to Minnesota as state agent 





to succeed Walter Paul, who joined 
Boston. 
Mr. Sharpe, who will take over the 


new post July 1, has been special agent 
in the service department in Michigan, 
and he will work out of the same head- 
quarters, 1341 National bank building, 
Detroit. He has been with North Bri- 
tish since 1946, and previously for sev- 
eral years was with Michigan Inspec- 
tion Bureau. 


Berry Milwaukee Head, 
Cameron Wis. State Agent 


Frank G. Berry has been named man- 
ager of the Phoenix Assurance Milwau- 
kee service office, succeeding R. A. Ken- 
zel. 

An attorney, Mr. Berry has been with 
the company 12 years and was manager 
of the group loss department at Milwau- 
kee. Rex O. Bost, assistant manager, 
continues in that position. 

Don A. Cameron, special agent in 
western Michigan, has been transferred 
to Milwaukee as state agent. 


Peters Had Long Career 
in Illinois Field 

Ben F. Peters, who retired this 
month as Illinois eexcutive state agent 
for Royal, started his insurance career 
with National Fire in 1909 and was with 
that company until 1928 except for two 
years with National Inspection Bureau. 

He went with Queen as state agent in 
1928. When consolidation took place, 
he was appointed executive state agent 
for the Royal-Liverpool group in IIli- 
nois. 








Mr. Peters was president of Illinois 
Fire Underwriters Assn. in 1933 and 
1934. 


Atkinson Makes Change 


J. Ross Atkinson is resigning as spe- 
cial agent for the Virginia rating bu- 
reau, which post he has held for a num- 
ber of years. It is reported that he is 
going with Commercial Union as spe- 
cial agent for Virginia with Richmond 
headquarters to succeed the late 
Joseph N. Jacobs, who supervised that 
field for 25 years. 





Revises S.C. Operations 


Great American has revised its South 
Carolina operations whereunder the 
business for that state, except hail, will 
be supervised by the North Carolina- 
South Carolina department with head- 
quarters at Raleigh. The hail depart- 
ment service office, also located at Ra- 
leigh, will continue as at present. 


Doyle Shifted to Seattle 


American has appointed W. J. Doyle, 
formerly in the Pacific Coast depart- 
ment at San Francisco, special agent 
at Seattle to assist H. Breshears, 
in charge of the Washington field. 








Jack M. Carr, formerly, state agent 


of St. Paul at Seattle, has gone with 
the Sherwood & Roberts agency at 
Yakima, 








Marine Treatment Allowed 


Machinery and equipment for the con- 
struction of an oil cracking or similar 
plant may be handled as an inland ma- 
rine risk while in transit to the place 
of installation and during the period of 
installation and testing. A ruling to this 


—= 


effect has been issued by the joint com. 
mittee on interpretation and complaint 
The coverage must cease when the ma- 
chinery and equipment has been ae. 
cepted as satisfactory or the interest of 
the seller ceases, whichever is first. 

It was also ruled that coverage on the 
materials intended to constitute a part 
of a building or storage tank must ter. 
minate when the materials become 3 
part thereof. 





W. A: Anderson to Fireman's 
Fund Ind. at Chicago 


W. A. Anderson has resigned as su 
perintendent of the casualty department 
at the head office of Central Surety to 
become manager of the casualty depart- 
ment in the western department of 
Fireman’s Fund Indemnity at Chicago, 
Mr. Anderson has been an insurance 
man since 1923, having started at Chi- 
cago with Continental Casualty. He 
subsequently was with American Em- 
— Crum & Forster at Freeport, 
and then in 1936 became ‘Chicago man- 
ager of Central Surety. Since 1942 he 
had been at the head office. 





Scottish Union Names Shaw 


Scottish Union has appointed George 
R. Shaw state agent having jurisdiction 
for eastern Massachusetts and Rhode 
Island, with headquartes at Boston. 

Mr. Shaw has served as a field man in 
Maine, New Hampshire and Vermont 
and subsequently in eastern Massachu- 
setts and Rhode Island, and has had 
home office agency and production ex- 
perience. Recently he has been execu- 
tive capacity man in New York City. 





H. L. Stoddard, marine adjuster for 
Home at San Francisco, is retiring June 
30. He joined Home in 1929. Previ- 
ously he was with Automoile for 11 
years. He entered the business with 
Fireman’s Fund in 1911. 





Inquiries are now being accepted 
from firms interested in long term 
leases on one or more entire floors 
of a 


10 STORY 
MODERN FIREPROOF 
AIR CONDITIONED 
OFFICE BUILDING 


with 12,000 sq. ft per floor 
to be erected in 


DOWNTOWN 
HARTFORD, CONN. 


Occupancy Date 
Approximately May 1, 1949 


The Lomas & Nettleton Co. 


125 Trumbull Street Hartford, Conn. 








Coats & Burchard Company 
Appraisers 


For correct coverage 
and proof of loss 


Chicago t New York 

Detroit Nashville 
© Dallas 

Cleveland <4 Buslingdsn, 
Indianapolis “noe” N.C 


The Pioneer Organization 











treasur' 
a partr 
ney. 


EDGET 


Russ 
dent, 
Thoma 
City. 
tion si 
with G 


GOELL 


Jose’ 
shire, | 
commi 
of the 
Zweig, 
vice-ch 


NAME 


Ame 
Hoey, 
metro} 


SCHIF 


Wil 
Schiff 
cers © 
of Sc 
sons | 
and g 
Schiff. 
vice-p 
of Il: 
organ 
ment. 
dent « 
consir 
partm 
lation: 

il 
versit: 
Terhu 
army. 
ton cé 
ing th 
for s 
and | 
third 
ice. 


NEW 


The 
mate 
doub! 
of 1° 
New 
ance 
1%, 
1% 1 
case | 
sider 








june 24, 1949 


= 
—S 


1e joint com. 
id complaint 
yhen the ma. 
as been ae. 
le interest of 
r is first. 
erage On the 
titute a part 
nk must ter. 
s become q 


aed 

‘lreman’s 
° 
igned as sy. 
- department 
al Surety to 
ualty depart- 
Dartment of 
at Chicago, 
n insurance 
rted at Chi- 
sualty. He 
lerican Em- 
at Freeport, 
hicago man- 
nce 1942 he 


s Shaw 


ited George 
jurisdiction 
and Rhode 
Boston. 
field man in 
id Vermont 
Massachu- 
id has had 
duction ex- 
been execu- 


ork City. 


idjuster for 
etiring June 
129. Previ- 
Bile for 11 
siness with 


a 


accepted 
ong term 
ire floors 





Ze 

: 

ow York 
ashville 
Dallas 
rlington, 
ic: Tos 


on 








June 24, 1948 


HieNATIONAL UNDERWRITER 





11 








NEW YORK 


BROKERS’ SECRETARY 


At the June meeting of General Brok- 
ers Assn. of the Metropolitan District 
Joseph F. Conroy, acting secretary- 
treasurer, was elected officially. He is 
a partner of Zaun, Conroy & Mulroo- 
ney. 








EDGETT NOW PRESIDENT 


Russell Edgett, formerly vice-presi- 
dent, has been elected president of 
Thomas J. Hogan, Inc., of New York 
City. He has been with the organiza- 
tion since 1933, ideaiieed having been 


with Glens Falls 





GOELLER HEADS COMMITTEE 


Joseph T. Goeller, London & Lanca- 
shire, has been elected chairman of the 
committee on fire patrol and a director 
of the New York Board. A. J. Smith, 
Zweig, Smith & Co., has been elected 
vice-chairman of the committee. 





NAMES HOEY, ELLISON 


American National Fire has appointed 
Hoey, Ellison & Frost as New York 
metropolitan agent. 





SCHIFF SONS PROMOTED 


William Schiff, Jr., and Frank E. 
Schiff have been elected corporate offi- 
cers of the New York brokerage firm 
of Schiff, Terhune & Co. They are 
sons of William Schiff, the president, 
and grandsons of the founder, Simeon 
Schiff. William Schiff, Jr., becomes 
vice-president of Schiff, Terhune & Co. 
of Illinois and also heads the internal 
organization and administration depart- 
ment. Frank Schiff is named vice-presi- 
dent of Schiff, Terhune & Co. of Wis- 
consin and heads a newly created de- 
partment of new business and client re- 
lations. 

William Schiff, Jr., attended Uni- 
versity of Virginia and was with Schiff, 
Terhune & Co. prior to entering the 
army. Frank Schiff attended Hamil- 
ton college and served in the army dur- 
ing the war. He was at London Lloyds 
for several months engaged in study, 
and then joined Schiff, Terhune. A 
third son, Terry Schiff, died in the serv- 
ice. 





NEW YORK CITY TAX DOUBLED 


The city council and board of esti- 
mate in New York City have voted to 
double the business tax from 1/10 tto 1/5 
of 1%. This is the tax applicable to 
New York City premiums of all insur- 
ance companies. It used to be 1/20 of 
1%, and then was doubled to 1/10 of 
1% two or three years ago. Under a 
case just recently decided, annuity con- 
siderations are not subject to ‘the busi- 
ness tax. 

The insurance interests have opposed 
the hike in the levy, and a hearing be- 
fore the mayor is scheduled for later 
this month. 





writers which he is merging with the 
agency 

MacGibeny, Wilkerson & Grupe also 
has all other insurance facilities except 
life. Since Mr. MacGibeny resigned 
from Jones & Whitlock several years 
ago to form his agency he has had con- 
siderable success. 

Mr. Grupe started in insurance with 
the old Blossom agency of St. Louis; 
then was special agent and state agent 
in Missouri for Continental, traveled in 
a number of midwestern states for that 
company before going to the head of- 
fice at New York city. Subsequently he 
was vice-president of the old H. G. B. 
Alexander & Co. agency at Chicago, a 
partner in the Strom, Carlson & Grupe 
class 1 agency there, then formed his 


own office specializing in Lloyds risks. 
personal 


His Lloyds business was 






DIST. OF COLUMBIA 





WILSON ADJUSTING CO. 
INVESTIGATORS 
ADJUSTERS for INSURANCE COMPANIES 

ON ALL TYPES OF CLAIMS 
District of Columbia and Adjacent Territory 








c E. WILSO! 

JOHN F. COONEY 
721 Denrike Wi c. 
NAtional 8058 ight Phone: DEcatur 7390 


merged with Jones & Whitlock office 
when Mr. Grupe took charge. Under 
his direction a large volume of these 
lines was built up. 





GILLESPIE FIRE MANAGER 


Fred D. Gillespie has been appointed 
fire insurance manager at Chicago for 
the Atlantic Mutual group. He moved 
there from Detroit where he has been 
operating as state agent for Atlantic 
Mutual. Prior to going with Atlantic 
Mutual about two years ago, he had 
been with General of Seattle at Detroit 
for about 10 years. 








Dade & Latimer Insurance Corp of 
Richmond is a newly chartered agency. 
Walter M. Evans is president; o> 
Crouch, Jr., vice-president; Helene B. 
Agee, secretary. 


A DIRECTORY OF RESPONSIBLE===ace 


INDEPENDENT ADJUSTERS * 





INDIANA 





EUGENE McINTYRE 


Adjustment Co. 

All Lines of Automobile, 
Casualty and Inland Marine 
Eight East Market Street 











FLORIDA 


MIAMI 
RAYMOND N. POSTON 
Adjusters all lines 
402 Congress Bldg., Telephone 9-6449 











IOWA 





RAY L. LAWLOR, INC. 
840 Second Ave. S.E., Cedar Rapids, ia. 
Phones: 2-1111 and 3-4342 
INSURANCE ADJUSTERS 
Fire, Marine & Kindred Limes 


Se Ses Se = 
Nebraska 


Phone: sy 





THOMAS M. MeELVEEN COMPANY 
Adjusters — Surveyors 
10 M.E. Srd Ave., Miami, Fla 








OFFICES 
Charleston, & C. Lakeland, Fila. 
Daytona Beach, Gainesville, Fila 
Fort Myers, Fila. Jacksonville, Fila. 
Havana, Cube West Palm Fis. 
ILLINOIS 
e CHICAGO e 


E. S. GARD & CO. 


Chicagoland Claims—Since 1920 
175 W. Jackson Blvd. Wabash 8880 








Phone Harrison 3230 


THOMAS T. NORTH, INC. 


Adjusters All Lines 
175 W. Jackson Boulevard, Chicago 4 





CHICAGO 


Grupe Joins Agency Firm in 
Charge of Lloyds Lines 


Albert H. Grupe, who has just re- 
signed as vice-president of the Illinois 
corporation of Jones & Whitlock after 
having been in charge of its office at 
Chicago for 13 years, has joined the firm 
of the MacGibeny-Wilkerson Agency 
there and the firm’s name has been 
changed to MacGibeny, Wilkerson & 
Grupe, a corporation. Mr.‘ Grupe takes 
charge of all the agency’s Lloyds opers- 
tions. The other active member of the 
agency firm is Frank R. MacGibeny, 
who formerly for a number of years was 
eee manager and secretary of the 
Jones & Whitlock Chicago office. 

Mr. Grupe has specialized in the 
Lloyds field for many years and has di- 
rect contracts with the London under- 








Office Phone: 3-2771 Residence Phone: 2-6482 


W. J. ROTHFUSS 
Adjusters All Lines 


124 S. Main St. Decatur, IIL 








PERSONALIZED oneut INSURANCE CLAIM 


CASUALTY — ALL LINES 
INLAND MARINE FIRE 


R. L. WINTER ADJUSTMENT CO. 


125 EIGHTEENTH STREET 
ROCK ISLAND, ILL. 


OFF! CE 2188 
R. L. WINTER 


Semi-Annual Clean-up of 
Balances Nears Completion 


Field men are now completing their 
semi-annual clean-up of agency bal- 
ances. Generally it is the March bal- 
ances that the agents are being imnor- 
tuned to remit. Some of the field men 
say that their list is fairly sizable this 
time and that it includes agents that 
have not heretofore appeared on it. In 
the main, there is little difficulty in get- 
ting the remittances, most of the agents 
on the list saying that they were on the 
point of doing so but had just not gotten 
around to it. Field men say that the 
agents are reporting increased difficulty 
in collections. The situation is by no 
means alarming, however. 











C. M. STOWELL ABJUSTING C8. 


INSURANCE ADJUSTERS 
605 Building & Loan Bldg. 
SAGINAW, MICHIGAN 
Phone 4-2454 








OHIO 
THOMAS D. GEMERCHAK 


INDEPENDENT ADJUSTER 
ree. of ae aan INLAND MARINE 
D AUTOMOBILE LOSSES 
305-6 mtr on <a Life Bidg., Cleveland 14, O. 
Phones: Off. Su. 2066— Res. Fa. 44 
26 years experience 














H. E. LICHT ADJUSTMENT SERVICE 
533 Higley Building 
Cedar Regids, le lowa 


Office Phone vig Res. Phone 2-6151 
Fire — Extended — Automobile — 
Inland Marine — SS Aviation 
19 years experience 











MASSACHUSETTS 





WAGNER AND GLIDDEN, INC. 
TOPLIS AND HARDING, INC. 


Insurance Adjustments 


All Kinds 
Chisago Boston New York 
Los Angeles Detroit 











MICHIGAN 





A. H. DINNING COMPANY 


sy 


Fire - Inland Marine - Auto 


\eaeeaes F. M. Clements, Manager 
wh. Ae Free Press Bidg., Detroit, Mich. 








Robert M. Hill, Pres. E. B. Bystrom, Vice-Pres. 


» The Robert M. Hill 
= Co., Inc. 


pet ma INSURANCE ADJUSTERS 
1356 Penobscot, Bids~ » a. 26, Michigan 














NIGHT: DAV. "3-416? 
J. L. FOSTER 
814 First National Bank Building 
Springfield, Illinois 
Automobile’ - 


Fire - Casualty 








MICHIGAN ADJUSTMENT BUREAU, INC 
Adjusters—All Lines 


Home Office | 
7, 
Branches: Detroit 2% 2371 4 Past 
> oes oY 
Bidg.; 701 Bldg. 








OSCAR R. BALL 
FIRE AND ALLIED LINES 
1203 Citizens Building 
Cleveland 14, Ohio 
Phone: CHerry 0192 








EARL A. COHAGEN 
GENERAL ADJUSTER 
Fire - Tornado - Inland Marine - Automebile 
17 Years Experience 
8 E. Long Street, Columbus 15, Ohie 
Radius of 60 Miles of Columbus 


Phones: Off. Ad. 2625 Res. Ra. 7848 











TEXAS 


1 years experience as Claim Adjuster and 
.. Excellent petevenees from former 
employers and others. 


O. K. JACKSON 


125 Kennedy Avenue 
San Antonio, Texas 














WISCONSIN 
Phone Badger 392 or 6177 
PAUL H. REHFELD & ASSOCIATES 
Adjusters All Lines 


522-23 Insurance Building 
Madison 3, Wisconsin 











F. J. ROHDE 


ADJUSTMENT COMPANY 
Casualty, Auto and Fire Adjusters 

Milwaukee and erritory 
Bus. Phone BR. 5212 Res. BL. ose 
757 No. Broadway Wie. 


























HeNATIONAL UNDERWRITER 


__ EDITORIAL COMMENT 





The Gross Rate Classification 


In addition to the automobile third 
party rate classifications of A-1, A-2, 
A-3 and B, there is now, to all intents 

, a fourth classification, for 
insurer receives 25% more 





its own account. 


risk classification. 
at the 


de ve loped 


automobile assi 





has has tant 
to 


whether 


impor 


implications, and it is probably well 
and 
to let 


some 


situation 





appraise see 


what is wanted is the situation 


drift, or whether even bolder 
taken 
to convert certain types of 


eptable risks the 


ac- 


tion than has been far is 


risks 
ordinary 


so 
wanted 
into 


ace 


in 
course. 

Che assigned risk plan was conceived 
as an instumentality for taking care of 
the occasional egregiously inferior risk, 
but it 


of 


is rapidly developing into a means 
apportioning classifications risk 

all the underwriters have dis- 
covered unprofitable at the going 
these classifications being mainly 
in which there is a driver under 
and in which there is an elderly driver 
with emphasis on the former. 

Some agents and agencies have re- 
signed themselves to this fact and where 
there is a young driver, they don't even 
bother to submit the risk fo their com- 
but simply take whatever steps 
necessary to put the proposal di- 
rectly before the assigned risk plan. 
And, from a dollars and cents stand- 
point, the underwriter is satisfied with 
a risk that he gets from the assigned 
risk plan, despite the fact that he would 
not tolerate it as direct agency business. 
The answer boils down to one of rate. 
Through the assigned risk plan the un- 
derwriter gets the business for the gross 
e, whereas direct he would have got- 

it at the net rate. There is a 15% 
surcharge on assigned risks and the 
agent’s commission is but 10%. The 
agent is contributing 10% to the cost 
of carrying the risk, and the assured is 
contributing 15%. 


of 
that of 
are 
rates, 
those 
+2 


«J 


pany, 
are 


ten 


is not 
a happy solution but it is one to which 
he has become reconciled by the nec- 
essities of the situation. He doesn’t like 
the idea of sacrificing the commission 
and he doesn’t like the idea of letting 
the placement of the business get out 
of his own hands. 


From the agent’s standpoint this 


What is being done indirectly could 


accept. It is probably correct to say 
that the underage drive sk is perfectly 
acceptable at a premium of 25% more 
than it 1s now paying, and with such a 
rate most of this business would be han- 
died directly by tl companies, yet it 
nust be conceded that there would be 
a great deal of resistance on the part of 
supervising authorities to such a pro- 
gram. Perhaps a 15% increase could 
be put into effect because that is now 


. but this 


ssigned risks are paying 
be conditioned 10% 


lig upon a com- 
mission to agents on this particular 
classification. Here is, of course, the 
big rub. If such a principle should 

established for a particular classifica- 


the question of discrimination 


would arise and certainly, when rate 


increases would be sought in other clas- 


the proposal would be ‘ad- 


to take 
the 


sifications, 
vanced the alternative and 
duce compensation of 
We doubt 
would 
principle of a 


re- 
the producer. 
that the agents 
introduced the 
varying rate of commis- 
as between various sub-classifica- 
of a 


very much 


want to have 
sion 
tions business. 

The situation is somewhat reminiscent 
oi the old days of equity rating and be- 
fore the idea of graduated expense by 
size of risk was ready for acceptance. 
Individual agents were willing to take 
very low commissions under equity rat- 
ing in order to retain or capture a risk, 
but the agents as a whole were not pre- 
pared to accept the principle of gradua- 
tion of commissions. This is simply by 
the way because, while it was inevitable 
that the big risk situation, particularly 
as respects compensation, 
was such that the agents were bound to 
have to come around to the idea of 
graduation if they wanted to retain such 
business for the agency market, we don’t 
necessarily feel that it is inevitable that 
agents must come around to accepting, 
in principle, 


workmen’s 


the idea of splitting com- 
missions with the young, problem pas- 
senger car driver. 

By the practical operation of the mar- 
ket, 
accept a lower rate of commission on 
certain difficult lines such as long haul 
truck, bus and taxi business, but here 
the big risk element is injected into the 
picture. It is quite another thing to 
submit to the idea that the agent should 
make a contribution to the small 


it has been necessary for agents to 


in- 





June 24, 19% 


——————— — ——— 





















=i 
panies and the bureaus, aggressively to that is done before too long, and ther 
seek a rate that will create a normal can be established a normal rate thy 
market for the risk with the young dri- ill take care of the si and not 
ver. In introducing recently the new penal the agent, then . proba 
A-3 classificatio for s sks, t Ww ive been solved, it is no 
bureau declared that the te crease - solved and if an even rmidabie 
volved was < Vay measure, olume of automobile business is ham 
that 4 — stil] e- died v assigned ris the 
quate gents be in the position of accept 
Possibly ir I al ps >- <a principle at could very well leag 
gical reasons t ay € ecessar t gs that would f ie them 
to stef p tnese rates grz vy, and otne directions 
Robert M. Perce, pr oduction 1 manager had to make special arrangemer vith 
of Atlantic Mutual, was in C ro a N. U. to be granted his diploma ab- 
few days conferring with Manager Ar-  senti After all he fost the oppx rtunity 
thur F. Bennett. Mr. Perce is a brother to don the cap and gown. 
of Hyde Perce, who is insurance editor V ice-preside -nt Henry R. Tomlinson 
of the Chicago “Journal of Commerce. of the Aetna group fite companies 
Ebbe Wijkander, assistant manager week is observing his 50th anniversary 


for Svea Fire & Life of Gothenburg, has 
completed 9,000 miles in his automobile 
tour in this country while surveying in- 
surance operations. The government in 
Sweden has ordered baka to break 
down into separate life, and fire or cas- 
ualty units. An earlier report indicated 


that the fire and casualty companies 
would also have to be operated sepa- 
rately. 


John J. O’Brien, account executive of 
the Rollins, Burdick, Hunter agency of 
Chicago, has been elected a director of 
Chicago Junior Assn. of Commerce. He 
is one of the leaders in this organization 
and made his mark last year as chair- 
man of the pedestrian safety committee. 
He is also much in demand as a toast- 
master. He has been with R.B.H. the 
past five years. He attended North- 
western University. 


Dudley F. Giberson, local agent at Al- 
ton, Ill., and Mrs. Giberson announce 
the birth of a son, their fourth child, 
who has been named Edward Engle- 
hardt Giberson. There are two other 
boys and a daughter in the family. 

Richard N. Olofson, independent ad- 
juster of Minneapolis, has been on 
deck at Philadelphia as a delegate to the 
Republican convention. He is a 
thorough-going Stassen man. 

Daniel deR. Scarritt, general man- 
ager of Associated Aviation Underwrit- 
ers, is on a month long tour of the 
group’s offices throughout the country. 

R. E. Baker, special representative of 
Western Underwriters Assn., Chicago, 
had a rather sketchy formal education 
as a youth and never got a diploma 
from grade or high school. Therefore 
for years he yearned for a certificate 
or diploma as concrete evidence of his 
educational attainments. About five 
years ago he entered the evening college 
of Northwestern Universitv. majoring 
in philosophy. 

Commencement was held at N. U. 
last week, and Mr. Baker had prepared 
for it with elation, for in five years of 
hard evening work he had managed to 





with the organization. Since the retire 





HENRY R. TOMLINSON 


ment of J. 
1947, Mr. 
charge of 
immediate 
Louisiana, 
homa. 
Mr. Tomlinson joined Aetna Fire dt 
rectly after graduating from Hartiord 
public high school. He began as 4 
clerk in the mail room. In 1902 he be- 
came an examiner in the southern de- 
partment, and his entire underwriting 
service has been in that department. He 
was promoted to agency supervisor in 
1923, and in 1930 was elected assistant 
secretary and three years later, secre- 
tary. He has been vice-president since 


1940. 
George G. Gibson, Jr., Kentucky- 
Tennessee state agent for London & 
who was elected president 


Lancashire, d 
of Kentucky Fire Underwriters Asst 


M. Waller, vice-president, in 
Tomlinson has had general 
the southern territory, with 
supervision of Mississippi 
Texas, Arkansas and Okla- 








just as well be done directly but that dividual risk that falls into a classifica- qualify for a diploma in philosophy. at the annual meeting at French Lick, 
rould involv nent ay SET tion for which the going rate level is Then it became necessary for him to Ind., has been an insurance man 23 
_ —, S en a ree rig ai ” attend the French Lick annual meetings years. He is a native of Kentucky 
things which perhaps the state and the insufficient. of the Kentucky and Indiana Fire Un- and is a graduate of Yale. He was 
insurance business are not prepared to The forthright action is for the com- derwriters Associations last week and he with the old Kentucky Actuarial Bu- 
— 

NATIONAL PURI S HES 


THE 


Editors: Mitchell, D. R. 


Burridge. 


R. B. 


News Editor: 
Assistant Editors: 


Levering Cartwright. 


BRANCH OFFICES 





ATLANTA 3, GA.—432 Hurt Bldg. Tel. Walnut 


$801. Ernest E. Hess, Southeastern Manager. 
BOSTON 11, MASS.—210 Lincoln St. Tel. 
Liberty 1402. Wm. A. Scanlon, Vice-Pres. 


CHICAGO 4, ILL.—175 W. Jackson Bivd., Tel. 
Wabash 2704. O. E. Schwartz, Chicago Man- 
ager. A. J. Wheeler, Resident Manager. L. N. 
pe oe Advertising Manager. 

CINCINN 2, OHIO—i2¢ E. Fourth §&t. 
Tel. Pascua 2140. George C. Roeding, Asso- 


ciate Manager; George E. Wohlgemuth, News 
Editor; Arthur W. Riggs, Statistician. 
DALLAS 1, TEXAS — 802 Wilson Bldg., Tel. 
Central 5833. William H. Diack, Southwestern 
Manager. 

DES MOINES 12, IOWA—3333 Grand Ave.. 
Tel. 7-4677. R. J. Chapman, Resident Manager. 
DETROIT 26, MICH. — 219 Transportation 
Bidg. Tel. Cherry 2826. A. J. Edwards, 
Resident Manager. 


F. A. 
Richard J. Thain, John C. 


UNDERWRI 


Published by THE NATIONAL UNDERWRITER CO., Chicage, Cincinnati, New York. PUBLICATION OFFICE, 175 


EDITORIAL DEPT.: Managing Editor: 
Schilling, J. C. O'Connor. 


Post. Associate OFFICERS: 


St., Cincinnati 2, Ohio. 


IN KEY CITIES 


W. Jackson Bivd.. CHICAGO 4, ILL. Telephone Wabash 2704 


Howard J. 
President and Secretary. 


T ER 


EVERY THURSDAY 


Burridge, President. 


Louis H. Martin, Vice 
John Z. Herschede, 


Treasurer. 420 E. Fourth 





KANSAS CITY 6, MO.—605 Columbia Bank 
Bldg.. Tel. Victor 9157. William J. Gessing, 
Resident Manager. 


MINNEAPOLIS 2, MINN.— 
Bank Bldg. Tel. Main 5417. 
Resident Manage” 


NEW YORF ., N. ¥.— 
Tel. Beek:..an 3-3958 

ern Ed@itor: 
Editezs: Russell 


—558 Northwestern 
R. W. Landstrom, 


$9 John St.. Room 1103, 
Editorial Dept.—East- 
Kenneth ©. Force; Assistant 
Porter and Donald J. Reap. 


Business Dept.— Ralph E. Richman, Vice- 
Pres.; J. T. Curtin and W. J. Smyth, Resident 
Managers. 


PHILADELPHIA 9, PA.—123 S. Broad Street. 
Room 1127. Tel. Pennypackep 56-3706. E. H. 
Fredrikson, Resident Manager. 
SAN FRANCISCO 4, CAL.—507 Flatiron Bldg., 
Tel. EXbrook 2-3054 F. W. Bland, Pacific 
Coast Manager. Guy C. Macdonald, Pacific 
Coast Editor. 








Cla 





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June 24, 1949 


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SON 


president, in 
had general 
ritory, with 
Mississippi 
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-ISHED 
THURSDAY 
Wabash 2704 


Martin, Vice- 
20 E. Fourth 


——_—__—_____ 


hman, Vice- 
‘th, Resident 


sroad Street, 
3706. E. H. 


atiron Bldg., 
and, Pacific 
ald, Pacific 











June 24, 1948 


——————— as 








FieNATIONAL UNDERWRITER 


13 





reau four years and then for eight years 





was with the E. S. Tachau & Sons 
agency and Louisville F. & M. He 
has been with London & Lancashire 
since 1937. He has contributed exten- 
sively to the agency training school of 
Louisville Board of Fire Underwriters. 
He was director of the schoo] in 1946 
and last winter he handled the introduc- 





y course. 


James B. Wallace, head of the Wal- 


lace Insurance Agency of Kansas City 
and former president of Insurance 
Agents Assn. of Kansas City, under- 
went a second major operation at Re- 
search hospital at Kansas City. 


Edward H. Born, in his capacity of 
secretary of Farm Underwriters Assn., 
is one of eight persons to receive a 
national 4-H camp citation during the 
club gathering that came to a close at 
Washington this week. This was in 
recognition of the contribution that 
Farm Underwriters Assn. has made to 
the 4-H club movement over the past 
decade. During that period the asso- 
ciation has given between 700 and 800 
schalarships to 4-H club members in 
recognition of their participation in fire 
prevention and accident prevention 
work. ‘Currently the scholarships are 
for $200 and are to defray expenses dur- 
ing the first year in college. Mr. Born 
was unable to go to Washington, but 
he was photographed with the other 
Chicagoans who were given the citation 
and this picture prominently appeared 
in some of the Chicago newspapers. 
The other Chicagoans are Edward J. 
Condon, vice-president of Sears, Roe- 
buck & ‘Co.; Edward F. Wilson, presi- 
dent of Wilson & Co., the packers, and 
Mrs. Charles R. Walgreen. 

John Rygel, who will leave Chicago 
in a day or so for the home office of 
Hanover where he will assume duties 
of vice-president, was guest of honor at 
a poker party at the Union League Club 
in Chicago last week. Mr. Rygel’s card 
playing companions presented him a 
suitable gift. 

The new western department man- 
ager of Hanover, Paul H. Barr, this 
week presented Mr. Rygel a handsome 
set of golf clubs and a fine leather golf 
bag, complete with accessories, on be- 
half of the western department em- 


DEATHS 


James A. Clark, 79, local agent at 
Buffalo for 42 years, died there. He 
continued the business until he became 
ill a short time ago. 

Wayne Phillips, for more than 25 
years with the head office staff of Fire- 
man’s Fund, died in his sleep. For 
many years he was superintendent of 
head office buildings in San Francisco. 
A son, Wayne, Jr., is special agent of 
U.F.F.&G. 

V. S. Sackrison, 47, operations man- 
ager of North America at San Francisco, 
died there. He had been with North 
America since 1940, starting at Chicago 
and later being at Philadelphia. He 
was transferred to San Francisco in 
1944, 

L. R. Bowden, vice-chairman of the 
Meserole companies, died at his home 
at New York at the age of 69. He 
graduated in law at Yale and became 
closely identified with the Frelinghuysen 
and Jamison interests in Globe & 
Rutgers. He was in charge of national 
automobile writings for that company 
when it was a very important factor in 
the field and he went with Pacific 
Fire in 1915 when C. V. Meserole ac- 
quired control of that company. He was 
ior many years vice-president and Mr. 
Meserole’s right hand man until in re- 
cent years when he became vice-chair- 
man. He continued to function ac- 
tively in the company until his death, 
although he had slackened his pace 
somewhat. 

William Bowden, son of L. R. Bow- 
den, is president of Albert Willcox & 
Co., which supervises several lines in 
the marine field. Mr. Bowden was in 

















England when his father died. 

Herman’ C. Gross, Minneapolis service 
office manager of North America, died 
at Mayo Brothers Clinic at the age of 
52. Mr. Gross entered the business in 
1912 with the Wagner local agency at 
Minneapolis and in 1920 went with 
North America as special agent in Min- 


nesota. He was promoted to state 
agent in 1933 and had been manager 
since 1939. He is a former vice-presi- 
dent of Minnesota Underwriters Assn. 
E. E. Wulf, 59, of the Rust-Wulf 
agency, Argonia, Kan., died at a 


Wichita hospital after an illness of two 
weeks. He was president of Farmers 
& Merchants State Bank there. 

Robert J. McGehean, who until about 
five years ago was a salesman for a 
succession of insurance periodicals, 
traveling mainly in the southwest, died 
at Baptist hespital, Evansville, Ind., 
at the age of 47. In recent years he 
had been advertising representative fot 
“Labor News” of Evansville. At one 
time he was with THE NATIONAL UNDER- 
WRITER in Texas. 

LeRoy M. Backus, 68, Seattle local 
agent, died at his home there. He held 
degrees from Harvard University of 
Washington and M.I.T. and _ had 
studied at Berlin and Munich. 

Jacob Harris of Buffalo, 86, who in- 
terrupted his 60 years in insurance to 
service for a year as commissioner of 
charities, died there. He had been ill 
about a year. Born in New York City, 
Mr. Harris moved to Buffalo 65 years 
ago. 
Gen. Julius F. Howell, veteran local 
agent of Bristol, Va., died there, aged 
102. He acquired the title of general as 
commander-in-chief of United Confed- 
erate Veterans. He was in educational 
work before entering insurance many 
years ago. When he reached his 100th 
birthday in 1946, a big celebration was 
staged in his honor in his home town, 
in which representatives of the com- 
panies in his agency participated. Style 
of the agency was Howell & Bachman, 
but he had operated it individually for 
a number of years. In recent years, 
Mrs. Howell, his second wife, had as- 
sisted him in his office. 

Fred W. Bowers, who retired in 1929 
as vice-president of Connecticut Fire 
after 45 years in the fire insurance busi- 
ness, died at Lake Wales, Fla., at the 
age of 85. He had kept up his friend- 
ships and contacts with the fire insurance 
business and was part of the retired in- 
surance colony at Babson Park, Fla., 
that includes Hugh Loudon, former 
U.S. manager of Liverpool & London & 
Globe, and John F. Stafford, retired 
western manager of Sun. 


He was born at Geneva, O., and in 
1884 went with Germania Fire in the 
western department. Then in 1888 he 
became district manager at Los Angeles 
for the Gutte & Frank general agency 
of San Francisco representing Germania, 
Madgeburg, Hamburg Madgebury and 
Economic of London. He went to Kan- 
sas City the next year as local agent 
and in 1890 became chief clerk in the 
resident secretary office of North 
British & Mercantile at Kansas City. 
Then in 1895 he went into the Missouri, 
Kansas and Indian territory field for 
Orient and in 1899 formed his connec- 
tion with Phoenix of Hartford which 
continued until his retirement. He 
started as state agent in Missouri and 
Arkansas, then in 1914 became assistant 
western manager of Connecticut Fire, 
general-agent in 1915, secretary in 1916 
and vice-president in 1922. He served 
as vice-president of Fire Underwriters 
Assn. of the Northwest in 1903. 

Mr. Bowers is the 36th life member 
of Fire Underwriters Assn. of the 
Northwest to die this year. 








Postpone N. Y. Meeting 


The meeting of New York Fire Insur- 
ance Exchange set for June 23 to con- 
sider a new constitution, by-laws and 
rules, has been postponed to June 30 to 
permit a conference of exchange offi- 
cials with the New York department. 


Hold Another Torrid 
Session on Accounting 


(CONTINUED FROM PAGE 6) 
combining of fire and allied lines re- 
porting when individual consideration is 
merited by the premium volume at- 
tained particularly by extended cover- 
age. 

A list of the changes made after the 
meeting last week of the joint industry 
committee and the department was re- 
leased at the hearing and indicated that 
the opposing views had been reconciled 
on some points and compromise agree- 
ments reached. 

The chief accountant for Northern 
Assurance, Robert C. Angus, concen- 
trated his arguments on the mechanical 
difficulties faced by the companies if the 
proposal goes through. The companies 
are still recovering from the war time 
shortage of personnel, as well as the 
incompetence of that personnel, and 
were simultaneously faced with the 
problem of handling the tremendous in- 
flux of post war premium volume, he 
The proposal is particularly seri- 


said. 
ous for the average size company. Per- 
sonnel problems will become serious 


again, he stated, as the defense pro- 
gram is stimulated. There is a lack of 
uniformity in accounting because man- 
agement methods are different as are 
problems and organizations. The tim- 
ing of the. proposal is wrong because 
the companies are already having diff- 
culty in producing the information re- 
quired by various states. The proposal 
tells the companies what the department 
wants but it doesn’t tell them how to 
compile them. The tabulating job will 
be enormous. He also questioned the 
value of the new figures, indicating that 
he didn’t think they would be worth 
the money expended to compute them, 
and that this would add to company 
expenses and, in consequence, rates. 
Questioned by Mr. Martineau, he said 
he didn’t think the companies would be 
able to present accurate figures by 1950 
under the proposal even if they were 
ordered, as it is an impossible task. He 
urged further consideration before the 
proposal is adopted. 

The casualty companies were repre- 
sented by T. P. Tarbell, Travelers ac- 
tuary, who submitted and discussed a 
memorandum for Assn. of Casualty & 
Surety Companies with the objections 
being essentially the same as those of 
the fire companies but with more em- 
phasis on the allocation of expense sec- 
tion involving payroll audit, and on in- 
spection costs. He also objected to the 
allocation of additional items to acquisi- 
tion, stating that although New York 
might be considerate of the additional 
items included in acquisition when rates 
were filed, he wondered if the 40 or more 
other states that require filings would 
be so inclined. 

Mutual Insurance ; 
was represented by J. A. Mills, and 
Vestal Lemmon spoke for National 
Assn. of Independent Insurers. When 
the testimony opposing the measure was 
completed, Mr. Morrill took the stand 
and rebutted the objections given, fol- 
lowing which Messrs. Magrath, Angus, 
and Tarbell made counter-rebuttals. By 
this time it was awfully hot in the warm, 
damp room and people began to slide 
out the two doors to the conference 
room which fortunately had been left 
open. Deputy Martineau adjourned 
the hearing after everyone had his say. 


Statistical Assn. 


Ohio Field Gathering 

The Ohio field men are gathered this 
week at Cedar Point for the annyal 
summer get-together of Ohio Fire Un- 
derwriters Assn. and Ohio State Fire 
Prevention Assn. The former organi- 
zation held its meeting Wednesday with 
talks being given by Harry Perlet of 
the Ohio insurance department, and 
K. S. Ogilvie of Western Underwriters 
Assn. At the fire prevention meeting 
Thursday, the main talk will be given 
by Fred J. Milligan, director of com- 
merce of Ohio. 





i 


MHOENITX-CONNEC 


GROUT! 


| 
insurance Won 


Che Phoenix 
3usurance Company, Hartford, Coun. 


OUITABLE 
Tapurance (Gmpany 


Provioence, RL 
1859 


Fire € 


ATLANTIC FIRE INSURANCE CO. 
Raleigh, North Carolina 


THE CENTRAL STATES FIRE INS. CO. 
Wichita, Kansas 


GREAT EASTERN FIRE INSURANCECO. 
White Plains, N. Y. 


MINNEAPOLIS F. & M. INSURANCE CO. 
Minneapolis, Minn. 


RELIANCE INS. CO. OF CANADA 
Montreal, Canada 


* 


HARTFORD 
3© Trinity Street 


CHICAGO 
Insurance Exchange 


NEW YORK 
110 William Street 


SAN FRANCISCO 
220 Montgomery Stree 


MONTREAL 
485 McGill Street 


~ 


All Forms, of Fire and 
Property Insurance including 
Ocean and Inland Marine 


Country-wide Brokerage Service 




































EMPLOYERS 
REINSURANCE 
CORPORATION 


J. B. ROBERTSON—PRESIDENT 


KANSAS CITY 


Insurance Exchange Bldg. 
NEW YORK 


107 William Street 


CHICAGO 


175 West Jackson 


SAN FRANCISCO 


114 Sansome Street 


LOS ANGELES 


606 South Hill Street 
























































Employers contracts 
promote underwriting 
efficiency in all lines 
where Reinsurance is an 


essential. 

















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June 24, 1948 
—————S>S>——=+ 




















YeNATIONAL 
I UNDERWRITER 


CASUALTY anc SURETY SECTIO 


JUNE 24, 1948 
Page Fifteen 





Mail Order 
Insurers Form 
Trade Group 


E. J. Becker Is President 
and Wendell Berge 
General Counsel 


WASHINGTON—The Assn. of In- 
surance Advertisers has been organized, 
composed of companies doing business 
through the mails, including 
mail order A. & H. companies. 

Wendell Berge, former anti-trust as- 
Attorney General, Department 
of Justice, who was identified with the 
Southeastern Underwriters Assn. case, 
has been named counsel for the new as- 
sociation. ‘ 

Formal announcement is 
next week. Meanwhile, ‘Mr. 
would not discuss the matter 

He and insurance observers are 
aware of the trouble into which some 
mail order insurance companies have 
gotten with the Postoffice Department, 
including indictment and trial of some 
of their personnel. 

The Postoffice Department has also 
been making investigations with a view 
to possible fraud orders against some 
insurance concerns, which would deny 
them the use of the mails. A number 
of such fraud orders have been issued 
over the years. 


FTC Has Interest 


During Congressional consideration 
of funds for the federal trade commis- 
sion there was discussion of mail order 
insurance activities, which were said to 
demand FTC attention, and Congress 
appropriated $10,000 for FTC work on 
mail order companies during the fiscal 
year beginning July 1. 

When the insurance moratorium ex- 
pires, FTC will have jurisdiction to in- 
vestigate, file complaints against and 
prosecute mail order insurers under the 
Clayton anti-trust, federal trade com- 
mission and Robinson-Patman anti-dis- 
criminatory acts. 

Insurance observers believe now is an 
opportune time for mail order insurers 
to organize for the common defense, 
what with the impending expiration of 
the moratorium, moves at the capitol 
and in the administration directed at 
such concerns, and the expectation of 
a change in administration after the No- 
vember election. 


First Meeting at Chicago 


primarily 


sistant 


expected 
Berge 


There was an initial meeting of rep- 


resentatives of mail order insurers at 
Chicago and then Assn. of Insurance 


Advertisers was formed at a gathering 
at Washington June 2. This move, it 
is understood, has the blessing of the 
Postoffice Department. A code of fair 
advertising practices was submitted on 
that occasion and this is being revised 
in some particulars. E. J. Becker, presi- 
dent of Mutual Hospitalization of Wil- 
mington, Del., was elected president. A 
Milwaukee attorney was employed as a 
paid secretary, and Mr. Berge as gen- 
eral counsel. Ross J. Ream, president 
ot National Protective of Kansas City, 
is active in the organization. Guaran- 


tee manatee Life of Chicago is one of 
the members. Of-the group attending 
the Was hington meeting, 17 companies 
joined in the new association. Stanley 

aplan of the Chicago law firm of 
Gottlieb, Schwartz & Friedman was one 
Ot the participants. 

\ccording to a dispatch from Wash- 


lagton in the New York “Journal o/ 


Fidelity-Surety 1947 Score Card ~— . 


Countrywide net premiums written of 
surety companies operating in New 
York state, increased in 1947 to $53,494,- 
786 from $44, 589,186, the previous year 
and earned premiums went up from 
roughly $38 million to $46 million. In- 


stead of a minus loss ratio of 3.8 in 
1946, there was a loss ratio of 7.8% 
in 1947. 


These results are disclosed in the an- 
nual study of the New York insurance 
department based upon ‘casualty insur- 
ance expense exhibits. In the fidelity 
field, premiums written dropped from 
$37,419,985 to $35,006,287, but there was 
an increase of about $2 million in earned 
premiums. The loss ratio increased 
from 19.7 to 23.9, 


In the following table incurred logses 
are based on case estimate reserves and 
exclude allocated claim expenses. Be- 
cause of fluctuations in premium volume 
from year to year, expense ratios have 
been adjusted so as to relate certain 


types of expense to written premiums. 
Expense ratios do not include federal 
income taxes 


1947 Fidelity Experience 


STOCK COMPANIES 








Underwriting Ratios 












































Country-wide 





E xper nse Analysis 

















Losses Claim Acq. & fid. Gen. Insp. & Taxes & 
Net premiums incurred Exp. Netgain exp. to sup.to adm. to bur.to fees to 
written earned toearned (adj.) (adj.) earned written earned earned written 
Accident & Casualty......... i 53,638 $ 42.1 74.1 —16.2 6.7 37.6 24.0 1.6 4. : 
Aetna Cas. & Bur. ....csscess 1,701,826 32.9 65.9 1.2 13.4 33.8 15.4 5 2 
BTBORSOEE BES 0666s a cecce 65,567 g 5 18.6 104.5 —23.1 15.6 19.3 64.9 2 3 ; 
American Casualty .......... 140,058 152,352 15.6 57.1 27.3 6.5 31.6 14.3 1.1 3.6 
American Employers ........ 327,789 358,189 22.3 50.2 27.5 4.7 33.2 8.8 we 2.7 
American Guar. & Liability.. 183,203 204,464 67.7 38.7 —6.4 7.4 15.2 10.9 1.9 3.3 
American Motorists ......... 168,289 139,668 40.8 57.1 2.1 3.0 35.0 16.8 4 1.9 
American MBareaty ..0.ccccccas 2,688,964 3,239,121 17.9 68.2 13.9 10.8 33.4 19.2 4 4.4 
Associated Indemnity ....... 22,486 47,060 30.4 36.4 33.2 3.1 26.3 2.7 6 3.7 
ge Ee eee 5,925 6,915 60.9 97.8 7 21.9 50.6 19.9 5.4 swe 
ee 2 ee 2,489 4,277 —3.7 63.6 al 1.6 22.9 28.5 7.4 3.2 
OD SE +c awdtetcavesqes’s 144,164 155,544 30.2 35.0 38 5.7 4.4 20.1 1.3 3.5 
Century Indemnity ......... 378,435 453,223 32.5 57.0 5 11.2 33.9 7.7 5 3.7 
Columbia Casualty .......... 198,558 208,722 24.6 46.6 8.8 5.0 26.7 10.3 1.3 3.3 
Commercial Casualty ........ 192,797 221,608 14.8 57.3 9 8.7 30.5 14.6 1.0 2.5 
Continental Casualty ........ 463,463 624,353 —3.1 61.7 4 11.7 23.6 22.6 | 3.0 
MOSS TMGOMIRIEY 6.0 cccccces 89,594 109,260 23.7 62.2 1 9.8 33.2 15.3 x 3.2 
Employers Liability ......... 441,580 478,429 18.9 52.0 1 6.3 35.4 7.4 1.3 1.7 
Fidelity & Casualty.......... 1,661,370 1,907,556 13.3 56.5 2 9.3 24.9 16.3 1.6 4.4 
Fidelity & Deposit........... 4,557,787 5,441,606 19.6 61.9 5 8.0 39.2 11.0 6 3.1 
WPivemen’s -TG. . TRB. oiccccccces 311,114 340,617 81.0 50.6 6 4.3 25.3 16.3 3 3.9 
General Accident ........... 9, 3,887 27.8 43.6 6 6 23.3 14.3 2.7 2.7 
General Casualty, Seattle.... 246,504 238,852 6.5 34.6 =) 2.6 24.4 4.4 3 3.0 
Glens Falls Indemnity....... 140,571 235,236 —.4 54.6 38 4.1 35.3 10.6 .) 3.7 
Globe Indemnity ............ 537,561 655,560 23.7 59.9 .4 9.8 33.1 13.1 7 3.2 
Great American Indemnity... 382,184 405,466 31.9 61.9 2 7.9 33.9 14.9 2.5 2.7 
Guarantee of N. A........... 101,058 112,466 3.6 75.9 5 1.7 37.2 30.5 5 6.0 
Hartford Acc. & Ind......... 2,078,640 2,383,722 31.4 48.7 a] 8.0 22.1 15.1 6 2.9 
Home Indemnity ............ 202,409 261,394 23.6 37.3 a —3.4 15.2 20.3 1.4 3.8 
Indemnity of N. A........... 1,299,228 1,329,491 40.0 42.7 3 7.0 21.8 10.0 3 3.6 
International Fid. ........... 56,266 48,309 2.5 68.8 S 1 5.8 61.1 bos 1.8 
London Guar. & Acc......... 23,952 16,614 44.6 96.6 2 4.9 5.8 70.4 1.9 3.6 
London & Lancashire Ind.... 35,458 39,006 35.0 80.5 5.5 31.8 23.9 15.6 2.0 7.2 
Manufacturers’ Casualty 106,570 107, 543 39.2 53.3 7.5 4 30.8 17.6 Ry 3.8 
Maryland Casualty .......... 1,724,475 1,916,283 32.5 55.2 12.3 12.3 29.3 9.5 1.1 3.0 
Massachusetts Bonding ..... 978,028 1,118,948 26.5 56.3 17.2 12.8 29.0 11.7 3 2.5 
Merchants Indemnity ........ 332 514 —8.8 25.9 82.9 8.0 22.9 4.3 hae —9.3 
Metropolitan Casualty ...... 139,211 133,815 6.3 61.8 31.9 6.7 32.6 18.1 1.2 3.2 
National Casualty ........... 17,282 20,834 15.4 44.5 40.1 —6.2 19.8 26.0 1.5 3.4 
National Surety ............. 3,353,854 3,676,546 24.5 64.5 11.0 8.1 37.9 14.3 5 3.7 
New Amsterdam Casualty... 984,554 999,931 18.0 47.4 34.6 9.3 25.4 9.7 2 2.8 
New England Casualty...... 2,303 1,371 3.7 76.8 19.5 6.8 20.0 31.9 16.9 1.2 
New York Casualty.......... 431,869 480,595 13.4 59.5 27.1 17.6 26.1 12.2 2 3.4 
Ocean Acc. & Guar........... 227,267 256,299 31.5 44.2 24.3 4.9 24.6 10.8 9 3.0 
Peerless Casualty .........+-. 165,858 159,178 12.2 45.4 42.4 1.6 35.8 6.3 | 1.6 
Phoenix Indemnity ......... 23,268 19,696 38.3 24.6 37.1 2.5 11.8 5.2 1.8 3.3 
Preferred Accident .........- —15,542 45,956 81.1 33.5 —14.6 re 7% ise bos , 
Royal Indemnity ............ 492,764 600,930 23.7 60.0 16.3 9.8 33.1 13.2 7 3.2 
St. Paul Mercury Indem..... 483,055 483,882 17.5 42.0 40.5 4.7 19.9 11.3 6 >.5 
Seaboard Surety ............ 689,179 578,424 26.4 45.0 28.6 3.9 22.3 11.5 2.4 6.0 
Standard Accident .......... 737,928 $23,399 23.6 70.7 5.7 12.2 36.0 19.4 5 2.6 
i GEE” Saco < 0 0-9 6 000 6 43,747 _ 43, 429 9.2 46.5 44.3 14.7 21.2 6.2 1.1 3.3 
Travelers Indemnity ........ 672,255 24.0 58.5 17.5 7.4 31.8 15.4 _.6 3.3 
United National Indemnity... 24,778 38.1 139.1 —77.2 6.1 22.7 100.6 5.9 3 8 
United States Casualty...... 178,424 31.5 63.1 5.4 4.4 25.1 29.1 1 3.4 
U. S. Fidelity & Guaranty.... 3,662,074 3, 20.5 50.5 29.0 4.6 32.1 10.4 3 2.6 
UW. Bi GUePeRtee ...o oc cccrccae 802,427 27.8 58.0 14.2 8.2 38 34.9 3 5. 3 
Western National Indemnity. 112,601 26.1 of 33.4 3.2 3 8.7 i 2.6 
Yorkshire Indemnity ........ 55,499 24.4 6 35.0 4.6 30.1 3.1 1 2.7 
BOGE COCRID 2c cccccepccsss $38,762,367 $37,966,710 14.8 29.4 7.2 29.3 15.1 7 3.5 
BOE DOCKING icc Fee dice duce 56,525,293 37,602,907 17.9 28.7 7.6 24.9 16.9 7 3.3 
1946 COCRIS ... .cecvcdscrses 37,419,985 37,345,440 19.7 22.4 7.8 30.1 16.0 8 3 2 
U9ET COEHIS 20s ccccsovesr 35,006,287 39,273, 335 23.9 19.3 8 30.3 14.1 7 3.2 
American Mut. Liab......... $ 169,897 6.1 59.1 9.7 —24.0 16.8 2 3 ‘ 
Employers Mut. Liab........ 52,648 48.6 30.1 4.8 —7.5 42.3 3.9 5.1 
Farm Bureau Mutual........ 5,043 67.0 —20.2 10.6 —24.9 79.8 . 1.5 
Liberty Mutual ............6. 849,116 30.6 18.7 10.5 8.4 2.4 7.1 2.2 
Lumbermen’s Mut. Cas...... 392,676 45.5 13.3 2.8 29.5 10.7 4 2.1 
National Grange Mutual..... 9,287 19.6 64.0 4.1 3.3 9.7 > 1 8 
Security Mut. Cas............ 5,425 47.1 21.2 3 40.5 6.2 ; l 
TOEE COORED ciscedccveceess $ 1,226,022 1 3.9 7.8 1.2 15.6 : 2.3 
ko) ef ere 1,340, 692 9 2 9.4 4.1 10.3 1.7 2.4 
1946 totals ....-..cceccece 1,529,458 : 8.8 7.7 10.2 2% 1.9 
SEP COG Swe oe est bivvse 1,595,092 7.9 11.8 7.8 4 2.2 
American Reinsurance ...... $ 1,212,685 $ 892,102 48.8 8.4 +e 43.5 4.7 2 4 
Employers Reinsurance ..... 1,123,717 966,901 50.0 21 3 2 6 42.2 3.5 4 1.4 
European Gen. Reins........ 1,347,143 1,442,070 49.8 23.7 2.6 46.0 1.0 1 5 l 
TROND cain 4.0.6 8S edad etercens 140,092 127,184 51.7 34.3 3.1 39.2 8.0 1.4 
General Reinsurance ........ 1,156,391 1,139,884 49.4 7.0 4.0 40.0 3.2 I 2 1 
North Am. C. & S. Reins..... 73,653 84,134 65.3 5.2 1.7 63.9 —,§ . 2 
9944 totals ..ccccscoscses $ 4,195,571 . 3,660, 646 21.2 52.6 26.2 1.1 45.8 4.2 2 1.3 
1946 COTBIS 2. ccccecsvcsee 5,812,504 3,964,648 29.9 49.6 20.5 1.3 42.4 4.6 2 1.1 
1946 totals ......cccceesss 4,453,790 4.094.708 30.4 50.3 19.3 1.8 $2.9 4.1 2 1.3 
SE GONE ohnniecnebusad 5,053,681 4,652,275 34.0 49.8 16.2 2.4 43.3 2.9 2 1.0 
(CONTINUED ON PAGE 24) - ie 
Commerce” the Post Office Department gaging in practices that are frowned defense the fact that they were licensed 
is anxious to have the assistance of the upon. It is expected that some of the by the state, that their advertising 
state insurance departments in moving insurance companies that have been in- literature was given state approval or 
against mail order insurers that are en- dicted will emphasize strongly in the (CONTINUED ON PAGE 22) 








16 CASUALTY 


June 24, 197.7 








Insurer Is Held 
For $20,000 Beyond 
Limit of Policy 


Central Surety has been held liable for 
ire amount of a judgment of $65,- 


Wisconsin assured under 











an auto liability policy, even though the 
policy limit was $45,000, the case being 
Royal Trans Inc. vs. Central Surety. 


One Zamecnik, an employe of Allis-Chal- 
mers, was totally and permanently dis- 
abled, in an accident due to the alleged 
negligence of an employe of Royal 
Transit. 

Zamecnik brought an action for $100,- 
000. Shortly thereafter conferences and 
conciliation hearings were held by at- 
torneys representing Zamecnik, Allis- 
Chalmers, Royal Transit, Central Surety 
and Employers Reinsurance which had 
the top $40,000 of liability under the pol- 
icy. The attorney for Employers Re- 
insurance was quoted as saying that this 
case should be settled and he suggested 
making an offer of at least $35,000. 

L. P. Miller in Control 

According to the court, L. P. Miller, 
representing Central Surety, had com- 
plete control of all negotiations relative 
to a settlement. The lower court found 


that a settlement could have been ef- 
fected for $40,000 of which Royal Tran- 
sit agreed to pay $5,000. The lower 
‘ourt said that Miller stubbornly and 
persistently refused to adopt any of the 
suggestions of other attorneys when 
they advised settlement for less than the 
policy coverage “and he obstinately and 
in bad faith repudiated and overrode the 
suggestions of the attorneys for the re- 
insurer,” and Central Surety’s own at- 





we 


torneys, when they both urged settle- 
ment for $35,000. 
The appellate court said that when 


one man with the power to make deci- 
sions refuses to entertain a com- 
promise under such circumstances, a 
serious question arises as to his honesty 
and good faith. Especially, the court 
said, is this so in view of the flimsy na- 
ture of his excuse for so refusing. He 
treated the matter, so he testified, as “a 
horse trading proposition.” After Zam- 
ecnik had agreed to accept $40,000, no 
counter proposal was made by Miller or 
anyone on his behalf. The court ex- 
pressed the belief that his refusal to dis- 
charge the obligation to protect the in- 
terests of the insured, as well as to make 
the best settlement possible, was arbi- 
trary, capricious and the court said the 
finding of bad faith is amply supported. 





With J. R. Ingram as president, Bank- 
ingport, Inc., a new insurance agency, 
has been organized at Sanford, S. C. 





SUBJECT: 


to: 


Indiana Branch 
State Life Building 


Indi lie: 
r ’ 


Indi 





Thomas L. Hicks 





SPECIAL MEMO TO: 
Indiana-Illinois Agents 


Automobile Financing 


Hawkeye Agents in nine states are holding their 
auto business through the special facilities 
offered them by the First Insurance Finance 
Company. Now, First Insurance Finance Com- 
pany is making this service available to Hawkeye 
Agents in Indiana and IHinois. Hawkeye has sev- 
eral agency openings in these States. Agents 
selected will be granted the facilities of the First 
Insurance Finance Company to help hold and 


increase their auto business. 


The plan is tailored for agents. You approve the 
risk. First Insurance Finance Company provides 
a complete service, plus the advantages of their 
"Protective Purchase" Plan. For full details write 


HAWKEYE CASUALTY COMPANY 
1017 Walnut Street 
Des Moines, lowa 


Finance Field. Managers in this area 


WMinois Branch 
5th and Capitol 
Springfield, Illinois 


Richard S. Porter 








New Okla. Insurer; 
L. W. Hall President 


Organization of Midwestern Ins. Co. 
of Oklahoma City has now been com- 
pleted, and it has paid in capital of 
$200,000 and $250,000 net surplus. The 


Lewis W. Hall, who re- 
May as vice-president in 
of underwriting of Insurors In- 
demnity of Tulsa. He had been with 
that company 10 years and his insurance 
experience covers 21 years, he having 
started in 1927 with New Amsterdam 

The office is located in the 


president is 
signed in 
“4 


} 
cnarge 


Casualty. 
Apco Tower building and it is licensed 
for the various casualty lines. There 
were sold 20,000 shares of $10 par value 
stock at $22.50 per share. 

Some of the stockholders and direc- 
tors are outstanding agents of Okla- 
homa and Texas. Those having a fi- 
nancial interest in the company are 
from Tulsa, Muskogee, Sapulpa and Ok- 
lahoma City, and Houston and Beau- 
mont, Tex. 

Mr. Hall did underwriting and special 
agency work for New Amsterdam from 
1927 until 1929. Then for several 
months he was with the Evers-Dixon 
general agency of Long Island City, and 
for the next six years, he was special 
agent and was in charge of branch office 
underwriting for Maryland Casualty in 
Oklahoma. Then until joining Insurors 
Indemnity he was in underwriting and 
production work for the Frates Co. of 
Tulsa. 


T. R. LePage Is Secretary 


T. R. LePage is secretary and assist- 
ant treasurer. Mr. LePage is a native 
of England and was educated there. He 
came to the U. S. in 1920 and was na- 
turalized in 1929. After earlier experi- 
ence in other fields, he went with U. S. 
F. & G. as assistant branch auditor in 
1924. From 1928 to 1929 he was with 
Massachusetts Bonding as branch audi- 
tor and from then until April of this 
year, he was with Joseph Froggatt & Co. 
He served as manager at Dallas for 10 
years, and also was located at Newark, 
Chicago and St. Louis. He has given 
lectures On various insurance account- 
ing topics. 

I. D. Robertson is chairman, Dan M. 
Moody, vice-president and B. M. Jack- 
son, treasurer. 

The directors include I. F. Betts, 
president of American National Bank 
of Beaumont; Bruce M. Jackson, who 
is in the investment and lumber busi- 
ness at Beaumont; I. D. Robertson, an 
insurance man and vice-president of 
Beaumont Cement Sales; Mr. Moody, 
who is president of Texas Abstract Co. 
of Houston; W. M. Dickey, president of 
Avalon Lumber Co., and Airtex Air- 
conditioning Distributing Co., Houston: 
Marion L. Martin, an insurance man 
and president of TSC Investment Co., 
Houston; Dave D. Price, president the 
Economy Co., Oklahoma Citv: Leonard 
H. Savage of the Oklahoma City law 
firm of Savage, Gibson & Benefield and 
Mr. Hall. 

An agency advisory committee has 
been named consisting of three promi- 
nent Oklahoma City local agents, Fred 
F. Fox, H. T. Moran and Dave R. 
McKown. 


Increases Policy Dividends 


Interboro Mutual Indemnity has in- 
creased its rate of policy dividends from 


15% to 20% on all lines effective for 
July, August and September. 





Name Moyer at Benton Harbor 


Lloyd W. Moyer, Jr., has been named 
district agent of Paul Revere Life and 
Massachusetts Protective at Benton 
Harbor, Mich. 


Seattle A. & H. Underwriters Assn. 
held its annual picnic at the Lake 
Washington home of Dwight Mead, Pa- 
cific Mutual Life. 





Burglary, Marine 
Men Ponder Plan to 
Increase Recoveries 


YORK—tThrough the com 
bined efforts of Burglary & Glass Ci 
of New York and Inland Marine Claim 
Assn., the New- York City police & 
partment has offered its full cooperatig 
to insurers in their effort to regain log 
Or stolen property. If the plan sug 
gested is put into effect it will not oni 
enable companies to avoid paying claim 
on in the hands of the polig 
but also to cut down losses through fi 
recovery of articles on which claims ag 
in process of payment, or which ma 
even be already paid. 

Frank Leuci, property clerk of th 
New York City police department, mag 
several recommendations at a_ recen 
joint meeting of the two organization 
He revealed that the gross value @ 
property handled by his office last ye 
exceeded $9 million. 








property 


Much Delivered to Finders 


During the year more than $1 milliog 
in property and cash was turned over i 
finders. “I wonder,” he stated, “hoy 
much of this property was insured? 
The finders have included all categorie 
of people, including taxicab drivers, ho 
tel employes, pedestrians, and man 
children. Much of the valuable mate 
recovered was diamonds, jewels, wris 
watches, etc. The value of the item 
ran from several hundred dollars up tj 
$4,000. A sizable amount of thes 
jewels was believed covered under per 
sonal property or jewelry floaters. Be 
cause of unfamiliarity with the polieg 
department's operations, an estimate & 
ceeding $100,000 might be made of th 
losses paid by companies on property 
given to finders by police when th 
owners did not appear to clam ij 
Countrywide the figure might exceed 
million annually. } 

Although it is true that many claim 
men and adjusters have forwarded cop 
ies of loss notices to the property clerk$ 
office, they seldom submit sufficient m 
formation to allow an accurate identih 
cation. One of the principal defects i 
that the schedules do not have a com 
plete description of the insured articles 
Many times the loss notices say simply 
“one mink coat—$2,000.” Mr. Leuci sug 
gested that manufacturers’ tradematks 
insignia, photographs, bills of sale, and 
other identifying information on fur 
such as color, markings, number @ 
pelts, etc., should be given. Jewelry 
when reported lost, should be fully de 
scribed. 


May Use Association Facilities 


It was also suggested that the insuh 
ance companies avail themselves of bul 
letins or the trade journals to notily 
claims men countrywide of articles tht 
property clerk has in his possessiog 
ready to turn over to finders. The dis 
cussion that followed this suggestion i 
dicates that the casualty people wil 
avail themselves of the claims divisi0n 
of the Assn. of Casualty & Surety Com 
panies, and that the inland marine pe 
ple may approach the Inland Marine Un 
derwriters Assn. with the suggest 
that such a service be established. Thé 
officials present felt that much goo 
could come of such a service and that! 
might pay for itself in property recov 
ered. The principal stumbling block @ 
this time would be the establishment © 
a plan that could service mutuals, nO® 
members of the associations, insurers 00% 
doing business in New York, etc. 

One step that the lost property cletl 
has taken is to have the person recovery 
ing the property state in an affidavit tha 
a claim has not been paid by any insum 
ance company on the recovered goods 
If it is proved later that a claim va 
been paid the person can be held for 
perjury. It is now also suggested tha 
the affidavit contain the name of thé 
company, broker or agent throug 
whom the claim was paid. 











CASUALTY 17 


June 24, 39 


Tyne 24, 1948 FeNATIONAL 








cierkK ¢ 


than $1 milliog 
turned over} 
stated, “how 
















































was insured? 
| all categorie 
ab drivers, hol 
Ss, and many 
luable material 
jewels, wris 
- of the item 
| dollars up tq 
unt of thes 
red under per 
floaters. Be 
ith the polieg 
n estimate ex 
e made of th 
; On property, 
ice when thé 
to claim it 
ight exceed #] 





3,363 men most likely to succeed 


t many cla | bea ss rae ee ASS: Since its beginning in 1934, the AZtna Home Office em and 

Orwardea Pee q . 

niperty, clerk Ae Surety Sales Course has held 100 sessions . . . has graduated 
3,363 men who go out into the field with a business asset that can be 


t sufficient in 








‘urate identifi ; ie 1a ‘ . . : 

ipal defects i NA: 2 Poe invaluable to themselves, their agencies, and their company. 

. Mave a com |. eee - ‘ ; : : 

sured articles 5 ; With a firm command of all A&tna’s multiple-line coverages, the 
ie. Teast a Z are able to offer the right policy at the right time and maintain a hi 4 
Mir. Leuci sam e er right policy at the right time and maintain a hig 


s’ trademarks 
s of sale, and 
ition on fur 


ratio of sales to calls. Their thoroughly professional approach quickly 
builds single sales into profitable accounts. They benefit from years 


> Ln re ce tm Bb of experience—distilled into five weeks of intensive training by 
d be fully de TE. gh skilled, field-experienced instructors—learned by doing as well as 
F — studying. 

lities - 

a : Agents all over the country have come to recognize the advantages 
t he insur . ee ° ~~" . * 
selves of bul ONS NSA 4 of professional training, especially for the younger men on their 
a ie hegee | staffs. Your agency, too, may gain through this course. Ask your 
is posseaa Pa fa an, nearest A£tna office for complete information. 

ers. he dis 1a . 





suggestion ity S ae Sy 
aims divisi  LaYSAS ALTNA CASUALTY AND SURETY COMPANY 


Surety Com Affiliated with Aitna Life Insurance Company 


1 marine peo ° } 
id Marine Un Automobile Insurance Company : Standard Fire Insurance Company 
le suggestion Baie 
blished. The : HARTFORD 15 CONNECTICUT 
much g " ; \ 











ce and thati 
operty recov 
ling block 4 
ablishment © 
mutuals, non 
s, insurers nO 
rk, etc. 
yroperty clerk 
‘rson recover 
1 affidavit that 
by any insur 
Ivered goods 
a claim .hag 
be held fo 


mene ot tna Home Office Casualty and Surety 


ent througa 





wie ie: . Py. s 
s BME: 


Sales Course 

























18 Cc ASU ALTY 











ACCIDENT AND HEALTH 





Quiz Program Presented by 
Los Angeles Association 


An “information quiz” 
featured the June’ meeting of 
Angeles A. & H. Underwriters Assn. 
with a board of five “experts” answer- 
ing questions propounded by members. 

V. J. Skutt, Mutual Benefit H. & A., 
president of H. & A. Underwriters Con- 
ference, talked briefly on public rela- 


program 
the Los 


tions. He praised the San Francisco and 
Los Angeles associations for their work 
on. behalf of pt rivate carriers in the re- 
cent UCD legislative battle. 

The “experts” included A. G. Arnold, 
Travelers; Henry Handschuch, Conti- 
nental Casualty; Walter Schmitz, Occi- 
tal Life; Robert Clarke, Unity Mutual 
Life & Accident, and Walter L. Mc- 
Kee, Connecticut General Life. 

It was announced that the California 


department had approved finally only 
ree courses of study submitted by 
insurers for instruction of prospective 
agents in preparation for license exami- 
nation; 26 had been given tentative ap- 
P roval, with modifications required for 
approval, and 29 disapproved. 





Health Benefit Salary 
Deductions O.K’d by Court 


ST. LOUIS—Health 


tions from the salaries of 


benefit deduc- 
employes are 


not in violation of the Taft-Hartley law, 
District Judge George Moore has held 
in a declaratory judgment. 

The decision was in a test case filed 
by the Rice-Stix Dry Goods Co., nam- 
ing as defendants the St. Louis at 
Health Institute, and the —— Unit 
Distribution Workers’ Union. 


In its petition the company 
some ¢ mployes had cl iallen; 


stated that 
ged the legal 


ity of deducting 344% of the gross sal- 
ary of the workers and payment of such 
funds to the Health Institute. The 
collections from about 700 employes 


totaled approximately $40,000 

In upholding the dedu 
court held that St. Louis Labor 
Inetitute is not a bargaining agent or 
representative of the company’s em- 
ployes and not affiliated with or a par : 
of the company, but an independen 
corporation organized to furnish medi- 
cal, surgical and hospital care. 

A spokesman for the Health Institute 


annually. 
the 
Healt! 


ictions, 





A-F-SHAW 
& 
COMPANY Inc. 


PSSIRANCE 





INSURANCE EXCHANGE, 175 W. JACKSON BLVD. 
CHICAGO 4, ILL. 
PHONE WABASH 1068 


ALL FORMS OF INSURANCE WRITTEN BY 
LICENSED INSURANCE COMPANIES 
AND 
LLOYD’S OF LONDON 


Inquiries invited from Agents and Brokers, for types of Insurance 
of a Special Character, throughout the world, not easily obtainable 
from regular Licensed Insurers. 





PROSPECTS FOR INSURANCE 





ERRORS & OMISSION PROTECTION FOR 
INSURANCE AGENTS & BROKERS 


To pay claims arising as a result of errors or omission on the part of the 
assured or his employees in the conduct of his business, including failure 
to pay premiums of clients, when due, as a result of error or omission. 
Information on Request — Rates Reasonable 
“Shaw Service Satisfies" 











said that the case would 
tern for many other firms and will af- 
fect some 6,000 members of organiza- 
tions carrying such protection with the 
Institute. 


set the pat- 


Downey and Committee 
Confer on Qualifications 
LOS ANGE 


L E S—Commissioner 








Downey and the advisory committee 
on courses of study for applicants for 
agents’ licenses conferred on matters to 
be incorporated in the new manual 
which is being prepared by the depart- 
ment. It is ~ understood his ill be 
the official booklet from ex- 
amination questions will be taken. 
The committee discussed only life and 
disability and submitted proposed ques 
tions and answers. 
The committee is composed of R. H. 
up, Occidental Life; Kellogg Va: 
l Equitable Society, legislative 
chairman California Assn. of Life Un 
derwriters, and W. E. Lebby, Massa 
chusetts Indemnity, all of Los Angeles 
A. B. Brown, Metropolitan, and E. E. 


Keller, Reliance Life, both of San Fran- 
cisco. All were present. 
It is understood as soon as 





Downey can obtain men in the 
insurance business to serve 
committee for the general side of 
industry, he will name such a body 
have it do a corresponding 
eral insurance. 


ger 
ona similar 
the 
and 


job for gen- 


Manarch Life Engages Morse 
As Assistant Actuary 


Richard H. Morse, employe benefit 
actuarial consultant for Johnson & Hig- 
gins, has resigned to become assistant 
actuary of Monarch Life. Mr. Morse 
graduated from Brown in 1934 and is a 
Phi Beta Kappa. He started with the 
actuarial department of ‘Connecticut 
General and was placed in charge of the 
group annuity division. After returning 
from service as a navy officer, Mr. 
Morse joined Johnson & Higgins. 


No R. R. Disability Changes 


¢ The bill passed by Congress to re- 
vise the railroad retirement system on 
a basis agreed upon by railroad manage- 
ment and the railroad brotherhoods pro- 
vides for some increases in pensions or 
annuities and puts the unemployment 
compensation tax on a merit rating ba- 


sis similar to that in other industries, 
but does not make any changes in the 
disability benefits provided under the 


Crosser act. Another bill to that effect 
was introduced in Congress, but did not 
get anywhere. 


Allein Utah President 


SALT LAKE CITY—At the annual 
meeting of Utah A. & H. Club, J. P. 


Allein, Equitable Life & Accident, was 
elected president, succeeding Persyl 
Richardson, Mutual Benefit H. & A. 


Leo R. Porter, Columbian National Life, 
is vice-president; Parley Woolsey, Mu- 





June 24, 4g 
tual Benefit H. & A., secretary-treg 
urer (reelected); Ford Crandall, Met, 


politan Life, 
Casualty, 


and Olive Milner, Natiog 
members of executive boars 


Harrington Asks Control 
of Mass. Blue Cross 


BOSTON — Commissioner Har Ting 
ton of Massachusetts has recommended 
to the joint legislative committee g 
insurance that the insurance departmey 





be given the same powers over Bly 
Cross it has over insurance companig 

he commissioner asked for approyg 
of new and higher hospital rates } 
the state commissioner of public healt 
free. access of his depar rtment to Bhy 
Cross records and rules and regulation 
for enforcement of insurance departmer 
orders, medical examinations for thow 
holdit g private contracts with Bh» 
Cress, and examination of hospitals } 
the state public health departme: 
Representatives of the Blue Cross ani 
ospitals asked for more time to & 


amine the recommendations. 


Announce A. & H. Bureau 
Annual Meeting Features 





The. program for the annual 
of Bureau of A. & H. Underwrit 
Virginia Beach Oct. 11-13 will 
addresses by outstanding insurance com- 


missioners and by persons engaged in 
accident safety, medical direction ané 
public relations work. There will bez 
detailed discussion of the California an¢ 
New Jersey cash sickness laws. 

The underwriting forum, a _ valuable 
feature in > years, will be under the 
direction of Gerald S. Parker, Preferred 
Accident, and promises to be of unusual 


interest ‘because of the many controver- 
sial underwriting questions to be dis 
cussed. 


A new feature this year will be a dis- 
cussion of home office procedure led 
Merle J. Thompson, Standard Accident 
Raymond A. Payne, Travelers, will dis- 
cuss “Policy Drafting Requirements in 
the Immediate Future,” taking up rap 
idly developing regulatory pattern in ac 
cident and health insurance and _ the 
problem which this presents from a pol 
icy drafting and filing standpoint. 

Ray L. Hills, Great American Indem- 
nity, is chairman.of the annual meeting 
committee. 


Smart to Life Department 


Thomas Smart, accident and _ health 
underwriting assistant of Inter-Ocean 
since his return from service in 1946, 
has been made life underwriter to suc- 
ceed Fred Kautzman, resigned. He has 
been with Inter-Ocean since 1936. For 
most of that time he has been in the 
underwriting department. He holds 2 
certificate in general business from 
University of Cincinnati and is now go- 
ing to evening law school. 

George Pfau, a graduate of Cincinnati 


University and the university law 
school, succeeds Mr. Smart in_ the 


A. & H. department. He was for 2 





Cable Address "REINGENCY" Chicago 


NtINOURANEE 


Telephone Wabash 7515 








175 W. JACKSON BLVD. 





REINSURANCE 
SPECIALIZED COVERS 
EXCESS COVERS 
FIRE—CASUALTY 





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June 24, 1948 


HteNATIONAL 








CASUALTY 











=—— 

short time with Hospital Care Corp. and 
has done insurance field work. In addi- 
tion to underwriting he will be groomed 
for work on policy construction and in- 
surance department rel: relations. 


E. E. Brown Austin Speaker 


Austin (Tex.) Assn. A. & H. Un- 
riters heard E. Etheridge Brown, 
lent of Robert E. Lee Mutual Life 
Antonio, talk on the importance 
speaking the language of 
He said that if there is 
common understanding of what the 
will do, misunderstandings will 
be minimized and lawsuits will he rare. 
He referred to the efforts of certain 
commissioners to bring about uniform- 
ity in pract ices and elimination of hid- 
den exclusions as good for the business. 







in sé lling or 
prospect. 
a 
policy 


O. D. Harlan, presjdent of the Texas 
association, spoke on the convention oi 
the National association and the impor- 


membership in the association. 


tance OI 


Hold N. J. A. &H. Outing 


In spite of the a of the 
weather, the joint outing of A. & H. Un- 
derwriters Assn. of New Jersey and the 


+ 


women ’s division of the association, was 
well attended. Golf winners included 
Charles Simons, C. J. Simons & Co.; 
Herbert Siddons, Service Review; Alex- 
ander Grenier, National Casualty; 
orge Lehman, National A. & H.; W. 
S. “Vv ogel, Columbian National Life, and 
Milton French, Mutual Benefit H. & A. 


Deputy Commissioner Gough was to 
have spoken but was unable to be pres- 
ent due to the pressure of business. 


Fireman‘s Fund Writes UCD 


Fireman’s Fund Indemnity is now 
writing UCD coverage under four 
plans: A, offering maximum weekly 


benefits of $30, B, of $28, C, $26 and D, 
The latter is available only to 
employers having less than 10 em- 
ployes where the female contingent is 
more than 50%. 

All of these plans increase the weekly 
benefit by 40%, beginning with the 8th 
day, while insured employe is a resi- 
dent patient in a hospital or requires 
full-time services of a nurse, but not 
exceeding 26 weeks for either or both 
combined, 


Keller Enters Agency Field 


Ernest Keller has resigned as agency 
director of Federal Life & Casualty to 
become general manager of Morgan 
Jones & Co., the company’s agency at 
Elgin, Ill, Mr. Keller has been with 
the company since 1926. He did claims 
work and in 1938 became chief under- 
writer of the A. & H. department. He 
became a personal producer in Detroit 


$25. 


and in 1941 was made agency super- 
visor, advancing later to agency direc- 
tor. 


Hold Chicago A. & H. Outing 


More than 100 members and their 
guests attended the Chicago A. & H. 
Assn. outing at Nordic Hills Country 
Club June 18. 

Jay DeYoung, Continental Casualty, 
retiriag president, gave a brief report on 
the compulsory sickness legislation 
problem. The new president, Irving G. 
Wessman, Loyalty group, presented Mr. 
DeYoung a gift from the membership. 

The outing committee, Harold L. 
Bredberg and Walter Kummerow, pre- 
sented prizes. 

Mr. Wessman and Mr. DeYoung will 

ttend the annual meeting of National 
pea of A. & H. Underwriters at Min- 
neapolis next week. 


Knadle Tampa President 


TAMPA, FLA.—Wesley M. Knadle, 
district manager of Professional, has 
has been elected president of the Tampa 
A. & H. Underwriters Assn. He suc- 
ceed George Gryder, Atlas Life; E. W. 
Tidwell, American Life, is vice-presi- 
dent; J. Stallings, Continental Casualty, 
secretary; Frank Copeland, Continental, 
treasurer. 


CHANGES IN CASUALTY FIELD 





Travelers Designates 
Peterson a V.-P. 


George E. Peterson has been made 
vice-president of Travelers and Travel- 
ers Indemnity, in charge of casualty un- 
derwriting. Mr. Peterson’ succeeds 
Louis J. Kempf, who has retired. 

Mr. Peterson joined Travelers in 1911 
as an inspector. After a year, he was 
attached to the home office and was ap- 
pointed assistant superintendent of the 
engineering and inspection division in 
1921. He was transferred to the under- 
writing department two years later an d 
put in charge of casualty underwriting 
in the greater New York area at Gas 


York City. In 1931 he returned to the 
home office. In 1936 he was made as- 
sistant secretary of the compensation 
and liability department and in 1940 
secretary. 
Houghton in Seattle Post 
Claude W. Houghton, formerly spe- 
cial agent at Minneapolis and St. Paul 
for Maryland Casualty, has been ap- 


pointed associate manager of the bond 


department in General Casualty’s metro- 
politan office at Seattle. 
At one time he was special agent at 


Seattle for the Loyalty group. 





Guertin Boston Claims Head 
for Century Indemnity 


Francis L. Guertin has been appointed 
manager of the Boston claim division 
of Century Indemnity to succeed Rich- 
ard K. McWilliams, who was recently 
transferred to Hartiord as manager of 
the casualty claim department with su- 
pervision over the entire claim opera- 
tions of the company, 

Mr. Guertin is a graduate of Boston 
University law school and practiced law 
until 1942. He then became assistant 
New England claim manager for Stand- 
ard Accident and in 1943 he joined Em- 
ployers Mutual Liability as New Eng- 
land claim manager and attorney where 
he has remained until now. 





R. S. Herterich | 


has joined the eastern 


department of St. Paul-Mercury Indem- 
nity as a bond underwriter. He was 
formerly with Fidelity & Casualty in a 
similar ‘capacity. 


ao and McGarry 
Shifted by Hartford 


Eugene N. Harrington, special agent 
for Hartford Accident in western Wash- 
ington for 15 years, has been transferred 
to the Sacramento Valley in California. 
He succeeds Norman Quillinan, who re- 
cently resigned to go with the McGee 
& Thielen agency at Sacramento. Mr. 
Thielen, veteran agent and member of 
the firm, died recently. 

Mr. Alexander has been with Hart- 
ford since 1928, starting at San Fran- 


cisco. He first was appointed special 
agent in the state of Washington in 
1933. 

Andrew T. McGarry, who has been 


in Pacific department headquarters since 
leaving service in 1946, has been ap- 
pointed special agent at Sacramento as- 
sisting Mr. Alexander. 


Guarantee of Los Angeles 
Makes Plans for Indiana 


Guarantee of Los Angeles 
tered Indiana, and President J. 
ing is on the scene making arrange- 
ments to set up a branch office at In- 
dianapolis. Richard Goss, who has been 
chief safety engineer at the head office 


has en- 


R. Deer- 








Chicago 4, Illinois 





175 W. Jackson Bivd. 


Although we are licensed in 
only 19 of the 48 states, still 
we are one of the 25 largest 
producers of fidelity and 
surety bonds in the nation. 


There must be a reason. It 
will pay you to investigate. 


WESTERN SURETY COMPANY 


ONE OF AMERICA'S OLDEST BONDING COMPANIES 


21 W. 10th Street 
Kansas City 6, Mo. 


Sioux Falls 
South Dakota 




















CASUALTY 





FeNATIONAL UNDERWRITER 


June 24, 19% 














LD FOLKS 


CAN BE NEW 


PROSPECTS 


Get this “past 60” accident business! 


There is a good source of extra 
income in writing over-age acci- 
dent insurance. Due to the high 
frequency of accidents in the 
older age group, these people 
want the protection, and there are 
few companies that offer this cov- 
erage. 

You probably have lost valued 
business because of your policy- 
holders passing a certain age, and 


their policies being terminated. 
You can still give them excellent 
coverage that compares favorably 
to all standard straight accident 
policies—death, dismemberment, 
weekly indemnity, or any com- 
bination of these with or without 
medical expense. 

Send for full details on over-age 
accident insurance. Underwritten 
by Lloyd’s of London. 


R. N. CRAWFORD &C0., Inc. . 




















THE SYMBOL OF SERVICE 
FOR COMMERCE AMD INDUSTRY 





Coat Operators Casuactty COMPANY 


GREENSBURG, PENNSYLVANIA 





























for the past six years, will serve as man- 
ager temporarily. The plan is to em- 
ploy an Indianian as special agent and 
train him so that he may take over the 
manegompens. 

his is the first state that Guarantee 
has entered east of the Rockies. Its 
California business this vear_ will 
amount to more than $3% million and 
the management is striving to get a 
more diversified territorial experience. 


Opens Milwaukee Unit 


Loyalty group has opened a casualty 
claim office at Milwaukee, with Francis 
C. Doran in charge as chief adjuster. 
The office is located at 611 North 
Broadway. 


Wulfhorst to Chicago 


Richard F. Wulfhorst, Travelers field 
assistant in fidelity and surety lines at 
Toledo for the last 18 months, has been 
transferred to a similar post in Chi- 
cago. 


“Ball,” Not “Bell.” Appointed 


An item in the issue of June 17 relat- 
ing the appointment of Harold J. Ball 
as claim manager of American Casu- 
alty at — erroneously referred to 
him as “Bell”. 


Cosby Richmond Manager 


LeRoy J. Cosby has been appointed 
manager at Richmond by Manufactur- 
ers Casualty and Manufacturers Fire 
to succeed Charles R. Eby, who be- 
comes Chicago manager. Mr. Cosby 
has been a special agent there. 


SURETY 


Probe of Pa. City and County 
Bonding Practices Launched 


HARRISBURG, PA.—<A state-wide 
investigation of city and county bond- 
ing practices will be inaugurated bv 
Commissioner Malone. He decided on 
the probe after learning that W. Frank 
Marshall, Philadelphia receiver of taxes, 
profited from a $1,800,000 bonding deal 
involving 650 employes in his office. 
This was disclosed in conjunction with 
current tax scandals at Philadelnhia. 

The commissioner’s chief concern in 
the probe, it is said, is to dete ermine if 
public officials can legally engage in the 
bonding business or take a profit from 
its operation. He investigated the Phila- 
delphia “deai” and sharply questioned 
Leon Merz, manager of Continental 
Casualty, one of four insurers with 
which Marshall has been associated. 

An investigation into the reputedly 
lucrative placing of performance bonds 
for contractors engaged in public work 
is also being considered. 

Judge MacNeille of Philadelphia com- 
mon pleas court, who has directed a 
grand jury probe there, said that “while 
it is true that the taking and sharing of 
commissions for the sale of bonds to 
city employes and to contractors doing 
business with the city is not a crime, it 














is equally true that it should be made 
one by law. 

“In the field of life and fire insur- 
ance, it is a crime for an agent or bro- 
ker to share his commission with any 
layman, and it is a crime for a layman 


to participate in sharing. 

“a shall ask the grand jury to recom- 
me nd legislation to prevent any. city of- 
ficials, county officer or city officers 
from participating in the commission 
from the sale of bonds to city employes 
or acting as agent or broker in such a 
sale. 

“The law _—_ also prevent Partici- 
pation in the s haring of commissions on 
any bonds furnished to the city or coun- 
ty in relation to contracts.’ 


Award Highway Contract 


Griffith Co., Los Angeles, has been 
awarded contract by the California state 











—.. 











highway department for constructioy 
and improvement of 12 miles of roag 
between Miramar and Lake Hodges x 
bid of $1,642,999. National Surety wij 
execute the payment and performang 
bond. 


Renewal Commission Ruling 

LOS ANGELES—The question ¢ 
payment of commissions on continuoy 
bond forms to persons no longer repre 
senting the company underwriting the 
bond, but who were properly licensed 
at the time the bonds were written 
having been called to the attention 9 
the California department, the depart. 


ment has adopted a position. It rules 
that the renewal commission may hk 
paid to the original agent provided 


nothing whatsoever is to be done by 
him so that actually there is no further 
transaction of business by him. Where 
the principal sum of the bond has bee, 
increased or any other change or en 
dorsement made, other than the mere 
renewal, an agent would have to bh 
licensed for the insurer at the time a¢ 
ditional commission was paid due to the 
endorsement or change. 

This ruling applies only to the type 
of continuous form bonds which may 
not be canceled by the company, ex- 
cept with the consent of the court or 
some other governmental agency. 


COMPENSATION 


Self-Insurers Criticise 
N. Y. Hospital Rate Hike 


NEW YORK — Self-Insurers Assn. 
here in its last bulletin criticised the 
agreement to raise hospital rates for 
workmen's compensation cases to $9.25a 
day, which was made effective May 1 by 
Compensation Insurance Rating Board 
and Hospital Assn. of New York State. 
The agreement was approved by Super- 
intendent Dineen but the chairman of 
the Workmen’s Compensation Board has 
not approved it. 

Self-Insurers Assn. points out that 
section 13 (a) of the compensation law 
provides that fees and other charges for 
treatment and services shall be limited 
to those that prevail in the same com- 
munity for similar treatment of injured 
persons of a like standard of living. It 
states that the charge for compensation 
cases is considerably more than that of 
a private paying patient in a ward in 
most sections of the state. The increase 
in rates “establishes the right of other 
agencies than the legislature to fix bene- 
fits,” it says. 


Enact Increase in Benefits 
Under Longshoremen’s Law 


WASHINGTON—Congress has sent 
to the White House a bill increasing 
minimum compensation benefits under 
the longshoremen’s and harborworkers’ 
law here from $8 to $12 per week and 
maximum benefits from $25 to $35 per 
week, 











Pennsylvania Rates Revised 


HARRISBURG, PA.—Commissioner 
Malone has announced approval of a 
genera} revision in workmen’s compen- 
sation rates. 

Under the new rates there is an aver- 


age 414% reduction in premiums. This 
includes 109 classifications being re- 
duced, with 48 remaining the same, and 


‘slight increases” in 28 classifications 
The average reduction for manufac- 
turing and utilities group is 2.9%, con- 
tracting and quatre 8.1% and other 
industry groups 4.7 
The new rates will apply to all poli- 
cies effective on or after June 30. It is 
estimated that the reduction in premi- 
ums will approximate $900,000. 





Richard G. Bennett has been named 
manager of accident, health and hos- 
pitalization insurance for the Welling- 
ton Roemer agency, Toledo. 


















June 24, 


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urers Assn. 
iticised the 
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e May 1 by 
ting Board 
York State. 
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June 24, 1948 


FeNATIONAL UNDERWRITER e ) 






CASUALTY 21 











~ ASSOCIATIONS 


Hallenbeck Leads Chicago 
Casualty Underwriters 








The Casualty Underwriters Assn. of 
“hi has elected R. M. Hallenbeck, 
Jlomay & ‘Clarkson, president. 

} new officers are R. Maynard 
loelle, Fir eman’s Fund Indemnity, vice- 
president; G. N. Morrissey, Hartford 
\ccident, treasurer; Harold L. Bred- 


erg, National Service & Appraisal, stc- 
etary 

Ollmert, 
W. A. 


Directors include Louis 
Aetna Casualty; Harry Boyle, 
Alexander & Co.; N. A. Laibly, United 
National Indemnity; R. P. Corn, West- 
ern Comeny. & Paty | and Donald M. 
Wood, Jr., Childs & Wood. 

Allen Pither, Chicago manager of 
American Foreign Insurance Assn., was 
speaker. A od tournament is planned 
for early in July 


Wis. Adjusters srs Elect 





MILWAUKEE — New officers of 
Casualty Adjusters Assn. of Wisconsin 
elected by mail ballot are Nelson B. 
Winkless, Royal Indemnity, president, 
suc “5 O. B. Sullivan, Aetna Cas- 

lifford Clemons, Standard Acci- 

dent vice-president, and Alfred C. 
lotz, All-State, secretary. The results 
were announced at the dinner following 


the annual outing and golf tournament 
at North Shore Country Club. More 
than 100 adjusters, claims managers and 
attended the outing. Ralph 
was general chairman. 


guests 
Brown 





Wagenhauser President 


At the annual meeting of Houston 
Casualty-Surety Roundtable Club A. E. 
Wagenhauser of Langham, Langston & 
Burnett was elected president; W. E. 
Humphreys, Commercial Standard, vice- 
president; R. B. Livingston of Houstoun, 


Stevenson & Cummings, secretary, and 

Walter Stone, American Automobile, 

treasurer. 

Atlanta Claim Men Elect 
Allace Streeter, U. S. F. & G., has 


been elected president of Atlanta Claims 
Assn. James Kelley, American Casualty, 
is secretary, and J. H. ‘Coskey, Hard- 
ware Mutuals, treasurer. 








PERSONALS 


The wife of Edwin I. Offenbacher, 
special agent in New York for American 
Credit Indemnity, was the fortunate 
benefactor of a subway ticket agent’s fast 

thinking. Buffeted by the crowd, she 
sliy yped in a N. Y. subway station, catch- 
ing her leg between one of the cars and 

ie platform. A husky passenger hastily 
jumped between the sliding doors, keep- 
ing them open and preventing the train 
from moving. The ticket agent induced 

150 bewildered passengers to line up on 
the side of the heavy car and push. They 

tilted the car slightly to one side but 
it was enough to permit two of the pas- 
sengers to lift out Mrs. Offenbacher. Her 
only injuries were a few bruises and an 
awful scare. 

E. J. Uhler, agency department of 
Fidelity & Casualty, New York, will 
treat the 3D and broad form liability 
policies at the short course school being 
sponsored by Alabama Assn. of Insur- 
ance Agents at the University of Ala- 
bama, Tuscaloosa, Phen 2h 19- 21. 











on Plan to Rene 
Auto Market in Mass. 


Agreement was reached by represé¢n- 
tatives of insurers at a conference with 
Commissioner Harrington of Massachu- 
setts to extend the scope of the volun- 
tary automobile assigned risk plan to in- 
clude property damage and other non- 
Statutory liability coverages. Hereto- 


fore the plan has embraced only that 
portion of the risk that comes under the 


Massachusetts compulsory automobile 
insurance law. 
The. rules of the plan were also 


changed to provide that the applicant 
for assignment will now sign an appli- 
cation stating that such insurance has 
been applied for and refused. If this 
record is satisfactory he becomes imme- 
diately eligible for assignment. 

The conference was callcd because of 
the increasingly difficult market situa- 
tion that is developing in Massachusetts. 
Last year an agreement was reached 
whereunder the companies “froze” their 
writings at the 1947 level. The compa- 
nies this year have been renewing prac- 
tically all of their last year business un- 
der the freeze plan, and are now finding 
it more difficult to take care of new ap- 
plicants. The volume of compulsory as- 
signed risks in Massachusetts is running 
about 40% greater than last year. 


NLRB Holds Group 
A. & H. Collective 
Bargaining Subject 


In the same groove as the recent In- 
land Steel decision on pensions, the na- 
tional labor relations board has ruled in 
a 4 to 1 decision that the Taft-Hartley 
act requires an employer to bargain 
with his employes on any group A.&H. 
insurance program. Involved in the case 
were the United Steel Workers, C.I.O. 
and W. W. Cross & Co., tack manu- 
facturer of East Jaffrey, N. H. 

The board ordered the employer to 
refrain from taking any unilateral action 
with respect to his group health and ac- 
cident insurance which affects any of the 
employes in the unit represented by the 
union without prior consultation with 
the union. The employer is told to bar- 
gain collectively with the union upon 
request when and if the union meets 
the conditions of the Taft-Hartley act. 

The company had argued that its 
contributions to the insurance cost was 
gratuitous payment, but the board held 
it constituted indirect wages and 
conditions of employment. 

NLRB maintained the employer’s con- 
tributions are one means of providing 
paid sick leave and that the economic 
effect of this and other forms of paid 
sick leave on current rates of pay has 
been recognized by the company. 

As in the Inland case, the union was 
given 30 days in which to comply with 
the non-communist affidavits required 
by the Taft-Hartley law. The C.LO. 
has so far refused to allow its officers 
to sign the affidavits pending a court 
test of constitutionality. 


Harold Jackson Featured 
at Chicago Safety Parley 


Harold P. Jackson, president of Bank- 
ers Indemnity, was in Chicago last week 
to take part in the meeting of the com- 
mittee on conference reports of the 
President’s Highway Safety Conference. 
He is chairman of the national commit- 
tee for traffic safety and he made an ap- 
pearance on the program under the 
heading “The Action Program Goes to 
Town.” 

Mr. Jackson is devoted to this cause 
and he feels that the program is mov- 
ing ahead impressively. The ultimate 
objective is to cut traffic deaths in half 
in those states that embark on the pro- 
gram in full-fledged fashion, and he said 
that this objective has all but been 
reached in those states that have organ- 
ized and taken the recommended steps. 
He is much impressed by the calibre of 
the men that are devoting themselves 
purposefully and effectively to this great 
humanitarian undertaking. 

Also attending the Chicago confer- 
ence from insurance ranks were Julien 
Harvey and T. N. Boate of Assn. of 
Casualty & Surety Companies. 


Snag Va. Auto Rate Hike 


Hearings before the Virginia cor- 
poration commission on the proposed 
boost in automobile B.I. and P.D. rates 











entered the case as an intervenor. He 
has not testified yet, but is expected 
to support the position that there hae 
been a reversal of the 1945 and 1946 ac- 
cident trend. The companies are ask- 
ing for increases of 24.6% in B.I. rates 
and 43:4% on P.D. > 


P, O. Holm Is Big Toad 


The Western Reserve puddle of Blue 
Goose at Cleveland has elected Perry 


was marked by protracted arguments 
over a statement made by a witness 
for the companies that the rate in- 
creases would call for a boost in com- 
missions to agents from 20 to 25%. 
Another such hearing is being held this 
week. Blake T. Newton, counsel for 
the state, said that the proposed com- 
mission increase was not included in 
the public notice and should have been. 

A. E. Spottke, manager of the Na- 
tional! Bureau of Casualty & Surety Un- 





derwriters, testified that motorists in the O. Holm, Fireman’s Fund, big toad; 
state received five consecutive reduc- A. J. Danzinger, U. S. Fire, polywoe; 
tions in bodily injury rates before pre- R. R. Barrington, Western Adjustment, 
war rates were restored. C. F. Joy- croaker, and J. L. Mowatt, Aetna Fire, 
ner, Jr., motor vehicle commissioner, bouncer. 








p. L. 
Cc. F- 
John Jones, Agent 


Make This Calling Card 
Your Introduction to 
OTHER BUSINESS! 


CPL— COMPREHENSIVE PERSONAL LIA- 
BILITY — is so popular and inexpensive that it 
can easily be your calling card for developing 
other business. Often this $10 per year policy 
just about sells itself, whereas many other im- 
portant coverages require real selling effort. 


Furthermore, every experienced agent or broker 
knows that one sale can lead to another, and that 
with the proper introduction, difficult selling 
jobs become easier. With C.P.L. paving the way, 
you have the opportunity to present other lines. 


Our Companies stand ready to supply 
the information and sales aids you 
may desire. Address our Agency and 
Productien Department. 


AMERICAN SURETY GROUP 


AMERICAN SURETY COMPANY 
NEW YORK CASUALTY COMPANY 
SURETY FIRE INSURANCE COMPANY 


100 Broadway New York 5, N. Y. 


Casualty e Surety * Automobile * Inland Marine 

















22 














CASUALTY , HAeNATIONAL UNDERWRITER June 24, 194 
Distinctive Yacht Pamphlet Mail Order Insurers rangements, assisted by om ™ Crafts, 


Key Retiring, Rousseau 
in Ala. Post for Home 


Cliff G. Key, manager for Home at 
Birmingham, and Special Agent S. M. 
Bigger of Montgomery are retiring. 

J. C. Rousseau, state agent, hus been 
promoted to manager and S. W. Ivey, 
special agent, succeeds Mr. Bigger. Mr. 
Ivey formerly was staff adjuster at 
Montgomery. 





J. S. Robinson, secretary of the lia- 
bility department of Fidelity & Cas- 
ualty, is winding up a three-week vaca- 
tion at his farm. His farming knowl- 
edge came in very handy when Na- 
tional Bureau of Casualty Underwriters 
was drawing up the farmer’s compre- 
hensive personal liability policy. “I 
sure do,” he said, when asked if he had 
a farmer’s comprehensive on his own 
place. 


The Casmir Advertising Agency of 
New York has prepared a striking yacht 
insurance pamphlet for Appleton & Cox. 
The cover in blue, is particularly note- 
worthy since it carries no title, depend- 
ing on the art work to indicate the sub- 
ject. There is a drawing of Neptune 
below clouds suggesting a storm and in 
the sea are pictures of various grotesque 
animals that illustrate the hazards of the 
sea. There is an inset of power and 
sailing craft. Inside there is an intro- 
duction sketching some of the hazards 
of the sea followed by a description of 
the coverage under full marine insur- 
ance, protection and indemnity, long- 
shoremen’s and harbor workers com- 
pensation act, and voluntary medical 
payments. There is also a discussion 
of whether the yacht owner can limit his 
liability and a suggestion as to the 
proper limits of liability that should be 
carried. 





UNITED 


a 


4 


il 


Sy 


Casualty 


60 John Street 


CASUALTY COMPANY 


\X D- S TA Tes 





HOME OFFICE: 


STATES 


New York 








Payroll & Other Casualty Audits 
& Inspections. 


Audits of Burglary & Bond losses. 


Audits for reinsurance companies 
of payrolls, claims, ete. 





ATWELL, VOGEL & STERLING, INC. 
60 John Street, New York—WhHitehall 4-3477 
A-1855 Insurance Exchange, Chicago—9 Clinton St., Newark— 
369 Pine St., San Francisco 


18 other offices providing nationwide service. 


Inland Marine Audits & Inspec- 
tions. 


Audits of Cargo Motor Lines to 
determine financial responsibil- 
ity and outstanding claims. 








Organize Trade Group 


(CONTINUED FROM PAGE 15) 


at least was not proscribed. 

The Post Office Department for the 
past two years has had a squad of postal 
inspectors following up complaints 
about mail order insurers and the de- 
partment, according to this dispatch, 
states that this drive is now gaining 
momentum. 

The department also desires the 
states to exercise greater surveillance 
over advertising material. If police 
work is done in this connection at the 
state level, the department believes that 
the problem will largely disappear. It 
also sees some hope in a voluntary ef- 
fort on the part of limited A. & H. com- 
panies operating through a trade associ- 
ation to set standards guiding the ad- 
vertising of the members. 

The department intends to continue 
aggressively, its campaign for crimina: 
prosecution of such insurers. 


ll. Third Party Auto 
Rates Increased About 15% 


Approval has now been given in IlIli- 
nois to auto B.I. and P.D. rate increases. 
The private passenger car rates are in- 
creased on the average 15.5% for B.I. 
and 14.9% for P.D. 

Bodily injury rates for commercial 
cars are increased on the average 15% 
and 13.7% for P.D. In addition, the 
new classification of private passenger 
cars has been introduced to apply where 
non-business use cars are operated by 
persons under 25 years of age, with the 
rate within 5% of that for business use 
operation. It is understood that. the 
B.I. rate increase is less than what had 
been sought. 

It is understood that those independ- 
ent companies that have made rate in- 
crease filings in Illinois, approximately 
up to the bureau scale, have been noti- 
fied that they must file supporting statis- 
tical data in justification. So far, it is 
said, the National Bureau filings are the 
only ones that have been approved. An 
agreement was reached by the Illinois 
department representatives with WNa- 
tional Bureau people during the com- 
missioners convention at Philadelphia. 


Old B.I. Claims Are 
Hitting Insurers Hard 


In appraising the automobile insur- 
ance experience currently, most observ- 
ers have the impression that so far as 
new business is concerned, the rates are 
now on a correct level for automobile 
physical damage and third party prop- 
erty damage coverage. Apparently 
something of a balance has been struck 
between premium income and cost of 
repairs. The companies, however, still 
have misgivings as to the adequacy of 
the B.I. rate level in view of the increas- 
ing effect on personal injury settlements 
of the inflationary spiral and high earn- 
ing capacity. The insurers are constantly 
revising upward their estimates of what 
various types of injuries to various 
classes of individuals are worth. Even 
though the present level of rates may 
be nearly adequate to -take care of 
newly occurring claims, the companies 
are all suffering badly when it comes to 
liquidating old claims. Many claim 
reserves that at the time appeared to be 
extremely conservative, now are turning 
out to be insufficient. 








Give Luncheon in Honor of 
Lewis’ 25th Year 


NEW YORK—A testimonial lunch- 
eon marking this 25th anniversary of 
service with the Towner Rating Bureau 
will be tendered Martin W. Lewis, gen- 
eral manager of Surety Assn. of Amer- 
ica, July 1, at the Hotel Astor, jointly 
by Surety Managers’ Assn. and Surety 
Underwriters Assn. of New York City. 

Rankin Martin, Standard Accident, is 
chairman of the joint committee on ar- 


Home Indemnity; E. J. Donegan, Come 
mercial Casualty; J. B. Duke, New A 
sterdam Casualty; T. I. Hall, Employer 
group; J. P. Madigan, Maryland C 
ualty; E. V. Roth, Surety Assn., ang 
R. W. Stewart, Fireman’s Fund Indem-. 
nity. 

Mr. Lewis, a native New Yorker, be- 
gan his surety career with National 
Surety in 1912. He was superintendent 
of its fidelity department when he be 
came assistant manager of the Towner 
Rating Bureau July 1, 1923. He wag 
elected president of ithe bureau on its 
incorporation in 1938, and when the bu- 
reau was consolidated with Surety Assn. 
last year he was elected general mana- 
ger. 





Badger State Has Regional 


BEAVER DAM, WIS. — Badger 
State Casualty, Milwaukee, held a re- 
gional sales meeting here under direc- 
tion of Carl H. Gehrung, Randolph, dis- 
trict agent, and company officers. H. 
C. Ewert, secretary, emphasized the re- 
lation between automobile insurance 
costs and loss experience, pointing to 
increased rates for youthful drivers as 
the result of the high lIoc<c record on 
that class. 


Pickard Ohio President 

BUCYRUS, O.—C. N. Pickard, agen- 
cy supervisor Aetna Casualty, Colum 
bus, was elected president of Ohio 
Assn. of Casualty & Surety Managers at 
its annual meeting here, succeeding W. 
P, Fisher, bonding manager Standard 
Accident, Cincinnati. L. S. Jones, man- 
ager Glens Falls Indemnity, Columbus, 
is secretary-treasurer. 

The association was the guest of F. J. 
Roelle, local attorney and former Cin- 
cinnati manager of Fidelity & Deposit. 
The election was preceded by a golf 
tournament and banquet. 


WANT ADS 

















WANTED 
CASUALTY SPECIAL AGENT 


Young man, 22 to 30, to train for i as 
Special Agent for Alabama field. ceptional 
opportunity for advancement with leading 
casualty and neo | company. Agency or 
Company experience helpful but not essential. 
Car furnished upon pleti training 
State age, education, experience and drait 
status. Replies confidential. Address Q-85, The 
National Underwriter, 175 W. Jackson Blvd., 
Chicago 4, Illinois. 

















WANTED 


by Guarantee Insurance Company of Los An- 
geles field man for Indiana with opportunity 
to become branch ger. Comp has just 
entered state and will provide general casualty 
writing facilities. Reply to Box Q-84, The Na- 
tional Underwriter. 175 W. Jackson Blvd., Chi- 
cago 4, Illinois. 

















INVESTIGATION OF NEGLIGENCE 
CLAIMS BY H. G. STEVENSON, MEMBER 
NEW YORK AND NEW JERSEY BAR 
The ideal book for all adjusters and others who 
aid in the investigation and preparation of 
negligence cases. Order copy now. Seven 
chapters. Detailed directions and forms. Sam- 
ple copy one dollar. Price change due at an 














time. Associated Lawyers Publishing Co., 100 
Broad St., Newark 2, New Jersey. 
AVAILABLE 


Accident and Health Executive in agency, un- 
derwriting, claims and as branch manager. 
Prefer Home Office or executive supervisory 
og & work or branch manager. Address 
Q-81, e National Underwriter, 175 W. Jackson 
Blvd., Chicago 4, Illinois. 














WANTED 
Compensation and liability underwriter, also an 
automobile underwriter by Cook County branch 
of a large fire and casualty group. Address 
Q-82, The National Underwriter, 175 W. Jackson 
Blvd., Chicago 4, Illinois. 








June | 





Big 
Los 
The 


sued z 
the J 
Co. at 
occurt 
electri 
the bu 
two i 
vator 
been | 
and 
board: 
The 
floors 
openir 
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for $ 
clause 
furnitt 
90% « 
on stc 
ance. 
state 
there 
inary 
practi 
tents, 
excee 
to 10° 
The 
large 
const! 
the f: 
floors 
ways 
shafts 
fire. 
fire r 
winde 
tected 
(abou 


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conps 
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Assn 
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giona 









une 24, 1948 


a 


L. Crafts, 
iegan, Come 


> New A 
; Emplove 
ryland C 


Assn., and 
und Indem. 













Yorker, be- 
h National 
erintendent 
then he be 
the Towner 
3. He wag 
reau on its 
hen the bu- 
urety Assn, 
1eral mana- 


gional 
Badger 
held a re- 
nder direc- 
ndolph, dis- 
fficers. H. 
ized the re- 
insurance 
pointing to 
drivers as 
record on 


nt 

kard, agen- 
ty, Colum 
- of Ohio 
{anagers at 
ceeding W. 
r Standard 
ones, man- 
Columbus, 


est of F.J. 
ormer Cin- 
& Deposit. 
by a golf 


.DS 





GENT 
r sition - 
ceptiona 
th leading 
Agency or 
20t essential. 
of training. 
» and dratit 
ss Q-85, The 
ckson Blvd., 


- of Los An- 
a 
ral has just 
casualty 
The Na- 

: ke Chi- 








SEY BAR 

i others who 
eparation of 
Seven 


agency. 
h manager. 




















June 24, 1948 








MIDDLE WESTERN STATES 





Big Springfield 
Loss Reviewed 


The Illinois Inspection Bureau has 1s- 
sued a report on the spectacular loss of 
the John Bressmer Department Store 
Co. at Springfield, Ill, May 2. The fire 
occurred during an extremely severe 
electrical storm and the experts believe 
the building was struck by lightning. A 
two inch metal conduit containing ele- 
vator power wiring appears to have 
been blow n open on at least three floors 
and electric power and light panel 
boards show evidence of extreme heat. 
The fire apparently started on three 
floors simultaneously and the stairway 
openings were unprotected. 

The building was insured specifically 
for $500,000 with a 90% coinsurance 
clause. There was specific insurance on 
furniture and fixtures of $200,000 with 
90% coinsurance and specific insurance 
on stock of $153,500 with 90% coinsur- 
ance. Limit of liability under single 
state reporting form was $500,000 and 
there was U. & O. of $550,000. Prelim- 
inary estimate is that the loss will be 
practically total to building and con- 
tents, and that building salvage will not 
exceed 10% and stock salvage about 5 
to 10%. 

The inspection bureau states that this 
large loss in a bui Iding of fire resistive 
construction was due in part at least to 
the fact that the fire started on three 
floors simultaneously. The open stair- 
ways and improperly protected elevator 
shafts added to the rapid spread of the 
fire. The fact that the building was of 
fire resis stive construction and that the 
windows in the exposing walls were pro- 
tected by automatic closing fire shutters 
(about 50% of which operated) was of 
considerable aid to the fire department 
in preventing the spread of fire to ad- 
joining property. The tile fireproofing 
for the steel columns, beams and gird- 
ers, was effective and protected the steel 
in a satisfactory manner. It is under- 
stood that after a thorough cl leaning this 
steel will be used in the reconstruction. 
The unprotected steel failed tompletely. 


Buildings with this type of occupancy 

with extremely high values should be 

protected by automatic’ sprinklers, the 

bureau states. 

Mutuals Sponsor Institute 
GREEN BAY, WIS.—About 100 at- 

tended the fire agents institute here, 


sponsored by Wisconsin Federation of 
Mutual Insurance Companies and Wis- 
consin 1752 Club in cooperation with the 
school of commerce, University of Wis- 


conpsin, and the university extension di- 
vision. R. J. Colbert of the university 
was chairman, and Oscar Briggs, exten- 
sion director here, made arrangements. 
Speakers were Robert Barber, West 
Bend Mutual; E. R. Sturgeon, Employ 
ers Mutuals of Wausau; Paul Rehfeld, 
Rehfeld Associates, adjusters, Madison, 


and Herbert W. 
tual, Milwaukee, 


Roehr, Cream City Mu- 
federation president. 


Southern Minn. Agents Elect 


risk insurance was explained 
by Glenn Schodde, special agent of 
Home, at the June meetin~ of Southern 
Minnesota Insurance Agents Assn. at 
Austin. These officers were elected: 
President, John J. Walz, Northfield; 
vice-presidents, Robert F. Shumway, 
Northfield, and Albert Jones, Albert 
Lea; secretary, C. J. Katzenmeyer, Hay- 
ward. 

West Central 


Builders’ 


Minnesota Regional 
Assn. will hold its annual meeting at 
Marshall June 22, and Southwestern. Re- 
gional June 28 at Windom. 


Extensive Hail 
Loss in Kan., Mo. 


Prospects for an unusually low 
season to the Kansas wheat crop 
received a severe set back last week 
when a series of general storms of the 
state from early Monday to the follow- 
ing Sunday caused widespread losses. 
Early in the week the most severe loss 
ever reported from Cheyenne county in 
the extreme northwest corner of the 
state was reported, much thought to be 


hail 
loss 


total. The vicinity of McPherson in the 
south central section suffered heavily. 
Late Thursday afternoon a _ 75-mile 
wind hit Hutchinson damaging prop- 
erty generally throughout the city. The 
wheat harvest was just getting under 
way and soaked fields will keep com- 


bines out of the fields for several days. 
Until this past week only two _ hail 
storms of any consequence had occurred 
in the state, which had experienced an 
unusually dry spring. Adjusters have 
been rushed into the areas but it will 
be two weeks or more before the extent 
of the damage to the ripened wheat 
crop can be estimated. 

Considerable damage from hail has 
been reported from points in Missouri 
and Illinois. 

sudden storm struck a 15-mile area 
in the vicinity of Meredosia, Ill, on 
June 14, leaving hailstones piled four 
feet deep on some of the highways. 
Damage to crops will run high. 

Boonville and Carrollton, Mo., were 
also hard hit. In Cooper county mucl 
corn was stripped to the stalk and 
wheat fields were laid flat. On June 
18 rain and hail did considerable dam 
age in the vicinity of Sedalia, Mo. 


Ohio Eighth District Agents 
Elect; Prevention Rally Held 


Officers elected at the eighth district 


meeting of Ohio Assn. of Insurance 
Agents at Alliance are: E. R. Hun- 
sicker, Akron, trustee; W. J. Locke, 
Mansfield, president; D. S. Romig, 
Urichsville, vice-president, and Glenn 
Staley, Canton, secretary. 

Ninety local agents and fire chiefs 
met with -representatives of the Ohio 
fire safety committee, C. R. Scott, as- 
sistant state fire marshal, and E. C 
Knoop, Ohio Fire Prevention Assn., 
both of Columbus, to outline plans for 
reducing fire losses in Ohio. 

Other smug included P. J. Schind- 
ler, Youngstown, safety engineer Youngs- 
town Sheet & Tube Sey S. W. Schel- 
linger, Buckeye Union Casualty, “Store- 
keepers Liability Policy;” E. O. Pierce 
Cleveland, St. Paul F. & M., “Busi- 
ness Interruptions,’ and T. M. Gray, 


executive secretary, Ohio association 


Thirty fire: chiefs from northeastert 
Ohio participated and discussed plans 
for local participation in the _ vear- 
round fire prevention program set up 
by the Ohio committee. 

This meeting was the second in a 
series of agent-fire chiefs-industry lead- 
ers fire prevention meetings started to 
promote cooperation, The third meet 
ing at Athens next month will include 


southeastern Ohio. 


Buyer Speaks at South Bend 

E. B. Murphy of South Bend, spoke 
on “A Man On The Other Side of the 
Fence” at a meeting of South Bend- 
Mishawaka Assn. of Insurance Agents, 
presenting problems of the Insurance 
buyer. 


Hail Outlook Good in Minn. 


MINNEAPOLIS — Crop conditions 
point to an early harvest of small grains 


in parts of this territory which means 
the liability will be off as far as hail cov- 
erage is concerned. Cutting is expected 
to begin about the middle of July in 
some sections. Floods in the northern 
part of the Red River valley and parts 
of North Dakota delayed planting which 
will mean a later than normal harvest 
there. 

To date this season there have been 
only scattered hail losses and no serious 
ones. However, hail men are not count- 
ing on as profitable a year for the com- 
panies as they experienced last year. 


Wichita Agents nts Hold Outing 


About 100 members and guests of 
Wichita Assn. of Insurance Agents at- 
tended the annual stag picnic and out- 
in The program of outdoor sports 
amend a horseshoe tournament and 
ball game. Secretary Henry Scott, A. 
E. Smoll, Howard Snyder and Elmer 
Beezley were in charge. 


Rename Langlade Officers 


ANTIGO, WIS.—Walter D. Cavers 
was reelected president of Langlade 
County Assn. of Insurance Agents at 
the annual meeting here. William L. 
Melgaard continues as vice-president, 
and Rudolph N. Mattes, Jansen agency, 
secretary. 


Lincoln Founds Scholarships 


Lincoln Assn. of Insurance Agents 
has established a scholarship fund to 
reward insurance students at the Uni- 


Nebraska. 
value from 


versity of 
range in 


The awards may 
$100 to $500 each. 


Edward F. Holloran, adjuster for 
Hartford Fire, appeared before the In- 
surance Buyers Assn. of Minnesota 
June 22 at Minneapolis on “Subroga- 
tion Under the Fire Insurance Policy.” 

Kansas City, (Kan.) Assn. of Insur- 
ance Agents is showing the N.A.I.A. 
film, “Your Best Policy,” at the June 
28 meeting. 

M. G. Koen, local agent at Columbus 
O., for 34 years, has joined the Wolf 
agency there. 

Roy Green of Atwater, O., has sold 
agency to Mildred C. Lemert. 

The Clifford G. Fisher agency at Piqua, 
0., has been sold to Harold L. Short, who 
has been with the agency. Mr. Fisher 
will remain as a solicitor. 

Joseph N. Hubbard, New 
has purchased the J. W. 
there. 

Mary Helen Bandel, 
ston & Priest, has been elected president 
if Wichita Assn. of Insurance Women, 
succeeding Iris Bedwell of Van Arsdale 
& Larkin. Vice-presidents are Ann Uhl- 
schmidt, Russ Prater agency, and Max- 
ne Jinks, Wm. Matchette agency; secre- 
tary, Betty Mueller of Sheffer-Cunning- 

im, adjusters; treasurer, Marie Biegh- 
er, Roy L. Benjamin agency. At the 
July meeting reports of the Portland 
convention will be given. 


EAST 


Mass. Brokers OK Optional 
$50 Wind Deductible 


his 


London, 0O., 
Arnold agency 


Dulaney, John- 





The governing council of Insurance 
Brokers Assn. of Massachusetts has 
adopted a resolution giving qualified 


approval to the idea of a windstorm de- 
ductible. What this organization desires 
is a $50 deductible on an optional basis 
at a lower rate than for full cover-~e. 
The resolution states that rates for ex- 
tended coverage have been substantially 
increased and the E. C. premium is fre- 
quently more than half the cost of fire 
insurance. This increased cost, accord- 
ing to the memorial, is likely to bring 
pressure for relief and perhaps will re- 


sult in elimination -of the coverage. 
Recovery of. windstorm losses of less 
than $50 would not be an important 


matter. to. mortgage holders and most 
assuted 


INSURANCE NEWS BY SECTIONS 





“Packaging the insurance to meet the 
needs of a large number of insurance 
buyers and to fit their pocketbooks 
would appear to be good public policy 
and good for public relations,” the reso- 
lution states. 


Smith Jamestown President 


E. Donald Smith has been elected 
president of Jamestown (N. Y.) Fire & 
Casualty Underwriters Assn. Stanley 
Davis is vice-president; C. William 
Glatz, reelected secretary, and Mrs. 
Sally Johnson, treasurer. Underwrit- 
ing automobile insurance was dis- 
cussed. 


Mass. Mutual Men Elect 


BOSTON Massachusetts 
Fire Insurance Assn. has elected as 
president Charles E. Hogan, Middlesex 
Mutual; vice-presidents, Harold K. 
3artlett, Traders & Mechanics, and Ed- 
ward C. Nichols, Merrimack Mutual; 
secretary, Edward D. Sirois; assistant 
secretary, Ethel M. Pratt. 


Mutual 


Management Course in Md. 


An advanced insurance course in of- 
fice management and sales production 
has just been announced for Maryland 
is sponsored jointly by Maryland 
Assn. of Insurance Agents, Assn. of 
Fire Underwriters and Baltimore Bin- 
der Club. It is intended for the top 
management of insurance offices and 
will be held at the University of Mary 
land, College Park, Md., the week of 
Sept. 13. Enrollees are to be housed at 
the university for the four nights in- 
volved. The number will be limited to 
50. F. Addison Fowler of Baltimore is 
general chairman, 


COAST 


Downey Tells Attitude at 
Oakland Agents Rally 


Commissioner Downey of Califor- 
lia discussed rates and producers’ quali- 
fications Tuesday with the Oakland 
\ssn. of Insurance Agents. He ex- 
plained the department’s position in ad- 
inistering the new state rating law 
and its attitude on qualifications, par- 
ticularly in regard to the license ex- 
aminations which have created consid- 
erable animosity toward the department 
in some groups in the business. 








Metke to San Francisco 
J. Pat Metke, 


ot the aviation 


who has been manager 
department of D. K, 
MacDonald & Co., at Seattle, is being 
transferred to San Francisco where he 
will be associated with Otis Clark in 
charge of the firm’s Lloyds department. 

Harold Hansen, formerly with Mor- 
rell P. Totten & Co., succeeds Mr. 
Metke at Seattle. 


Firemen Hear Bush, Stevens 


The firemen’s training school at Salt 
Lake City, attended by nearly 300 fire 
men from four inttermountain states, 
was addressed by Lorin Bush, chief en- 
gineer of Pacific Board, and Jay W 
Stevens, assistant manager of National 
3oard at San Francisco, 





California Directors Meet 


California Assn. of 
are meeting at 


In- 
San 


Directors of 
surance Agents 
Jose June 26-27 


Long Beach Agents Meet 


LONG BEACH, CAL.—Long Beach 
Insurance Assn. presented diplomas to 
14 members who have completed the 
N.A.LA. courses. President B. F. 




















24 FieNATIONAL UNDERWRITER_— June 24, 1948 
Paine named a nominating committee 
to prepare a slate of officers and report 
at the July annual meeting. Ralph = 
Spang, special agent of North America, s a 
gave a talk y iv% FROM PAGE 15) 
<6 | aw eel - 

O. S. Fuquay, formerly in charge of Surety Experience 
claims in northwestern Washington for 
Northwestern Mutual Fire and North- STOCK COMPANIES 
west Casualty, has established an inde- 
pendent claims office at Pendleton, Ore. a ee 2 eee wide——___—_ > ——— 

nderwriting Ratios “2 > é Ss 

Frank Lindbergh has become office Losses Claim Acq. & oat nge Analysis: & Taxesé 
manager at Seattle of Canadian Fire Net premiums incurred Exp. Netgain exp.to sup.to adm.to  bur.to fees to 
and Canadian Indemnity. He has been accigent & Casualty ... w en ; onrnet to earned (adj.) (adj.) earned w rityon earned enumed written 
with the companies since last October Aetna Cas. & Sur. 3 2,981,309 2,584,928 8.8 74.2 17.0 10.9 40.2 19.8 fe 33 
as an underwriter. American Auto .......... 11,867 6,589 49.1 49.6 1.3 8.1 24.2 16.3 2 “'3 

es >: American Casualty wig 349,570 334,228 29.1 57.9 13.0 5.6 34.1 13.8 1.2 3.2 

Bruce Foot has joined Pierce & American Credit Indemnity. 1,630 1,615 aie 100.0 ne <5 sins Sea Sa 
Crockett, Seattle local agericy. He was American Employers ........ 624,846 472,123 11.8 24.5 6.2 41.7 11.5 1.1 3.2 
formerly with the fire underwriting de- —— Motorists Meese Rl oe » ears 9 0 4i086 32.9 13.6 2.2 46.4 2.4 5 26 

MIGTSORM MUP «oc ici cease 2,420,285 2,201,956 —1.3 22.8 7.5 36.2 30.3 6 3.9 
pettment of Stuart “ raga 3 wen Associated |e nc epaaa aie 44,735 5 =O 19.3 a 41.9 37.1 1.2 3.5 

Gu Cattle general ag s © i a IIS do king ot cea a '. Leen tie ba “ne oan Ses ooo Tee cae ol 
son of A. A. Foot, treasurer of the Car & General .............. 7,593 3.3 113.1 —16.4 6.9 27.7 63.8 11.9 2.8 
C. H. DeMille General Agency. pe ar. SeEBs Rea Sas o> 0s 493,838 18.1 61.2 30.7 5.0 30.7 20.9 ‘3 3.3 

, . Se Teseees- Ze fame F entury Indemnity .......... 803,723 3.3 1.5 35.2 7.3 39.1 11.3 6 3. 

The Dougies Evey and Rey W. Jones § Columbia Casualty .......... 184,387 —10.2 46.9 63.3 3.9 27.2 10.4 2"1 33 

ST aaatiee tate 1 on ener CP OPCINS CRMURIET 036.52: 190,420 161,265 6.1 65.2 28.7 6.0 33.0 22.1 1.8 2.3 
es TS 295, SN ;, Continental Casualty ........ 1,632,693 1,386,948 23.6 59.8 16.6 9.4 29.4 17.7 7 2.6 

Insurance pe s a ete the Sen Sagle Indemnity ............ 100,556 17.3 64.7 18.0 7.9 36.3 16-7 6 3.2 

planning an all-day cruise to the Sé Employers Liability ......... 538,293 18.2 59.2 22.6 4.8 38.2 8 3.0 
l is Jul 18. : 11.4 Be 3. 

Juan Islands, July 18. Fidelity & Casualty ......... 1,561,432 KK 4.0 67.3 28.7 6.4 37.9 17.2 1.9 3.9 

—_=—— ——— = Fidelity & Deposit .......... 4,768,949 4, 1.2 60.9 37.9 4.4 39.6 12.4 1.3 3.2 

a. 4 & SS.” Se 443,167 360,194 24.6 61.2 14.2 7.7 29.5 19.8 1.0 3.2 

General Casualty, Seattle 642,761 521,236 6.9 41.3 51.8 2.7 30.0 5.5 3 2.8 

General Transp. C. & S 1,197 981 2.4 5.7 91.9 enh —4.7 7.1 1 3.2 

Gieee Falls Indemnity ..... 873,053 893,213 8.9 55.6 35.5 5.7 33.1 11.6 1.3 3.9 

Globe Indemnity ............ 603,338 533,693 17.3 62.2 20.5 7.9 35.5 15.0 6 3.2 

. . Great American Indem. . 762,443 646,521 5.6 58.6 35.8 4.0 34.5 16.6 7 2.8 

A. G. Randol Gives Public Guarantee of North PR a aes 55,607 55,264 74.3 71.8 46.1 2.8 47.7 18.3 ve 3.0 
“ - artfor ee _ 5 Sa 3,451,878 2,888,426 7 61.7 37.6 6.0 30.1 22.3 8 2.5 

Relations Suggestions Home Indemnity “is tp ae 221,483 194,588 16.3 52.3 31.4 —1.5 34.2 15.6 6 3.4 

ndemnity o OF 7 er 1,146,717 935,310 3.9 51.4 44.7 5.6 28.1 13.8 1.2 2.7 

Arthur G. Randol, chairman of the International Fidelity ..... 10,210 9,841 10.8 64.9 24.3 tion —3.7 65.2 . 3.4 

tails Sham — Texas Assn. of London Guar. & Acc. ..... 31,844 >, 51 18.7 78.8 2.5 oss 23.4 50.2 1.4 3.8 

legislative committee of Texas Assn. « London & Lancashire Ind 165,937 5,870 23.6 71.5 4.9 16.9 29.1 20.7 1.3 3.5 

Insurance Agents, spoke to Insurance Manufacturers Casualty 504,802 7,262 17.9 58.8 23.3 2.4 36.8 16.0 6 3.0 

Women of San Antonio on public rela- Maryland Casualty ...... a 349,810 2,814,452 1.8 62.4 35.8 6.7 41.5 10.8 .7 2.7 

inice  atrohet F a ith Massachusetts Bonding ..... 1,481,261 1,267,841 39.4 59.5 1.1 11.6 31.3 13.3 ; 2.9 

tions, stressing that every contact with peeahents Indemnity =... 41,070 32°39] 97.0 571.2 —64.3 10.9 39.8 6.2 " 3 

a man or woman Duying insurance, Metropolitan Casualty ...... 231,263 222,774 16.9 51.1 32.0 2.9 32.2 12.9 4 2.7 

whether through letter, over the tele- National Casualty .......... 45,292 40,141 24.2 75.9 1 26.8 29.8 15.1 1.2 3.0 

g + sanlaxe PP rg te - ¢ = : é 

phone or in person, either builds good National Surety ........... 5,603,003 3,187,316 5.3 68.5 26.2 7.2 42.4 14.7 f 3.4 

: : “i i. sasnre ma Ne w Amsterdam Casualty - 1,163,927 880,083 2.9 66.5 30.6 16.9 31.9 14.6 3 2.8 
will or ill will for the agency and may : . ; +4 +. : 39.9 9 = - 

. A é New England Casualty.... 25,67 16,486 264.4 89.2 —253.6 8.8 39.é 2 1.3 

do the same for the business. New York OS are 508.037 444,236 5.8 48.5 45.7 33 26.6 1 3 1.0 
Ocean Acc. & Guar. ....... 89,167 86,029 —44.0 52.6 91.4 6.9 30.3 10.8 1.6 3 

- . Perless Casualty .......... 607,578 542,824 9.0 47.7 43.3 1.0 38.7 6.3 an 1.6 
Big Storm Loss in Ark. Phoenix Indemnity ...... 34,851 29,601 —21.7 18.6 103.1 2.1 7.0 4.2 1.4 3.9 

ain = aa ee 1 1 Preferred Accident .......... 38,184 107.705 —23.8 49.1 74.7 9 46.2 5.5 6 —4.1 

LITTLE ROCK—Central and north- Royal Indemnity ..:.....//): 5531059 489°219 17.3 62.0 20.7 7.9 35.6 14.7 6 3.2 
western Arkansas received widespread St. Paul Mercury Indemnity.. 1,606,800 1,457,886 1.2 38.7 62.5 2.1 21.4 11.1 1.1 3.0 
damage June 16 from wind up to 80 Seaboard Surety ............ 1,416,743 1,157,494 —8.7 73.4 35.3 17.6 29.3 16.7 6.2 3.6 

‘log ae tt] mle late Standard Accident .......... 2,250,120 1,834,324 5.4 65.2 29.4 6.7 42.8 11.2 1.7 2.8 
miles per hour. In Little Rock plate oi QiGemnity ..2.2222002. 61,511 59566 ~1.9 51.5 50.4 14.1 26.5 6.4 12 3.3 

q + 
glass windows were smashed, trees uP- ‘Travelers Indemnity ._.__.1.  1,535/308 1,285,527 28.6 64.9 6.5 8.6 38.0 13.8 1.9 26 
rooted, and power and telephone service United National Indemnity 44,794 27,217 344.4 1 —353.3 6.9 32.0 62.4 3.2 4.4 
disrupted United States Casualty ee 366,762 315,266 14.5 30.6 5.4 31.1 15.8 6 2.0 
5 MF nih? Tone ve i: &. y & Guaranty.... 6,586,138 5,727,353 9.0 39.7 2.8 34.2 10.4 1.1 2.8 
The storm has brought in a large U. §. Fidelity &G 986,138 3 0 l 2.8 
ane * . se - U. S. Guarantee........ - 1,646,107 1,409,789 2.8 38.9 8 29.3 25.0 6 2.¢ 
number of claims distributed among Western National Indemnity. "168,224 128,227 9.6 32.7 4.3 34.8 15.2 1.4 3.0 
nearly all of the cities in the areas, from Yorkshire Indemnity ........ 246,027 197,884 1.9 19.5 14.8 58.4 2.9 2.5 
Springdale i he hwest t ittle sata ie : P wor = —- ere . 
eg eager ye Nin abe th oy 1944 totals .......... $33,816,558 $36,784,172 7.9 33.7 5.7 34.2 14.3 1.0 3.2 
“s ‘ ‘ : s PEO COCRIS. Scere secssesec 35,039,866 34, 88, —.$ 2. 5. 33.5 5. -_ 3.1 
eral Adjustment Bureau save for a few 1946 totals ....... 44,589,186 38,103,166 —3.8 42.3 5.6 34.4 17.3 1.1 3.1 
exceptions, most claims are for roof 1947 totals .............. 13,494,786 16,008,296 7.8 31.0 6.4 35.4 15.3 1.1 3.0 
damage and damage to interiors, rang- . 
ing from $50 to $250. No estimate 1S MUTUAL COMPANIES 
yet available as to the total number of American Mut. Liab..... ahs 1.140 1,015 y 18.5 81.5 Sy 11.8 6.7 7 
cl] Liberty Mutual ‘ wads 23: 147 , 100.0 hae pen : , 
CIBANS. Lumbermen’s Mut. Cas..... 195,564 172,817 73.9 28.4 —1Ad3 5.5 19.8 11.2 { 1.5 
ses Security Mut. Cas............ 70,799 38,589 49.0 29.1 21.9 4 18.6 6.6 3.5 
Change in Roanoke Agency ‘ 1944 totals ....... mreee hi! Ty, $ 44,259 “34.4 “40.2 25.4 "2.9 35.1 a3 3 1.0 

. . - BSED COCKS. 65 cee cee cdseee 70,379 51,074 35.8 43.8 20.4 2.0 23.6 6.2 3 8 

Charles Lunsford & Sons agency, 1946 totals 37,447 92,754 38.2 40.5 21.3 4.2 18.3 15.6 1 2.3 
Roanoke, Va., has changed its name to ee rey ae te 266,738 212,568 68.9 36.6 —5.5 4.6 19.4 10.3 3 2.0 
Charles Lunsford Sons & Izard. James 
J. Izard, the new member of the firm, REINSURANCE COMPANIES 
has been associated with it for some American Reinsurance .$ 1,459,253 $ 1,198,460 21.2 53.5 25.3 Se 47.2 5.1 4 1.0 
time, although not heretofore as a mem- Employers Reinsurance ..... 1,111,034 ; 850,618 15 5 66.4 18.1 83 524 40 3 4 
ber of the firm. He is a past president European General Reins 2,102,247 670,5 9 6.3 53.4 30.3 3.0 48.8 1.4 a 1 

FR ty py DRROEE <5 vives ec POF E 449,953 277,042 30.1 68.3 1.6 16.1 37.6 12.1 A 2.4 
of Virginia Assn. of Insurance Agents. foe al Reins a | BATTS 992681 8.7 7.3 61.4 1 42.4 2 0 4 17 

—— North Am, C. & &. Reins...... 12,99 7,410 96.8 78.3 —75.1 22.6 56.2 7 } 2 
New Va. General Agency Se ee $ 2,892,606 $ 3,491,775 35.3 52.2 25 38 535 36 er 11 
es ? aa re 2,911,850 2,852,639 8.8 54.5 36.7 20 46.0 4.1 9 12 

The Insurance Managers of Virginia, TOS0 460RIS nck. ccc e ig 4,548,321 3,547,831 8:7 51.9 56.8 1.5 43.9 4.8 2 1.5 
Inc., is a newly incorporated general De SOG 4 Wb ates Haase 6,312,250 4,997,120 13.3 55.3 31.4 3.4 47.1 3.6 ay 1.0 
agency. R. H. Crozier, president; John _ — —_— ‘ ee APSE Aes ae d 
Cc. G in, vice-president, and FE. Carl se in South Caroli rj 
DB oman Moon La Salle F. & M. Is Formed __ been set up in South Carolina. It will New Liability Limits for 
Godsey, secretary. : be managed by S. C. Southard of South- 

by Chicago Group eastern Compensation Rating Bureau, Buses Set in N. J. Act 
. Birmingham, Ala. 
Hulsey Is Austin Speaker , La Salle Fire & Marine has been Commissioner Benjamin said he had NEWARK—Assemblyman Shershin’s 

Raymond Hulsey, Automobile Insur- formed at Chicago by interests identi- hoped to have a law enacted by the last measure in the legislature to compel 
ance Service Office, Austin, spoke to fied with La Salle Mutual Casualty. Jegislature to authorize the establish- buses to carry sufficient insurance cov- 
Austin Assn. of Insurance Agents, June The president is Seymour B. Orner, ment of such a plan, but the bill was in- etage to protect passengers has been 
18, on the new automobile policy form president of the casualty company; vice- troduced too late in the session. signed by Goy. Driscoll. It is the re- 
in Texas and changes in the rate struc- president, Frank J. Zurek, who also aera _ sult of an accident March 20, 1944, 
ture. is vicepresident of La Salle Mutual, | Government Employees Ins. Co. of when 20 persons were drowned in the 

LEE and has been in the insurance business Washington held an outing for its em- Passaic River in a bus that crashed 
Williams on La. Commission there for 25 years; secretary-treasurer, ployes at od Ridge Beach, Md. Presi- through a railing and fell into the 
. Norman J. Schlossberg, a director of dent Leo Goodwin spoke at the dinner water. 

Edward R. Williams, Jr., Shreve- the mutual. The companv has the for 300 employes and guests. The main Limits of coverage per bus are raised 
port, has been appointed a member same management as La Salle Mutual. raged of the day was the crowning of from $15,000 to $25,000 for buses with 
of the Louisiana insurance commission staan the — of aes asd con- seating capacity of not more than 12, 
by Governor Long to succeed Victor P. Assi d Risk Pl insS.c test, she being Miss Pat Mullen. $25,000-$50,000 for 13 to 20 passengers; 
Maynard at d. Mr. Williams has signe an in b. U. —— . mda 
Maynard, resigned. Mr. illiams has : ; ; Prudence Life of Chicago has been ad- *°;000-$100,000 for 21-30, and $75,000- 
been a casualty adjuster. An automobile assigned risk plan has mitted to Missouri. $150,000 for more than 30. 












































ne 24, 1948 


——— 


. & Taxes g 


.to fees to 
1ed written 
a] 








8 2 
4 2.9 
2 38 
2 3.2 
1 3.2 
> 2.0 
6 3.9 
2 3.5 
9 2.8 
3 3.3 
6 3.2 
1 3.3 
8 2.3 
7 2.6 
6 3.2 
8 3.0 
9 3.9 
3 3.2 
0 3.2 
3 2.8 
1 3.2 
3 3.9 
6 3.2 
7 2.8 
3.0 
g 2.5 
6 3.4 
2 2.7 
. 3.4 
4 3.8 
3 3.5 
6 3.0 
7 2.7 
4 2.9 
j 27 
2 3.0 
8 3.4 
3 2.8 
4 1.3 
2 4.0 
6 3.0 
1 1.6 
4 3.9 
6 —41 
5 3.2 
1 3.0 
2 3.6 
7 2.8 
9 2.6 
2 4.4 
6 2.0 
1 2.8 
6 2.6 
4 3.0 
2.5 
0 bi 3.2 
9 3.1 
1 3.1 
1 3.0 
{ 15 
a4 1 iT 
8 
2.3 
2.0 
2 1.0 
3 1.4 
1 1 
a 2.4 
7 1.7 
4 1.1 
2 1.2 
2 1.5 
2 1.0 
for 


n Shershin’s 

to compel 
surance cov- 
‘s has been 
t is the re- 
h 20, 1944, 
wned in the 
hat crashed 
ll into the 


is are raised 
buses with 
mre than 12, 
passengers; 
and $75,000- 





FIDELITY 
BLANKET 
BONDS 


Easy to Sell... They Cover: 


ANY KIND OF PROPERTY 


Lost Through 


ANY DISHONEST ACT 
of 


ANY EMPLOYEE 


NY LOCATION 


THE TRAVELERS INDEMNITY COMPANY 
HARTFORD, CONNECTICUT 








“The W hirr of Spinning W heels” 


(CJ AWRENCE YE INpDIAN,” valued at four 

ewer was numbered among Cap- 
tain John Whipple’s worldly possessions in 
his will drawn in 1683. The numerous 
household items in his inventory, including 
“basons, pottingers and silly bub pots,” to- 
gether with his homestead, farm lands, 
“piggs, cowes and swyne,” mark him as 
unusually wealthy for the period. 

The captain was the second of three John 
Whipples who lived in the old homestead 


Mischievous boys dropped a calf down this chimney. 


in Ipswich, Massachusetts, that bears 
their name. Though the exact date 
when the earliest section of the house 
was built has not been determined, 
the first John Whipple acquired it in 
1642. As Deacon and later as Ruling 
Elder, this eminent Puritan was one 
of the leaders in church and 
town government. 
Elder Whipple’s son, Captain John, 

was a businessman and soldier. While 

serving in King Philip’s War he 

gained possession of the Indian men- 

tioned in his inventory. As his son, 

Major John, had six daughters but 

no male heir, the house passed to the 

major’s daughter Mary and her hus- 

band and was owned by their de- 

scendants until 1838. 

Now the headquarters of the Ips- 

wich Historical Society, the Whipple 

house is considered one of the best 
examples of earliest seven- 
teenth-century colonial archi- 
tecture in New England. 
Faithfully restored to its original 
period, it recreates in the imagination 
the daily life of the Puritans. As the 
Ipswich historian, Rev. Thomas 
Franklin Waters, has said, “The old 
pavement in the dooryard rings again 
with the hoof-beats of Capt. Whip- 
ple’s horse hurrying to lead his troop- 
ers to repel an Indian assault . . . the 
whirr of spinning wheels, the rumble 
of the loom overhead, the beat of the 


churn, the roar of great winter fires, the 
hissing of meats on the long spits, the voices 
of children at play or demurely reciting the 
catechism, the good wife’s chat with neigh- 
boring gossips .. . all the history of other 
days becomes a speaking witness to the 
simplicity of the old Puritan home life.” 


Household implements used by the Puritan family. 


The Home, through its agents and 
brokers, is America’s leading insurance 
protector of American Homes and the 
Homes of American Industry. 


«x THE HOME « 
SPrswreance Company 


NEW YORK 


FIRE © AUTOMOBILE *© MARINE INSURANCE 








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