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Of the town mutuals, twenty-one in number, eleven experienced no losses during the year; the risks in force of the eleven amounted to $1,238,624, and the managing expenses of the same figured up but $334.92. This is a good showing and deserves mention whether the result be due to luck or to good care in placing the risks. The losses were confined to ten companies, and in three of these the average was but a fraction over eight dollars; one suffered to the extent of one hundred dollars, another paid but fifty dollars, and the balance, five in number, averaged a fraction over $1,139 each. The losses of all but two had been adjusted and paid; one of the two owed $775, the other, $18, making the total indebtedness of the companies of this class on the 31st day of December, 1894, $793. But little has been said, as a rule, in the text of the report about them, but from the fact that very little complaint has been made, it is evident that they are managed to the satisfaction of their patrons. So long as assessments are made promptly and collected, losses can be paid within the limit, and from appearances this has been done. Since writing the above, notice has been received that the Farmers' Mutual of Franklin, on April 30, 1895, concluded to wind up its affairs and go out of business. On March 25, 1895, the number of foreign stock companies was further increased by the admission of the Greenwich Fire Insurance Company of the City of New York, with a capital of $200,000, and a surplus beyond all liabilities of $131,117.32.

THE VALUED POLICY LAW.

The comparative experience tables published in the last report are continued in this in order to ascertain the practical effect of the operation of the Valued Policy law. Table 1 gives the amount of risks written, premiums received and losses paid for nine years ending December 31, 1884, before the passage of the law, and Table 2 gives the experience of nine years, ending December 31, 1894, after its passage. This method of testing 'the working of the law must be the proper one, for it is the rule in use by those opposed to it when investigating its operation in states where similar laws have been in force, but where results

have been diferent. When such instances occur the responsiVity for the increased loss ratio is charged to the law, but when the experience of New Hampshire is given showing a decreased ices ratio, the commissioner is accused of "juggling with figures." Funny that Sauce for the goose is not sauce for the gander" in this case, but the account is squared by saucing the commissioner who is not to blame because the losses are not larger-a sad cireumstance for the prophets and philosophers who predicted something different. The figures show a handsome profit for the companies during the second period, but regardless of this fact, there is mourning among the insurance scribes, not only mourning but considerable feeling because the commissioner has been so presumptuous as to publish, for the benefit of all concerned, the comparative experience of the companies for eighteen years; but he is of the opinion that this is not only proper, but essential, in order to get at the facts.

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38,447,894.00

458,978.31

294,427.49
400,355.34 87.22

57.79

1.17

1.15

1879

37,728,541.00

1880

1881

1882

1883

1884

459,862.46 343,681.54 74.72
39,947,421.00 483,299.56
41,625,013.00 503,658.98
48,263,719.00 590,837.56
50,968,941.00 620,775.60
44,724,531.00 615,273.21

1.28

279,023.88 57.75

1.11

374,962.18 74.44

1.40

391,067.36 66.18 1.43 382,892.42 61.68 1.37 308,242.10 50.09 1.33

$384,147,198.00 $4,848,451.07 $3,169,397.99 65.36 1.26

written.

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For the first time in nine years there has been a decrease in the amount of fire insurance written in the state, the volume of business for the year 1894 being twenty-two millions less than that written in 1893. The loss can be partially explained by the reinsurance of the risks of the People's Fire Insurance Company last year, but as compared with the business of 1893 there is a loss of eight and one half millions.

This is not so easy to explain, but there is good reason for supposing that a large share of it was due to unauthorized companies who can not, or will not, comply with the requirements of New Hampshire laws, but prefer to steal their business and thus avoid the payment of the fees and taxes which authorized companies have to pay the state. This is an evil that other states have overcome by the enactment of laws by which the poachers can be reached. The companies of other states and countries authorized to transact business in New Hampshire paid into the state treasury last year, in fees and taxes, in round numbers, the sum of twenty-two thousand dollars, and justice as well as equity demands that they should be protected from the companies who do not contribute a copper to the state and who have no authority to do business here.

Section 1, chapter 169, Public Statutes reads: "No insurance company not organized under the laws of this state shall do insurance business within the state unless it has obtained a license from the insurance commissioner authorizing it to do so."

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Section 15 of the same chapter qualifies it by saying, "Nothing in this chapter contained shall be so construed as to prevent any duly licensed or commissioned agent from procuring insurance upon property located in this state in companies not licensed to transact business in the state whenever the aggregate amount of insurance which companies legally doing business in this state will write upon the property is not sufficient to protect it."

There is good reason for believing that some of the agents give the last section a broad interpretation, and take it for granted that when the resources of the companies for which they were licensed were exhausted they had complied with the law in seeking insurance in unauthorized companies, to the detriment of those which were authorized, to the state and, very often, to the insured. In order to remedy this, an amendment to Section 15 was prepared and submitted to the last legislature. It was similar to laws already in force in Massachusetts and Connecticut, and enacted in Maine this year. The substance of the amendment, was this, agents, before placing insurance in unauthorized companies, shall first file an affidavit with the insurance commissioner that they cannot secure it in authorized companies, and at some time during the month of January, annually, shall submit to him a sworn statement of the amount of gross premiums received on such insurance, upon which they shall pay, to the state treasurer, a tax of two per cent. and as a guarantee for the payment of the same, they shall file with the insurance commissioner a satisfactory bond to the amount of $1,000.

This bill was submitted, referred to the insurance committee, and met the fate of many not so deserving, for it was never reported to the house, but the interests of the insuring public, of the authorized companies, and of the state treasury demand that the situation be made known, in order to have the wrong righted by future legislation.

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Commissioner Fyler, of Connecticut, after years of experience, was led to write that he was of the opinion that "One of the most prominent evils connected with the business is that of over-insur

ance, effected largely by those who have nothing at stake in the risk assumed, but anxious to secure commissions thereon." Hon. Oliver Pillsbury wrote that "Over-insurance was doubtless the most prolific source of fraud, and the perpetrators should be searched out and punished."

Ex-Governor Anthony, of Kansas, who has just qualified as insurance commissioner of that state, said in his message to his state legislature in 1877, "The evil of this insurance business is in plain sight, and will never be cured until we remove the cause. Over-insurance is a term that expresses all there is of it. To over-insurance are due nearly all incendiary fires." Fire Marshal Towe, of San Francisco, within three months, wrote, in a communication to the Fire Underwriters Association of the Pacific on "Over-insurance as an incentive to incendiarism," that in his judgment it would be more correct to say, "Over-insurance is the incentive to incendiarism, and exclude all other motives as the source of the crime of arson." His opinion is based on nine years' experience as fire marshal in the city of San Francisco. After giving at length his views on the subject, saying that he did not believe in the enactment of additional laws, for he believes that they would surely be dead letters, he said he is obliged, from a knowledge of the facts recited, to look to the insurance fraternity itself as the only power to furnish a remedy, and that remedy is, greater vigilance on the part of the companies and their agents, especially the soliciting agents, in ascertaining beforehand what it is they insure, and above all, its value, as well as the true character of the party effecting the insurance. His experience justifies him in believing that the real culprit is the soliciting agent, and that the punishment he deserves can be given only by the companies, and for that reason he is of the opinion that the remedy for over-insurance as an incentive to incendiarism lies with the companies themselves." These comments are opportune, for even this state is not exempt from the evil as the following illustration will show.

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