Form 3-100 M--4-09.

by Policy No..

by Policy No..

1

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or STONE, and Black for FRAMES. Márk distances between buildings, and give n 100 feet. Mark FIRE WALLS with a Heavy Red Line. Indicate Shingle ss [X], Composition by a dot [.], and Slate or Metal by a star [*].

NORTH

EAST

SOUTH

posures are correctly shown on Ins. Map, Agent need not make Diagram. 'ION of building. State particularly (unless risk is a dwelling.)

Do not write on this margin.

such as real estate, banking, and the practice of law. In the larger cities the business is of sufficient volume to occupy all of the agent's time. But it must be understood that these local agencies do not necessarily represent a single company; they may have contractual relations as agents with a half dozen or more companies. They are often in business to write all the insurance of their locality, and if their customers have preferences as to the companies with which they wish their insurance placed, will endeavor to place the same as desired. Much of this kind of business, especially in large cities where business is congested and property values high, is placed by insurance brokers who act as middlemen between the insured and the company. Although a person may be both an agent and a broker, it is to be noted, that when acting in the capacity of a broker, he is regarded in most states as the agent of the insured and not of the company as regards all matters pertaining to the application for insurance and the writing of the policy.

In view of the many agents employed, and the many important matters which must be entrusted to their care, it is essential that the companies have a systematic way of checking up their work. To facilitate the writing of insurance, the local agents are supplied with blanks, unsigned policy forms, books of record, printed clauses, and other necessary equipment. Among these blank forms is what is called the "daily report" which has probably done as much as any other one thing to perfect the organization of the agency system. (See Fig. 2.) This report is filled out each day by the local agent and mailed to the department of the district in which he is located. It contains an abstract of all the policies written by the agent during the day, including in full all the written-in or descriptive portions of the policy. By this means the general agent or department head is enabled to keep in close touch with the work done by the local agents, and can much more readily rectify errors than could be done

under reports rendered at longer intervals. A monthly account of all the premiums received is also sent by the local agent to the department of his district. (See Fig. 3.)

But scarcely less important than the frequent reports of the agents are the so-called fire maps. These are prepared by experienced engineers, and companies often spend thousands of dollars in their careful preparation. They contain a minute and careful description of the fire district of a given locality, indicating the nature of all the risks, and showing the surrounding exposure hazard and fire protection facilities. By their aid the company or its general agents can at a glance obtain a fair description of any risk which any of their local agents may have insured.

Local agents are compensated by a commission of about 15 per cent of the premium income derived from the business they secure or renew. In return for this commission they are required to promote the interests of the company in every possible way. Their activity in nearly all cases is confined to the securing and filling out of applications, the writing or cancellation of policies, the collection of premiums, and the giving of service to the insured. The settlement and payment of losses, however, is generally delegated to special agents who travel from place to place, or where the companies are so large as to require the constant service of some one to adjust losses, special experts are employed for this purpose.

When the daily reports of the local agents arrive at the company's office, they are taken in hand by special examiners, and carefully reviewed with a view to discovering errors in the wording of the contracts or defects in the risks which may make it desirable to charge a higher premium, or reject it entirely. If such errors or defects are found the agent is instructed to cancel the policy or have it changed to meet the wishes of the company. These examiners require a careful training and extensive experience for their work. To judge

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with date of and reason for cancellation.

balance, as indicated in the blank account. Forward all cance NOTE.-The Gross Return Premiums should be deducte