fixed charges, or special items of expense or indebtedness which cannot be eliminated during a suspension of operations. Use and Occupancy insurance equal to one year's estimated net profits and fixed expenses is needed for complete protection. If fire necessitates a total suspension of normal oprations, the policy of this company pays any loss sustained up to the limit of 1/365th if business is operated daily as in the case of electric light plants, street railways, hotels and the like. Where fire causes only partial interruption a proportionate amount is payable. Careful consideration is given to special forms made necessary by unusual conditions. THE CO-INSURANCE CLAUSE CO-INSURANCE.-From time immemorial it has been the practice of companies doing a fire insurance business in Europe, both in Great Britain and on the Continent, to insert a clause in all policies requiring property owners to carry insurance equal to the value of property covered. Until comparatively recent years no such requirement was made in American insurances. If two houses precisely alike were assessed for taxation, one at $4,000 and the other at $8,000, the tax rate being the same on both, the injustice of taxing one owner twice as much as his neighbor would be obvious. Yet that was identical with the practice that prevailed in fire insurance. On one stock of goods worth $100,000, rate I per cent., carrying $100,000 insurance would cost $1,000. In an identical building next door a similar stock worth $100,000 might be insured for only $50,000, the owner taking for granted that, in view of public alarms, efficient fire departments, and the work of salvage corps, he was unlikely to have more than 50 per cent. loss. He therefore avoided paying his fair contribution toward the general fire insurance tax of the country, while the merchant who insured for $100,00 was a victim of unjust discrimination. When the merchant with $100,000 insurance had a fire that damaged his stock to the amount of half its sound value, the insurance companies paid half the amounts of their policies. When the other concern had its fire, also causing damage to the extent of 50 per cent. of the value of the property, the insurance companies paid the entire amounts of their policies. Meantime every underwriter was aware of the gross stupidity as well as injustice of allowing such loose practice. Perhaps the first application of the so-called coinsurance clause was when the companies generally began allowing a discount of 10 per cent. on rates when property owners would allow a warranty to be inserted in their policies that they would carry insurance equal to value. Subsequently, to remove cause for complaint by property owners, and to enable the companies to establish a universal and just basis of rating, the method of requiring a relative proportion of insurance to value in all cases was adopted. At first it was proposed that the amount of insurance should be equal to the value of the property; but, as most property owners were accustomed to take some risk themselves, the proportion of insurance to be required was fixed at 80 per cent. of the value of the property. As the owner of the property might fairly be assumed to know its value he was thus able to comply with the requirement of the companies. This provision ought never to have been called a coinsurance clause. It is a warranty that the owner will carry insurance to at least the amount of 80 per cent. of the value of his property, or, choosing not to do so, that he shall virtually take the place of an insurance company for enough to raise the amount of his insurance to 80 per cent. To illustrate: has $100,000 in value. The clause thus required him to carry $80,000 insurance. He deliberately chose to carry only $70,000 and thus save the premium on $10,000. He thus became a conditional coinsurer to the extent of $10,000-a condition deliberately chosen by himself, and the clause ought to have been called "Warranty of at Least 80 per cent. of Insurance to Value or Conditional Coinsurance for Any Deficit." In this case, if there had been a damage of $70,000 the owner would have collected from the companies only seven-eighths of his loss, because of his having chosen the position of coinsurer to the extent of the other eighth. If he had carried $80,000 insurance and there had been an $80,000 damage, he would have collected the full amount of all the policies which is very different from the understanding of many property owners who thought the clause was designed to prevent their collecting more than 80 per cent. of their loss in any event. The reason for the universal warranty, and the wording of the clause. have been much misunderstood. and in some States Dublic sentiment has supported legislation to prevent the enforcement of the equitable principle involved. This is merely playing the game of "slackers" or "shirkers.' However, as the clause itself and the reason for its application have become better understood, public sentiment is almost unanimous in its approval. It remains to be said that property owners are at perfect liberty to insure for any amount in excess of the 80 per cent. He (Reproduced by Permission.) What Insurance Companies Pay in Case of Loss Under 80% Clause What Insurance Companies Pay in Case of Loss Under 100% Clause Copyright, Philadelphia, 1916 By The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire INSURANCE LEGISLATION is reported FIRST in THE WEEKLY UNDERWRITER Special correspondents at each State capital telegraph full texts of all bills to this office immediately on introduction. Special service is maintained for subscribers desiring daily reports. Write for terms. The Weekly Underwriter Eighty Maiden Lane, New York, N. Y. AUTOMOBILE LIABILITY INSURANCE protects the owner or the policyholder against damages for the accidental injury or death of any person or persons caused by the automobile, except the chauffeur or the mechanic, who in many States must be covered under a workman's compensation policy. The standard limit for liability policies is $5,000 in the event of injury or death to one person, and $10,000 where two or more persons are killed in the same accident. Larger limits are secured by slight increases in premium. In the event of a judgment for $5,000 for the injury or death of one person, the policy is not automatically voided, but the above limits apply to each accident. The policy also includes the expense of immediate medical attention, where necessary, to the injured, but not to the insured. The theory is that it is insurance against the owner's legal liability and not accident insurance in his benefit. This insurance does not provide for the payment of any specified sum to claimants, claims being settled or not as the circumstances seem to warrant in the opinion of the company. If a suit results, the company agrees to defend it, defraying costs and expenses. Property Damage. The insured may secure, by endorsement, protection against liability for damage to property other than his own, due to the automobile. The usual limit is $1,000. Collision Insurance. This is also secured by endorsement, covering the insured in the event of damage to his automobile by collision or striking any object. It is issued in two forms: in the Deductible Form the company collects $25 from the total of each collision loss; in Full Coverage no deduction is made, the premium being higher.-Fireman's Fund Record. COMMERCIAL AND INDUSTRIAL HEALTH AND ACCIDENT INSURANCE. "Commercial or "Industrial" are terms which, by common consent, define for the underwriter the slightly different systems for underwriting health and accident risks. Commercial health and accident insurance includes all preferred occupations. That is, the occupations wherein there is small, if any, exposure to hazard and danger. The preferred classes include risks engaged in office work, traveling, supervising and superintending, soliciting and collecting, teaching etc., etc. In all such occupations the physical hazard is slight, and the environment of work is generally good; remuneration is higher and living conditions are better. The occupations are called "commercial" to distinguish them from the general class of manual laborers. There are two distinguishing features in "commercial" underwriting: (1) Annual premiums; (2) large specific loss or death indemnities. Annual premiums, because the class covered can afford to and prefers to pay annually. Large specifics, because they appeal to and attract the business man who frequently suffers no time value loss when laid up. Industrial health and accident insurance includes all the industrial workers and more hazardous occupations of those who supervise. Danger is in constant attendance upon all such. Accidents are frequent and injuries severe. Sickness also is more frequent because of less sanitary working and living conditions. Disability from any cause means total loss of time value. Industrial premiums are conveniently distributed for monthly payments, and indemnities are arranged so that the laborer receives the best results. His time value loss is the big item. His specific loss is very small, therefore industrial policies carry the maximum of monthly indemnity for temporary disability, but only small specific indemnities. cies. There is no difference in the language or form of "commercial" or "industrial" poliThe sole distinction is in (1) Annual vs. monthly premiums. (2) Preferred vs. hazardous risks. (3) Large specific indemnities for commercial risks. If within the radius of a ten-cent, round-trip carfare you could attend once a week a course of lectures on insurance and listen to the ablest men in the business discussing the problems of the day, we believe you would gladly spend not only the carfare, but make some sacrifice of time and effort as well to attend the course, and even take notes on it. Such a course is to be laid before the readers of "The Weekly Underwriter" in 1917-and more. And the cost-$5 per annum-is less than the ten-cent carfare, and entails no sacrifice of time or energy on your part. The lectures are delivered into your hand, to be absorbed at your leisure. GOVERNMENT OF THE UNITED STATES President Woodrow Wilson, of New Jersey. THE CABINET. Secretary of State-Robert Lansing, of New York. Secretary of the Treasury-William Gibbs McAdoo, of New York. Arizona Governors. Charles Henderson. Years. Terms Politics. 4 4 Jan., 1919....Democrat. Arkansas George W. P. Hunt. 2 2 William D. Stephens. 4 Julius C. Gunter.. 2 ........ Sidney J. Catts.. 4 Hugh M. Dorsey. 2 ..Lucius E. Pinkham. 4 Moses Alexander. 2 Iowa Illinois Indiana ....... Kansas Louisiana Maine ...R. G. Pleasant. 4 ...Carl Milliken. 2 Emerson C. Harrington. Massachusetts ..Samuel W. McCall. ..Albert E. Sleeper. Minnesota ..J. A. A. Burnquist. Theodore G. Bilbo. Maryland Michigan Mississippi ....... ........... Nevada .... .......Emmet D. Boyle. ..Charles S. Whitman. North Carolina......Thomas W. Bickett. ..Lynn J. Frazier. James M. Cox. .R. L. Williams. Pennsylvania ....... Martin G. Brumbaugh. Ohio Oklahoma 4 Jan., 1919....Democrat. Oregon ..James Withycombe. 4 4 Jan., 1919....Republican. Porto Rico.. ..Arthur Yager.. 4 Nov., 1917....Democrat. R. Livingston Beeckman. 2 Richard I. Manning. 2 Jan., 1919....Republican. Peter Norbeck. 2 Thomas C. Rye. Jan., 1919....Republican. 2 Jan., 1919....Democrat. 4 I 2 2 4 4 4 Jan., 1919....Democrat. 2 Jan., 1919....Democrat. 4 Jan., 1919....Democrat. 2 Jan., 1919....Republican. 3 Jan., 1920....Democrat. 5 Jan., 1922....Democrat. 2 Dec., 1918....Republican. Total area Areas of the Dependencies: Philippines, 115,026 square miles; Porto Rico, 3,435; Hawaii, 6,449; Tutuila and islets, 77; Guam, 210; Panama Canal Zone, 474. of the Dependencies, 125,671. *Area includes water as well as land surface. POPULATION OF THE UNITED STATES ACCORDING TO CENSUS OF 1910 AND CENSUS ESTIMATE FOR JANUARY 1, 1917. The United States Census Office issued a bulletin in February, 1917, giving an estimate of the population of the States, January 1, 1917, compared with the population according to the Official Census of 1910, as follows: |