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Cal.; George S. Haines, 19 Bay street East, Savan, nah, Ga.; J. Elmer Gard, I. 0. 0. F. Building, Springfield, 111.; Cone & Sherwood, 307 Main street, Springfield, Mass.; H. H. Coudrey & Co., Century Building, St. Louis, Mo.; John A. Mc. Gee, St. Joseph, Mo.; McGuire & Co., Joy Building, Syracuse, N. Y.; Barker, Frost & Co., 411 Madison street, Toledo, Ohio; Kirkpatrick & Kennard, 6 Colborne street, Toronto, Can.; Russell & Markham, Vicksburg, Miss.; J. S. Śwormstedt, 1423 New York avenue, Washington, D. C.; Gilpin & Co., 927 Market street, Wilmington, Del.; Tatman & Park, 408 Main street, Worcester, Mass.

UNITED STATES GUARANTEE COMPANY, New York.-Branches and agencies: H. S. Bull, 73 State street, Albany, N. Y.; Milton C. Isbell, 100 Main street, Ansonia, Conn.; G. W. Greger. son, 114 Milk street, Boston, Mass.; S. S. McCrea, 596 Ellicott Square, Buffalo, N. Y.; Mangan & Mangan, Phelps Bank Building, Binghamton, N. Y.; Giddings & Hughes, 925 Main street,

Bridgeport, Conn.; John R. Pruyn, 400 Woman's
Temple, Chicago, Ill.; Robert S. Brannen, 1629
Arapahoe street, Denver, Col.; Geo._N. Durfee,
60 Bedford street, Fall River, Mass.; P. N. Clarke
& Co., Columbia Building, Louisville, Ky.; E. W.
Schultz, 242 Main Street, New Britain, Conn.; H.
C. Warren & Co., 108 Orange street, New Haven,
Conn.; John Dales & Co., 44 Third street, Ver
burg, N. Y.; Thos. Cooley & Co., 7 Noel Block,
Nashville, Tenn.; Ringwalt Bros., Barker Block,
Omaha, Neb.; David Ginter, 1001 Chestnut strett,
Philadelphia, Pa.; E. R. Munro, Bank for Sa vings
Building, Pittsburg, Pa.; E. Ý. Ashley, Granite
Building, Rochester, N. Y.; F. M. Shelley, First
National Bank, Rome, N. Y.; A. T. Armstrong,
Granger Block, Syracuse, N. Y.; John Keogh,
United Bank Building, South Norwalk, Conn.
Western Bascome & Co., Century Building, St.
Louis, Mo.; The W. H. West Co., 1408 New York
avenue, N. W., Washington, D. C.; Jas. A. Hynes,
43 East Main street, Waterbury, Conn.; D. F.
Rourke, 438 Main street, Worcester, Mass.


In his lecture in the Yale Course on Insurance, John A. McCall, president of the New York Life, took for his subject: "The Regulation of Life Insurance in the United States and Foreign Countries." Regarding the requirements of the several States of the United States, he said:

A life insurance company must file a certified copy of its charter and, annually, a statement of its business and condition on the 31st day of December next preceding, in such form as the insurance official of the State may prescribe.

It must satisfy the insurance official of the State that it is lawfully organized and has complied with the laws of its home State, and that it has on deposit with the financial officer of its home State securities worth at least $100,000; in some cases additional deposits are required in the State where the company seeks to do business.

It must procure from the insurance official his certificate of compliance with the laws, and publish reports or abstracts thereof with the certificate, in the manner prescribed, and file evidence of such publication. Its annual statement must include data sufficient to enable State insurance officials to make a valuation of its policy liabilities, or it must furnish a certificate of such valuation from the insurance official of its own State.

It must appoint a resident of the State its attorney upon whom legal process may be served; in some States such attorney must be appointed in each county where the company does business; in some States each agent must be an attorney for service.

It must furnish lists of its agents within the State, who must, in many States, be residents thereof; such agents must file copies of their appointments and procure licenses, and their books must be open to the inspection of tax officers.

It must give bonds that it and its agents will comply with the laws and pay taxes as imposed, and reports must be made to tax officers of premiums received and schedules of policies in force.

It must allow an examination of its affairs to be made whenever deemed expedient by the insurance officials of the States where it does business, and pay the expense of such examinations.

It must make its investments, as prescribed by law, in certain securities, and of the value of these securities and of the real estate owned by the company, the insurance official is made the final judge.

It must file with the State official copies of all its policy forms; its policies must have attached thereto copies of all documents referred to therein and made a part thereof; they must be so fully described in large type on their face that the holder shall not be likely to mistake their nature or scope; they must be subject to the courts of the State wherein the policy was issued; rebates of premium or other discrimination between insurants of the same class or expectation of life must not be made; and some States restrict their own companies, in the matter of reinsurance, to one-half the amount of the risk, except by consent of the insurance official.

It must require medical examinations, and the certificate of its medical examiner that an applicant was insurable according to the company's rules may bar the company from pleading that the insured was not in the state of health required by the company.

It must pay all claims and judgments within a specified time; it must allow a specified time for the beginning of an action; if it pleads misrepresentation, it must deposit the premiums received in court prior to the trial of the case; statements made in an application must be deemed true after the lapse of a specified time; statements of the applicant are to be considered as representations and not as warranties; misrepresentations are not to void a policy unless the matter misrepresented shall actually contribute to the contingency or event on which the policy is to become due and payable; suicide is not allowed to void a policy unless it was contemplated when the insurance was taken; intemperate habits are not allowed to void a policy if such habits were generally known where premiums were paid and the company continued to receive premiums on the policy.







During the past few years the business of liability insurance has grown from a small beginning into one of the largest and most important branches of underwriting, involving millions of dollars of premiums and furnishing indemnity to all classes of individuals, firms and corporations, from the owner of a private residence at a small premium yearly to the largest and most important concerns in the world with annual premiums aggregating many thousands of dollars. At the present time eighteen stock companies are engaged in this branch in the United States, and there are also several mutual companies of more or less financial stability who also issue liability policies. Of the stock companies above mentioned, five constitute what is known as the “Liability Conference," which is an association of companies working under uniform rules and rates and guided largely in the matter of rates by the experience of the five members as furnished to and compiled by the Bureau of Statistics maintained by the Conference. The balance of the companies operate independently and make their own rates.

Liability insurance differers in one important respect from all other kinds of insurance in that the liability of the company is not fully and finally determined until the end of a term of years varying in various States from three years to six years, and in a few States even longer, depending upon the statute of limitations. It happens, therefore, that new companies embarking in the business find the returns very flattering for the first year or two, whereas at the end of four or five years the loss ratio that at first appeared so low assumes a far different aspect as the losses of the earlier years are gradually disposed of. Another important factor to be reckoned with is the increasing tendency of the principal States to enact liability statutes known as "Workmen's Compensation Acts," which impose upon employers of labor greater duties and responsibilities as regards the conduct of their business and tend also to enlarge their liability for accidents to employees. Such an act has been in operation for several years in Massachusetts, Georgia, Alabama and Indiana, and recently New York and Maryland have also passed a similar statute. It is likely, therefore, that in a few years the old common-law doctrines that have so long prevailed will give way to the less liberal enactments made necessary by the evolution of trade and manufacturing



LIABILITY LINES.—Under this general head are included Employers' Liability, Public Liability, General Liability, Elevator Liability. Teams' Liability, Theatre Liability, Vessel Liability, Contingent Liability, and Workmen's Collective Insurance.

GENERAL INSTRUCTIONS.-Agents should read carefully the following rules, rates, and classifications, from which no deviations will be allowed until official changes are promulgated by the home office of this company. When the company makes any changes agents will be notified promptly, and such changes shall be entered herein.

Agents should be especially careful to see that every portion of the application is correctly filled out, as the same is the basis of the insurance contract, and any neglect in this respect may lead to dissatisfaction to the assured, the company, and the agent.

STRICT OBSERVANCE OF THIS MANUAL REQUIRED.-Any violation of these rules, classifications, or rates will result in an immediate cancellation of the policy involved, and the refusal of this company to accept the risk for a period of one year.

AGENTS AND BROKERS.-Any individual, firm, or corporation engaged in a general insurance business, or which places, or attempts to place, insurance with more than one company will be considered a broker by this company.

Any individual, firm, or corporation holding an agency contract with this company to represent it alone for liability lines, will be considered an agent by this company.

This company will not employ more than one agent in any city or town ; except only that where it has a general agent, State agent, or resident manager, a second or local agent may be appointed, provided such general agent, State agent, or resident manager does not write policies for the business of such city or town or receive applications otherwise than through the proper local agent.

Any individual, firm, or corporation which transacts casualty business only, and which places all such business with this company, and does not place, nor attempt to place, any such business with another company, will be considered a special agent by this company.

No commission in excess of 15 per cent will be paid to any broker by this company. If the premium on any one policy exceeds $1,000, the brokerage commission on the portion of the premium in excess of $1,000 is limited to 10 per cent. This rule must be observed by every general agent, State agent, resident manager, local agent, special agent, and all other employees and representatives of this company.

Evasion of the rule in regard to brokers by the appointment of an employer or representative of any broker as a special agent, or in any other way contrary to the fair spirit and intent of this rule, will not be permitted.

AGENTS TO PLACE BUSINESS WITH THIS COMPANY ONLY.-No general agent, State agent, resident manager, local agent, or special agent, or other employee or representative of this company, will be allowed to represent another company in any liability lines or to place any liability lines with another company without written consent from the home office of this company.

When business is placed with this company by any general agent, State agent, resident manager, local agent, or special agent, or other employee or representative of another company, the commission allowed shall not exceed the brokerage rate.

REBATES AND "CUTTING" OF Rates FORBIDDEN.—Rebate of commission, or rebate or allowance of any kind whatsoever, except only refund of premium on account of cancellation or deficient pay-roll, is strictly prohibited.

An agent is not permitted to "cut" a rate or evade a rule because he has heard, or even knows, that some competing agent bas proposed to do so, nor for any other reason whatsoever ; but agents are requested to report to the home office any lower rates actually offered by competing companies. I be waiver of any premium or any part of any premium due on an excess pay-roll

, or the false statement of or the underestimation of any pay-roll, or the false statement of wages dishursed, or the reduction, gift, or allowance of premium for insurance under any other line or kind of insurance, or the allowance or rebate of commission on any policy, or the giving or promise to give to the assured any inducement, whereby the rate or premium for any form of insurance mentioned herein shall be in any way reduced below that established by this Maoual, is strictly prohibited.

AGENTS PROHIBITED FROM CHANGING POLICY FORMS.-No agent or other representative of this company, save only the proper officer at the home office, is permitted to change a policy by making an indorsement thereon, or in any other way.

PROHIBITION AGAINST CANCELING OR TAKING UP POLICIES.—This company will not permit its agents to anticipate the effective date of new rates, by canceling and rewriting a policy at the old rate or any rate less than the new rate, or by writing a new policy on a risk upon which any liability insurance is already in force, except only as provided in the rule for "Concurrent Insurance."

BINDERS. -No form of binder may be issued other than the form provided by this company. No binder may be issued except to cover a risk (not exceeding ten days) when a policy has actually beca applied for by the assured and then only to covrs the risk until the policy can be issued. The issue of a



binder to hold a risk in anticipation of a reduction of rate is strictly prohibited. When a binder is issued it shall carry the premium rate provided in this Manual. The policy, when issued, must bear even date with the binder. If the policy be not accepted, the pro rata premium, as provided for in the binder, must be collected. A second binder shall not be issued in any case, nor shall the period of any binder be extended by indorsement or otherwise.

COLLECTION OF PREMIUM.-This company does not extend credit to its agents or to the assured, the full premium being due and payable on the date when the policy takes effect. The company will in each case cancel by direct notice to the assured any policy the premium on which has not been received at the home office within sixty days after the date when the policy takes effect.

This applies to all policies, save only that where the premium on a Workmen's Collective Policy is payable in instalments, such instalments must be received at the home office within thirty days after such instalments mature respectively for payment, otherwise the policy will be canccled by direct notice to the assured.

Risks Not CLASSIFIED.-Whenever an agent finds a risk (for which he desires a rate) not classified, he must report such risk with all necessary, particulars to the home office. The company will determine whether a new classification is needed, and if so will name the rate which should apply to it.

MINIMUM PREMIUM.—Except when otherwise provided, the minimum premium for policies shall be as follows: Manufacturers' Employer's Liability.

Manufacturers' Public Liability..

Manufacturers' Employers' Liability and Public Liability written concurrently 25.00
Employers' Liability for Electric Light or Power Company, or Telegraph or 'Tele-
phone Company.

Public Liability for Electric Light or Power Company, or Telegraph or Telephone

Employers' Liability, "Contractors' Schedule

Public Liability, “ Contractors' Schedule"

Employers' Liability and Public Liability, “Contractors' Schedule," written con-

Mines, all kinds, Employers' Liability, or Public Liability, or Employers' Liability
and Public Liability written concurrently..

Quarries, Employers' Liability, or Public Liability, or Employers' Liability and
Public Liability written concurrently...

Contingent Liability..

25.00 Workmen's Collective

Theatre, in towns of less than 40,000 population.

$75 to 125.00
Theatre, in towns of 40,000 population and over.
General Liability (except for private dwellings) for building.
General Liability for private dwellings, each....

Employers' Liability" Vessel Schedule," each vessel or barge.....

25.00 Employers' and Public Liability Vessel Schedule, each vessel or barge.

25.00 Manufacturer's Employers Liability, cotton, ginning, &c.

50.00 Manufacturer's Employers Liability and Public Liability, written concurrently.... 50.00 Teams as per “Teams Rates."

The minimum premium applicable to a Manufacturer's E. L. Policy, or to a Manufacturer's E, L. and Public Policy, when written concurrently with a Teams Policy, shall not be less than $15. The total minimum premium, including teams, shall not be less than $25.

SHORT TERM INSURANCE.- Policies for periods of less than one year may be issued on general liability, elevator, and teams risks upon payment of such proportion of the annual premium as is represented by the regular “ Short Term Rate Table,” given below. In case, however, of the cancellation of an annual policy, the policy conditions shall govern.

1 Month, 20 per cent of Annual Rate. 7 Months, 75 per cent of Annual Rate.
2 Months, 30 per cent of Annual Rate. 8 Months, 80 per cent of Annual Rate.
3 Months, 40 per cent of Annual Rate. 9 Months, 85 per cent of Annual Rate.
4 Months, 50 per cent of Annual Rate. 10 Months, 90 per cent of Annual Rate.
5 Months, 60 per cent of Annual Rate. II Months, 95 per cent of Annual Rate.

6 Months, 70 per cent of Annual Rate. 12 Months, 100 per cent of Annual Rate. It is not intended that the premium for the employers' liability element of general liability risks shall in any case be less than that derivable from the full pay-roll of all employees for the term of insurance. EXAMPLE, HOTEL RISK.-Term of insurance desired, three months. Two passenger elevators at $35 ...

$70 Area of building, 150 x 100 feet = 15,000 square feet; 4 stories;

hence 15,000 square feet x 4 = 60,000 square feet. 60,000 square feet at five cents per 100..

30 Street exposure, 250 feet at ten cents


$125 x 40 per cent=$50 Pay-roll for term of insurance, $20,000, at twenty cents per $100.......

40 Premium for three months..

$90 CONCURRENT INSURANCE.—This company will write policies concurrently with another company, approved by the Home Office, for equal parts of the same risk and for the same period, at the proportional part of the premium according to the scale given under the head “ Rates and Limits."

When concurrent insurance is written, the following indorsement must be attached to each policy:

In consideration of the rate at which this policy is issued, it is hereby understood and agreed that insurance concurrent herewith in the...

...Company shall be maintained

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