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FIRE INSURANCE:
J^ BOOK OF
INSTRUCTIONS
FOR THE USE OP THE
AGENTS OF THE UNITED STATES.
C. C. HINE
TENTH THOUSAJn), ENLARGED AND REVISED.
1. i B K A it V
UNIVEKSITY OF !,
PUBLISHED N^ T^ THE OJFICE OF THE INSDItANCE MONITOR.
1870.
cClO"
ho_^6
" Eul«re(J acconliiij: to Act of ConRre??, in the year 1S7(), by AMfXANORH Stodpart, in the ClerkV Otiice
of the Uistrirt Court of the United States for the Southern Uistriit ..f Nrw Yorl<
HIS BOOK is Intended for a working hand-
book, devoted to the daily practice and
duties of the Agency, rather than to labored
details or scientific nnethods. Every paragraph is in-
tended to contain some valuable, practical suggestion;
and the entire work is connmended to the careful read-
ing of every Agent, in the hope that he will reduce to
practice the rules here laid down, for the mutual good
of his companies and himself.
The Book, when adopted and sent out by a company,
is as binding upon the Agent who receives it as the
WRITTEN will of the company would be; and it is im-
portant that Agents be familiar with these rules and
regulations, as they define and limit their authority, and
are to be faithfully adhered to. Any wilful violation of
them, in making contracts of insurance, would render the
policies liable to cancelment. In this connection, agents
are recommended to acquaint themselves with the Law
of Agency, that they may understand their liability in
case of loss through disobedience of instructions.
Familiarity with the Instruction Book will also save
much correspondence and delay, as Agents will find here-
in, answers to most of their questions and solutions of
most of their difficulties.
(I'oIilFn j^nl
PS.
A Condensed Manual for Daily Pi^actice in
Fire Insurance.
(See Extended Remarks on these topics in other portions of the Book.)
rbinarg I^a^arbs.
1. IS THE RISK A DESIRABLE ONE? Determine this from its con-
struction, occupancy, ownership, moral hazard, exposures, value, other insur-
ance, and the rate to be obtained.
If it is desirable, then
2. TAKE AN APPLICATION.
WRITE THE POLICY IN THE RECORD BOOK FIRST.
WRITE THE POLICY ITSELF.
SEND "DAILY REPORT" THE SAME DAY.
DELIVER THE POLICY AND COLLECT THE PR
3.
4.
5.
6.
jSpprial j^afariis*
MIUM. ^^ '»
(>
1. SEE No. 1, ABOVE.
2. TAKE AN APPLICATION ON THE PROPER BLANK, full and
complete, Diagram included, and send it to head-quarters, with your own
views of the risk.
3. DO NOTHING MORE UNTIL YOU GET AN ANSWER. The com
panies are always willing to lose Special Hazards that cannot await this
treatment.
4. If a favorable answer is returned, see Nos. 3, 4, 5 and 6, above.
Thousands of Dollars are lost every month by the omission to take Appli-
cations; other thousands are lost because Applications are carelessly written.
Objections to Applications arise from one of four causes: ignorance, un
founded prejudice, laziness or incipient fraud; the first two can usually be
overcome by a few words of courteous explanation ; the last two give warning
of an undesirable customer !
UNIVERSITY OK
^i^tt-s, I CALIFOK^NIA.
III almost every business transaction the first question is, "What do
you ask?" There are other matters of great interest, hut thi chief
concern of a purelmsar is to hiioio the 'prlee. Hence, the consideration of
Kates is of primary importance, and cannot receive too early or too
careful attention.
There are two approved modes of treating the sul)ject. One is to
divide risks into classes and fix " hasis rates^'' to which various additions
are made for designated defects, occupancies, etc. The other is to call
each risk by name and fix a specific tariff thereon. As most in harmony
with our pur])ose, we select the latter; thereby avoiding generalization
and meeting directly the demands of agents (specially those to whom the
business is new) for specific instructions about particular things — our
aim being to reach residts rather than processes.
Our plan, then, will be to treat of Dwklmng, Mercantile, and
Special iiisks and Rates, each by name, and in detail, in its order. If
you* wish the rate on a brick or frame Dwelling, isolated or exj)osed, for
one to five years, turn to pages 8, 9, &c., and you have, in the concrete,
all that seems necessary to be said on that particular topic. So of
Mercantile Iiisks, Mills and Manufactories under their appr(»|)riat('
headings. This plan is adopted, not because it is necessarily better than
any otlier, but because it is most concise, simple, and practical.
Particular attention is invited to the division on Special, Mameac-
TURiNG and Miscellaneous Hazards. This is the most extended and
complete treatment, in its way, that these risks have yet received ; and, it
is hoped, will ade([uately meet the every-day wants of agents. It will
be found very full and explicit — every available source of information
having been laid under contribution, and all that could be ascertained of
each particular hazard compiled. It has thus been our aim to study
your convenience, and furnish, ready-made to your hand, figures and
suggestions fitted to each sort of risk. Study them well and you will be
furnished with the needed practical information for a correct transaction
of the business.
* Personal Pronouns will be freely need in these familiar commnnications to Agents.
Jlircllinj iliiih^.
Dwelliiiiis have proved, by experience, to be most desirable and
profitable risks wlien obtained at reasonable figures. This has induced
an immense com})etition for them, and a great reduction in rates, not
warranted by actual results.
[The jrrcat Troy fire of 1862 burned over 50 acres, destroyinpr 600 buildings, worth
$3,000,000, and exhausting $1,363,770 of insurance, almost exclusively ripon dwellings;
swallowing, in an hour, the profits of five years on that class of risks, for the companies
involved. This experience was repeated to a considerable extent in the great Portland
fire of July, 1866.]
The following tariffs are constructed with a view to the true
interests of both insurer and insured :
Isolated dwellings occupied by owners, C
ce from all -|
exposures, /
beyond burning distance
Per Annum.
Class^
B,.
. .»5
ClaMs
i^, .
. . .45
Cla»i!$
»,.
. .50
For rented houses, charge extra .05.
On fences and out-houses, increase the rate one-half.
For exposures, charge according to danger.
ONE TO FIVE YEARS.
Occupied by owners, and detached at least 100 feet from all exposures.
[Dwellings situated less than 100 feet from Mills, Manufactories, or other bad
exposures, must not be taken for terms longer than a year.]
Brick or Stone— Hoof of Metal, Slate or Tile
Hrirk or Stone — Hoof of Composition or Sliingles...
Hrick or Stone, with Frame Rear or Achlition
Wood — Roof of Metal, Slate or Tile
Wood — Roof of Composition or Shingles ' 50
1 Year
2 Years' 8 Years
1
4 Years
1 10
6 Years
1
35
65
85
1 25 f
45
75
95
1 20
1 40
50
80
1 00
1 30
1 50
45
75
95
1 20
1 40
50
80
1 00
1 30
1 50
• See " Claesea of Buildings" on last page.
FARM HAKNS, OUIIIOUSES, AND CONTENTS.
(When insvred in connection with the dvfUirxj are taken by some companies at the mme Rate.
Afcertain tfiej^racUce of your companies on thui point tjefore adopting this or any otlier questionable rule.)
Brick. .
Frame
65
75
1 10
1 20
1 20
1 50
1 80
1 95
2 10
2 25
Will be taken at the following rates :
Corn in Cribs — detached, ,75,
Barns must be well closed, and no ITay, Grain or Straw stacked near
them ; otherwise .'^5 must be added to Barn Rates both for the IStacks
and the Barns they expose.
Barns, or their contents, or Stacks on uncultivated Prairies, are not
insurable.
Separate Aaiounts must be named on Hay, Grain, Implements,
Wagons, Carriages, and on Live Stock at so much per heat I ; naming an
agreed amount.
Ligutning. — Agents must ascertain the practice of their Companies
in regard to loss by Lightning, and act accordingly ; remend)ering that
in no case are they authorized to alter or wame the 'printed conditions
of the policy.
On T3arns in the country, without lightning rods, charge .1© addi-
tional.
For Hay-barns, with presses, Livery-stables, Hotel-barns, etc., see
Special Rates and Remarks.
Brick Dwellings, in blocks, free from frames j Class B, , , .50
and rear exposures, | ^<|.|^^ ^ ^ ^ ^55
Frame Dwellings, in ranges, are worth ,50 for each ; i. e.: on or in
two, charge 1.00; on or in a row of three, 1.50; a row of four. 2.00,
and so on. Risks at either end of a row are a shade better than in tlie
middle.
10
TnK Chikf Causes of Loss in Dwellings are:
1. Defective flues, stoves, pipes, furnaces, and heating apparatus
generally.
2. Bad Kerosene and its careless use.
3. Ashes.
4. Careless servants.
5. Lamps, candles, matches.
Always take Applications for dwellings as well as tor other risks ;
to he flllcd and signed hy tlie a})])lic*ant in all cases.
In Jiiaking the survey, give special attention to the heating and
cooking arrangements, and the use and manner of keeping kerosene, for
from these arise the great bulk of fires in dwellings.
Brick Flues, huilt from the ceiling, are first-class incendiaries ! Tlie pipe usually
passes close to the wood ; the slender joists art; frequently inadequate to the weight ;
the slightest yielding of the supi)ort causes the bricks to crack or separate, and creates
an aperture through which sparks or flame may pass. The flue usually goes through
a garret, out of sight and inaccessible. As the building settles or shrinks, and the wood
becomes dry, cobw(;bs and dust accumulate, and the material for a fire is prepared, which
the first spark — driven through tht; cracked tlue by any gust of wind — may generate.
An aggravation of this style of architecture is, where the pipe, instead of entering the
bottom of the flue, ])asses through the ceiling into the garret, and there, with an dhow,
enters its side ; this arrangement is so objectionable as almost hopelessly to condemn any
risk in the eyes of a prudent underwriter. Another desperate feature is, where these
flues are partially suj)ported where they pass the roof If the bottom settles, a crack
occurs just underneath the sheathing, in the worst possible place for flame or sparks to
l)ass out.
If flues must be built from the upj^-r stories, they should be in sight their whole
length ; they should have a firm and adecjuate support, and be built from a st(me or iron
slab having a hole where the i)ii)e may pass directly into the bottom, and the whole
\\\\iy'. should be in sight. They should be free where they jjass the roof, and rise high
enough to discharge sjjarks clear of the shingles. A very good method is to start them
a few inches below the ceiling, and support them by iron straps or stirrups. Another
is, to build them from a post resting on the ground. Tht^se keep the point of connection
between flue and pii)e always in sight, which is a very important consideration. But
even the best arrangement for entering the flue perpendicularly is dangerous when the
chimney takes fire, as the burning soot may fall out at the bottom and fire the building.
Decline Risks, where stove-pi})es, flues, etc., are not in satisfactory
condition, until all vital defects are remedied.
11
Kitchen chimneys should always be built solid from the ground.
[And so should all otheks ! ]
Stoves should not be placed nearer to wooden or latlied i)artitions
than eighteen or twenty inches, and should have zinc or brick under-
neath, to protect the floor from falling coals and aslies. A small crack
in a stove may start a fire — see that all is secure.
Hot Aib Fuknaces have originated many fires, through defective
constrnction or improper arrangement of flues, and hot-aii- pipes. Ample
room should l)e had in which to erect a furnace ; when the space is
cramped, either in height or area, an imperfect and unsal'e heater is the
necessary result. Flues for smoke or hot air should be several inches
from wood, and one 7'eijister — the main one, if j>racticable — should be so
constructed that it cannot be shut at any time. Registers should always
be laid in soapstone. Much careless mechanism is indulged in the
erection of '' Heaters ; " they should be i)ut up only by careful and
experienced men. Plenty of head-room must be secured so as to relieve
the floor above from all possible danger. The cold air chand)cr or
feeder, should always be of brick or metal, and never of wood. Reverse
currents of air., sometimes created by unusual winds blowing through
open doors or window's, while certain registers are open and others shut,
will set wood on fire in a very few minutes.
If hot air-pipes pass up in plastered partitions, tlic face of the
studding should be tinned and the laths made of sheet iron, otherwise
the utmost danger is imminent.
Stove Pipes must have careful attention. They must l»c i>roperly
supported by wires, or they will sag open and let the sparks out. Long
jnpes should be riveted at the joints. AVhere they pass partitions
^'07ninent incendiary of the i^resent hour! and
" Lamp Explosions" are the daily results of the adulterated stuff that is sold
for illuminating purposes. Let agents everywhere unite to give informa-
tion, and s])read precautions that may save valuable life and property.
Caution. — Clean and fill lamps by daylight only.
Caution Extra. — Tender no circumstances permit a lani}) to be filled
while it is burning. This book could be crowded with the history of
maimings and deaths caused by foolhardy disregard of this caution.
Caution XX. — Keep your oil where it cannot be reached and upset
by children ; nor wasted, and worse than wasted, by careless servants.
Better keep it under lock and key.
Lamp Explosions are often caused by blowing down the chimney to
extinguish the light !
Jointed Gas Burners in doorways, windows, etc., are frequently
turned against the vwod^ setting it on fire.
Gas Metres. — Never approach a disordered gas metre with a lighted
candle. Unless you understand precisely what the metre needs you had
better send for the plumber, and endure the inconvenience and delay,
rather than risk your life and property.
^LvTcHEs should be kc])t in metal or earthen safes, away from
children and mice — they are ready incendiaries.
The contact of Curtains and Bedding with lights and fires, stands prominent among
the " causes of fires," and the accidents from this source are numbered by thousands.
13
Secure furniture risks along with the dwellings of owners, and also
from the better class of renters. ]>e careful about values, however, as
the cash price of old furniture and wearing apparel is somewhat
uncertain.
Recommend the long terra rates to owners of isolated dwellings, and
write on desirable ones freely for three and five years.
See remarks elsewhere in regard to Values, Moral Hazard, Specifica-
tions, Other Insurance, etc.
Under this heading we include Stores and Warehouses generally ;
but Grain Elevators and Wholesale Drugs are separately considered, as
well as Pork Houses and various other occupations that enter largely into
the great mercantile transactions of the country.
In this branch of the business lie the immense values on which the
bulk of insurance is dt»ne, and it is therefore worthy of close study and
intimate acquaintance.
In writing store risks, a little systeia will familiarize the agent with
the main points to be observed, which are as follows :
1. Is the risk within the limits of your agency ?
2. What other risks have you in adjoining or exposing buildings ?
3. Is it in a frarne range or omnibus hlock, or exposed by sucli 'i
4. What is the valuation of the property, aside from the ground,
and how much insurance is there now on it ?
5. Is it a branch store, or an unsaleable, unfasliionable, or damaged
stock ?
6. Is the property on a bad lease, or in litigation, or dispute ?
7. Is it productive and profitable, or otherwise ?
8. Have there been any former fires, and are there any jealousies,
rivalries, or threats bearing upon it ?
9. What are the character, standing and circumstances of the i)arty ?
Is he a stranger or itinerant ? Is he relialde ^ Has he been in tlie habit
of insuring heretofore ; if not, ascertain very distinctly wliy he makes
14
this application ? Has he ever been burned out — when, where, liow ?
Was lie insured ? AVas that loss satisfactory to his underwriters ? Is he
easy or embarrassed, systematic or careless ? Does he keep books and
make an inventory once a year ? Is his trade profitable, or otherwise ?
Is he steady, or erratic and experimental ?
10. And Jinally^ in the light of these interrogatories, is it, on the
whole, a desirable risk ? Exercise your soundest judgment in determin-
ing yea or nay, remembering that a loss on one had risk will eat up the
irreiniuins on a hundred good ones. If your convictions are adverse,
reject it promptly ; if favorable, secure it just as promptly.
Take an Application hy all means. Let the assured answer each
question fully, and furnish a diagram of the i)roperty and its exposures.
Let the whole be written plainly, with ink, and signed. Also make a
personal survey of the premises so as to act intelligently and be able to
give your views of the risk in your daily report of it.
By some agents applications are dispensed with on ordinary risks. This is wrong
and should be reformed by tstaljlishing the custom of obtaining one for each risk taken.
Let every question be answered fully, and the Survey and Diagram pro])aied on the spot.
Values must be criticised closely and put upon a true cash basis.
This is one of the most important, as well as most difficult duties, that
you will be called upon to perform. There is a universal tendency
among owners to over-value their property, which must be guarded
against. Cost of ground must not be included in valuation of buiklings,
nor store furniture and fixtures with merchandise.
Cost is not always " value." Property may be actually worth much
less, or more, than it cost. Present value is the figure sought.
Never Insert a Valuation in the Poijcv.
Gross over-valuations usually indicate fraud, and should arouse
suspicion. Re finn in your own judgment in regard to values.
Limit the amount of insurance to three-fourths the actual cash value.
The character, l)oth of appli(rant and ])roperty, may induce liberality
on this point for the best parties, on sta[)le })roduce, stored ; but the safe
rule is never to insure enough to tempt any man to burn out. The
owner nmst be interested in the preservation of his propei'ty by a
sufficient amount of value left at his own risk.
15
In no case issue a policy to a person of doubtful or suspicious
character at any rate of premium, and avoid risks endaui^ered by tlie
neighborhood of such.
Account of stock should be taken at least once a year and an intel-
lio;ible set of books kept. As a rule, decline risks on merchandise where
this is not done. It is impossible for any accui'ate showing to be made,
in case of loss, without books and invoices.
See remarkfi on Surveys, and Policy, for important instructions, especially applicable
to Mercantile Insurance ; as Other Insurance, Specifications, Endorsements, Express
Warranties, Open Policies and other matters of interest.
Are influenced by a variety of circumstances in different localities — as
the Fire Dei)artment, Supply of water. Width of streets, General con-
struction of Buildings, Police regulations, Frequency of special hazards,
etc. In naming Hates look well, both to the internal hazard and the
external exposure, of the risks under consideration. Wherever a L()<;al
IJoAKD exists, a copy of its tariff must be sent to the company.
In good ordinary brick blocks charge
If rear or side exposure of frame, additional .
Brick, metal-roof stores, with fire-walls, ])ay .
AVhere the fire department is superior, and there
are no frame exposures, A and BB clu»ice
store risks are accepted at ... .
Frame stores pay 1 .S5 and upwards.
This is for the better classes of merchandise,
hardware, etc., pay .23 additional.
l.OO to 1.35
.35 to .50
.90 to 1.00
.75
Drugs, glass, toys,
Isolated Stores. — One tenant ; fires, lights
and general arrangements first-class in '
every resi)ect,
€laH)4
C'laMM
D.
.75
.OO
l.OO
1.35
* See " ClasBBB of Bnildings " on the last page.
16
Drugs, crockery, liardware, millinery and
fancy goods pay higher. See table rates.
Brick Stokes in Blocks. — Fire-walls,
no frame exjjosm'es, single tenant,
good occupancy, risk every way
first-class,
Class A, . . .80
CUiyis BB, . . .90
€la!^!^ B, .90 to l.OO
Class C, 1.00 to l.!25
For stocks in third and fourth stories, add .10. Charge additional
for 7'ear exposures according to hazard. For Public Hall charge, addi-
tional, .S5 to .50 — same for Printing Office or Photograph Gallery.
For communications between brick buildings, occupied by different
parties, add from .10 to .50 according to circumstances.
Omnibus Blocks, or those tenanted by numerous occupants, with a variety of
pursuits, have an internal hazard, for which no adequate rate of premium is ever obtained.
For example ; a first-class brick, metal-roofed store, in a block, with fire-walls and no
rear exposures, occupied by one tenant for staple dry goods, is a good risk at .90. Now
take the same building with staple dry goods on the main floor, a meat shop and oyster
saloon in the cellar, four offices, three sleeping rooms and a plater and seal cutter in the
second story, a steam ])rinting office and shooting gallery in the third, and two society
and lodge rooms in the fourth, and what should the rate be ? Under the prevalent
competition you could get perhaps 1.25. " It is a first-class metal-roofed building, with
a good many occupants it is true ; but 1.25 is regarded a very full rate on such." Let
us see :
The rate was 90
The additional hazard of the meat shop is low at . . . .05
" " " " saloon, 15
" " " " four offices at 5c. each, . . .20
" " " " three sleeping rooms, . . .10
" " " " plating shop, 15
" " " " steam printing office, . . .40
" " " " shooting gallery, . . . .15
" " " " two club rooms at 10c. each, . .20
2.30
This is for internal fuizard alone — " on(^ burn all burn" here ; and the lowest adequate
rate upon the building would be, say 2.00. Staple dry goods on lower floor would i)ass
at 1.50; while the jjrinting office in the third story, and the upper lofts, with no
possible salvage, should not be taken less than 2.50. But these rates, you say, cannot be
obtained. Then it in hist to decline the risk f Insurance below these figures is simply
selling your wares btdow cost — an act that cannot l)e justified on business princij)le8. It
is the duty of agents to combine against such risks, instead of competing in their favor.
17
Building.
Stock.
1.S5
l.So
1.50
1.25
'2.00
1.75
».00
2.50
4.00
».50
5.00
4.50
Frames in rows, or closely exposing, contribute one per cent, eucli to
tlie aggi'egate hazard, and must he charged accordingly.
One frame store, isolated,
Same, between brick stores in block, . .
Two frames adjoining, otherwise detached.
Three " " " " .
Four " " " " .
Five '' " " " .
And so on. But when the number readies live, the risk is so bad
the companies will not take it, and the rate so higli tliat parties will not
pay it ; therefore avoid frame ranges of live or more altogether, except
upon special authority from the companies.
One frame building, with two or more distinct store or saloon occu-
pancies, counts two or more, as the case may be. For Printing Office, or
Public Hall, or Photograph Gallery, in upper stories add, for each, .25
— see remarks on Omnibus blocks.
To constitute a " frame range," it is not necessary that the buildings
stand in a row. If they adjoin around the corner, or hy the rears, tlie
" range" is complete.
Clusters of frames, two or three in a group, sometimes stand thirty
or forty feet a})art, in which there may be acceptable risks while tliey
stand thus separated. But huilding up the intermniiKj xpaces tlii'ows
them at once into ranges, and places them on the prohibited list from
tiienceforth. Look out for this sort of trap on renewal of all risks in
frames.
Moral Aspect of Frame Ranges.
" Birds of a feather," says the old adapfe, with frrcat truthfulness, " flock tofjether."
The iMJSt merchants are not found in the worst buildinj^s. There is usually a fair degree
of harmony between the building and the occupant ; and while in some new towns there
are nothing but frames in which to do business, making an exception to the rule, it is a
safe general maxim that the average moral hazard of frame ranges is much greater than
that of brick blocks ! Even the same men are safer to insure in good B buildings than in
poor Ds.
2
18
At cross roads or small villages, re- I j^ ' ' ' **-»-
moved irom the ae;eney, . . ^,, «: < ^mv
^ •^' [Class D, . . . 1.50
If adjoining, charge Frame Range, or Block rates, as the case may be.
Take a full application without fail.
Remote country stores — Branch stores particularly — are usually filled with hard
stocks — remnants, shopkeepers or unfashionable goods — and free insurance on them is a
desperate business.
Be fully satisfied on three points, or decline the risk. 1st. Of the applicant's good
character, unembarrassed circumstances and business habits. 2d. That he has no diffi-
culties with his neighbors, and there are no threats against him. 3d. Of the actual cash
value of the stock, ascertained through an annual inventory. Cover but half the valua-
tion ; and if these rules are not satisfactory, yield the risk to competitors cheerfully.
Remote Country Stoue Risks are prolific of losses and imsatisfactory adjustments.
If owner's dwelling be not in the same building, or if no one sleeps regularly in the
store, decline the risk.
Are very important, as great values are here concentrated, demanding
large amounts of insurance.
Seek risks on grain, or other contents, for short terms at short rates ;
and where it is possible to secure these, save your lines for them, and
touch the buildings lightly, or not at all.
This property is generally out of the owner's control, and in the hands of warehouse-
men, whose interest it is to preserve it. When this is the case, and full insurance is
needed for collateral or banking purposes, it will sometimes be prudent to cover the whole
value where you deem parties worthy of the fullest confidence. Never volunteer this,
however, as it is a safe conservative rule to limit the line to three-fourths the value.
Short risks are most desirable, as the rate is full and the hazard more quickly
ended. Always give them the preference over annual risks on the buildings.
Whiskey in Bonded Warehouses is a marked exception to the rule
of profit. Rates have been too low, and Frauds frequent and extensive.
(See page 47, for rules in regard to whiskey.) Fraud is a very danger-
ous element in warehouse insurance. Men yield to strong temptations ;
I
19
and false entries, false invoices, false values, and false oaths, are, by
wicked collusions, put upon under\\Titers, after the evidence of guilt
has been put forever out of sight by the torch. These transactions
frequently involve men of high standing, and they call for great firmness
on the part of the faithful agent who would avoid them or defeat them.
Detached huildings, without eleva-
tors or power of any kind ; for
grain and produce only.
Detached Warehouses,
For General Storage, excepting
liquors, cotton, petroleum, and
other extra inflammables, with-
out elevators or power,
r Class*
A, .
. . .75
Class
B,
.80
Class
C, .
. 1.00
Class
D,
. 1.25
r
Class
A, .
.90
Class
B,
. . 1.00
Class
c, .
. 1.35
Class
D,
. 1.50
SEE SPECIAL, MANUFACTURING, AND MISCELLANEOUS HAZARDS IN
ALPHABETICAL ORDER.
2 '
30
3 '
40
4 '
50
5 '
60
Insukance FOR Periods Less than a Year will be CiiAnoED as follows :
For 1 montli 20 per cent, of the annual rate. For G months 70 per cent, of the annual rate.
" 7 " 75 "
" 8 " 80 "
" 9 " 85 "
" 10 " 90 "
For eleven months, 95 per cent, of the annual rate.
And for Terms Less than One Month, ciiahoe
For 2 days, or less, 1-6 of rate for 1 month. I For 10 days, 1-2 of rate for 1 montli.
" 5 " 1-3 " " I " 15 " 2-3 "
For twenty days, 5-6 of rate for one month.
For convenience of calculation, see the Table of Short Rates on page 21.
* See "ClasBCB of BulldingB," ou last page.
20
" Long Term Policies " are those that are issued for a longer
period than one year : — as three and five year contracts on dwellings,
churches, etc.
To find the amount of premium to be retained on cancellation of a
long term policy, before expiration, use the following
RULE.
Ascertain how many twelfths of the whole term have expired at date
of cancelment, and apply the usual short rate scale, as above given.
That is, if one twelfth of the whole term has expired, retain 20 per cent,
of the whole premium, and refund the balance ; if two twelfths, 30 per
cent. ; if three twelfths, 40 per cent., and so on.
If the Policy lias run less than one year, it is not a " long term " insurance, and must
be treated according to the Short Rate scale, on the basis of an annual rate. For exam-
ple : A rate is ,50 for one year ; 1.00 for three years ; 1.50 for five years. A three or
five year policy is to be cancelled when it has run six months. The rate would be .35 —
(seventy per cent, of ,50 the one year rate,) as per ordinary short rate scale.
The Short Rate Scale is intrinsically right, and must not he
waived. For periods longer than a year we diminish the tariff propor-
tionally, and for terms shorter we must increase it ; both are correct.
It is just as nmch labor to make, report and audit a five day policy, as
one for five years, and it is an admitted principle that retail trade cannot
be done at wholesale prices ; this applies in full force to the system of
sliort rates.
As a rule, grant no short risks on buildings. Buildings have, or should have, a per-
manent, lasting value, calling for annual policies ; and applications for short insurances
on them should arouse inquiry. If the applicant is a permanent owner, why does he want
transient insurance — if his interest is merely temporary, ought he to have it ? Is the
1)uilding unoccupied or unproductive — has it a doubtful tenant — has it just been
mortgaged or levied upon — is some new, experimental or dangerous business to be started
in it — is the policy to be assigned by an embarrassed debtor — is the ajiplicant a lessee
with a contingency of some sort V Be very sure that all is right before you give a short
policy on a building.
Short rates are retained where a policy is cancelled at the request of
assured.
21
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22
.It is customary — where the length of time cannot be determined —
to issue a policy for twelve months, on grain, produce or merchandise,
with a verbal agreement to cancel and refund when sold or shipped,
retaining short rates for the time expired, and charging for fractions
of months as for whole ones, except when the foregoing table provides
a rate for the fraction.
TIME TABLE,
For coDTenience in asMrtaining (he expired time on Policies to be cancelled ; and for other purposes.
Jan.
Feb.
Mar.
April
May
June
July
Aug.
Sep.
Oct.
Nov.
Dec.
Jan.
Feb.
.'JfiS
31
3.34
3e5
3()(i
337
275
30f.
245
276
214
245
1.S4
215
15.3
184
122
153
92
123
61
92
31
62
Mar.
59
28
.365
.3.34
304
273
243
212
181
151
120
90
April.
May.
90
120
59
89
31
01
.365
.30
:«5
365
304
3;J4
274
304
243
273
212
iM2
182
212
151
181
121
151
June. July. Aug
Sep.
151
120
92
61
31
365
335
304
273
243
212
182
181 I 212
150 I 181
122
91
61
30
365
334
303
273
242
212
153
122
92
61
31
365
*«
303
273
243
212
184
153
123
92
62
31
365
335
274
Oct.
273
242
214
183
153
122
92
61
30
365
334
304
Nov.
304
273
245
214
184
153
128
92
61
31
365
Dec.
334
303
275
244
214
183
153
122
91
61
30
365
Example.— Insurance is wanted for 120 days from June 14. On what day will it expire ? Find June
in the left-hand column and run across to the number nearest 120— to wit, 122, which is under October.
From June 14 to October 14 would be 122 days. Deduct 2 from 14, and write the policy to expire 12th
October.
Example— A Policy issued on the 0th of February is cancelled on the 23d of May. Find February in the
left column, and under May of the top row is 89 days— that is from 9th February to 9th May. Add the
difference between 9 and 23 (14 days) to 89, and the time from the 9th February to the 23d May is seen to
be 108 days.
Grade the limit of Insurance to the quality of risks, and correspond
freely with each Company to ascertain its views on particular classes of
hazards. As a general rule, heavier lines will be carried on Wool,
drains. Meats and other staples iu "Warehouse, than upon ordinary
Merchandise or Manufacturing Risks.
Aim to distribute the writings so that no sweeping fire will involve
a Company in undue losses. To this end, become familiar with the
details of construction in all the important blocks of your place ; knt)W
where the unsafe walls are, the frame rears, the wooden cornices, the
continuous roofs, the sky-lights and other means by which fire will
communicate ; and exercise due care to protect the Company from
excessive loss.
23
In Brick Stores and Blocks, write as you may be advised ])y a
Company, and confine your lines within the maximum it i^ives you.
In Frame Buildings reduce the lines about one-half — i. e., if you
would place $10,000 on a certain stock, for a particular individual, in a
choice brick store or warehouse, gwe, but $3,000 to $5,(»00 on the same
in a frame. Exceptions will be made in favor of fine Grain elevators
and first-class Storage Risks.
In Frame Ranges tone down the amount still more, and confine risks
to stocks, in amounts not exceeding $2,500. See remarks on Frame
Ranges, page 17.
The rate also has a legitimate influence upon the line. A thin rate is not so great an
inducement for accepting heavy risks as a liberal one — a principal to be borne in mind
where rates are depressed. The limit of insurance should be contracted in due proportion.
Competition, as conducted at the present day, is destructive, not only of a Com-
pany's vitals, but of the policy holder's security ; and finally of the Agent's income. If
the Agent will but realize the facts in a broad light, he will see that his own interests
are identical with his Company's in sustaining rates, moderating lines, and in fostering
orthodox practice generally. But whether he will realize it or no, the best Companies
positively decline to enter the arena where concessions in rates, concessions in lines, con-
cessions in privileges, concessions in everything that tends towards the abandonment of
all the old land-marks are the order of the day. The final results of indiscriminate compe-
tition are not difficult to foresee ; time only is needed to develop from it certain di.saster,
and Agents must not expect the most worthy Companies to yield vital j>oint8 "because
other good companies do so." Companies that " icill take risks cheaper," wUl some day he
compelled to find the cheapest method of avoiding the payment of losses.
The liquids used for producing gas in portable machines are known
as Gasoline, Naptha, Benzine, Licpiid Gas, Auroral Oil and by various
other names. They are, without exception, highly volatile and, of ne-
cessity, inflammable and explosive, and therefore dangerous to the last
degree. 7/^ t/iei/ loere not they loould not malx'e gaa.
Under no circumstances may these liquids be stored, handled or
emptied, on or near, premises that are insured.
24
The house or vault for the reception of the generator, receiver, car-
huretter, or otlier apparatus containing the liquid, must be of brick or
stone, and placed at least fifty feet distant from the insured property, or
any other building exposing it ; and the pipes laid under ground, on an
up grade from the vault to the pi^emises to he lighted^ so as to return
all condensation or drip to the generator. A stop cock should also be
ydaced in the i)ipes, outside the building, so the gas may be turned otf if
emergency should require. Drainage should also be provided, so that
in no case the liquid can run towards any building, but be conveyed to a
sewer, or well, or trap, or gravelly soil.
Where the above conditions are faithfully complied with, and the gas
introduced through tight service pipes, the same as city gas, there is no
material increase of hazard, and buildings so lighted may be insured
without extra charge. Special permission must, however, according to
the terms of most policies, be granted for the use of gasoline gas, under
any circumstances.
iaiiiiiffiig
For the purpose of super-carburetting or carbonizing common street
gas, are small reservoirs of Benzole, Gasoline, etc., through which the
common gas is passed, to enrich it. They must be frequently filled, and
the extreme danger attending the handling of these volatile hydro-carbons
is such that the New York Board of Fire Underwriters, afrer extended
examination and experiment, give deliberate expression to the o])inic)n
that no such apparatus has yet been constructed as can with safety be
used by the general public ; and they prohibit the use of carburetters
except under one of two conditions.
First, as it is deeirablc to place the same near the ^as meter, it must be enclosed in
substantial brick work made jjerfectly tijjht, having an outlet by means of an iron pipe
from the bottom, to carry off any overflow or leakage to the sewer, or other ])roiH'r
place, and to lie filled from outside the building by means of an iron i)ipe ; this ])ipe,
as well as that connecting the a])paratu8 with the meter and the service ]>ii)e, to be
securely and closely masoned in the; brick work, which should be suflSciently substantial to
resist any accidental force that can be applied to it.
Second, it may be admitted without the brick work, provided the apparatus be not
sold to customers but remain the property of a reliable firm or corporation, which shall carry
25
071 the business; and that it he filled by daylirjht only, through air-tifjht conneetions and
tubes, and only by, or in, the presence of an expert, specially employed by the corporation for
that duty.
Under ordinary circumstances agents may adopt one standing answer
to all inquiries respecting carburetters, that they are inadmissible, and
that property where they arc introduced is not insurable; that existing
policies are voided by their presence, while surrounding property is
greatly endangered by their contiguity.
These disguised incendiaries have been somewhat extensively intro-
duced in various parts of the country. When they burn the liquid
gasoline, which may be contained in them or brought to them in pipes,
they are not admissible on any terms whatever. Vigorous suppression of
these infernal machines is the bounden duty of every man who values
the life or the property of his neighbor or himself.
An almost devilish ingenuity has been exercised to conceal, under innocent nomen-
clature, the various liquids that have been brought before the public in one or another of
tlie above connections. Such names have been employed as Liijuid Safety Gas, Auroral
Oil, Najithaline, Cymogene ; these, as well as Naptha, Benzole, Benzine, (>asolinc, Bigo-
line. Phosgene, Carboline, or any other ine, mean essentially one thing : — to wit, a highly
volatile and inflammable substance, whose only value for the proposed purpose lies in those
very qualities that make it dangerous.
If Gunj)owder were not explosive it would be good for nothing. If Gasoline et al.
were not volatile they would he, in like manner, valueless ! It is the explosiveness of the
one and the volatileness of the other that made them alike valuable and dangerous.
Special, ijilunufactuving and ijiUsscdUuuouiJi ^uuardjsi*
Rememher that Special Hazards are unprofitahle to Unclei'writcrs^
and only tlie best of their kind, for the best men, at full rates, and under
the most favorable circumstances, are to be entertained.
1. A special apphcation and survey, on the blank form furnished for
the particular sort of risk. Let every question he answered infull^ and
the signature of the applicant aflixed.
2. A plain, full diagram ; showing as clearly as possible, the shape,
arrangement, position and bearings of the risk, and all exposures within
ten rods. Give the points of Compass correctly.
3. Your private report on a se])arate letter sheet, made from a
personal inspection of the risk, and giving your opinion of it, with any
details that may not have been brought out by the aj)plication and
survey.
All to be referred to headquarters before binding a Company. This
rule must be observed in all cases.
Before entertaining a Special Hazard, consult the remarks on the
following pages that ])ertain to the particular kind of risk nnder con-
sideration, and also give special heed to the following
1. Values must be looked t(> with great care, and every circumstance
noted that affects them in any way. About half a strict cash 'valuation
is the safe limit of iiisurance on Special Hazards.
27
2. OwNEKS. — Are they reliable, careful, practical — are they attempt-
ing an uncertain speculation — are they respected and popular, or feared
and hated — are they embarrassed, litigious — is there anything about
them, or their circumstances, likely to develop loss to an insurer?
3. Incendiary Tiikeats, jealousies, rivalries, drunkenness, litigations,
disputes, bad management, dissatisfied or unpaid liands ; will any of
these elements probably bear upon the risk to a company's hurt — is the
property profitable or un]>rofi table to applicant, and what are the pros-
pects for the future ?
4. Conglomerate Hazards. — Have several different manufactories
clustered about one power, so as to expose each other ; largely increasing
the general peril ?
5. Watchman ! what of the night ? Are there any police regulations ?
Some facilities for extinguishing fires should exist. Casks of water and
buckets should be placed in each story, and there should be a force pump
with hose sufiicient to command all parts of the building.
6. Lightning Rods should be well set on all exposed points of the
building.
7. Exposures should be examined critically, and their bearings on
the risk well considered. This is a most important item, and refers as
well to the different buildings of one large establishment — their position
to one another — as to other exposures.
8. "Wooden Boxes, and rapid^ heating journals, should be sought out
and reformed.
9. Open Lights should not be permitted for night work where
shavings or lint are made, or wherever else improper. Kekosknk Lamps,
also, are bad things in a factory, owing to the infiammable natm-e of the
oil, and the ease with which they can be overturned, broken, ex-
ploded, etc. When permitted, they must positively be filled and
trimmed by day-light, by a man specially ai)pointed to attend to them.
10. Spontaneous Combustion, from greasy rags, dirty waste, or other
sources, should be well guarded against.
11. Former Fires. — If the property has ever been on fire from any
cause whatever ; probe for full details, and do not be put off* without
them.
28
12. Defective Flues, stoves, pipes ; cracking, settling, sagging walls
ot wood w^ork, should be noted and remedied at once.
1'^. Specifications. — Write a definite amount, each, on building,
machinery, stock, and every other subject insured. Never cover two
general items in one sum.
14. Otuer Insvrance. — If there are other policies on the same
property, see that they and yours are all worded alike.
15. Amount to Insure. — This must be governed by the values, and
the peculiar characteristics of each risk, and wall be determined by
correspondence with headquarters.
IT). Always name the heat rate you can obtain on a Hsk., when the
application is submitted , it may save correspondence to I'noio the local
views on rates. Mal'e no concessions for ^'■proposed'''' improvements.
IT. Give good heed to all these suggestions. There is no danger
OK your being too particular, for, witu all your care, the proba-
bilities are that you will lose money for the Companies on Special
Hazards.
^BABSiajSS. ©DLi?*"^*^
,i^\jii)£«jg
►EJillWARliESc, S©M©©L-ljilo3JS2§
For Dormitories and Board- f
ing, add .25. 1 j.,^^^* ^
For "Wooden Steeples on <
Class B, add .35 if ex-
posed within 100 feet.
One Year. Three Y«
Class
Class
D,
.80 1.60 ;!S.40
1.00 s.oo ».oo
1.S5 3.50 S.75
Country school houses are often used for public meetings, for wdiich
an extra charge should be made. Private institutions and Female
seminaries are preferred to Male schools and Colleges. Theological
seminaries a shade better than either. Many "School House losses"
have arisen from defective stoves and furnaces ; others from the mischief
of careless and evil-minded students. As a class, they have not been
very profitable. Cheaply built '' Juvenile Hotels " gotten up by sub-
scription, and placed in the care of hired teachers, are undesirable.
♦ See " ClaeeeB of Buildings," on last page.
29
• Y I-
o
STEAM.
Furnace outside in Brick, metal-roofed f^^a** ^: • • ^••>^ "'^*
boiler house, i ^***** ^'' * ' **-^^^^
[Class D, . . 5.00
Chute for shavings must be of the best construction, and closed with
iron doors if communicating direct with the furnace room.
Shavings must be cleaned out every day.
Water casks and buckets required in each story.
Preference is given to hard wood manufactories ; if fanning mills,
threshers and other manufactm-es creating large quantities of soft wood
shamngs, are made, the risk has some elements of a planing mill, and is
worth ,50 to 1.50 additional.
For furnace inside the huilding, well arched and securely protected,
add .50, but if poorly constructed and insecure, decline the risk.
For water power, deduct 1 .00,
Special manufacturing application and survey, diagram and private
report to be submitted before accepting.
STEAM.
(Class B, . . 4.00
For water power, deduct 1 .00. ] Class C, . . 5.00
( Class D, . . 6.00
Open lights not permitted. "Water casks and buckets required in
each room. Stacks not permitted within fifty feet of the mill.
Submit manufacturing application, survey, diagram and private
report before accepting.
Bagf^ing in bales, when removed from the factory, may be insured the same as other
similar baled merchandise, but the stock from which bagging is made, when in buildings
not exposed by the factory hazard, will pay as follows :
r Cla»i!i B, .. . . 1.50.
Bagging Stock, } Claims €,.... 1.75.
(class D, . . . . 2.00.
30
For Steam, add .25 in Brick, and .50 j ^^i* € ' ' 1 'sO
i» ^^'^'^^' I Class D, ". '. 2*.00
Examine closely the construction of the oven, and flues leading from
it — no wood work should be near. Floor in front of oven should be of
earth or brick ; if of wood, and not securely covered with metal,
beware ! See that ashes are properly disposed of. See that wood and
kindlings are not put in dangerous places to season ; also, that lumber
is not piled over the oven for the same purpose.
If the oven is outside the building, and entir'ely separated fifteen
feet, deduct .25 5 if forty feet, deduct .50.
For water power, deduct 1.00.
Water casks and buckets in each room.
If a new enterprise, beware of jealousy and incendiary danger from
" hand-work" neighbors. Remote risks of this class (specially in the oil
regions) and all rough, open sheds decline, as well as all that have
wooden furnace rooms and iron cliimnies. Stave factories for putting up
sliooks solely, a shade better ; deduct .50.
Submit manufacturing application, survey, diagram and private
report before accepting.
Stave Yards : — See Lumber Yards.
IBss? IF^'esyM® lji]©(jjsiEs.
Same as Pork Houses, which see.
For wooden floor, add .50. T C*1a!4!4 B, . . 1.25
For plow making, in a small way, add ^ Clai^!^ C', . . 1.50
.25 to .50. ( Class D, . . 2.25
The old-fashioned bellows nozzle is very dangerous ; see that the
" patent nozzle" is used in every forge.
4j>©©^(EK q
^30©f>S,
Class B,
. . 4.00
Class C,
. . 5.00
Class D,
. . 6.00
31
For pattern shop, add .50.*
BK]'iriaw?33A ir*Ae?®B][Es.
€la§iii B, .
. 2.00
Class C, .
. 2.50
Class D,
. 3.00
See tbat all furnaces, crucibles and melting kettles are in good
condition.
Small, neat shops, working three or four hands only, are taken .50
less than above rates.
Submit manufacturing application, survey, diagram and private
report before accepting.
Small quantities of liquid thrown upon melted copper will produce
violent explosions, scattering the hot metal. Like consequences result
from pouring melted metal into moist sand.
(B®^Ti„ SiriassanaSt, ^ggiia,© m GP^^f.-^IFaKS l^isf
Use Fire Policy.
On vessel or cargo lying up, for winter or summer risk, not
exposed by other boats or from the shore, watchmen always
on board ; per month, ........ .40
If undergoing repairs, or on the stocks, per month, . . . .50
If exposed from the shore, or by other boats, within one hundred
feet ; charge, in either case, for each exposure, per month,
additional^ .......... .20
Decline all boats laid up because trade does not pay ; also, boats that
are hired by competing lines to lay up.
SEASON FIKE RISK ON BOATS RUNNING.
On Lake Steamers and Propellers, from April 1 to Dec. 1, 2.50 to 3.50
On Lake Tow-boats and Tugs, " " " 2.50 '• 3.50
On Steam Ferry-boats on Western rivers, per annum, 3.50 '' 5.00
On Western river Steamboats " 4.00 '' 6.00
On Dredge-boats, 3.50 ^' 5.00
32
Accept none but the better class of each. Do not entertain any
worn-out or wortliless craft, and refer all risks to the Company. Western
river boats are uninsurable at and after six years old. Lake craft, being
more staunch, are good for a couple of years longer.
[B'©®3i (B]W©SK](EO,
Bookbinders are usually in the upper
stories ; stock seldom saved, and
easily damaged by water. Great
danger exists from the paper
shavings, the use of glue pots with
lire, and the employment of large
numbers of careless girls and boys.
On lower floor, deduct .25.
€la§s A,
. 1.25
€laM§ B,
. 1.50
€las^ €,
. 1.75
€lsi!^§ D, .
. 2.00
See Planing Mills.
(BaSWiKOSi aiM© KAaI,^ Ijilt)!i3
1^1^ i^a
For " Malt House" exclusively (no f Cla§§ B
Brewery), deduct .50, or Brewery, ^ 01a§!ii C,
without Malt kiln, deduct .50. Clas!^ D,
2.00
2.50
3.00
With stable attached, add .25
For grinding by steam power, add .50 to 1 .00.
If distilling is done to any considerable extent, decline the risk. Give
critical attention to the construction of malt kilns ; these are the chief
causes of brewery fires. Decline all risks where the malt kiln has any
wood-work exj)Osed in the cavity over the fire. Brick walls, iron joists
and iron floors are essential to safety.
Submit brewery application, diagram and ])rivate report before
accepting.
33
(BB3[D®Si Ml© [PlSKi,
Wooden Bridges, foot and carriage, open, . . . 1.S5
Same, covered, ........ 1.50
R. R. Bridges covered with metal, and cars passing ovek, 1.75
Ordinary covered bridges, cars passing thkough, S.OO to S.50
Do not insnre a particular Bridge for a Railroad Company that does
not insnre all ; and avoid all Bridges, about which there are any litiga-
tions or local jealousies. Insure no old, sagging or dilapidated Bridges.
On Bridges over navigable streams — draw or stationary — add ,25
to .50 for exposure of steamboats.
R. R. Bridges should have a watchman, barrels of water and buckets ;
and, at the best, are not very desirable.
Repairs, Alterations, Slc,
The usual rate on buildings erecting or repairing, is a cent a day
per $100, for a month or more.
For 15 days or less, charge .20. For 2 months or less, charge .55.
" 1 month " " .»0. " 3 " " " ,75.
And for longer periods, at the short rates of 2.00.
Take builders' risks, at above rates, on houses erecting, only for
oioners I and in anticipation of securing the regular insurance when
finished. Charge Johhers and Contractors Carpenter-shop rates — which
see. As a rule, decline, unless you know the contract to be a profitable
and satisfactory one. Doors and windows to be closed up at night, or
a watchman provided ; otherwise, decline. The hazards from tobacco
pipes, glue pot fires, soldering fires, careless men and apprentices and
Sunday loafers make these risks undesirable except under the most
favorable circumstances.
For privileges of alterations, repairs or additions to property already
insur^ed, charge the above rates in addition to the annual premium.
Parties hiiilding, repairing^ etc.^ on insured i^roperty^ vitiate their
policies^ unless they obtain an endorsed permission and pay the extra
rate. See "Endorsements."
34
STEAM.
Bedstead Factories 1 S" ( Cla§S B, . . 6.00
Zr " : : : : : : li Jcia^sc, . . r.oo
Large Turning Establishments . . . J ^ ( ClasS D, . . 1 0.00
For watei- power, deduct 3.00.
Seldom taken by careful companies. The best of the kind may be
submitted, with manufacturing application, diagram and private report.
Water casks and buckets required in each room ; shavings to be removed
daily. Arrangements for keeping or using Yarnish, Benzine, etc., must
be examined critically and made satisfactory. Furnace outside of main
building, and the chute for shavings to be of best construction and
" fire proof."
If Drying kilns, by fire heat, are within fifty feet, decline
unconditionally.
Ordinary hand work only, . . f Class B, • . S.50
Stair Builders and Ship Cai-pentersK Class C, . . 3.00
same rates. ( Class D, . . 4.00
Shavings to be cleaned out daily, and water casks and buckets to be
kept. If exposed by lumber yards, add .50 to 1 .OO.
©^
If in connection with a bakery, add .25 ( ^I**** ?' ' ' ?'f?
. -rt *^ i Class C, . . 1.75
to .50. i ^, ' ^\.^
( Class D, . ■ *J.*^5
Examine closely the Table Furnaces / the pipes from them frequently
pass out at a window, endangering the wood work.
Confectioners' Stocks, sales only, no bakery or manufactory, .50
less than above figures.
FiKEwoRKS, either on steady or temporary sale, make a risk
undesirable. See page 48,
35
(B-aKfigT IFi\©T®K](E©, See Woolen Mills.
(B
HSo Detached.
Add for exposures : [ ^.
For school in basement, add ,25. J ^| ^'
For wooden spire on Class B, unless | |^i„^^ n | |m
absolutely isolated, add .25.
B, . . .50
. .75
Charge .25 additional on Organs, Melodeons, Paintings, Draperies,
Ornaments, Fixtures, Furniture and Memorial Windows and Tablets,
and insure a specific amount on each.
If heated by furnaces, the registers should be fastened open.
Furnaces are great church burners ! The fires are intermittent ; great
heat is wanted suddenly; chimneys as well as the heaters themselves
crack from such unsteady and spasmodic use ; the church is often closed
and left alone, with the furnace full of fire. These and kindred causes
conspire to destroy many churches.
Wooden spires and large projecting cornices catch the flames in sweeping conflagra-
tions. One fire in London thus destroyed eighty-seven ! In Charleston five, and in Troy
ten churches, asylums and public edifices were burned in single fires ! Churches have not
been profitable risks to Underwriters, and, desirable as they may seem, present no
inducements for competition.
©©ASM, (Bi\KK3i\(ig9 Wia©®ra im^ lp2.©jj©so S)o®^i,
Ordinary hand work only, . . . . ( *^'«*** *? ' ' ^'^^
See remarks on Conglomerate Hazard. ) r^, ** Z^ ' ' Z.'!^
^ ( Class D, . . 3.50
Shavings to be removed daily. Water to be kept handy.
Cla§»i B, 75.^ Carriages ON Wheels, in depositories or sales-
Class C, . . . . 1.00. ^ rooms, mercantile risk only — no manufactory
Class !>,.... 1.25. ) exposing.
36
(D©A©50, (Di\KK]i\©l AMD Wj^'Bm] (Fi^rfOSlSS.
STEAM.
Inciudins Ca?' and Om7iihus Factories. ] ^,-* ^,' m\i,^
^ J 1 . * A^ i Class €, . . 4.00
J'or water power deduct l.OO. | Class D 5 00
If Blacksmithing, Plating, Painting and Trimming, as well as Wood
work, are done in the same or contiguous buildings, making a Conglom-
erate Hazard, add .50 to 1.50.
Shavings to be removed daily. Water casks in each department.
Yarnish, Benzine, Turpentine, Oils, etc., used in the Paint shop, must
be kept in metal and securely placed. No night work allowed among
these articles.
Submit manufacturing application, diagram, and private report
before accepting.
Ordinary hand work only, . . . . ( ^*^** *5 ' • p'J?^
See page 30 for steam Barrel factories. 1 ^J^** ^ ' ' ^'^JJ
^ ^ \ Class D, . . 3.00
Shavings to be cleaned out daily, and water to be kept handy.
[New England Mills have local rates and rules of their own — these figures do not apply.]
Water. Steam.
Picker outside in fire-proof room, and ( ^^l"*'* ?,' 'Z'^^ *^*!!'^
,^.n . ^ . 1 \ Class C, "Z.aO 3.00
Mill m every way first-class, . . ] ^^^^^ ^^ .^^^^ ^^^
If picker inside in ordinary close room, add ..10. Lights absolutely
pr()hil)ited in ])ickcr room. Waste to be removed daily. A reliable
watchman should always be on duty. Force pump and hose of best
construction should command every part of building, or water casks and
buckets placed in every room. ^
37
Insurance limited to two-thirds actual cash value. Machinery not
in use insured only when applicants furnish schedule, and only half
actual cash value covered.
Encumbered, untidy or unprofitable mills not taken.
Batting and wadding mills double rates ; usually not taken. Submit
cotton-mill application, diagram and private report before accepting.
See " Gasoline," page 2-1:, for advice if the mill is lighted by port-
able gas machine. When running day and night charge double rates.
New Orleans Tariff.
•iStEl
Brick, Slated.
Brick, tin or wood.
Wood, slated.
All wood.
15 days or
less,
.38
.50
.63
.75
1 month
u
.63
.75
.88
1.00
2 "
ii
1.13
1.25
1.38
1.75
3 "
u
1.63
1.75
1.88
2.50
4: "
u
2.00
2.13
2.38
3.25
5 •'
a
2.25
2.38
2.63
3.50
6 "
u
2.50
2.75
3.00
4.00
New Orleans Tariff.
TsQlEBi
5Q[EBi]M.
Brick.
Frame.
Saw Mill attached,
additional.
15 days.
.40
.50
.20
Animal or water
power only, taken.
Steam, rejected
unconditionally.
1 month,
2 "
3 "
4: "
5 "
.60
1.00
1.50
1.75
2.25
.75
1.25
1.75
2.00
2.50
.25
.50
.75
1.00
1.25
6 '^
2.75
3.00
1.50
Steam has proved so very destructive and unprofitable, as to be
excluded from cotton-gin insurance. Any improved steam gins of
38
superior construction, and for the best parties, may be submitted for
consideration witli manufacturing^ application, diaf^ram and private
report Mitli full details.
Particular attention is directed to the incendiary danger surrounding
cotton gins. They are usually remote and unwatched. Hands burn
them for revenge, or spite, or on account of un}>aid wages. A match, a
pebble, a nail, or a bit of steel thrust into a bunch of cotton, does the
work by striking fire as it passes through the gin. Be sure everything is
right before accepting these risks. Planters sometimes insure, merely
because they have reason to fear incendiarism. It is often impossible to
ascertain the amount of cotton burned, and unsatisfactory adjustments
are not infrequent.
Water should always be kept handy.
New Orleans Tariff.
Brick, slated.
Brick, tin or wood.
All wood.
15 days,
.38
.38
.50
1 month,
.75
.88
100
2 "
1.38
1.63
1.75
3 "
1.88
3.38
3.50
4 "
3.50
3.13
3.35
5 "
3.63
3.38
350
6 "
3.00
3.88
4.00
Without Jail, and used Solely for County Purposes.
If County offices are in the Court
House, add ,35,
If used for Public Meetings, Exhibi-
tions, &c., add .50,
Cla^M
B,
. .75
€laM!!i
€, .
. 1 .
ClatiM
D,
. 1.50
Record books and papers are not to be covered.
39
Incendiary danger arises from the revenge of desperate criminals
who liave been punished, from unprincipled land-sharks who wish to
destroy records, and from jealous and rival towns that want the county
seat.
County buildings have proved to be unprofitable to underwriters as a
class.
( Class B, . 1.50
j)^](Li, ] Class €, . . 3.00
( Class D, . . decline.
But those of modern construction, with iron cells or cages, and every
way first class, may be taken ,35 less.
(0©(135^]TK^/ S'^f©KS^ ^M© Sir©©5i§.-See Page ,8.
Decline to insure Drug stocks, except upon special written authority
in each case. They are undesirable almost without exception.
Retail Prescription Stores. Wholesale Drug Stores.
Class A, 1.00 U^j. ^j^^^„^^f^^t„^j -ti/ Class A, 1.50
Class B, 1.35 ^^.^ ^ ^^^ j^^^ Class B, 1 75
Class C, 1.50 aiM» ^ Class C, 3.00
Class D, 3.00 J ^^^ ^•""- [ Class D, 3.50
The experience of insurers on Drug Risks has been so very disastrous,
that they are now classed among the Special Hazards ; and some compa-
nies have discarded them altogether. There is in a Drug stock a
complete magazine of latent combustion, merely w^aiting for the touch of
a careless employe to burst into flame — turpentine, varnish, oils, benzine,
naphtha, coal-oil, acids, phosphorus, cobalt, camphene, alcohol, etc., etc.
Chemical combinations are daily called for, which, in preparation by
an ignorant hand, may turn to instant incendiaries.
When the above rates can be obtained on good establishments some
good Companies accept the risks, but they cannot consent to any abate-
ment of standard figures on a losing class of hazards.
40
Decline, as a rule. ( <^*»** «5 ' ' ^^^
" French process " specially danirerous. ) ^I"** ii' " * ^/!!^
^ r J .^ ( Class D, . . 10.00
Those of the best grade, profitable, well regulated and for sterling
men, may be submitted with special manufacturing application, diagram
and private report.
Alcohol stills, fine city establishments, best arrangements ; half the
above rates. Whiskey frauds on the Government and extensive rascality
in bonded whiskey have resulted disastrously to underwriters, and placed
these risks under ban. Too great care cannot be exercised in regard to
them.
The rates and rules for /Standard Mercantile Jiisl's, on pages 13 to
16, have the regular Dry Goods and Grocery trade for a basis. See
those pages.
Steam Power. DETACHED RATES Horse Power.
Class B, See National "1 (,!,..,.,,_ -p...„„ f_ f ClaSS B, . 1.75
Class C ^"''f '^^T; p '^'\r^ ""-^'"'^ '•'^ Class C, . 2.00
J.- w^' ^^^^^ **" ^°^' 1 i^xposure. I ^^, ' -^ _„
Class D, lowing pages. J [ ClaSS D, • S.rtO
Woodi-n elevators, sheathed in brick, and roofed with shite or metal, class as B.
Add .25 to .50 for exposures of locomotives, steamboats and propellers.
At standard {rruin marts like Buffalo, Toledo, Chicaect them
personally are undesirable. Special flour-mill application, diagram and
private report are required in all cases before accepting, and a re-
inspection should be made every few months. Examine every portion
of the machinery ; you cannot be too particular.
Flour mills are generally total losses. The elevators and spouts, like
flues, give rapid circulation to the flames, and the mill burns down
quickly. Steam mills have been heavily unprofitable to underw^riters,
insomuch that some reject them unconditionally ; but they are so
prominent among the industrial enterprises of the country as to demand
protection at the hands of insurers, if it can possibly be afforded.
Under the above rules and rates, the Companies generally will continue
to cover the better class of flour mills.
The cost of a mill is no criterion of its value. If it is not frofitahle
it is not insurable. So the main question of an underwriter should be
" What money does the mill make '{ " rather than what money did it
cost to erect it.
CALIFoi^Vj
46
STEAM.
For pattern shop, add .50 ( ^}^** *? • * ^'^^
^--— •- '( ^!a^:: S; : : •^:^::
Patterns not in use are uninsurable. Those in use covered for only
one-half the actual cash value, and the insurance on them must be
apportioned amon<^ the Companies writing other j)ortions of the risk.
Flasks must not be piled inside the foundry, nor against a frame
building or fence just after being used.
Chimney of cupola must rise at least twelve feet above wooden roof
Casks of water and buckets required.
Submit manufacturing application, diagram and ])rivate report
before accepting.
(F^JKWT
ifdJBd.
VlasH B, .
. 1.00
Class C, .
. l.*J.^
Class D, .
. 1.50
Furniture on sale, no varnishing, i
repairing, or other work done — "j
Mercantile risk. '
Furniture in Dwellings, Hotels, and other buildings, same rates as
the buildings.
Furniture, Fixtures and Organs in Churches. — See Church rates.
FuKNtTURE Factories. — See Cabinet Works.
©i.^iS W©KKi.
Class B, . . d.*15
Class C, . . 2.50
Class D, . . 3.00
See that the furnace and annealing ovens
are well built, the general arrange-
ments tidy, and the premises properly
cared for at night.
Box making and straw packing, and the storage of straw and hay,
present special features of danger in these establishments, and call for
carpenter shop rates in many cases.
Submit manufacturing application, diagram and private report
before accej>ting.
47
Wooden buildings detached, .... 1.50.
Steam Power, Dec^line.
When exposed by Railroad Locomotives, decline.
This figure is for small farming establishments, and no night work.
Add .50 for more than one press, or for night work. Close lanterns
must be a written condition of the policy — no other lights permitted.
Large hay-pressing and shipping warehouses or barns will be considei-ed,
each on its separate application, and a rate fixed according to the
particular hazard submitted. Give dimensions and exposures of such.
Yards or lots for stacking, rotting and breaking hemp by hand, with
the old-fashioned brake — no power, no exposures, and no fires on the
place — Insurance on stacks and sheds, S.OO. Hemp to be removed as
fast as broken and baled. Insure so much on each stack. liefer
application before accepting.
For Steam Hem]) Works, see Bagging Factories, Eope Factories,
and Flax and Hemp Mills.
Detached.
Brick or stone, six weeks drying privilege, used as farm
buildings balance of year, 1.50.
Frame, do. do., same privilege, . . . 1.75.
Contents during drying season, per month, ..... .50.
do. for the " " of six weeks, . . . .1 .00.
See that the hop stove and pipe are in good condition, and that
buildings have good brick flues, also that the canvas on which Hops are
48
spread does not come within five feet of pipes. Examine the cowl, or
ventilator, and see that the draft is sufiicient.
Stove Room shonld be plastered. Stove pipes, passing through
partitions, must be secured, and must be at safe distances from joists or
wood work.
In consequence of the necessary intense heat during the "drying
season," it is essential that barrels of water, with buckets, be at hand.
Agents will please insist on this. Also, that none but covered lights be
used at night. Candles and open lamps are prohibited. Wood should
not be piled too near the stove.
Hops fluctuate in value, and it will be advisable for agents to carefully
criticise the amount of insurance requested. A policy for one-half the
cash value will generally be sufficient.
Detached.
Decline to insure all large Hotels, except upon special written
authority in each case.
Charge extra for exposures. i €la*«is B, . . 1.50
Private boarding-houses of the best class, ■] Class C, • . 2.00
.50 ofi' Hotel rates. ( Class D, . . 2.50
Hotels containing more than thirty apartments should pay at the rate of
4 cents per room, for CIa§s B.
5 " Class C.
6 " " " " Class ».
/. f. The nite on a 50 room, Class C Hotel, should be 2.50. A GO room, D, should be
3.60, and so on. Give heed to this rule in rating large hotels, and count all the rooms.
Great care should be taken in the examination of all stoves, flues,
and pi])es, particularly in the kitchen. Stove pipes ])assing througli
floors or i)artitions must be secured by crocks or double tin thimbles.
Jointed gas burners that can be turned against the wall or wood work
are very dangerous. Give special attention to the L.vundry, as many
Hotel fires originate there.
40
On small country Inns, with light travel, deduct .25 to .»50 from
preceding rates. Insurance on Hotel furniture should always be upon a
schedule furnished by the applicant, and at the same rate as the building.
Tavern and Omnibus Barns, not iised as Livery j Brick, 2.50
Stahles, I Frame, 3.00
Hotels are graded as Special Hazards^ and^ as a class, are very
iLnprofitahle to underwriters. Only the best are desired at the figures
named ; they give no margin for competition.
The burning of the Louisville Hotel and the Qalt House at Louisville — the Neal House,
at Columbus — the Collins and American, at Toledo — the Read House, at Erie — the
Monongahela, at Pittsburgh — the New England, at Cleveland — the Lindell, at St. Louis —
the Continental, at Long Branch — Congress Hall, at Saratoga — the International, at St.
Paul — the wholesale attempts upon the New York Hotels during the war, and dozens of
other notable cases that could be cited; all illustrate the terrible inflammability, the
easy accessibility, and the enormous values that may be destroyed in Hotels and in blocks
exposed by them.
In the one city of St. Paul, Minn., no less than seventeen Hotels have burned in the
eighteen years ending with 1869 !
If, for the comiufj ten years, rates on Hotels should be tripled, the probabilities arc that
they would still be beldnd with the Insurance Companies.
OflfOra (Fraraa'SiS. see RoHms MiHs.
J)
A31*i» See County Buildings, page 38.
Do not cultivate this class of business without special authority from
your company.
Lease policies are to indemnify lessees for money they are compelled
to pay the landlord, while leased property is untenantable from fire.
They are the converse of lieiit policies.
The property must be repaired without delay, and the insurer pays only for the time
the building was untenantabh; ; but if the whole amount of the rental is not insured, the
lessee must bear his pro rata of loss, unless (as in the New York form of policy) the
4
Class A, •
. .90
Class B, .
. 1.00
Class C, .
. 1.25
Class D, .
. 1.75
50
agreement is to pay only in case of total loss, and in that case to pay the whole amount of
the policy.
The " interest " covered must ho limited to the actual amount of rent which the lessee
would have to pay, and not extended to cover the value of his business, prospective profits,
or any other "interest." Tliese are too indefinite and intangible to be made the subjects
of insurance. And it should be well ascertained that a lease is profitable before any
insurance is granted ujwn it. For correct forms of Lease policies consult Hine's " Book of
Forms."
(LAITIr) IF^e'irOBJlEi, See Saw Mills.
ILu^DOK ^w© W]wg Stokes,
Wholesale.
These rates are for Stocks iu casks and
packages. For Drinking Saloons, add
.50 to 1 .OOj according to grade.
For Rectifying, add .25.
Do not seek this class of risks. The values of liquors are so uncertaitj and
fictitious, and the demands for loss or damage so extravagant and irregu-
lar, that some underwriters have questioned whetlier a really satisfactory
adjustment has ever been had upon a miscellaneous liquor stock ! These
remarks should not apply in sections where Whisky is a large sta])le
product, and has a recognized commercial value ; but even there the
moral hazard growing out of the Government tax and the illegal meas-
ures taken to avoid it warn us against free insurance on Whisky.
Wliisky in bond must be insured only by the Government numbei*s
on barrels : No. to No. , inclusive.
As a rule, decline Drinking Saloons, and also treat them as bad
exposures to other risks.
(Li^Esv Sirj\©3,eg,
Detached.
Get additional for exposures. i Class B, . . !3.50
If Farrier and i^lacksmith adjoin or ] Class C, . . *2.7ii
expose, get 1.00 to 2.00 additional. ( Class D, . • 3.50
Open lights prohibited, and all lights should be stationary : Beware
of Coal oil. Smoking expressly forbidden. Water sliould be handy.
51
Greasy rags, from the oiling of harness, induce spontaneous combustion,
and shoukl be looked after.
Insure a specific amount on each item covered, as $50 each on twenty
horses; $10 each on forty sets of harness; $100 each on ten carriages;
$75 each on eight buggies; $500 on hay, grain and feed — ($8,500).
Never write a general policy ; if some horses are so valuable that an
average amount would not be satisfactory, let the owner fnrnish a
schedule, and insure each horse by name and description, putting an
agreed amount on each. ^^ Blanket Policies^'' on Livery Stables^ will he
canceled as soon as reported !
For Private Barns and Stables, see page 9.
lLi5!a©S'^ l^a^E)^— W®©© ^^mm.
Detached and secured by a good wall or fence, . 2.00
" " without fence, 2.50 s
If within eighty feet of a steam saw or planing mill, add l.»50 to
3.00. If within fifty feet, get mill rates or decline, and, in either case,
submit survey and diagram before binding. Get proper additional pre-
mium for exposures of stables, carpenter shops, etc., and (if on docks) for
steamers and locomotives. Office in yard same rate as lumber.
Small yards are preferred. If on two sides of a street, put a specific
amount on each part ; this is imperative / two yards inust not he covered
in one sum.
Wood yards and stave yards — no pine or soft lumber — may be taken
.25 less than above rates, and a like discrimination may be made in
favor of green lumber.
STEAM.
For water power, deduct .50. j ^^^^^ ^i ' ' *^-^^
IfFoundry adjoins, see Foundry Kates. 1 ^I**** i{' " ' 2'*^'^
•^ •• ( €las^ D, . . 3.00
See same, for rules in regard to Patterns and Pa'itern Shops. If
wood work is done, see Agrkuiltural Implement Rates. Submit manu-
facturing application, diagram and private I'eport before accepting.
52
Do not cultivate this class ofhusiness without special permission from
your company, except to issue i)olicies on desirable buildings to tue
OWNER : Luss, if any^ payahle to John Doe, Mortgagee.
Mortgage insurance, proper, is simply debt innurance. The policy issues to the mort-
gagee to protect Ilia interest. If any loss is paid, the mortgagee assigns to the insurance
comj)any an interest in the mortgage equal to the sum so paid, and the company collects
from the debtor. A policy issued to a mortgagee on his interest is of no benefit to the
owner of the property. It is a collateral, obtained by tin; mortgagee, at his own expense,
for his own benefit, and, although the niortgaget^ thus (when loss is paid) gets payment
of his claim, the debtor is not discharged, but must ])uy to the company, to whom assign-
ment has been made. For proi)er forms of Mortgage policies, see Hine's " Book of
Forms."
See Rolling Mills.
Water Power,
A 1 w G. . o • 1 ^-, ( Class B, . . 2.00
Add tor bteara, in crick, .oO. 1 r'l«i«« f *»•»'%
" " Fra,„e, 1.0«. ) ,,,„„, „; . . 3.30
Lard Oil making exclusively, no fire heat and no steam, .'35 oft'
above rates.
For Lard Oil making in connection with soaj) and candles, see Soap
ANi» Candle P'actories. These estal)li8lini('Mts, owing to the introducti(»n
of Petroleum, are not ])rofitable as formerly, and call for good judgment
on the part of insurers.
Press cloths in ;ill nil mills are specially liable to heat and produce
8p(»ntan(M)Uft combustion when left in heaps. Unless systematically
cleaned and s])read, or iiung, decline the I'isk.
Submit maiHifacturing application, diagram and private report before
accepting.
53
o.oO to
Only the best of these will be taken i Class B, .
upon full correspondence, application, ^ C'lass C, . . lO.OO
diagram and private report. ' Class D, • . decline.
Still Houses generally uninsurable; rate from lO.OO ii])war(ls.
Agitating Houses, Receiving and Barreling Houses, worth from St.OO to
6.00, according to arrangement and nearness to stills.
" Oil Yards," for storage of crude petroleum in tanks, cisterns and
otherwise, pay from 4.00 to 6.00 (and short rates of same) according
to arrangement. Crude petroleum at Oil City, or elsewhere in the oil
regions, is uninsurable.
Competition on these risks, in connection with a " run of luck," has
reduced the rates below a safe standard. The extreme inflammability of
the material is notorious, and has been the cause of some very destructive
fires.
( Class B, . . *3.50
For relined Petroleum, in barrels, . . < Class C, . . 2.75
' Class D, . . dec-line.
Some warehouses have been constructed at Pittsburgh and elsewhere,
for refined oil, with ventilators and appliances specially adapted to the
trade. In such as these, the tariff may be abated .25.
defined Oil stored in cellars and elseivhere among mercantile risks adds
.50 to the rate. It is folly for parties to compare refined oil in barrels,
w^ith whisky and other tight packages on storage. Its great penetrative-
ness defies the tightest barrels and mocks at glue and paint. It icill
ooze out, and offer food for the accidental flame that else had done no
harm. Petroleum, in all its stages, is a dangerous article, and should
always pay full figures for insurance.
Storage of " Coal Oil," even in the smallest quantities, among other
merchandise, should be discouraged. Retail dealers, who ])urchase two
or three barrels, should not l)e permitted to expose their other insured
property by bringing it upon the premises.
54
©3L iiWD ^ABP S'-rOKS^.
The danger arises from storage of Petro-
leum, the mixing and vending of Cam-
|)hene, and having these intlamniable
fluids on drauglit at all hours.
*ii^
Class C, . . 1.75
Class D, . . *2.00
If these rates cannot be obtained, decline the risk.
A lam^) stock, being mainly of glass, is difficult to remove, and is
not a choice risk, aside from the Oil and Camphene hazard. As a rule,
do not solicit these risks ; criticise them closely when oftered, and reject
firmly any that do not commend themselves to your judgment after rigid
inspection.
Small, well arranged stocks will pass at .25 below this tarifl'.
Attention is invited to what is said of Gasoline and its kindred, on pages 23, 24, and
25. The so-called "Non-explosive Oils" have Naphtha, Gasoline, or Benzine for their
hase, and are danjrerous in the extreme. The itinerant venders of these murderous fluids
are either very ignorant or very reckless ; their " tests " are delusive, and their wares
jeopardise all who touch them. Have nothing to do with any of the patent compounds
that will not stand the ordinary
Fire Test ;
Which is simply to heat a little of the liquid ; if it flashes below 100 degrees, or burns
below 120, refuse it unconditionally. This may be done — with coal oil or any other
illuminator — by pouring a few spoonsfull in a saucer and floating the saucer on a vessel
of ^*a^n water ; put a thennonieter in the water and as the heat rises hold a lighted
match close over the oil and note the temperature at which it flashes and burns. The
" non-explosive" oils will not bear this test at all, many of them will inflame at freezing
point !
©mmmz ■ (Blocxd.
See Page i6.
IF
^4\feK ll^JiiLS,
These rates are for Mills that are every l Class B, . . •l.»J5
way tirst-class as to construction and '\ Class C, • • 3.50
management — paper dried by steam-^ ' Class D, • • Jl.OO
neither bleaching nor sizing i)repared in the building — rags neither
55
stored nor sorted in the mill — cotton waste not permitted to be stored
in or near tlie mill ; this last is very danji^erous, and should he well
looked to.
For storing or sorting rags, or for preparing bleaching or sizing, add
,•50, Submit paper-mill application, diagram and private report before
accepting.
If straw and straw stock are used charge Wkapping-Papek Mill rates.
If the paper is manufactured, charge Paper-Mill rates.
If only the printing, coloring and pre- i da§§ B, • • 1,50
paring of hangings are done, charge "( Class C, • • 1,75
for ... .' ( Class D, . . 2,00
Stacks of Straw and Flax should not ( ^^^^ 5' * * iJ'^JJ
1 .1 Kn +• ^ \ Class C, . . 3.50
be nearer than 50 leet. i ^- wJ - ^^
I Class D, ■ . 4,00
Submit paper-mill application, diagram and private report before
accepting. Only the very best will be accepted ; they are desperate
risks.
Hand Wokk only. j Class B, . . 55.75
For steam power, charge Cabinet Fac- { Class C, . . 3,00
TORY rates. ' Class D, . . 3.50
Shavings to be removed daily and water kept handy.
Notice particularly the glue-heating arrangement and the drying
boxes ; they must be of the best construction, or they condemn the risk.
Small shops, working three or four hands, will be accepted .50 below
these figures.
Moulding Factories,
Sash and Blind Factories,
Tib and Bucket Factories,
Packing Box Makeks,
Wooden Trunk Makers,
Frame Makers, and
AVoRKERS IN Soft Wood
generally.
56
STEAM,
Water power, 1.00 to !j.OO less.
Planing Mills,
Flooring Mills, ■( €la»is €, . . 8.00
I ClaHH D, . . lO.OO
_ The whole list is undesirable, and will
I- be deelined as a rule.
p' Those of the better grades may be sub-
mitted with special manufacturing
application, diagram and ])rivatc re-
port, and those approved will be ac-
cepted at the fullest rates only.
The furnace must be of the best construction, and the chute for shavings fireproof.
Water casks and buckets required in each room. Drying Kilns not permitted within
50 feet. These risks are usually exposed by lumber yards, stables, etc. Give full descrip-
tion of all surroundings.
For Hand Work onl}', see CARrENTER-SHOP rates.
Including Daguerreotype, Ambrotype, i *^'*>** "^ • • ■.•>0
and all Sun-picture works, . . . ] ^:'*** ^'> ' * ^•""
^ ' ( Class D, . . •i.oO
Being usually in the upper stories, and composed largely of delicate
materials, salvage is difficult, and they make bad losses.
Valttes are, in a great degree, profess ional, Qiot mercantile, and
should be closely scanned ; insure only half the valuation. See that all
chemicals are in projjer order. Look out for gun-cotton.
If there is a solar lens, see that it has an arranoement for shuttinjj
out the sun when not in use; it will iire a ])ine board in a few seconds
when in focus.
Insurance in Photograph Galleries should be ui)()n a schedule fur-
nished by the owner, and having satisfactory valuations annexed.
Insure no Travelling Photograph Cars or contents.
57
Annual Warehouse rates, with the privileges of j Brick, 1.50
cutting, salting, bulking and packing only, . ( Frame, 3.00
Annual rates, including above, and the additional \ Brick, 3.3*)
privilege of smoking only, ( Frame, 3.7«>
Fire. Steam.
„ ■., ■ ; t , ■ 1 ) Bek-k, a.oo a..>o
Same, with privilege of rendering only | ^^^^^^ ^^^ ^^^^
Fire. Steam,
Same, with privileges both of smoking j Brick, 3.*>0 4.00
and rendering, ( Frame, 4.00 4.50
For the privilege of slaughtering, add to either j Brick, .75
of the above, ( Frame, l.OO
[But annual risks on slaughter houses that are not in connection
with, or used for other branches of the business, are not desired.]
SHORT RATES, INCLUDING WAREHOUSE RISKS.
Warehouse
Risk.
With
Smoking
Only.
With Rendering only.
Fire. 1 Steam.
With
Slaughtering
With With
Smoking and i Smoking and
Rendering. , Slaughtering.
With
Rendering
and
Slaughtering.
With
Smoking,
Rendering &
Slaughtering.
Brick.
Fr'me.
Brick. Fr'me.
Brick.
Fr'me.' Brick.
1
Fr'me.
Brick.
Fr'me.
Brick.
Fr'me. Brick.
Fr'me.
Brick.
Fr'me.
Brick.
Fr'me.
.30
.40
.90 1.00
.50
.60
.70
.80
.60
.80
.95
1.05 1.05
1.20
.80
1.00
1.20
1.40
2 "
.45
.60
1.50 1.65
.75
.90
1.05
1.20
.90
1.20
1.55
1.70 ! 1.70
1.80
1.20
1.70
1.80
2.10
3 "
.CO
.80
1.85 2.05
1.00
1.20
1.40
1.60
1.20
1.60 ; 2.05
2.25 2.25
2.40
1.60
2.10
2.40
2.H0
4 "
.75
1.00
i».20 2.45
1.25
1.50
1.75
2.00
1.50
2.00 2.45
2.70 ; 2.70
3.00
2.00
2.50
3.00
3..')fl
5 "
.9U
1.2U
2.50 2.80
1.50
1.80
2.0U
2.30
l.KO
2.30 2.75
3.05 3.05
3.60
2.30
2.75
3.G0
4.00
6 "
1.05
1.40
2.80 3.15
1.75
2.10
2.25
2.50
2.00
2.50 3.05
3.40 : 3.40
3.90
2.50
3.00
3.90
4..')0
12 "
1.50
2.00
3.25 3.75
2.00
2.50
2.50
3.00
2.25
3.00 3.50
1.00 1 4.00
4.50
3.00
3.75
4.50
5.50
As a rule, however, decline all establishments having a frame smoke
HOUSE.
Cutting and Packing are not, of themselves, very hazardous ; but
they are usually done in a hurried manner, and often at night. See
that all lights are well secured with good lanterns or sconces, and that
careless hands are not allowed to use pieces of meat for candlesticks.
Lard Bendering is dangerous at the best, and should be done only
by experienced and trusty hands. The Kettles should be well set, and
the top of the furnace covered with an iron plate, having a flange at
58
least one inch high around the edges. An Extinguisher should be
hung on a pully that can be let down over the Kettle instantly if the
lard takes fire. Water will not quench hiirning grease, it can only he
done hy smothering. Fires should be put out at night, and the floor of
the lard room should be brick or earth.
Steam Rendeking is extremely hazardous from the generation of
explosive gas that takes fire from a lighted candle. No lights of any Icind
— 02)en or closed — should ever he permitted about Steam Lard Taiiks.
Smoking is the great peril of the business, and the arrangements
should be of the best character. A slatted floor, ten feet above the fire,
to prevent the meat from falling into it, is indispensable. If the fire is in
a stove, or under a brick or metal arch, it will be all the better. After
every precaution and every care have been taken, the risk is worth the
fullest rate ; no inferior risks of this class are wanted at any price.
Slaugutering and Slaughter Houses are always nuisances ! not
only during the season of killing, but particularly in the summer ; and
are often burned by those living adjacent. Do not carry annual risks
on Slaughter Houses, specially in thickly inhabited neighborhoods. If
short risks are taken in such property, let them expire before warm
weather.
City establishments have great advantages over those in the country,
in the superior fire department, the extra care of the general police in
addition to private watchmen, and the better average experience of
hands working in large concerns over those in small. It is a great error
to suppose that country pork houses are better risks than those in the
city, where they have these advantages ; and if, with all the experience,
care and security to be had at Cincinnati, Chicago and the other great
Pork Centres, the above rates have been found to be barely adequate,
there is certainly no margin for reduction in smaller places.
Great speculations characterize the Pork business, and great moral
hazardsr to underwriters are the inevitable result. Agents must consider
this fact and guard well the interests of their companies, never suftering
them to be used by unworthy men.
If the annual rate (from exposure, occupancy or otherwise) is higher
than the Warehouse rates above given, charge short rates, as per table
59
on page 21, and then add for prwileges as per following table; or, on an
annual risk at Warehouse rates, charge by this table for privileges for
the time wanted, additional.
Smoking only.
Rendering only.
Smoking
and
Rendering.
Fire.
steam.
1 Month,
2 "
3 "
4 "
5 "
6 "
.60
1.05
1.25
1.45
1.60
1.75
.20
.30
.40
.50
.60
.70
.40
.60
.§0
l.OO
1.20
1.40
.65
1.10
1.45
1.70
l.§5
2.00
Insure a specific amount on or in each separate building, shed or
yard ; if this cannot he done, the " a/verage clause " must he inserted.
Be very particular to see tliat all the policies on the same property read
alike. Sec remarks on Policy and Policy writing. Submit surveys and
have full correspondence with your Companies about Pork House risks,
in advance of the season, so as to be ready when business commences.
PoTTiKigi imm TTekka ©'©^ta Wojjks,
For steam power, add .50 to l.OO. ( (la§»i B, . . 2.00
See that the drying rooms and ovens { Class C, • • '^..lO
are well made and safely arranged. ^ Class D, • . 3.00
Wood piles should not be too near. Ovens should be to leeward of
the buildings, according to the prevailing winds of the region.
Submit survey and diagram.
Powder Mills are unconditionally rejected as uninsurable ; so also
gunpowder on storage in quantities of 100 lbs, or over, and all property
immediately endangered by it.
Permission is usually printed in the Policy to keep 25 lbs. of powder
in close metal canisters, for day sales only.
Clai^M
A, .
. 1.00
€la!^M
B,
. l.-JS
Class
c, .
. 1..10
Class
D,
. '^.OO
60
tpKIIIKIVIJIM® ©IFPl^lES
For iSteam, add .50.
For Book Biiiderv, add .H^.
For Office entirely on ground floor,
deduct, .25,
Printing; establishments are almost invariably in the upper stories,
where salvage is impossible, and are generally total losses. They have
been an unprofitable class of risks to underwriters, newspaper offices
especially.
See that arrangements for drying paper, if any, are safe and not
endangered by stove pipes, lamps, etc. Give caution in regard to greasy
rags, used on presses or copperplates, which, thrown in a corner, may
produce sjxjntaneous combustion. Tidiness and good order should pre-
vail to make the risk desirable. If camphene or benzine is used for
cleaning rollers, or any other purpose, see that the arrangements are of
the best kind and remote from all lights and fire. The great printing
house of Harpei-s', in New York, was burned from this cause.
Coi'i'ERPr-ATE Printers exclusively, well situated and otherwise desir-
able, may be taken .25 below this taritt".
See remarks on Reinsurance under the head of Policies and Policy
Wkitin(;, further on.
Do not cultivate this sort of business, and never issue a rent policy
without previous consent of your company.
Insurance of rents is to indemnify a landlord for actual loss of rent reHultiiifj: dinrtly
from a fire that renders a building untenantable. It is tin; converse of Lease insurance.
The assured must agree to rebuild or repair in as short a time as the nature of the case
will injrniit, s'.nd the loss is ascertained by the time required to repair, being pro rata to
the annual rental of the building or the damaged portion of it.
Kent insurance is entirely aside from insurance on the building. It has nothing to do
with (laniarje to property, l)ut relates solely to Ions of rents, therefore the actual loss of rents,
and not a specified sum (which may be less or more than such actual loss) is the true
measure of a company's lialiility.
For proper fonu of policy consult Hine'e " Book of Forms."
61
If unprofitable or in litisjation, or if I Clasps B, . • 3.^5
unpaid or disaffected hands threaten, -j ClaNM C, . . ^.50
decline the risk. ( Class I>, • • 3.00
Submit manufacturing application, diagram and full details of the
risk, by letter, before accepting.
(^AJJafifQ^D IPfi©!FEK?^,
Class B.
Class C.
Class
i.as
1.50
9.00
1.50
9.00
9.50
. 2.00
S.25
:t.oo
3.00
2.95
3.00
. 2.00
9.50
3.50
1.50
9.00
9.50
. 1.95
1.50
9.00
. 3.50
4.00
5.00
9.00
1.00
1.95
1.75
D.
Passenger depots, detached, .
Freight " "
Locomotive works — see page 51,
Machine shops, excluding car shops,
Car-wheel works— see page 46, . . 9.00 9.50 3.50 (^
Round houses, .
Bridges — see Bridges, page 33.
Eating houses, detached, ....
Car shops — see page 36, ...
Wood sheds — no steam sawing, . .
Water tanks, without steam power,
Charge additional for exposures, and the highest rate of either for a
confflo?nerate of two or more of the above hazards.
The above tariff is only for first-class structures. Application,
diagram and private report should be submitted in all cases, and great
care exercised in regard to the risk. Some of the most disastrous fires
of the present century have been among or occasioned by railroads.
If the risk includes a great number of buildings, depots, bridges, etc.,
call each by name and specify an amount on or in each, as the case
may be.
Policies have been written, " On property of every description belonging to said com-
pany, or for which they may be liable, situated on the line of their road," etc. This in-
cludes road, bridges, wood, buildings and machinery of every sort, cars, engines, freights,
and every other item in one sum! Kate of premium is from twelve to twenty per cent.,
and losses of $500 or less are not to be paid. There is plausibility in the plan, and some com-
C.2
panics have statistics that seem to show a profit. But the proportion of insurance to the
whole value is very small, being usually $50,000 to $100,000 insurance on five to ten
millions of valne— just enough to catch all tfie losses, and makinfj the rate, in reality, one
tenth to one fifth of one per cent. — about one quarter of the rate on choice detached
dwellings ! The plan is deceptive, and you will decline all such insurances unconditionally,
unless specially authorized by the company.
STEAM.
C la§s B, .
. 3.50
Class C, .
. 4.00
€las§ D, .
. S.OO
For water power, deduct 1 .00.
If Flax or Hemp is broken and picked, chari^e Bagging-fa(;tory
rates. Stacks should not be nearer than fifty feet, and water should be
kept in every room.
For TwESTE Factories, neatly arranged, free from breakino;, picking,
baling and other coarse operations ; stacks remote, and the establisli-
ment every way first-class, deduct 1.00 to l.»50 from tlie above tarifi'.
Old-fashioned Rope Walks, hand work only — Brick, 3.50 ; Frame, 4.00.
©atlT W©KKg,
These are usually rough wooden sheds, l ^^xck 2.00
in remote places, and the buildings
are generally of no insurable value.
Frame, . . . :i.OO
Macliinery, kettles, pumps, engines and stocks of salt may sometimes
be covered, however.
Submit application, diagram and private report.
It is an error to suppose that the salt impregnates the buildings over
the kettles, and thus renders them impervious to fire ; it is the ivater
that evaporates^ not the salt: steam from fresh water would be about as
efficacious.
63
Isolated,
Saw Mills running but a portion of the time, from lack of employ-
ment, or scant water, are not insurable ; as also mills in places where
timber has become scarce, or where the cost of transportation is excessive,
or where any circumstances render the business unprofitable. Beware
of small mills with large encumbrances ; of over-stocked markets ; of
poor lumber; of unscrupulous competition, and all other elements of
moral hazard.
Rates foe ordinary Country Mills, (see below for Merchant Mills.)
Water Mills, one or two saws, 3.00
Same with gangs of saws, 3.50 to 4.00
Steam Saw Mills, 7.00 to 10.00
A rickety stove, with pipe through side, or roof — fires in kettles, or
on a rock just outside, as sometimes seen in backwoods settlements,
condemn the risk.
SniNGLE, Lath, or Stave Factory attached, adds half to the rate ;
and a Sash and Blind Factory doubles it.
Limit of insurance, in all cases, one-half the valuation.
Steam Mills are not desirable as a class, and are but rarely accepted.
Submit manufacturing application, diagram and private report before
issuing policy.
On brick buildings deduct l.OO, and on frames that are inclosed
throughout, and can be locked up at night, deduct .50.
National Board Rates on Steam Saw Mills.
No external exposure ; lumber to be sawed wet ; boiler house of
brick or stone (and shut off from mill by iron door) ; roof of same of
metal, slate or gravel; chimney, brick (with spark arrester); casks or
tanks of water on roof; buckets in mill; force pump and at least 100
feet of hose; ladders or other convenient means of access to roof; roof
64
of boiler room not witliin four feet of boiler ; iron flue connecting furnace
with smoke stack as much as two feet from roof or wood work.
Rate on such a mill, 4.^0.
ADDrrroNS for deficiencies.
Frame boiler house, .50 to l.OO, according to circumstances ; boiler
in mill, l.OO to !8.00 5 iron smoke stack, .50 5 no casks or tanks on
roof, .50 5 no force pump and hose, .50 5 shingle mill, where shingles
are sawed, .50 5 where shaved, 1.00 5 sawing dry lumber principally,
1.00 to 2.00 ; no watchman during nights of working season, .25.
See Carpenter Shops.
Clas^ C *{ 00
Class D, . • 3.0O
Submit soap and candle application, diagram and private report
before accepting.
On the best of these establishments limited amounts will be enter-
tained at the above rates, but the companies do not seek the business.
A most persistent fatality has followed these establishments since the
discovery of Petroleum, and they have, as a class, cost double the whole
amount of premiums received from them !
If Lard Oil is made, see that the ci-otiis are well cared for, and not
suffered to lie in heaps, — See Oil Mills.
Examine furnaces, see that Kettles are well set, that no wood work
ap])roaches the fires, and that the general arrangement is tidy and syste-
matic ; if dirty or disorderly, decline. These establishments often
become nuisances, and are secretly fired to rid a neighborhood of the
stench.
6$
'9
STEAM.
s
Examine all Furnaces and Roasters; if ff^i^^
in the upper stories the greatest care ) ^,|^
must have been used in their con- )
tf /1 1 44
struction to render them insurable.
B.
. 2.75
€, .
. 3.00
D,
. a.50
Submit manufacturing application, diagram and ])rivate re})ort
before accepting.
When roasting is done in a separate building, deduct .50. The
hazard of coffee roasting, however, is not in the process alone ; over-
burned coffee, already charred, confined in a heated mass, develops lire.
Many establishments, it is believed, have burned from this cause.
See Carpenter Shops. I J"^ -k ^ I
I! *^ A / V'j^;/»
Being generally at remote points in the mining regioiVs^among^^ vod^li.* V i
population, freouentlv of doubtful valne as pxiipvimpnt^ sn^n'pr'f +n ^-».
population, frequently of doubtful value as experiments, subject to
violence from jealousies and other causes, will be entertained only by
resident agents, who can give them personal inspection ; and they will
submit manufacturing a})plication, diagram and private rei)ort, and
await instructions before making any agreement for risks.
Buildings, if rough sheds, decline. Risks on machinery at five to
ten per cent, for Water and Steam may be considered.
If a mine is idle or unprofitable, decline all risks, either on buildings
or machinery, without terms.
See that all the Heating and Drying I Class B, . . 2.50
Apparatus is well constructed and \ Class C, . . 2.75
in perfect order. ( Class D, . . 3.50
The Kiln is the great incendiary, and must receive particular attention.
There have been some heavy losses on these risks. Submit manu-
facturing application, diagram and private report before accepting.
■y
66
See Barrel Factories.
ST©aE§.
See Mercantile Risks, Page 13.
Values are very lieavy, and tlie hazard ( t^'a*!* "5 • • — .'jO
from steam and fire heat consider- ) l^Iass ly, . . %*.7o
^l^le. ( Class D, . . ».50
See that the entire establishment is of the best construction, and
that every safet^uard against accident is provided, such as force pumj),
hose, buckets, water casks, watchmen, etc.
Submit manufacturing a])plication, diagram and private report
before accepting.
See Soap and Candle Factories.
Bark Mill outside. BincK Frame.
With Heaters and Steam Power (Brick Stack.) 3.50 4.00
Without" " '• " '1.50 :i.oo
If Bark Mill is in the Tannery building, add .50. If over the
furnace room, decline.
For metal roof, deduct .'35. V'or iron chimney, add .25 to .50.
No liglits, fires, or smoking permitted about the Bark Mill. On
stock while in the vats, deduct .50 ; but be very sure to confine that por-
tion of the insurance hj/ specifi'cdtioii^ strictly to the vats, anS IFtD(OW©SK]li,
Examine closely all the furnaces ; there
is a multitude of them ; in the casting
room — the stereotyping room — the -
electrotyping room — and fire pots for
soldering in the finishing room. L
Look to the " backing " and wooden-rule department ; see that
shavings are properly disposed of. If additional wood work is done,
for stands, cases, galleys, quoins, etc., charge .50 to 1.00 additional.
For steam power, add .50 to 1.50. Eefer manufacturing application,
diagram and private report.
(lDyi)®(B(Sl!3!P!lg© IB'i3]iL©]5>J©S,
Unoccupied buildings, property on leased ground with lease nearly
expired, houses out of repair or shortly to be torn down or removed, and
unproductive property (jeneraUy, should be steadily avoided. Where
the character of parties is unexceptionable, and all attendant circum-
stances warrant an occasional departure from this rule, cover half the
actual cash value. Charge warehouse rates (see page 19), and additional
for exposm*es.
(U)?!}3©l.i7SK!ERi, lBs©©]5US AN© fflAITTRSSS fflA3i(EfJ3,
No wood-work. No open liglits allowed, j Class B, . . 2.25
See that shucks, cotton and other j Class C, . . 2.50
litter are not permitted near stoves. ' Class D, • • 3.00
Smoking positively prohibited. If the establishment is untidy decline
the risk.
In large establishments, where bleaching and drying of material is
done, extra precautions must be observed, and extra rates secured.
70
See pages 18 and 19.
For Furnace outside, in a separate fire- I
proof stone or brick linilding, deduct j
.50 troni steam rates, AV^itli " pa-
tent steam dryer," decline.
Water. Steam.
Class B, '^.O© 3.75
Class C, ^.•25 :t.oo
Class D, :t.00 4.00
Force pump and hose should be provided to command every portion
of the buildini;: ; and water casks and buckets must be placed on each
floor. A careful watchman should be employed, and good watch clock
provided. Waste must be i-emoved daily. Machinery not in use will
only be insured upon a schedule furnished by the owner, and but half
the cash value of each item covered. See that cleanliness and order
prevail. If untidy or disorderly, decline the risk. Beware of " patent
oils" and petroleum mixtures. Decline small mills where inadequate
capital impedes successful management.
Submit woolen mill application, diagram and private report before
accepting.
APPROXIMATE ANNUAL RATES.
Add for Exposures accordinfr to tlioir miniber, extent and hazard. Also for addi-
tional orcupanciee. For Class A deduct .10 from B rate.
These rates icill apply in good brick blocks tdthfire walls, hut not in frame ranffe^.
Those marked "refer" and "see page" must be submitted to the companies Iwlore
accepting.
A.
Academiop, pee pa;;c 28
Acids in Store
AyriciiJtural Implement Stocks..
" " Manufac-
tories, Hce pa;,'c 2'.), refer
Alcohol in Store
" Stills, see page 40, refer.
Ale, Beer in Store
Ale Houses
Ambrotypc! Galleries, sec page 56
" Material stock
Anchors, Anvils, heavy iron
stocks
Apothecaries, see pa5
Coffee in Store
" Houses and Saloons
Colleges & Seminaries, boarding
" (see page) 28 " day-school
only
Colormen's Stocks (no oils, var-
nish, benzine, or turpentine). .
Commission Merchants
Composition Rooting Works, de-
cline ".
Composition Roofing in Store.. .
Confectionery Makers, see p. 34.
Stocks
" " with Are works
Comb Makers, hand work
" Stocks
Cooper Shops, see page 36
Copperplate Printers, see page 60
Coppersmiths, see page 67
Cotton Brokers, with samples. . .
•' Mills, water, see page 36.
" " steam, " 36. |
" Presses, " 37. j
" Sheds & Warehouses, see
paKe38 ,
Cotton Gins, see page 37 ]
Battiugand Wadding, in
Store, bales
Cordage and Rope Stocks
Costuiners' Stocks
Country Stores, see page 18
Court Houses, see page 38
Crockery Stores, retail
" wholesale, in j)kgs.
Curled Hair and Hair-Cloth Man-
ufactory
Curied Hair & Hair-Cloth Stocks
Curriers and Leather Uressers, no
tanning or bark mill, sec p. 67.
Cutlery Manufacture
" Stocks
D.
Daguerrotype Galleries, see p. 56|
" " Stocks in Store, .j
Dental Stocks in Store i
" Itoonis, Manufactory ...
Depots. Railroads, see page 61 . .!
Dessicated Meat, Fruit Canning
Dioramas, Panoramas and otherj
traveling e.xiiibitions, decline
DistillericH, see imge 40
Dress Making and Millinery
Drinking Saloons, see paire 50..
Dry Goods and Groceries, see
page 15
2.25
1.00
CISM
c.
2.50
1.25
3.00 I
3.00 1
2.75
.75
1.25
1.00
.75
1.00
1.00
1.25
1.50
1.00
i.a5
1.25
1.00
2.00
1.00
1.00
1.25
2.25
2.75
Dry Docks, refer application .
Drying Kilns, decline
Druf;
39.
stores, wholesale, see page
7.00
1.25
1.25
3.00
1.00
I. .50
1.25
1.00
1.25
1.25
1.50
1.75
1.25
1..50
1.50
1.25
2.50
1.25
1.25
1.50
2.50
3.00
1.00
1.35
1..50
l.(X)
1.25
1.50
1.25
1..50
1.75
1.00
1.25
1..50
.75
l.(K)
1.50
l.(K)
1.25
1.50
.90
1.00
1.40
1.25
1.50
2.00
1.00
1.25
1.50
1.00
1.25
1.75
1.75
2.00
2..5()
1.00
1.25
1.50
1.25
1.50
2.00
.!«)
1.10
1.40
.!K)
1.10
1.40
1.00
1.25
1.75
8.00
1.50
1.50
Clati
8.50
1.50
1.50
3.50
1.25
2.00
1.50
1.25
1.50
1.50
1.75
2.25
1..50
1.75
2.00
1.50
3.00
1.75
1.75
2.00
3.00
4.00
.90 : 1.00
1.75
10.00
1.75
2.00
1.26
Add for Exposures.— Those rates do not apply in Ranges.
Y3
Drug Storep, retail, see pa<;e 39 .
Drug Mills, see page 65
D\vellingf>, see page 8
Dye Houses
Eating Houses and Kcstaii rants
Earthenware, wholesale, in i)kg;
" unpacked
Edge Tool Makers, hand work or
water power
Edge Tool Makers, steam power
Electro Plating
Elevators, see page 40
Embroidery, Lace Stocks ....
Enameling Works, decline.. .
Engine Builders, see [)age 4G. . . .|
'• Houses, Fire Co. 's, with halls
Engine Houses, Fire Co.'e, with-
out halls
Engravers' Stock and Tools
Envelope Manufactory
Express Offices
Cln«« CIms Class
B. €. D.
F.
Fair Ground Buildings, see p. 42
Fancy Stores & Stocks, Notions,'
Soap & Perfumery, not Drugs,
or Apothecary
Feathers in Store
Feed Stores, no Hay and Straw.
" with "
Fences and Outhouses
File Manufactory
Fire-proof Safe Mannfac'y, hand
" Stocks I
Fire Works Manufactory, decline!
" Stocks, sales only . . . j
Flax and Hemp Mills, see p. 43
" Bales, storage. .[
" unpacked, decline
Flooring Mills, see page 56 '
Floor Cloth Factories,' refer 1
Florists' Stocks, decline i
Flour Mills, water, see page 44. .
" " steam, " 44..]
" Stores
" on Storage
Foundries, see page 46 1
Frame & Sash Makers, see p. 56
Frame, Picture and Glass Stocks
Fringe and Trimming Stocks. . ,1
Fruiterers
Fruit Canning Establishments. .
Fulling Mills (steam 1, 00 extra)
Furniture, see page 46
" Factories, see p. 34. .
" Stocks, no work
Furnishing Stores, House
" •• Gents'
Fur and Hat Stocks
Furs and Peltries on Storage
Furnaces, see page 61
o.
2.75
.75
1.50
1.25
.35
1.00
1.75
2.00
1.25
2.00
1.00
.75
1.00
1.25
1.00
1.00
1.00
1.00
1.00
1.25
1.75
1.25
.75
1.25
3..W
1.50
7.00
3.25
2.25
3.25
.75
.75
2.00
7.00
1.25
1.25
1.00
1.25
2.00
6.00
1.00
1.00
1.00
1.00
1.00
2.25
1.00
Gas Fittings
" and Lamp Stocks, no
woik I .90
3.00
.40
1.75
1.50
l.(X)
1.25
2.00
2.50
1.50
2.F0
1.25
1.00
1.25
1.50
1.25
1.25
1.25
1.25
1.50
2.00
1.50
1.00
1.50
4.00
1.75
8.00
3.50
2.50
4.00
1.00
1.00
2.50
S.OO
1..50
1.50
1.25
1.50
2.50
7.00
1.25
1.25
1.25
1.25
1.25
2.50
1.25
1.10
3.50
.50
2.25
2.00
1.25
1.50
2.50
3.00
2.00
1.75
3.50
1.75
1..50
1.50
2.00
1.50
1.50
1.50
1.50
1.50
2.00
1.25
2.50
2.00
1.2.5
2.00
5.(X)
2.00
10.00
4.00
3.00
5.00
1.25
1.25
3.50
10.00
2,00
1.75
1.50
1.75
3.00
10.00
1.50
1.50
1.50
1.50
1.50
8.00
1.50
1.40
Gas Fittings and Lamp Manuf'y
Gas Works, decline
Gentlemen's Furnishing Stores. .
Gilders, no Frame Making
Glassware and Crockery, whole-
sale . .
Glassware and Crockery, retail..
Glassworks, see page 46
Glove Makers
Glue Manufactories
Gold Beaters
Grain Dealers, no Hay or Feed. .
" on Storage
" in Stacks 25 i)er month.. . .
Grate and Railin<; Makers, hand.
Grist Mills, see Flour Mills
Grocery Stocks
Glim Slirllac, (!opal
Gunpowder and Powder Mills,
see page ,5".t, decline
Gun and Hardware Stocks
Gunsmiths
Gutta Percha Factories, decline
" Unmanufactured..
'• Ware Stocks
Gymnasiums
Cla.»
B.
1.50
1.00
1.35
.75
1.00
2.25
1.00
1.75
1.00
.75
.75
1.75
Clasn
C.
2.00
1.25
1.50
1.00
1.25
2.50
1.25
2.50
1.25
1.00
1.00
2.00
1.00
1.00 1.25
1.00 1.25
1.25 1.50
H.
Hair Cloth Manufactory
Hair, Human— Manufactory
Halls, no Theatre, or Scenery. . .
Hardware Manufactory
Stocks
Harness and Sadlery
Hat Factories
Hat Stocks, Caps. Furs, no fire. .
Hat Finishers, fire for Irons only
Hay in bales. Stored
Hay Barns and Presses, see p. 47
Hay— Farm risk, see j)age il
Hemp in bales. Stored
" loose, unpacked, decline
" Houses
" Yards, stacks and sheds,
see page 47
Hemp Mills, see page 43 ...
Hides and Leather, in store..
Hop Houses and contents, sec
page 47
Hops, baled, in store
Hose and Belting Factories, hand
work, leather
Hosiery Stocks
Hospitals
Hotels and Taverns, see page 4S.
Household Furniture, Dwelling
rate
House Furnishing Stores
H(rases Building or Kepairing,
see page 33
Houses unoccupied, see page 69.
Hub and Spoke Factory, hand. . .
For Steam add 1.00 to 3.00. . .
I.
1.00
1.00
1.25
1.25
1.00
1.25
1.75
1.00
1.WI
1.25
1.(10
1.00
1.26
1.50
1.75
3.50
.75
Ice Houses and contents
India Rubber Factories, decline.
India Rubber Stocks
Clasfi
D.
1.50
2.00
1.25
1.50
3.00
1.50
3.00
1.50
1.25
1.25
2.50
1.25
1.50
1..50
2.00
1.25 1.50
1.25 1.50
1.50 2.00
1.50
1.25
1.50
2.00
1.25
1.25
1.50
1.25
1.25
1.50
2.00
4.00
1.00
1.00
1.25
1.00
1.00
1.25
1.25
1.25
1..50
1.00
1.25
2.00
2.50
1.50
1.75
1.00
1.25
2.00
1..50
2.00
2.50
1.50
1.50
2.00
1.50
1.75
2.00
1.50
2.50
3.00
2.00
5.00
1.25
1.50
1.50
1.50
2.00
1.50
3.50
2.25
1.50
Add for Exposures.— These rates do not apply in Ranges.
74
India Rnbhcr, unnianufacfiired
Ink and Blacking' Factories
Iron Stockn, lieavv poodn
Plate, Sheet, Wire,
Hoop
Iron FoundricK, pec paire 46 .. . .J 2.00
CIsu
B.
1.00
1.25
.75
1.00
liailinij and Grate Manafac'y
" Safe ^faniifactorv
" ■' Stock!* ....■
Ivory -black Mannfactorv
J.
JailB, Pee pajite 39
JapannericH, decline
Jewelers' Slockn
" '• in Fire-proof Safes
" Maunfactoricp
Joiner ShopK, pee page 34
Jiiiik and Rag Stores, decline. . .
L..
LaboratorieB— Chemical, refer. . .
Lace and Embroidery Stocke
Lamp and Oas Fitters' Stocks. .
Sales of
f'ainphene and Coal Oil, see
page .54
Lamp-black Manufactory
Lard in bbls. in Store
" Oil in bbls. in store
" " Factories, see page 52. . .
Last Makers, hand work
Lath Factories, sec Saw Mille,
pace 03
Laundries
Lead Sheet and Pipe Manufactu-
rers, refer
Lead— White and Ucd— Manu-
tiirers, refer
Lead in Store
" Smelting EstablishmentH,
refer
Leather Stores
Libraries, Private, Dwelling
Rates
Libraries, public, on lower floor
" " in 2d or 8d et'ye
Lightning Rod Makers
" " Stocks
Lime and Cement, Stored
Linseed Oil, Stored
" " Mills, see page 52
Liquor Stores, wholesale, i
piVJf .".()
Li(|iior Drinking Saloons ....
Litnographcrs, npjier stories
'• on ground floor,
.25 off
Livery Stables, see page 50
Lock Factories, reler
Locksmiths, Gunsmiths
Locomotive Works, sec page 51
Locomotives in Round House,
see page til
Looking-Glassand Frame Stocks
" " Frame Manufac-
torj', see page 5((
Lumber Yards, see page 51
1.75
1.75
.75
2.25
1.60
1.00
.75
1.00
2.50
2.75
1.25
.90
1.25
2.25
.75
.75
1.75
1.75
1.25
2.75
2.00
.75
1.00
1.25
1.75
.75
1.00
.75
2.00
1.00
1.25
1.25
2.m
1.75
1.25
2.00
1..50
1.25
7.00
Class
c.
1.25
1..50
1.00
1.25
2..W
2.00
2.00
1.00
2.f0
2.00
1.25
1.00
1.25
3.00
3.00
1.50
1.10
1.50
2.50
1.00
1.00
2.00
2.00
1.50
3.00
2.50
1.00
CIlIM
D.
1.50
2.00
1.25
L.-iO
3..50
2.50
2..50
1.25
3.50
1.50
1.^5
L.M)
4.00
4.00
1.75
1.40
2.00
3.60
1.25
1.25
2.25
2.50
2.00
3..50
3.00
1.25
1.00 1.25
1.25
1.50
2.00
1.00
1.25
1.00
2.25
1.25
1.50
1.50
1.50
1.75
2..50
1.25
1.50
1.25
2.50
1.75
2.(H)
2.00
2.75 3..'i0
2.110 I 2..50
1.50 : 2.00
2.25 ; 3.00
3.00
1.50
2.50
1.76
8.00 '10.00
1 2.00
Machine Shops, see page 51 . . .
Mahogany Yards, 1.75 to 2.00
Malt Houses, see Breweries,
imge .32
Manilla and Sisal Grass, baled. .
Map Makers,
Marble Shops, Yards and Stock.
Masonic llalls and contents,
upper stories
Mast Yards, 1.75 to 2.25
Match Manufactory decline
" Stocks on sale
Mathematical Instrument M'krs'
Mattress Manufactory, see p. 69.
Meat Stores
Medicines, Patent, Manufactory.
" " in Store. . ." .
Metal in Pig?;, Plates, Rods, Bars
Military and Coach Laco Slocks.
Millinery Slock
Mills of "all kinds, refer
Morocco Factories
" Dressers
" Stocks, Leather
Moulding Factories, see page 56.
Museums and Exhibitions, de-
cline
Music Stocks
" Instrument Makers, not
Piano Factory, baud work. .
nr.
Nail WorkSj see page (il
" Stock in Store
Naval Stores
News and Periodical Depots,
Notion and Variety Stocks . .
o.
Oakum in bales, storage
Odd Fellows Halls and contents,
upper stories
Oil Mills, see page 62
" in bbls. in Store
" Cake, Stored
" Coal and Petroleum, see p. 53
" Cloth Factories
" " Stocks
Omnibus Factories, see page 36.
Stables " 49.
Blocks " 16.
Opera Houses, decline
Optical Instrument Makers
Organ and Piano Factories, 8ce
page 55
Orga.iis, sec Churches, page 35
Oyster Cellars
P.
Packing Houses, see page 57.
Paint, Oil and Drug Stocks, see
page 39
Paint Works
" Shops
Paintings and Panoramas, travel
iiig, decline
B.
2.00
1.25
1.25
1.00
1.25
1.26
1.00
2.25
1.00
1.25
1.10
.75
1.00
1,25
2.75
1.25
.75
7.00
1.00
1.75
2.25
.75
1.00
1.25
1.00
1.25
1.25
2.00
.75
.75
.75
3.60
1.00
2.75
1.25
C1.V8
c.
2.25
1.60
1.50
1.25
1.50
1.50
1.25
2.50
1.25
1.50
1.40
1.00
1.25
1.50
3.00
1.50
1.00
8.00
1.25
2.00
CIU3
D.
3.00
2.00
2.00
l.-OO
2.00
2.00
1.50
3.00
1.75
2.00
1.75
1.25
\.m
1.75
3.00
2.00
1.25
10,00
1.50
2.50
2..'H) 3.00
1.00 i 1.2.5
1.25 1..50
1..50 2.IHI
1.25 1.50
1.50
1.50
2.25
1.00
1.00
3.60
1.00
4.00
9.00
1.35
3.00
1.50
9.75 3.00 3.50
1.75 2.00 I 2.50
2.00
2.00
2.50
1.25
1.25
4.00
1.25
5.00
2.50
1.60
8.50
2.00
Add for Exposures.— These rates do not apply in ranges.
75
Pail & Bucket Factories, see p. 56
Panoramas, Dioramas, decline
Paper Mills, Bee page 54
" Stores
Hanging Manufactory, sec
page 55
Paper Hanging Stocks
" Box 'Makers
Patent Leather Manufactory,
ilecline
Patent Medicines Manufactory.
" " Stocks
Pattern Shops
Patterns, see page It!
Parasol and Umbrella Factories
'• " Stocks..
Pawnbrokers
Penitentiary Workshops, decline
Perfumery Manufactory
" Stocks
Periodical and News Depots.. .
Petroleum and Products, sec
page 53
Photograph Galleries, see p. 5(1. .
" Slocks, in Store
Piano and Organ Factories, see
page 55
Piano Stocks
Picture and Lookiug-GlassSt'ks.
" Frame Manufactory, page
56
Pickling, Fruit Canning...
Plane Makers
Planing Mills, see page 56. . ,
Plaster Paris Works, steam
Plating Shops, Britannia Ware
Manufactory
Plating Ware, Britannia Ware
Stocks
Plow Makers, hand, see page 35.
Plumbing, Pewtering, Qas Fit-
ting Manufactory
Plumbing, Pewtering, Gas Fit-
ting Stocks ^
Pocket Book Makers
" " Stocks
Pork Houses, see page 57
Porter and Beer Houses
Potash Makers, decline
Potteries see page 5!)
Powder Mills, decline, sec p. 69
Preserve and Pickling Shops. . .
Precious .Stones, Jewelry .Stocks
Printing Offices, see pape 60.
Printing, Dyeing and BleacI '
Print Works, Calico, refer.
Prisons, Jails, see page 39
Provision and Prouuce Stores. .
Pump and Block Maker
Pyrotechnic Works, decline . . .
" Stocks
Queensware Stocks.
R.
Rags, baled, in Store
Rag and Junk Stores, decline.
Class
Class
Class
B.
c.
D.
7.0<)
8.00
10.00
2.25
1.00
2..50
1.25
.3.00
1.50
1.50
1.00
1..50
1.7.-)
1.25
1.75
2.00
1.50
2.25 ;
1.25
1.10
2.00
1.50
1.-40
2.25
1
2.00
1.75
.3.00
1.2")
1.00
1.25
1.50
1.25
1.50
2.00
L.-^O
2.00
1.25
1.10
1.25
1..^.0
1.40
1.50
2.00
1.75
2.(K)
.90
1.10
140
2.75
1.00
1.25
3.00
1.25
l.,50
3..50
1..50
1.75
7.00
1.25
1.75
7.00
2.75
8.00
1.50
2.00
8 00
3.00
10.00
1.75
2..50
10.00
4.00
2.00
2.25
2.75
.no
2.25
1.10
2.50
1.40
3.50
1..50
2.00
2..50
.90
1.25
1.00
1.10
1..50
1.25
1.40
2.00
1.50
1.25
1.50
2.00
2.00
2.25
3.00
1.25
1.00
1.25
2.75
1..50
1.25
1.50
3.00
1.75
1.50
2.00
3.50
1.00
1.75
1.25
2.00
1..50
2.50
1.25
1.50
2.00
1.00
1.25
1.50
1.25
1.50
2.00
Railroad Property, sec page 61
Rectifying Liquors 1 1.25
Rendering Lard, see patrc .57. . . .
Refrigerator Manufactory, hand. 2.00
Stocks , 1.00
Regalia, Masons, I. O. O. F.. etc.j 1.25
Restaurants, Kating Houses i 1.25
Rice and Grain Stored .. .75
Kigging Lofts | 1.25
Roofing (com p.) Makers, decline. I
" " Materials, Storcdi 1.25
Holling Millg, see page 61 2.25
Rope and Cordage, Stored.
" Manufactory, Steam
" Walks
Rosin Oil Distilleries, decline.
" in Storage
S.
Saddlery HHrdware, Stocks ....
Saddletree Makers, hand
Saddle and Harness Shops
Safe (Iron~) Stocks
" " Manufactory
Sail and Awning Makers
Saloons, Drinking
Salt Works, sec page 02
" Stored
Saltpetre Kefinery, decline
" Stored in (juantity,
decline
Sash and Blind Factory, sec p. 56
Saw Mills, sec page ().3
School Houses, see page 28
Second-lland Stores (decline
Stocks)
.'^egars, see Cigars
Seed Stores
Seminaries, see page 2S
Sewing Machine Stocks
Sheet Iron Shops, see page 67. . .
Ship Carpenters, " 34...
" Chandlers
Ships in Port, see page 31
Shoddy, Stored
Shoe Makers
" Stock, wholesale
Shuttle and Loom Makers
Show Case Makers
" " Stocks
Silver Platers
" Ware Manufacturers
" " and Jewelry Stocks.
Sisal Grass and Manilla, Stored.
Slaughter Houses, see page 57. . .
Smoke " " 57...
Snutt" Mills
Soap & Candle Factory, see p. 64
Soap and Candle Stocks
Spice and Drug Mills, see page 65
" Stocks
Spirit Gas and Camptiene Manu-
factory, decline
Spirit Gas and Camphene Sales —
Drug Rates, see page 39
Spirits Turpentine, Rosin— Naval
Stores
Spoke and Hub F.ictory, steam
add 1.00 to 2. 00
1.00
3..50
3.25
1.00
1.00
1.75
1.00
.75
1.75
1.25
1.25
.75
1.00
Loi)
1.00
2.50
1.00
1.25
1.00
75
L75
1.75
1.00
2.00
2.00
1.00
1.25
2.25
2..50
.75
2.75
1.00
1.00
2.00
C1.1S5
c.
1.50
2.50
1.25
1.50
1.50
1.00
1.50
1..50
2..50
1.25
4.00
3.50
1.25
1.25
2.(M)
1.25
1.00
2.00
1.50
1..50
2.00
1.00
7.00 8.00
.75 1.00
D.
2.00
3.50
1..50
2.00
2.00
1.25
2.00
2.00
3.00
1.50
5.00
4.00
1.50
1.50
2.50
1..50
1.25
2..50
2.00
2.(M)
3.0(1
1.25
10.00
1.25
1.25 1.50 2.00
1.25
1.00
1.25
1.25
3.00
1.25
1..50
1.25
1.00
2.00
2.09
1.25
2.25
2.25
1.25
1.50
2.60
3.00
1.00
3.00
1.25
1.25
2.50
1.50
1.25
1..50
1.75
4.00
1..50
2.00
1.50
1 .25
2.50
2.50
1..50
2.75
2.75
1..50
2.00
3.00
3..50
1.25
3..50
1..50
1.50
3.50
Add for Exposures.— These rates do not apply in Ranges.
76
stair Buildern, see pa^e 34
Stamp and CJuartz Mills, i
1.00
1.25
1..50
1.25
1.50
2.00
.90
110
1.40
1.00
1.25
1.50
1.25
1.50
2.00
2.00
2.25
3.00
.75
1.00
1.25
1.00
1.25
1.70
1.00
1.25
1.50 1
1.00
1.25
1.50
1.50
2.00
1.75
2.00
2.50
4.00
5.00
1.75
2.00
2.50
1.50
1.75
2.. 50
1.25
1.50
1.75
1.25
\M
1.75
1.00
1.25
1..50
2.50
3.(K)
4.00
1.00
1.25
1..50
7.00
8.00
10.00 1
Turners in Wood, by hand.
" " steam...
Type Founders, see page 69
Umbrella & Parasol Manufactory.
" " Stocks
Undertakers' Stocks, no work.. .
Upholstery Manufactory, see p. 69; 2.25
" Stocks
V.
Variety Store
Varnish Factories, decline
" Stores
Veneer Makers, hand
Venetian Blind Makers, hand
Vessels and Sfeamboits in Port
or R<'i)airing, see page 31
Victualling Shops.
Vinegar Factories
w.
Wadding and Batting Factory,
see page 31
Wagon Maker.^, sec page 35
Warehouses, sec page 19
Washini; Machine Makers, hand.
Watili .Maki'rs,.)owelry Shops...
Walcii .Manufactories
Wliali'lioiic Stored
Wh(il\vriL,'hts, hand work
Wheel, Hub and Spoke Factory,
hand. For steam, add 1.00 to
3.00
Whip Manufactory
" and Cane Stocks
Whisky, stored
White "Lead Works
Window Shade Makers, no wood
" Glass in boxes
Wine & Liquor Stores, see p. 50.
" '^ in Warehouses,
no sales
Wine & Liquor Saloons, see p. 50
Wig Makers
Willow Ware Makers
" " Stocks
Wire Factories
*' Working Shops
Wooden Ware Factories, steam
" " Stocks
Wood Yards, see page 51
Wood Baled, storage
Woolen Mills, see page 70
Clui
Clois
B.
c.
2.25
2..50
4.00
5.00
2.00
2.25
1.25
1.50
1.00
1.25
1.00
1.25
2.25
2.50
1.25
1.50
1.00
1.25
1..50
2.00
1.75
2.00
2.50
3.00
1.25
1.50
1.50
1.75
2.25
2..50
2.25
2.50
l.(K»
1.25
1.25
L.'iO
.75
1.00
2.00
2.25
2.00
2.25
1.25
1.50
l.(H)
1.25
.75
1.00 :
2.75
3.00
1.50
1.75
l.(K)
1.25
1.00
1.25
.75
1.00
1.25
1.50
1.00
1.25
1.25
1.50
1.00
1.25
1.75
2.00
1.25
1.50
4.00
5.00 t
1.00
1.25
1.00
1.25
2.75
3.00
Clau
D.
3.00
6.00
2.75
2.00
1..50
1.50
3.00
1.75
1.50
3.00
2..50
9.00
2.00
3.50
.3.50
1..50
1.75
1.25
3.00
3.00
2.00
1.50
1.25
.3..50
2.25
1.50
1.75
1.25
2.00
1.50
2.00
1.50
2..50
2.00
8.00
1.60
2.00
1.50
4.00
Add for Exposures.— These rates do not .ipply in Ranges.
77
®liij gipplication and ^mvvcjj.
This is tlie first stej) in eft'ecting an insurance. Never issue a Policy
without first securing a regular application and survey. This is habitu-
ally neglected hy some agents ! it is of prime importance, however, and
should not be omitted in any case.
Parties sometimes object to filling and signing an application ; this
is invariably from one of four causes : ignorance, laziness, unfounded
prejudice, or incipient fraud : either of which, instead of justifying the
omission, should make the rule imperative.
Let it be filled carefully and completely, written in ink, and signed
})y the applicant. Each question is asked to be answered ; therefore let
it be answered, omitting none.
Where practicable, the applicant himself should make it out. If he
desires it, however, you can write it for him, but in doing so you are his
agent for the time being.
Make no entry or remark of your own on the application, unless there
is some blank prepared especially for the agent to fill. It is the a[)])li-
cant's document, filled over his signature ; and entries thereon by
another party are inappropriate. Give your own views and statements
on a letter-sheet separately ; always do this freely, as a Company always
desires particularly to know how its agent regards the risk ; making a
private report on all its essential points of great value.
Number the application the same as the Policy, and refer to it
therein, making it ])art thereof in the following words : " Special
reference heing had to the asstireWs application^ No. , which is his
[her or their] warranty and a part hereof.''^
This is for Mercantile and Dwelling Risks. It should be filled by
the applicant — answering each and every question fully, and signing the
same. Let a diagram be made in the blank prepared for it : see
directions, in regard to Diagrams, further on.
78
For tliese there are ai)plicatioiis of various tbrnis adapted to each
occupation, as
Flour Mill, Papek Mill,
Cotton Mill, Woolen Mill,
Tannery, Brewery,
Pork House, Saw Mill,
Soap and Candle Factory,
and also a General Manufacturing Application. Each special hazard
must he surveyed ujpmi its own inirticular hlanJc, as none of the others
will hring out the particular information desired ^ please reinemher this.
Applications should always be written in ink, and never in pencil
mark. They should invariably receive the signature of the Applicant.
A survey is simply a critical examination of the risk in all its In-
surance aspects, and a notation of the same on the printed blank. Its
importance is dwelt ui)on by all underwriters, and cannot well be over-
estimated. It should clearly develop five vital points, namely. Con-
struction^ Occupancy, External Exposure, Internal Danger and Moral
Hazard.
Be familiar with the Cr.AssiFuuTioN of Buildings on the last page
of the book, it will greatly aid you.
Fire- Walls. — A fire-ioall is, briefly, one that will turn fire. To do
this it must be at least twelve inches thick, without ojienings, rising
well above the roof, having the joists resting on ledges, or beveled and
so inserted that the falling of a floor will not pull the wall dowiu If
any walls arc represented as Jire-walls, see that they come up to these
requirements.
llooFS. — Metal, slate, tile, or shingles laid in mortar, are the only safe
materials with which to cover buildings in blocks or that are exposed.
"Composition," ''gravel," " mastic " and other "Patent" prejtarations,
Y9
are vanity ! Some of them will resist sparks rather better than shingles ;
but the dripping, burning tar from mi inside fire, lohich prevents the
removal of goods ; and the iierceness witli wliich it burns from outside
flames, when once ignited, overbalance its good points, and grade it
with or below common shingle roofing.
The Brooklyn Fire Marshal says : In fifteen years' experience, I have seen only one
[composition] roof where it stood the test, but a great many where it ran oft" on the
approach of fire and burnt very readily. If I wished to burn a house down, I do not
know of anything better to assist me in the undertaking than some of these preparations
for cheap roofing. It is very easy to make samples which will resist fire, but I have never
seen the same preparation on roofs. I am fully persuaded that tin, sheet-iron, slate, or
even shingles, make a better roof than any of the preparations, and, in the long run, a
cheaper one."
It is safe to say that fire-proof tar is as scarce as non-explosive gun-
powder or incombustible kerosene !
Continuous roofs, over a block without fire-walls, are a bad feature,
and add to the rate .2»5 to .50.
Wooden Coenioes are dangerous ornaments. In the great Troy fire
" hundreds of valuable buildings, in all parts of the burnt district, were
set on fire on their wa)oden cornices from the surrounding heat alone.
Our authorities could do no greater service than by prohibiting this de-
scription of ornament on any building which may hereafter be erected."
Scuttles and Stairs to the roof are an important convenience in
protecting the building from neighboring fires.
Skyliguts and Oijservatokies are easily broken in, and add to the
dangers of a sweeping fire. If badly constructed, or peculiarly exposed,
they should add .10 to .25 to the rate.
CuTMNEYs, flues, stovcs, pipcs, furnaces, ashes, etc., have had atten-
tion on pages 10, 11, and 12, which see.
Communications. — Two buildings communicating by doors, and oc-
cupied by one tenant, are generally regarded as one, and stocks therein
are so insured ; it is much better, how^ever, to put a specific amount on
or in each, where practicable. If such buildings are occupied by more
than one tenant, all must pay the rate charged for the most hazardous.
Iron Doors and Shutters, of adequate thickness, well made and
well hung, compensate in a great measure for openings : if regularly
closed at night, you may rate the wall as whole.
80
Plate Glass, three feet square or more, in windows and doors, mnst
be separately insured, and a specific sum placed on each plate at an ad-
vance of 1 .00 over the rate on building ; their great liability to crack
from heat or be broken at a fire makes this only just.
C».)RNEK Buildings with doors opening into two streets are a shade
better for insurance of merchandise, from the facility with which goods
may be saved.
FuAME Buildings in ranges are treated on page 17, which see.
Buildings or Contents are priferable according to construction and
other circumstances. In cities and large towns with good fii'e depart-
ments, buildings, as a rule, are best. So of detached risks generally
and standard warehouses and stores (short risks on contents always ex-
cepted). But in frame ranges, or in blocks under continuous roofs, or in
omnibus blocks, stocks are the best, specially those on the ground floor,
])ut stocks in the third and fourth stories are not so good as the building.
Experience, only, will give correct discrimination on this point.
• Occupations have long been grouped in four classes, called Nmi-
Hazardous^ such as Dwellings, Staple Dry Goods ; Hazardmis^ such as
Crockery, Hardware ; Extra Hazardous^ such as Drugs, Books ; and
Specially Ilazai'dous, such as Mills and Manufactories.
While this system has its merits, and is still i-etained in many policies,
some companies have dropped it altogether as being too vague and
general. The general drift of this book looks to its abandonment, but
need not in any wise conflict with those companies that retain it.
Instead of grouping flfty or more occupations under one tariff" figure,
we have prepared rates and rules for each on the foregoing pages.
Ascertain and note the si)ecific occupancy or occupancies of the risk,
turn to those rates for detailed advice, and then give attention rather to
the character of the occupant^ as suggested by queries on pages 1.'' and
14, and also under the head of Moral Hazard. All these (pu'stions
have theii- bearings, and siiould be well considered as of vital importance.
If on any of these points you reach an unfavorable conclusion, beware
of the risk !
81
The bearings and importance of external exposures are not generally
appreciated by agents who have not given the subject careful study,
and yet it is no more true that " a man may be known by the company
he keeps," than that a risk must be rated according to its surroundings.
It is, however, next to impf)ssible to give rules on this topic that shall
meet every case, because the situation and ex^josures of no two risks are
precisely alike ; but the following remarks will be of value :
Buildiiifrs Class A arc refjardtsd as unexposed when standing 20 feet from brick,
mercantile or dwelling risks, or 40 feet from frame. If the exposures are special hazards,
no general rule can be (riven ; each must be determined upon the individual facts.
B and C buildings are unexposed at double the above distances (unless a fire- wall
intervene, then 30 to 60 feet).
D buildings are safe at 100 feet, unless the exposure is very heavy.
The direction of the wind has considerable to do with the importance of an exposure^
Wherever the prevailing winds are W., S. W. and N. W., a westerly exposure is more
formidable than an easterly one, and should stiffen up the rate accordingly.
Narrow streets and alleys, with bad exposures opposit(v, have an important bearing,
and must not be overlooked.
Exposures diminisli in force, as the distance increases, much more rapidly in regard
to brick buildings than in regard to frames. A few examples will illustrate :
I. A frame dwelling adjoining a frame black8mi*,h's shop is worth blacksmith
rates (2.25) ; at 5 feet distance the hazard would be practically the same ; at 10 feet it
would be worth its own rate and half the blacksmith rate in addition (1.62) ; at 20 feet,
its own and one-fourth the blacksmith rate additional (1.06); at 40 feet one-eighth the
blacksmith rate additional (.78), and would not get well rid of the exposure short of
100 feet. A class B dwelling adjoining the same shop would partake of about half the
blacksmith hazard in addition to its own (1.47) ; at 5 feet it would be relieved of one-
eighth of that exposure (1.3S) ; at ten feet, one-fourth (1.19) ; at 20 feet, one-half (.91) ;
and at 40 feet it would almost cease to be exposed.
II. Brick stores with fire-walls and iron shutters standing on opposite sides of a 20
foot alley would make hardly an appreciable exposure to each other ; while frames
similarly situated would each impart one-half or more — according to height and size — its
own hazard to the other, and if worth 1.25 detached, would now be wortli 2.00 to
2.50.
III. A frame warehouse adjoining a frame steam mill would be worth mill rates,
but the force of the exposures would not diminish so rapidly as in the blacksmith illustra-
tion above, because the greater height and size of the mill would, in the event of a fire,
extend its burning power much further, and at 10 feet the warehouse would be about as
certain to burn as if adjoining, and, at 30 or 40 feet at least one-half the mill rate should
be charged in addition to its own. A discrimination of .25 to .50 could be made, how-
ever, in favor of contents of warehouse, for the probabilities of removal.
8^
ISTothing sets forth the true insurance merits of a locality, and the
bearings of buildings upon each other, like a good diagram. The
examples given on the following pages are on a scale of fifty feet to an
inch, and are commended to your careful study and imitation.
So much difficulty is encountered, and such a mass of detail is
involved in stating rules and examples for rating exposures^ that we
believe no good practical result would be reached by the attempt ; and
you are referred to the accompanying Model Diagram, as aft'ording a
better illustration of risks than any amount of mere printed explanation.
now TO MAKE A DIAGRAM.
Survey the premises thoroughly and make a rough sketch with all the distances
marked correctly, and such memoranda as you may need ; then copy it carefully at your
desk, drawing it to a scale ; (50 feet to an inch is the scale most generally in use.)
Use RED ink for hrick or stone buildings, and black for frames. Designate fire-trails
by a heavy red mark. Put the distances in feet in red ink, and the number of stories in
black.
Write in the whole occupancy of the risk and all its exposures ; also the materials of
the roof, but shingles may be indicated by a cross (x), composition by a dot (.), and metal,
slate or tile, by a star (*).
Always give the points of compass.
On the backs of applications are ruled faint lines, about five to an inch. Rate tliese
little squares as ten feet, and you have a most convenient scale on which to draw an
accurate Diagram, by means of which you can get the sizes of buildings, and tlieir
distances from and bearings upon (^ach other, with considerable precision. A little
practice will make this familiar and render the work easy and rapid.
Number tin; buildings, as in the plat on the following page, for convenient reference
in regard to details tMt cannot go in the limited space of the Diagram itself, and state
freely any information bearing u|K)n the sev+^ral risks. For example (see next page),
" Nob. 15 and IG, well arranged and occupied, choice risks." " Nos. 13 and 14, good
buildings, omnibus occupancy, untidy." " Nos. 10, 11 and 13, neat and orderly, best class
of frames, chimneys all built from the ground." " Nos. 3 and 6, fair of their sort, well
ke]>t, but rather wooden." " Nos. 21 to 29 inclusive, very dangerous, flues imperfect,
occupation miscellaneous, not insurable.'' " No. 20, new and well built, smutter in base-
ment, tidy, good of its kind." " No. 19, small, neat shop." " No. 17, dangerous stove
pipe, bad risk and bad exposure," and so on, as the merits of each may demand.
1
Crib.
yoj.
Shed.
Tjiven'^' Hotel StaNe
N|
/fardwarr.
Xa/O.
CrrarcTies.
Xo.H.
12
C/iurrJi.
Aa.9.
S///frS/um
iiniMi
Oemm/ Store.
Ma/o.
OcnlS'tore.
treneral Store
one oeeiipant.
Af'a/S.
\^.
o
A'ot6
Ware
louse.
C/YKs:s
Street.
10
1 1
TH)
fSWtd/et
Shop.
Xo.Q/.
SheA •-
{rr(frrne,s\ 'o
Xa2S.
StaNelj
IS
iS'fuvShm trr///s7//tltfy.
Ptoeiuee/^NeetSton'.
StaMf.
Xo.27.
Fter/iititre
Store.
Ao.es.
■ ^
Carpe/iter Shop.
Ah/Z
A U \\
BlacKsmitJi
S/wp.
nv (»K
CALIF()(.'\IA.i '^
U
,Vo.20
Steam
^ Model I)ia^raiu
rahJTier S7?op. !^ Ser//r ,*t//tJru/t///uh
3
2
1
mre.
lO
JcfmSfShrf.
Durffmg.
15
WB.
PorA'n/r/tv//r/
in f/irM'/n(a:
Ititdien.
Diagram of l*roperly at Jones laiuliiiQ on Ohio Kiver.
Diagram of Wilsons Mills onO>\i Crook.
85
8V. (lnit©iri;iall Pattg^ps atidl SeQiaplt^es.
In addition to what is said in regard to construction, occupancy
and moral hazard, your attention is invited to several other points of
internal arrangement, such as
]. Sleepiiuj rooms for clerks or others; these are frecpiently care-
lessly kept, and they demand consideration. 2. Hatchways, Shyl'ujhts
and Well-holes f these make great flues to spread a fire quickly through-
aut a huilding, and, where it is possible, they should be closed when not
in use. 3. Deadened floors / these, if entire, without hatchways, retard
the progress of flames and make the hazard in upper stories much lighter.
4. The Heating ai)j>aratus, whether fireplaces, grates, stoves, furnace
or steam, must receive critical attention and be sound and safe in every
respect ; as also the mode and means of lighting — see extended remarks
on these subjects on pages 10, 11 and 12. 5. The Imsiness system of the
concern^ whether neat and orderly, or dirty and loose, whether books
are systematically kept. G. Careless or intejnjperate employes and
sleepy watchmen should be noted. 7. Night work — as in manufactories
and printing ofiices ; late hours, as in hotels, stables and saloons, all
have their elements of danger and should be taken into the account.
8. /Spontaneous eo?nJncstion may be lurking unsuspected ; greasy rags,
camphene, painted or oiled canvas, lime, lamp-black and oil, matclies,
benzine and various other latent incendiaries often " take fire of them-
selves " and must be looked after.
yi/„ Moml Mlasairdlo
This arises from the motive, intention, design, desire, will or ]tiirpose
of owners or others to burn property ; and is directly the germ of fraud
and a fire. Guard against it above all other things, and if any taint of
it be developed in tlie course of your examination, reluse the risk uncon-
ditionally. It is more difficult to discover than all else, because hidden
from view in the breast of the intended incendiary, who may be of
accepted respectability and standing. Jfere is a field for the exercise of
yoirr own judgment and firmness. You need not (indeed, you cannot,
witliout oflence) proclaim your motive for declining the risk, but if any
reason whatever appears why the insurance money might be better to
86
the party than the property itself, or if threats, litigation, disputes or an
embarrassed business appear, decline it without terms. Never take a
ri.sl\ under the ^pressure of iiupartunity^ arjainat the verdict of your
letter judgraent^ %oith a linger'lng feeling of uneasiness about something
that may afterward lead you sceretly to wish it had not heen accepted.
Never allow yourself to be talked out of a just conviction.
The character and standing of the applicant furnish tho index to his moral hazard.
If he is honorable, systematic, and businesslike, he will be less likely to have enemies,
within or witiiout, than a dishonest, careless, or litigious person. Satisfy your mind fully
on the following points ; they have been noticed before, but are regarded as sufficiently
imi>ortant to warrant the repetition. 1. Is the party unpopular, grasping, overbearing,
litigious, tricky, dishonest? 2. Is he losing money — is he embarrassed and desjterate?
3. Has he never insured before, but suddenly become convinced of its imi)ortance '? 4. Has
he been threatened, or is he a man hated and feared in the neighborhood, and abounding
in enemies? 5. Has he a bad lease? 6. Is the property in dispute or litigation — is it
unjiroductive and unprofitable — is it a stock of remnants or a branch store — an unsalable,
unfashionable, depreciated, or damaged stock ? 7. Is it in the hands of the sheriff or
assignees — in the fonner case, it is undoubtedly the subject of threats and revenge? 8.
Have there been any former fires under suspicious circumstances, and was there any in-
surance? 9. Is the business a new experiment in manufactures or merchandise — sonu;
patent clap-trap of questionable value ? 10. Is the management careless, improvident or
unsystematic? 11. Is an excessive amount of insurance asked for, or an over-valuation
stated ? — this is a sure sign of something wrong. If any question arises in your mind in
regard to any of the above matters, do not grant a jiolicy until it is cleared up in the most
satisfactory manner.
MoKAii Hazarp of Watchmen.— Many guardians of proi)erty who watch at night
are trustwfjrthy and diligent ; we would not cast a word of suspicion on those men who
are faithful, but it is a notorious fact that watchmen have been hired to burn property, or
to connive at its destruction. They are peculiarly exposed to approaches of this nature
from designing men, and underwriters must not overlook this iM)int of danger. Be posted
in regard to the individual watchmen.
Insurance op Contingent Interests. — A great deal of property is owned " in the
name of the wife." A great deal is held or occui)ied by jjarties having a life estate, or a
right that terminates when some minor comes of age, or when some relative dies, or
marries. These, and similar cases, i>re8ent frequent conundrums for solution by under-
writers, and should receive the needed attention as they come up. They may be all right,
find they may he all irrong ; see to it that no profit is made out of the ('om])anies on risks
of this sort, as, for exanqdi', on a building held for years by a party insured, who is to
lose ])os8e88ion when some other party comes of age who is now in the last year of his
minority.
87
f olicirs antt f oliqt ^itinfl.
The Poli(^j is based upon the application, and sliould conform to it;
it should always refer to the application, and make it a part of itself in
the following words : " special reference beinui; had to the assured's
application, No. , which is his [her or their] warranty and a part
hereof."
p].\ercise i^reat care in makinj^ the Policy plain and explicit. Write
it as carefnlly as yon would a note of hand, or a deed for the same
amount. If you intend to cover such and such items, say so; if the
assured intends to have such and such covered, ascertain the fact, Hifrea
upon the details, and say so. Let the writing express the exact contract
in its true intent and meaning, as clearly as plain words will do it.
Nothing will make an agent feel more chagrined and nu^rtified than to
find a policy defective a/ier ajlre, and he compelled to say, " I intended
it to cover so and so .'" He not only makes himself personally liable for
the results (see the law of agency) and severely blames himself, but lie
o;ets blame from others. The assured censures him for giving him an
imperfect contract; those who hear of it censure him, and perhaps with-
draw tlieir business rather than run similar risks ; ami he hazards the
imputation from his companies of turning against them, in the time of
disaster, to pettifog an uncertain construction in tavor of a dissatisfied
claimant! Appreciating these and similar considerations, you will
pardon the emphasis and plainness with which we urge the importance
of irettinii the Policy just kkjiit before it leaves your hands.
Avoid abbreviations in policy writing ; never make use of the terms
" ditto" or " do.," " etc." or " &c." — they signify nothing, and may make
mischief. If you use the words " stock" or " merchandise," be particular
to define what sokt of stock or merchandise you refer to. Never say
" personal property," without defining it clearly, and in all cases avoid
general terms ami such language as is ambiguous or susceptible of mis-
construction.
88
It is well first to make a ])encil sketch of the written portion of the contract —
especially if the matter is at all extended or complicated — always to write it first in the
record book, and then copy it neatly on the i)olicy.
The ])rinted form of policy must never be mutilated or changed.
Valuations of property are never to be inserted in tlie policy.
Othek Insurance. — Always ascertain if any, and note it on tlie
policy, naming the amount and the companies. If there is a great
number of policies, a notation of " Other insurances permitted to the
amount of % ," or " not to exceed three-fourths the cash value," is
sufficient.
See that all policies on the same property attach alike ; this is very
important. If your policy is on a "stock of hides, leather and findings,"
do not, on any consideration, give consent to another policy " on
leather" alone. Or, if you cover in the " store room and rear warehouse
adjoining" in one sum, do not give consent to another policy covering
in the " store room" alone. Neglect of this may lead to the most un-
satisfactory results in case of a loss. " Non-concurrent" policies, where
tliey exist, are the banc of all adjustments.
Specifications. — Specify a separate amount on each building or
kind of merchandise, on store furniture and fixtures, or other property
covered ; and never write in one sum on several separate subjects, as on
" Stock and Fixtures," " Building and Contents," " House and T3arn !"
This is a fundamental rule, and may never be departed from. Sec
extended remarks on this topic under head of Ui.anket Policies.
Describe in tue Policy the building insured or containing the ])rop-
erty insured, as to construction, occupancy and location — for example:
" his two-story brick, shingle-roofed dwelling and shoe-shop, with frame
addition, occupied by two tenants, and situated on Lot 9, of Block 54,
of the town of" — or, "contained in the three-story brick, metal-roofed
building. No. 127 Main Street, occupied as dry goods store and offices "
— or, " the one-story frame dwelling occupied by the assured as a family
residence, located on the N. E. corner of Scott and Fourth Streets."
ExriiESS Warranties, specially in Mill and Manufacturing Insurance,
should be written in full in tlie Policy — as, " warranted by the assured
to be worked by daylight only" — '' no smoking or lights permitted in
any of the buildings" — "a cask of water and fire-buckets to be con-
89
stantly kept in tlie picker room " — " a reliable and vigilant watchman to
l>o regularly employed, and the premises never to be left alone l)y day or
iiioiit'' — or any other matter expressly agreed ui)on in regard to pro-
viding, removing, remedying or avoiding anything specially bearing
n])on the risk. Trust but little to the printed conditions ; make the
written portion of the contract include all its important provisions.
Endousements on the Policy, of additional insurances,* removals,
rc])airR, transfers or other matters, must be noted at once on the record
book, and reported to the company immediately.
All endorsements that vary the contract or amount to a new agree-
ment, require five-cent revenue stamps.
Assignments, Transfers. — Policies can be assigned only with the
consent of the company, because the contract is a personal one, and a
new party of unknown or doubtful safety cannot be substituted without
its consent. It is the man^ not the house, that is insured ; and the
moment another owner arises the contract ceases. If the new owner is
satisfactory to the agent, consent may be given to the assignment, if not
it must be withheld. Exercise firmness and good judgment on this
point.
Assignments require the same U. S. revenue stamp as the original
policy, to he furnished hy the assured^ and never ly the Agent.
Transfers of insurance from one locality to another, on the removal
of property, may be consented to at your option, but will call tor sound
judgment. If the removal is to a worse locality, collect the additional
rate or withhold consent; be firm in this. If to a better locality, and a
reduction is demanded to which you accede, extend the insurance, hut
do not refund the premium — for exami)le: if an annual policy, half
expired is transferred from Class D paying 1,50 to class B worth l.OO,
the six months' unearned premium at 1.50 would pay for nine months
at l.OO, and you can extend the insurance three months over its present
expiration by endorsement; thus, '-Permission is hereby granted to
remove the insured property to the three-story brick, metal-roofed store,
* It is the practhce wth some companies to make no endorsements of increased insur-
ance on a policy, but to issue a new policy for any new amount granted ; and the method is
commended to your attention. As a matter of expediency, to save the multiplication of
documents, endorsements of additional insurance are usually tolerated, however.
90
No. 42 State Street, and the term of tliis Policy is extciKled to expire
November 27tli, instead of August 27tli."
Tlie Time Table on page 22 may be useful in this connection.
jYever refund a preTiiluni except upon total ranceUation <>f 2>oli<'>/.
Make tliese calculations of extension carefully, as tliey are sometimes
a little intricate ; simplify by calculating on whole months^ counting
expired fractions of montlis as whole ones. Do not yourself suggest a
reduction of rate in the new locality, as the fraction in your favor will not,
generally, more than overbalance the labor of writing up endorsements,
noting on record, and reporting to the com])anies, which otherwise is
extra and gratuitous labor. Do not permit the assignment or transfer
of a policy having less than a month to run.
He-Insurance. — Avoid re-insurances except upon the very best classes
of property, and then grant it only when it is impracticable to deal directly
with owners. Under no conditions will you issue a policy of re-insurance
to a comj)any that does not, hona jidc^ retain a full line upon the risk.
If after such issuance you should learn that the comi)any re-insured had
covered or cancelled the line it assumed to retain when you gave your
policy, cancel at once ^ and in all cases be certain that the company or
agent applying is not putting off an undesirable risk upon you.
Mortgage Insurance. — Policies for collateral security to mortgagees
and others should be issued in the name of owner, with '' loss, if any,
payable to A — B — ," written in the face.
A mortgagee has an insurable interest, and can take out a policy in
his own name, and, as the owner can at the same time insure, the
property may become too heavily covered, and thus a motive for its
destruction arise. Avoid this by careful in(pury, and even then insert
the following clause in the policy. " If an aggregate amount of insur-
ance exceeding three-fourths the actual cash value of said building shall
be placed thereon by owner, or mortgagees, or both, then this policy
shall be null and void in respect to one-fourth the true cash value."
In all ])olicies issued to mortgagees insert the subrogation clause,
viz. : " In case of loss under this policy, the assured shall assign to this
company an interest in said mortgage equal to the amount of loss paid."
A great deal of " Mortgage Insurance " is for banks and honorable
91
men, and is entirely legitimate and desirable. Another portion has a
had moral aspect, being for ])arties "hard up" and des}»erate. Exercise
a sound discrimination in this regard, and avoid all undesirable risks of
this sort. See remarks on page 52 in regard to n.iortgage insurance.
Policies ok Rknewat-s Lost.
If an insured party losses his Policy and wants a duplicate issued,
charge him the usual ])olicy-fee for your labor, and the amount of the
stamjf. The loss was his, not yours or the Coni])any's. It is not really
essential that he have a new policy, as full records of it exist at your
agency and at the parent office, from which he could obtain copies if a
loss made it necessary. If a new Policy is issued, write in a bokl hand
across the face that it is a duplicate ol' number , Zotit or inislaid.
Avoid Yekbai, Contracts.
They have been the cause of great trouble in insurance as well as
other matters. The essence of a contract is an agreement on the one
hand, and a consideration on the other ; if these are admitted or
proved, the contract is binding, though verbal. In Insurance, the
Policy should l)e the only contract — in Renewals, the Peckipt the only
evidence of a renewal or intention to renew. It is the practice of some
Agents to "have an understanding" with customers that "everything
shall be renewed anyhow ; " and if both customer and agent should
forget the expiration for a week, or a month, or eleven months, or until
a fire should remind them of it, the probabilities are that the Compaiiy
would have to stand the outrage of a loss claim ! We most earnestly
protest against this pernicious practice, and beseech all Agents to " have
an understanding," clearly understood, that no policy is renewed until
the receipt is delivered and the money i>^id.
In 1852 the Trustees of the First Baptist Church of Brooklyn obtained judgment
against the Brooklyn Fire Insurance Company for the full amount of a Policy, and
interest to date, under the following circumstances :
On July tst, 1845, an insurance of |5,000 was effected on the church, and on the 9th
of August assigned as collateral security. July 2l8t, 1846, the policy was renewed for
one year, but the certificate was not delivered, nor the premium paid, until some time
92
after; there being, as the plaintiffs alleged, rt/i undvrHtandvig that the policy should be
reiuiced from time to time trithout further notice. July 2l8t, 1847, the policy was similarly
"renewed," and no further negotiations ensued. On the 10th of September, 1848 (nearly
two months after the expiration of i\\it last renewal), the church was burned, and certain
conversations relative to the alleged understanding to renew being established, the decision
was given against th(^ C"omi)any upon such verbal negotiation. The ruling was that
" if the plaintiffs have jyroved an agreement to renew they are entitled to recover."
A fn-e application of this doctrine, to the transactions of agents promiscuously, Avould
be well nigh ruinous to the companies, and whether such decisions would be sustained in
the higher courts or not, we believe prevention better than cure, and therefore instruct
as above.
Cancellation and Ivetukn of Premium. — The companies reserve tlie
right to cancel, for any cause, at their option ; this right will be exercised
with great moderation and discrimination where care is manifested in
doing tlieh- husiness, but the necessity will sometimes arise. When the
companies cancel at then- own instance, the premium is returned for
the unexpired time ^>;v> rata / but when cancellation is at request of the
assured, you will always retain short rates for the time expired. See
page 20 for short rates, and also for rule for the cancellation of loiuj
term policies.
Give credit in your monthly account for the amount of commissions
on all premiums returned.
lieftmding premiums should be avoided, except in a total cancellation
of the policy. In a partial cancelment to reduce the amount covered,
extend the time (as in the example given, on page 89, of transfer to a
better locality), but keep the money if you can. Yuu lose the com-
missions, yje lose the premium, the entries Dr. and Or. of the transaction
have to pass through the whole account, and the labor is not only for
nothing, but for an actual loss.
Paktial Cancellation to Reduce th];; Amount covered, may be
resorted to at your own or the assured's instance, whenever reduced
values demand it, either upon buildings or stocks. In making such
cancellation, extend the insurance proportionally upon the amount
remaining. For exam[)le, a stock of merchandise, valued at $15,000,
and insured for $10,000 for twelve months, exj)iring April nth, is perma-
n(Mitly reduced, by sales and shifting trade, to $8,000, when the policy
has run eight months and a half, and you wish to reduce the insurance
93
to $5,000 from tluit date. The uneaniod premium on $10,000 for tlie
remainiiii!,- three and a half montlis, Avould carry $5,000 seven montlis,
and your endorsement would run as follows : " The amount insured is
this day reduced to Five Thousand Dollars, to expire July 20th, instead
of April 5th ;" addiuiij the date and jour signature.
Blanket Policies.
The importance of specifying a distinct amount upon each subject
insured, has elsewhere been dwelt u})on ; but it is regarded as a matter
so im})ortant that it cannot be too strongly emphasized. The practice
of making an insurance cover an indefinite number of things in one sum
without specifications, as " $5,000 on Building, Machinery and drain ;"
or " On IJuilding and Contents ;" or " On Stock and Fixtures," is so
great a wrong upon the underwriters that it cannot be tolerated. A
single illustration will exhibit the principle involved.
Five buildings — in a block or otherwise — worth $3,000 each, are
insured for $3,000 on the five. If one burns, the whole amount of the
})olicy must be paid ! The insurance was sicpposed to be equally on
them all, but the result sliows that it was wholly on either one — the one
that huvned j thus putting five risks upon the insurer for one premium.
The unmitigated injustice of the transaction is seen at a glance. Such
a case can be equitably disposed of in either one of four ways : 1. By
specifications (so much on each building). 2. By five premiums. 3. )^yi
the average clause. 4. By insuring the whole value of the five — $15,000.
But the first is the best and only good general practice, and the last is
not allowable.
Blanket Insurance upon stock and fixtures, or any property in the
same huilding^ is not so glaring as the above, ])ut has more or less of the
same element, and is always unjust to the underwriter. The j)rineij)le
is the same, whether the insurance floats an inch or a mile ; it must
never be transferable from one subject to another. A Life Policy on
five members for one ])remium would be a parallel absurdity, and the
fact that they were " all in the same building" would not mitigate the
94
l>lnnder. A policy on "Husband and AV^ife," or " Parent and Child,"
for a sini^le premium, would be a ram avis in Life ])ractice that tinds
its ridiculous counterpart in '" Blanket" Policies from the Fire offices.
The Average Clause
Reads thus : " It is understood and agreed that claims under this policy
shall only be for such proportion of the whole loss as the amount of this
insurance bears to the whole value of the property insured." This clause
is chiefly for use in
Floatin(; Policies.
A Floating Policy is simply a "Blanket" as above described (or
covering in a number of different warehouses, docks, etc.), with the
alnwe clause added. It is extensively used in English practice, but
hardly at all in this country. We do not favor its use, specially if there
is other insurance on the same property ; as the most vexatit»us and
unsatisfactory of all adjustments are those under
NoN-CONCirRRENT POLICIES.
These are divers policies, attaching differently to the same property.
As where several policies cover a stock of dry goods, while one includes
store furniture and fixtures, or another includes dry goods and leather
without specifications, or where all cover on the main floor, while one
covers also in the cellar or in the back warehouse without specitying a
separate amount. The perplexity to all concerned arising from settle-
ments under such policies is infinite, and it is better to decline a risk
than to join in non-concurrent insurance. Adopt., as an invariable ruls,
that Ai.i- roiJCiKS ON xirE same property must read ok attacu alike.
Documents Dkfackd ok Si'oii-kd.
Policies and Renewals defaced or spoiled must invariably be returned
to the Company (with such explanations as may be necessary) with the
monthly report. All documents — policies, renewals, certificates or others
95
— bearing official signatures are of importance, and must be treated with
care and attention.
NuM15KliIN(J OF THE IsSUES.
Different plans have obtained favor among the companies, and you
must be guided in this respect by instructions from each. One method
is to have a separate series for each sort of issue ; the J-^olicies being
nund)ered at the ])arent office before they are sent out, from number
one onward, to be issued consecutively. Tlie lienewal Kecei])ts under
this plan are similarly treated, so that lleceipt No. 1, when issued,
wouhl be upon any policy numl)er that miglit be ready for renewal.
And as either Policies or Renewals were issued, each would stand in its
separate series of numbers without regard to the other, and each series -
would be preserved intact. So of Certificates, Open Policy Endorse-
ments, etc., each must have its own separate numbering. This plan has
many advantages in preventing confusion and in keeping track of docu-
ments that are already numbered. Where this plan is followed by a
company, you will never change or deface the number of any document.
If a Policy, or Renewal, or Certificate should be mutilated, return it to
the couipany, and so report it, and use the next nutnber in rotation.
Another method is, to have but one series for all issues. The Policies
and Renewals are sent to the agencies without being nund)ered, and
Policies ai-e issued, say up to number 50, when one comes around for
renewal ; the Renewal is numbered 51 ; the next issues are two new
Policies, they are numbered 52 and 53, then tliree more Renewals are
wanted, they are numbered 54, 55, 50, then a new Policy 57, and so on.
This plan is simjde, and is practiced by the greatest number of companies.
Model Policies and EndorsementH have been prepared in a separate
" Form Book," containing a great num]>er of difi'erent forms, and fully
sup|)lying yom- wants in that line. The work is commended to your
careful study and imitation ; it will be very generally introduced, and
it is hoped will be instrumental in working a general concurrence in
Agency Policies throughout the country.
96
^'fkmn Skm mftmki m^mm mim^.
Each Policy or Renewal (Fire, Inland or Marine), if the Premium is
$10 or less, requires a stamp of .10
If the i)remiuin is over $10 and not over $50, 25 cts. ; if the premium is over $50, .50
Assignment of any Policy requires the same stamp as the original instrument,
invariably to be paid by the assignor, and never by tfie Campany.
Open Policies (Fire. Inland or Marine) require a stamp of ... . .50
Certilicalen of Insurance, issued upon a duly stamped Open Policy, .05
Endorsements, Permits, Agreements, by which the terms of a Policy are changed
or varied in any respect, require stamps of .05
Proofs of I^oss. — Certificates, 5 cts. ; Appraisements, each sheet or piece of
paper, 5 cts. ; Powers of Attorney, 50 cts. ; Agreeements, 5 cts. ; Protests, 25 cts. ;
Receipcs for money paid, 2 cts.
Parties submitting the papers must first stamp them.
Do not attach and cancel any stamp until the Premium is paid, or
you know it will be paid. If there is any delay between the issuance
of Policy (or Renewal) and collection of Premium, pin the stamp on it
and let it i-est, without canceling, until the contract is closed by the
cash. If it is not taken, the stamp can be used for another Policy.
Please do not return any Policies or Renewals marked " Canceled —
not taken, '^ with canceled stamps attached.
License. — " Any person who shall act as Aornt of any Fire, Marine, Life,
Mutual or other Insurance Company or Comjiauies, shall pay a license of 10.00
Any i)er8on so acting for any Fokeion Company, shall i)ay 50.00
liiceii«C!* are an individual tax, and are not paid by the com]>a-
nies. An established agent ]>iiying liis license can represent any number
of companies under it.
Agents of the comjjanies are not Brok(>r8 unless they negotiate insurance for parties
and place it, for pay, in companies for which they are not agents.
The internal revenue tax on Gross Ueceiits, on Dividends, etc., is arranged at
headquarters, and paid by the Comi)any monthly, in one sum. Agents will in no case
make any returns of their premiums to the U. S. Assessors.
97
f^ I n n A u V
I '^'1 VKli.siTv o|.
'' CALTF()i;xtA.
Keep close watch of these, and give timely ncJfeea-tQ_customers of^
the expiration of their policies, so as to obtain their renewals. Business
once secured sliould never be permitted to pass from your books, while
it continues to be desirable, for want of diligent attention on your part.
The commissions on renewed policies are just as good, and just as much,
as upon new ones ?
Renewal of Policy is made Iry regular Renewal Receipt^ and never
hy Endorsement on the 2>olicy itself^ except a particular company specifi-
cally so instruct. The renewal must be duly stamped, the same as a
new policy. Make no memorandum, entry or endorsement on the
Renewal, but if any changes are agreed upon, note them on the Policy
and Record Book, and then renew the policy as changed, reporting such
changes at the close of the month.
Before renewing any policy satisfy yourself, by inquiry and inspec-
tion, that the risk remains as when first taken, in regard to value,
exposures, occupancy and moral hazard ; and if any material changes
have occurred in any of these particulars, reduce the insurance, increase
the rate, or decline the risk altogether, as the case may demand. The
insurance is " continued under the original representation," and any
change " either within itself or by adjacent buildings, not made known
to the company by the assured at the time of renewal, the Policy and
Renewal shall be void."
If a policy liaa lapsed for a number of months, do not renew it, but issue a new one,
and collect your fee for the same, unless some very satisfactory reason for the delay exists.
If it has lapsed a few days or weeks, rencsw it for a year from tliat day, and do not date
it back to the time of expiration ; give a full year's insurance for the year's premium.
Be particular about this, even if the policy has expired but a single day. Cover nothing
in the interim. The time lapsed would seem to be so much clear gain to the companies,
but it might prove a very false economy, and a very disastrous nscujc to establish.
There is no Fee for Renewals. The usual fee for Policy is $1. This
is the agent's perquisite, and need not be brought into the account. It
may be waived at discretion to humor a customer or secure a risk.
98
mmmmt.
Issue no policy for a prcniiuiii less than one dollar.
Premiums on lon»^-term policies (three or live jeai*s) are paid in one
sum in advance, the same as on annual insurance, and not in yearly
installments.
Do a cash business. You will extend accommodations only on your
own responsibility. The Companies keep no accounts with customers,
and take no premium notes. But it may very often be expedient and
pi'oper for you to advance a premium a few days to secure a good risk
for some valued customer, and to close your month's business with a
prompt and full remittance. Yoii run no ri«k in so doing. If the
amount is not paid by the next monthly return, cancel and send in the
policy, and charge the premium in your account. No business can
prosper in the highest degree without so)ne investnient of capital, and
the vocation of an Insurance Agent is no exception to the rule.
Must contain a full and accurate transcript of the written portions of all
policies issued, and all endorsements subsequently made thereon. Not
a mere memorandum, but a literal, verbatim copy, so that if the Policy
should be burned (a frequent occurrence), there \vould still exist a true
and accurate copy of the contract in all its details. The importance of
this is not appreciated by those agents who first write the Policy, and
then enter a skeleton memorandum in the llecord. As heretofoi'e
suggested, the Record should le first written up, and the Policy carefully
coi'iKD from it word for xoord.
Enter herein all endorsements of assignment, transfer, change of
location, change of firm or ownership, extra charges, carpenter' risks,
additional premium, increased or diminished insurance, cancelhiti(»ns,
renewals, and other matters at the same time they are made on the
Policy.
In rogard to these endorsements- -short insurances, entries on 0]>en
Ptjlicios, etc., it is (ihsolutely essential thai they he entered in the Register
when made, and reported at once, as any delay, even of an hour, involves
the liability of their being forgotten entirely.
00
The Daily Report is, with very uiany coin})anies, taking the phice
of tlie Monthly Abstract of Risks. The Daily Report is simply a
rei)ort in full of each risk, made on the blank furnished by the company,
and fornuarded to headquarters the same day the risk is taken or
renewed. It must include the name of the Agency and Agent, the
number of the policy or renewal, certificate or open policy entry,
assignment or endorsement, as the case may be, a complete copy of the
written portion of the contract, the amount covered, the rate, the amount
of premium, the term, the date of expiration, a diagram and statement
of exposures, a statement of the occupancy, and such other matter as
the printed blanks may call for. Each company has its own form of
daily reports, and each lays much stress on the ])articular points brought
out by its own form ; it is, therefore, necessary that the wishes of each
company be respected in this particular, and that a full and careful
answer be made to each question, and a faithful filling of each blank be
made. On ordinary risks the daily report takes the place of api)lication
and survey, and conveys to the company, in many cases, all it ever
knows about the risk ; it should, therefore, have a conscientious and
thorough treatment at the hands of the Agent.
The Daily Report, fully and faithfully made, is a grc^at advautapro to the agent. It
relievos him, in many cases, from much responsil)ility in ref^ard to important riHks, the
facts beinjT all laid before the company for its decision. It distributes his labor throuf^h
the month instead of crowding his reports into the last day ; each risk being reported as
taken, the close of the month finds the agent with only his account current and remittance
to forward.
Some objections have been urged by agents against the Daily Kei)ort, l)ut in every
case thus far, the objections only prove the value of the plan. Each risk written or re-
newed should be reported at once, whether it be for five years or one day ; wliether the
time, the rate or any otlier particular l)e oi)en or determined ; an agent lias no business to
close a contract until it is sutficiently well defined to re[)ort. The hour a company becomes
liable for a loss, it may reasonably require advice of its eiiyagemods.
Where the monthly report is used by a company instead of the daily,
it is simply a copy from the Record Book of the month's business
entered therein. It should be made out on the last day of the month,
7
100
and written in a fair, ]»lain liand, giving all the details required by the
printed headings.
ExposFRKs. — We wish to invite particular attention to the necessity
of repartin^ all the exposures of every risk in that portion of the Return
sheet provided for that purpose, whether daily or montlily. Include
everytliing within one hundred feet, not merely what adjoins, but all
that exposes beyond the adjoining buildings. Without a full, clear and
explicit statement of exposures, no company can pass upon risks intelli-
gently.
If the risk is out of burning distance from all exposures mark it
Detached or Isolated.
tut atiiiBlf itS^SI8lt ii@^.
Such a book is issued by some companies for the convenience of
agents in their daily transactions. It should contain entries of all
moneys received from policies, renewals, certificates, additional premiums,
endorsements on open policies ; for privileges, for short risks, or from
any other source whatever ; and of all expenditures on behalf of the
company. At the close of the month it can be balanced by the agent's
commissions and the amount of remittance, thus giving the agent, in a
permanent form, a copy of each account forwarded to the company.
When so completed, the monthly account current will be simply a
transcript therefrom.
Must 1)0 filled up carefully and completely. Obtain vouchers for all
moneys paid out, except postages, revenue stamps and exchange, and
enclose therewith. Agency charges will consist of your commissions,
postages, policy stamps, express charges on packages received, advertis-
ing bills when authorized, telegraph charges, taxes, return premiums,
exchange and such other Dr. items as may arise.
REMriTANCES in full, to close monthly accounts, will be required in
all cases. Make the draft payable to the order of tJie Company^ and
enclose it with your account. Remit by Bank Draft, or Post-oftice
101
Money Order, charging exchange to tlie Company. When more con-
venient, or the freight would be less than exchange, send funds by
Express ; send only National Currency and Greenbacks, Some com-
panies have contracts with the Express Companies and pay for all
packages at headquarters ; ascertain the arrangements of each in this
respect. Avoid sending money by mail, where any other mode can
possibly be reached. When that is the only recourse, get the largest
bills, cut them in two, and send the right halves by one mail and the
left by another a day or two later.
Will consist of the monthly Abstract, where used — the Account Current
— the Remittance — Youcliers for money expended — Canceled Policies
and Renewals — Mutilated Policies and Renewals — Applications for all
outside and remote risks, and your own letters. These eight always,
and such other matter as you may have to forward. The package should
he in the mail in twenty-four hours after the month closes, and in no
event should it he delayed more than three days. So imi)ortaiit to the
agency method of business is a prompt and systematic report, that any
deviation therefrom will be a serious blemish upon the agent indulging
it. An occasional, unavoidable delay, from sickness or absence, can be
overlooked, but an hahitual slackness in forwarding reports is a fault of
such magnitude, tliat a resignation will be deemed the lesser of two
evils ! This is not said in a captious spirit, but kindly, and from a deep
sense of the importance of prompt reports.
If no business has been done, notify each Coin|>any of that fact at
the close of the month. They wish to hear from each Agency monthly,
in any event.
All the l)Ooks, papers and correspondence of your Agency are private,
and are not to be exliibited to parties not specially connected witli the
company to which they belong.
mm %%mtmmim
Will be fifteen per cent, commissions on the amount of premiums — less
any returned premiums — also the policy ($1) and survey (50c.) fees, to
102
l)e collected from the assured. The fees, bcinp; perquisites, will not
appear in jour account, and may be waived at discretion to conciliate
a customer or secure a risk.
Credit back full commissions, in your account, on the amount of all
return premiums, of any kind.
Will be done mainly by means of Cards, Circulars, Pamphlets, Calendars
and other printed matter furnished by the Company. House plates,
when furnished, should be conspicuously placed on the best risks.
Calendars and Blotters, Lithographs and Pamphlets, should be judi-
ciously distributed in offices, stores, counting-rooms, hotels, etc.
JVeivspaj}er advertising will he done only tqjon specicd authm'ity
from headquarters.
Is expensive and should be done sparingly. Losses and other cases of
emergency may be notified by telegraph, l)ut inquiries in regard to
risks and rates — unless the matter has been the subject of full prior
correspondence — is usually a waste of money and a failure to obtain
satisfaction, and unless the risk is a very considerable one, the telegrams
to and fro will consume a large percentage of the premium. Rely upon
the mail for all ordinary transactions. Prepay all dispatches and charge
in your account.
103
A prompt, eipiitalde and liberal treatment of losses eliaracterizes the
standard insurance coni])anies of this country.
In cases of importance or intricacy, adjusters are usually sent to make
the settlement, but small and plain cases may be adjusted through the
agent by correspondence with headcpiarters. When a loss occurs notify
the Company at once. If a case of importance telegraph the number
of the policy and the probable amount of loss. Commit the companies
to no particular line of action, but until advices are received, let your
efforts be directed to ascertain the facts diwA protect the property.
I. Or'ujin of the Fire. — Develop by every means all that can be
ascertained in regard to the cause of the fire ; whether it was the result
(.f accident, carelessness or design : whether any unusual circumstances
or appearances ; any indications of spontaneous combustion ; when first
discovered and by whom ; whether any threats had been made.
II. The Character, Sta7hding and Circu7nstances of the Assured;
whether involved, embarrassed, desperate ; whether making or losing
money ; whether ever burned out before, and if so, whether then in-
sured.
III. The Property; whether over-valued, unprofitable, unoccupied,
in litigation, leased, of mixed ownership ; whether any recent sale or
otters to sell. If merchandise, whether a full or low stock. If any
stealing at or after the fire — get particulars.
IV. The l7isurance; whether any other; how much, and in what
companies; whether books and papers were saved.
Urder no circumstances whatever will you make any change or
entry on a policy after a fire. Let the whole matter of insurance rest
precisely as the fire finds it ; give no consent to other insurance, change
of title or location, assignment or other matter whatever.
D.V3IAOED Goods must be put in order at once, and the sound
separated from them. This is the duty of the assured, but if he refuses
to attend to it, and delay will increase the damage, have it attended to
104
yourself — you are entitled to free access to tlic goods for that puri)ose,
and the owner cannot debar you — but if delay will do no harm, defer
action for advice or the ai-rival of an adjuster. Damages on hardware,
cutlery, stove, tin and iron stocks, from their liability to rust, should be
made the subjects of immediate
But dry goods, clotliing and similar stocks should be first handled,
spread, dried and cleaned. Claimants frequently aim to make the worst
possible showing ; while the companies want only exact justice, they
are entitled to counteract this action by developing the good })oints in
the salvage, and must rely upon their agents to protect their just rights
and defend them from extortion.
Never suffer wet goods to be piled up and neglected, to heat, mildew
and stain, when spreading and handling will do them any good.
If it becomes necessary to remove goods to another building, see
that none are spirited aw^ay or subjected to further damage.
In selecting appraisers, the assured chooses one and the company the
other. Aim to get upright and intelligent men who are posted in regard
to the particular property needing attention, and let the appraisement
proceed in detail upon each piece or lot of damaged property, and
never in a lumping, jumping manner. It may sometimes be necessary —
if you observe a grasping and unfair spirit on the part of claimants and
their appraiser — to put your man on his guard against imposition. All
the companies demand is fair, square, straightforward dealing ; but that
cannot always be secured without vigilance.
Let the aj/jji'disers stick to the dmnages and not wander out of their
jurisdiction. They are authorized to make an appraisement or estimate
of the injury to the jyroperty hefore ihem^ saved in a damaged condition,
and noihiny else. All such items as " cost of removal," " i>aid for
watchman," " articles missing," and the like, are wholly inadmissible,
and an Agent who understands himself and his duties will never
accept an appraisement containing them. Once inserted, the claimant
has a color of reason for their allowance " because the appraisers say so,^^
when the appraisers really had no right to say anything about them.
105
If the items are proper, tliey will be allowed by the adjuster, but the
appraisers need not burden themselves with needless labor outside tlieir
legitimate duties. An aj>2> raise /nent is not an arhitration.
On such property as will be further damaged by delay, appraisement
should be made immediately, and it is expected that agents will take
the responsibility of determining and acting in such cases ; always
remembering that the appraisemerit concerns only the damaijes to
property, and is to effect no other questions whatever within, or relating
to the insurance.
Walls and other portions of damaged buildings should be looked
after. Sometimes a few shingles, promptly applied, saves heavy damages
from drenching rains ; or a prop, judiciously set, saves a wall from being
blown down.
If any insured goods have been totally destroyed, a complete invoice,
at cost price, must be made of all that have been saved, sound or
damaged (but if none are totally burned, as in water damage, removals,
etc., only the damaged goods need be invoiced). This must be done
before the adjustment can proceed, and parties can economize time by
attending to it in the interim before the adjuster arrives. Improve this
manipulation to have the goods well handled, straightened and put in
the best possible order preparatory to the appraisement. Invoice the
sound and damaged goods separately, each by themselves, for the
greater convenience of appraisers. As soon as the sound goods are
invoiced the owner may dispose of them as he sees proper ; pro\Tided
you are satisfied the invoice is true and correct, and that no fraud has
been practiced to make the amount of saved goods appear smaller than
it really is. And as soon as the damaged are fully appraised they are
likewise at his disposal, but the companies reserve the right to take the
damaged articles at their appraised value : this will seldom be done,
but may be resorted to as an offset to improper valuations, or excessive
and unjust estimates of damage.
There is no Abandonment in fire insurance. Except in the circum-
stances just named the insurers have nothing to do with the ruins but to
pay the damage thereon. The property is the assured's ; he has all the
responsibilities as well as rights of ownership, and must give it proper
care and attention at his peril ; insurers make good no loss or damage
arising from his willful neglect or carelessness after the fire.
106
Never close a loss claiin witlioiit S])ef (t,n Agent indicates inexperience. All fair losses
will he promptly paid, and the past record, no less than the ])resent
proud standing of American Insurance Companies, is sufficient guarantee
of their continued honorahle dealing.
Always rememher that the good points in a loss case invariahly come
out of themselves, while the objectionable features have a natural tendency
to shun observation, and therefore need to be searched for. If a case is
right, scrutiny will d(» it no harm; if it is not right, it needs it; therefore
a proj)er investigation should always be insisted upon ; not for the pur-
l)Ose of quibbling over the loss, but to arrive at exact facts and an ()i)en,
intelligible settlement.
Blank forms for proofs of loss will be furnished by the companies;
but if a case excites your slightest suspicion, or is, for any reason, not
entirely satisfactory, do not give them out. Every facility and assistance
will be furnished to honest claimants, but companies must not help to
make fraud upon themselves plain or easy. The difficulty encountered
by a rogue in getting up his proofs has often furnislicd the means for
thwartinir his fraudulent desiij:;ns.
Ijicendiarism is, at once, the most devilish and the most secret of
crimes. Usually the wretch who commits it destroys the evidence of his
guilt at the very time he consummates it, making detection exceedingly
difficult. The difficulties of the crime, however, have aroused those who
have to deal with it to commensurate effi)rts for its punishment, and
Agents are recommended to correspond freely with their Companies
whenever their interests are affected by this atrocious felony.
Frequently prompt rewards will lead to detection, and it is well for
Agents to be advised, in advance, of the plans of their Companies in
regard to this matter.
107
im ^mm'f m mmmMm.
" Iiisiinince iiuiy justly l)e deemed one of the noblest creations of
huniiiu genius. From a lofty lieii;lit it surveys and [>roteets the eoni-
merce of the world. It scans the heavens; it conBults the seasons; it
interroi^ates the ocean, and, regardless of its terrors or caprice, defines its
perils and circumscribes its storms. It extends its cares to every part of
the habitable globe; studies the usage of every nation; explores every
coast; sounds every harbor. To the science of politics it directs a sleep-
less attention ; it enters the council of monarchs — watches the delibera-
tions of statesmen, weighs their motives, and penetrates their designs.
Founding on these vast materials its skillfid calculations, secure of the
result, it thus addresses the hesitating merchant, ' dismiss your anxiety
and fears ; these are misfortunes that humanity may deplore, but cannot
prevent or alleviate. Such are not the disasters you dread to encounter.
Trust in me and they shall not reach you. Summon all your resources,
put forth all your skill, and with unfaltering courage, pursue your
adventures. Succeed, your riches are enlarged; fail, they shall not be
dinunished. My wealth shall supply your loss. Kely on me, and, for
your sake, at my bidding, the arm of your enemies shall be paralyzed,
and the dangers of the ocean or the flaming pile cease to exist.' The
merchant listens, obeys, and is rewarded. Thousands tempted by his
success, follow his exam})le. Those whom it had long separated, the
ocean now unites. The quarters of the world approach eacii other, and
are bound by the permanent ties of mutual interests and inutual benefits.
— Co?n. Law oj" the World.
mmiw if iii^i.
Agency Companies usually give each agency the l)cnefit of a visit,
once or twice a year, by some one from head(juarters, and, to get the
greatest good from these visits, agents should be prepared for them.
Keep a memorandum of questions to be asked, of knotty points to be
108
solved, of particular risks to be talked al)out, of hard customers to he
visited and converted, and of insurance conundrums generally, and get
tlie most you can out of the Special Agent when he makes his appear-
ance ! If books and records are up to date, and ])apers and files in order,
the examination of risks will be expedited and your own good reputation
gain additional strength. A thorough review of your risks occasionally
will be of great benefit to yourself as well as the Company.
There is more real injustice to insurers, under a more plausible
guise, in this species of tribute than in almost any other extorted I'rom
them ! The plea that Insurers are '' more interested " than others, and
sliould ]iay by dh'ect contrihutum ^ is practically untrue. A good de-
partment reduces the rates of insurance, and tJms the underwriters ]>ay
their share. There would be the same propriety in subsidizing insurers
for the fire-walls or slate roofs of citizens, upon the plea of preventing
conflagrations in which underwriters might be interested.
In one sense a department is not a benefit to the underwriters ; as
when it reduces the rates, or so increases the sense of security in a com-
munity as to induce many to insure less, and some to insure nothing.
And yet we believe in a good fire department, and in keeping on the
right side of it ; but, as toe ])ay our share in 7'educed rates, we must be
chary of donations.
The best that can be said of these donations is, that they advertise a
company, or rather, that they prevent it from being " advertised " in a
hurtful way ; for, " if they are net made, local antagonisms may be
excited and enemies created ; " so that the question about resolves itself
into the doubtful one of expediency, or possible black-mail !
The hardship of which insurers have a right to complain is this, that
wlien, by reduced rates or diminished business, they have already paid
indirectly to a department, they should be constantly called on for direct
contribution to its support. The de})artment helongs to the town, is
gotten u}) hy the town, and for the town, and should be sujyported by
the town, and it will be so supported : there is no real necessity for
a])plying to insurance companies.
109
Agents whose allegiance is stronger to their t(j\vn than to their com-
panies will combat tliese ideas, and i)lead for the local Departments;
bnt agents whose first love is to the companies that have conhded their
interests to them, will appreciate and practice upon them, and so manage
as to relieve their companies from these vexatious applications.
Keep your companies posted on all the insurance legislation of your
State, so they may note the changes. They are a law-abiding people,
and althougii each State insists upon calling the companies of sister
States "foreign," and exhibits great ingenuity in devising burdens
grievous to be borne, yet they lio})e to work in harmony witli the local
recpiirements at your agency as elsewhere. All the documents for the
annual compliance are made up at headquarters and forwarded promptly
as the several statutes require.
Documents are always on hand for the supply of agents, and must
be ordered when needed. Full hsts are usually furnished, on which you
can make out orders for what are wanted. Before sending for supplies
examine your stock on hand and order all you need for several months.
Some agents have a way of ordering a few bhjtters, then a few cards,
then some policies, and so on, making the trouble and expense of several
packages instead of one.
Bear in mind that undercutting is not underwriting. An active,
manly competition is healthy, but underbidding in rates is a stab at the
vitals of the business. If there is a local board in your town adhere to
its rates; if there is none, use your best endeavors to have one organized.
Decline insurance for transient persons, Sutlers, Pedlars, Traveling
Auctioneers, Transient Clothing Merchants, whether Jews or others—
and all persons in a temporary or moval)le business. This is a general
rule of safety that is amply justified by large experience.
110
Mixed uwiicrsliips and interests often produce trouljle to insurers. A
niortganc par-
ticular risk. Small lines indicate ])rudence; large lines greater alulity
or greater boldness.
Fraud is an element that vitiates all contracts that partake of it. In
no contra(;t is one party more completely at the mercy of another than
the underwriter in insurance. He is necessarily ignorant of facts and
circumstances that may be vital to the risk, and hence open to the fraud
of designing men who may withhold or misrepresent " material facts."
Do not insert this term in Fire Policies. You cannot afford to insure
a half dozen parties for one premium, and — unlike marine — the property
and parties are so situated that each can be protected by separate in-
surances, or if they cannot be, that is their misfortune and not yours.
Prove your faith in your companies l)y insuring your own property
in them. As a delicacy is generally felt about writing a ])olicy on one's
own ])roperty, the agent can send an application to the company and
have his policy written at headquarters, remitting for the same — less his
commissions — with his next monthly account.
Ill
(&hwt^ 0( §\[M\\\p,
Tlie classification of buildings most commonly accepted among the
companies, and probably the best for practical purposes, is designated
by the first four letters of the alphabet :
Cla§s A is fire-proof from the outside in every respect ; having no
wood work exposed ; being of Brick or Stone, with heavy
fire-walls ; metal, slate or tile roof; cornice, if any, of metal
or stone ; and the doors and shutters over all openings^
front and rear, made of heavy iron.
da§s It is the next best construction, being similar to Class A,
except in the iron doors and shutters. It is cnstomary,
however, to class ordinary brick, metal-'roofcd buildings as
B, even if the fire-walls are not relial)le. (See BIl below.)
Class C is the ordinary style of Brick or Stone building, with shingle
or composition roof.
Class D is a Wooden buildinsr.
Besides these, DD, (X' and lU* may sometimes be used to advantage :
DD is a wooden building, with metal, slate or tile roof.
CC is a brick building, with roof partly metal, or the better sort of gravel
roofing, good walls, and no wooden cornice — almost a B.
BB is a B building, with some iron shutters, good fire-walls, and
otherwise of superior construction — closely allied to Class A
in regard to safety.
INDEX.
PXGB
Abandonment 105
AbbreviationB, avoid 87
Academies ^
Account of Stock 15
Account Current Book 100
Advertising 102
Agents' Inquiries 13, 14
Agents' Own Property HO
Agricultural Implement Works 29
Alcohol Stille 40
Alterations and Repairs 33
Applications Indispensable 10, 14, 77
Application and Survey 26, 77
Appraisements 104
Approximate Annual Rates 71
Ashes 12
Assignments S9
Average Clause ^4
Bagging Factories 29
" in Bales 29
Bakeries 30
Bark and Bark Mills <»<>
Bams and Stables, Private 9
" " Tavern and Omnibus 49
" " Livery 50
Barrel Factories 30
Basis Rates 7
Bedding and Curtains 12
" Mattress Makers (39
Bell Foundries 31
Billiard Table Makers 55
Blacksmith Shops 30
Blanket Policies 93
Blank Loss Proofs 106
Blocks, Omnibus 16
" and Ranges — Stores 16, 17
" " Dwellings 9
Boats in Port and Repairing 31
Book Binderies 32
Box Makers 56
Brass Foundries 31
Breweries and Malthonses 32
Brick Flues, Chimneys, &c 10
Bridges and Piers 33
PAOS
Bucket Factories 56
Builders' Risks 38
Buildings or Contents Preferable 80
Cabinet Factories (steam) 34
" Shops (hand) 34
Cancellation 92
Candle & Soap Factories W
Candy Manufactories 34
Carburetters 24
Carpenters' Shops 84
" Risks 33
Carpet Factories 70
Carriages on Wheels 35
Cash Business 98
Causes of Loss 10
Chimneys, Flues, &c 10
Churches 35
Classiflcation of Buildings Ill
Coach and Carriage Shops 35
" " and Car Factories (steam) 36
Coal Oil .. . 58
Coffee, Spice and Drug Mills 65
Colleges 28
Commissions 101
Communications 79
Competition 23, 109
Composition Roofs 79
Confectioners' Stocks 34
Conglomerate Hazards 27
Construction 78
Contingent Interests 86
Continuous Roofs 79
Cooper Shops (steam) 80
" " (handwork) 86
Copperplate Printers 60
Copper and Tin Shops 67
Com in Cribs 9
Corner Buildings 80
Cornices 79
Cotton Gins 87
" in Press 37
" Mills 36
" Warehouses and Sheds 38
Country Stores 18
114
Court HouBCB, County Buildings 38
Cnrricre and Leatlicr Drcssern 67
Curtains and Bedding 12
Daily Reports .99
Damaged Goods 103
Defective Flues, Stovepipes, &c 28
Diagrams 82,83,84
Distilling forbidden 32
Dietillerieg 40
Documents, Supplies 109
Doors and Shutters (Iron) 79
Dnig Stores 30
Drug, Spice and Coffee Mills 65
Dry Groods and Groceries 13
Drying Kilns, Drying Houses ... 34, 47, 55, 60, 65
Dwelling Risks 8
Dwellings in Blocks and Ranges 9
Elevators 40
Endorsements 89
Expirations 97
Explosions 19, 31
Exposures 27, 81, 100
Express Warranties 88
External Exposure 81
Fair Grounds 42
Farm Property 9
Fire Departments— Donations 108
" Test 54
" Walls 78
Firehoards 11
Firt-works 43
Five Year Rates 8
Flax and Hemp Mills 43
Floating Policies 94
Flour Mills 44
Flues, Chimneys, &c 10, 28
" For Whom it may Concern " 110
Former Fires 27
Foundries 46
Frame Makers 56
Frame Ranges 17
Fraud 110
Fraudulent Claims 106
Fnmitnrc Risks 13, 46
Gas Burners, Gas Meters 12
Gasoline Gas 88
Glossary 25
" Stoves 25
Glassworks 46
Globe Lamps 46
Golden Rules
(Jrain Warehouses.
PIOK
.. 5
. 40
Hay Barns and Presses 47
Ileatintc Journals 27
Hemp mid Flux Mills 43
" Yards 47
Hop Houses 47
Hot Air Furnaces 11
Hotels and Taverns 48
" are Special Hazards 49
How to make a Diagram 82
Incendiary Threats 27, 38, 45
Insurable Interest 110
Internal Dangers and Securities 85
" Revenue Duties 96
Introduction 3
Iron Doors and Shutters 79
Iron Furnaces 61
Itinerants 109
Jails .
30
Kindlings 12
Kerosene 12
" Lamps 27
Lami) Explosions 12
Lard Oil 62
'' Rendering 57
Leases 49
Leather Dressers and Carriers 67
Licenses 96
Lightning 9
" Rods 2T
Lines 22, 28, 110
Liquor Stores 50
Livery Stables. . .. 50
Locomotive Works 51
Losses 103
Lost Documents 91
Lumber Yards 61
Machine Shops 51
Malt Houses, and Breweries 32
Matches 12
" Material to the Risk " 110
Mattress Manufacturers 69
Mercantile Risks 18
Miscellaneous Items 107
Model l)iaj;riims 83, 81
Monthly Account Current 100
" Returns 99, 101
115
Moral Aspect of Frame Ranj^es 17
" Hazard 85
Mortgage Insurance 52, 90
Mutilated Docnmente 94
Nail Works 01
Non-Concurrent Policies 88, 94
" Non-Explosive Oils " 54
Numbering of Policies, Renewals, &c 95
ObscrvatoriciJ and Skj'lights 79
Occupancy 80
Oil Mills 52
" Refineries, Yards and Warehouses 53
" and I^mp Stores 54
Oils, " Non-Explosive " 54
Omniburt Blocks 16
Open Lights 27
Ordinary Application 77
Organ and Melodeon Makers 55
Origin of Fire 103
Other Insurance 28,88
Owners 87
Paper Hangings Factories 55
" Mills 54
Partial Cancellation 92
Patterns •. 46
Photograph Galleries 56
Piano and Organ Factories 55
Piers and Bridges , . 33
Pipeholes, Pipes, &c 11, 28
Planing Mills 56
Plate Glass 80
Plow and Wagon Shops 35
Policies and Policy Writing 87
Pork Houses 57
Potteries 59
Powder and Powder Mills 59
Premiums 98
Preservation of Property 105
Printed Conditions of Policy Inviolate 9
Printing Offices GO
Private ReportB 26
Qnartz and Stamp MillB 65
Railroad Bridges 33
" Property 61
Rates 7, 15
Record Books 98
Re-Insurance 90
Remittances 100
Remote Store Riske 18
PAOK
Renewals 97
Kent Insurance 60
Repairs and Alterations 33
Return Commissions 102
" of Premium 90, 92
Review of Risks 107
Rolling Mills 61
Roofs 78
Rope Factories 62
" Walks 62
Sagging 28, 44
Salt Works 62
Sash and Blind Factories 56
Saw Mills (>3
School Houses, Seminaries 28
Scuttles and Stairs 70
Settling Walls 28
Sheet Iron Shops 67
Short Rates 19,57
" " on Long Term Policies 20
" " Intrinsically Right 20
" Rate Table 21
" Risks on Buildings 20
Shutters and Doors (Iron) 79
Skylights and Observatories 79
Slaughter Houses 58
Smoking Meat 58
Smut Machines 44
Soap and Candle Factories 64
Soft-Wood Workers 86
Special Hazards Unprofitable 6, 28
" and Manufacturing Applications 78
" Manufacturing and Miscellaneous
Hazards 26
Specifications 28, 51, 88
Spice, Coflee and Drug Mills 65
Spirit of Insurance 107
Spontaneous Combustion 27
Stables and Barns— Private 9
" " Tavern and Omnibus — 49
" " Livery 50
Stamp and Quartz Mills 65
Stamps and Internal Revenue %
Standard Elevator 41
Starch Factories . • 65
State Laws, Compliance with 109
Stave Factories 30
Steamboat Rates 31
Steamers in Port and Repairing 31
Stercotypers 69
Storage and Warehouse Risks 18
Stores 13
" and StorehouBes 15
116
max
Stores in Blocks 16
Stoves, Stovepipes 11,28
Sugar Refineries 66
Supplies, Documents 109
Surveys 78
Tanneries 66
Tnverns* and Hotels 48
TeloKraphing 102
Terra Cotta Works 59
Time Table 22
Tin Slu)ps 67
Tobacco Barns 67
" Factories 07
' ' Stemmeries 68
Transfers 69
Troy Fire 8
Trunk Makers, Wood 66
Twine Factories # - - - ^^
T3pe Foundries 69
Unoccupied Buildings 69
Upholsterers 69
PAOI
Values, Valuations 14, 26, 88
Verbal Contracts. Avoid 91
Vessels in Port and Repairing 31
Village Property 9
Wagon and Plow Shops 36
Wall Paper Factories 55
Warehouse and Storage Risks 18
" Rates 19
Warranties 88
Watchmen 27, 36
" Moral Hazard of 86
Water Casks 27
Whisky in Bond 18, 50
Frauds 18, CA)
Wine and Liquor Stores 50
Wood and Stave Yards 51
Wooden Boxes 27, 44
" Cornices 79
" Fire-Boards 11
Woolen Mills 70
Wrapping-Paper Mills 55
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UNIVERSITY OF CALIFORNIA LIBRARY
BERKELEY '
THIS BOOK IS DUE ON THE LAST DATE
STAMPED BELOW
■ 50c^p?r''vo?ule'l?t?r'?hrth''°/ ^^ '''^^''' *» « A-Je of
to $1 00 per^olume aftr fh""*^ -^^^J: r^'^<^»«' increasing
demand may be renewed if „ T^,^''^-. ^""'^s "»* *"
expiration o^f can peHod ^PP^'^^t'^" i« ^lade before
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JUL 8 1922
RECEIVED
MAR 1970 -3 PM
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