company's aggregate losses at that fire amounted to $1,651,091, while its aggregate assets in the United States at the beginning of that year were only $877,697, of which $376,037 was surplus in excess of liabilities. The company promptly remitted $1,458,541 from the home office, leaving the greater part of the surplus funds held here for the protection of other American policyholders, thus enabling the United States branch to close the year 1906 with a surplus of $313,689. A steady, continuous growth in assets, with a more rapid increase in net surplus in excess of all liabilities, has been a marked feature of the business in the United States since that time. On January 1, 1918, the assets in the United States, and held here exclusively for the benefit and protection of policyholders in this country, amounted to $1,444,825, an increase in eight years of 64 per cent., while the surplus during the same time rose to $795,642, a gain of III per cent., the losses having averaged 54.66 per cent. of the premiums. The management of the United States business is in the hands of Hall & Henshaw, 49 John Street, New York, United States Managers; Harry H. Smith, 433 California Street, San Francisco, Manager, Pacific Coast Department, and A. F. Shaw and Co., Insurance Exchange, Chicago, Manager, Cook County, Illinois, Department. LIBERTY FIRE INSURANCE COMPANY, Louisville, Ky. Organized 1854; capital, $200,000. Henry C. Walbeck, president; A- P. Winkler, secretary; Joseph F. Laufer, assistant secretary. LIBERTY MARINE INSURANCE COMPANY, New York, N. Y. Organized 1917; capital, $250,000. Finn Hannevig, president; C. Hannevig and C. Steendal, vice-presidents; D. L. Webster, secretary; Ralph J. M. Bullowa, treasurer. LIBRARIES, INSURANCE. Several of the general associations of underwriters have made efforts to build up libraries for the use of their members, as have also some of the local insurance institutes. [On this subject see Insurance Library Association of Boston, and Fire Underwriters' Association of the Northwest, Library of.] The LIMITATION OF RISKS IN FIRE UNDERWRITING. laws of a number of states prescribe a limitation on the amount of liability which a company may assume on any one risk. The limitation makes the maximum amount of liability that may be assumed on any one risk, but the limitation is not uniform, and in a majority of the states the laws include the proviso “unless the excess shall be reinsured in some authorized company." The maximum line permitted is a percentage, either of the paid-in capital, or paid-in capital and surplus, and is in practically all states ten per cent. in the case of stock companies. Kentucky makes the limitation ten per cent. of capital and surplus, "exclusive of the amount of any such risk secured by collateral," and in North Dakota it is ten per cent. of the paid-up capital, “exclusive of any guarantee, surplus, or special reserve fund." Wisconsin makes the limitation ten per cent. of the "admitted assets," and in Minnesota, New Jersey, New Hampshire, and Massachusetts the limitation is ten per cent. of the "net assets.' In Oklahoma, New Mexico, Colorado, Virginia, Utah, Kansas, and Connecticut the limitation is ten per cent. of capital and surplus. In Indiana, California, Texas, Washington, Maine, Rhode Island, Nebraska, and Michigan the limitation is ten per cent. of the paid-in capital. The Texas law excepts cotton and grain in bales " from the limitation, and the Maine law makes the limitation apply to buildings and contents as one risk. The Michigan law bases the limitation for foreign companies on the deposit capital," and includes the proviso that reinsurance in authorized companies shall not be included in determining the limitation. The same proviso is included also in the laws of Connecticut and Wisconsin, and the New Jersey law provides that so much of any risk as shall be reinsured in a company lawfully transacting business in the state shall not be considered part of said risk. The Nebraska law makes the limitation apply only "in the congested district of any city." The Kentucky law applying to stock companies contains this additional provision: "If the directors allow to be insured on a single risk a larger sum than the law permits they shall be liable for any loss thereon above the amount they might lawfully insure." The laws of Kansas, West Virginia, Virginia, Kentucky, and Utah also apply a limitation to mutual companies. Kentucky, for such companies, makes "the maximum amount of any single risk, less reinsurance, shall not exceed three times the average risk or one per cent. of the insurance applied for, whichever is the greater." Kansas makes the limitation ten per cent. of all resources, and West Virginia one per cent. of amount of insurance in force, while Utah makes the limitation for mutual companies five per cent. of the annual premium income. The laws of Oklahoma place a limitation on inter-insurers of ten per cent. of premium income at time of writing risk, while Idaho makes the limitation "ten per cent. of the net worth of such subscriber." Under the Wisconsin law the limitation on mutual companies "shall not exceed three times the average policy or one-fourth of one per centum of the insurance in force, whichever is the greater." In Virginia, the limitation is ten per cent. of a company's cash assets. LIMITING CLAUSES IN FIRE INSURANCE POLICIES. [See Policy Forms, Fire (New York), Legislation and Co-insurance Clause.] LIVERPOOL AND LONDON AND GLOBE INSURANCE COMPANY, LTD., THE, of Liverpool, England, obtained its deed of settlement on May 21, 1836, and began business on the first of the following month under the name of "The Liverpool Insurance Company." Twelve years later (1848) the title was changed to "The Liverpool and London Insurance Company,” following the notable success of the company in the British metropolis. The business of the Globe Insurance Company of London was absorbed in 1864, and the title then became The Liverpool and London and Globe," which it has 44 borne ever since. The deed of settlement authorized the company to transact both a fire and a life insurance business, and other lines have since been added, including marine, personal accident and employers' liability insurance. The company began writing fire insurance in the United States as soon as the embargo against foreign companies was lifted in 1848, and in 1851 a board of directors was organized in New York, and Alfred Pell, who had represented the company in the state from the beginning of its American business three years earlier, was appointed resident secretary. In the same year, agencies were established in Philadelphia and at other important points. The business in the United States was then limited to fire underwriting, but for nearly twenty years previous to 1882 the company also transacted a limited life insurance business here, which was discontinued, however, at the date mentioned. Since that time, the company's operations in this country have been confined to fire underwriting, until three or four years ago, when marine branches were opened in some of the states, including New York and Massachusetts. The growth of the fire insurance business of the company in the United States has been one of continuous development from a premium income of $4,519 in 1851 the first year of the United States branch to $8,957,563 in 1915, a period of sixty-five years during which its premium income amounted to $250,000,000, and it paid $147,000,000 to American policy holders in settlement of loss claims. It has been in all the great conflagrations in the United States for more than half a century, its losses by the Chicago fire of 1871 amounting to $3,239,091 and by the Boston fire of the next year to $1,427,290. In the settlement of losses by the Baltimore fire of 1904, it paid a little over a million dollars, and its losses by the San Francisco holocaust of 1906 were $4,523,000, an aggregate amount of fully ten million dollars in four great fires. But in every instance in which the losses have been notably large, the home office has responded promptly by remitting the amount required for immediate settlement and without encroaching materially upon the funds in this country, and this notwithstanding the fact that the United States branch has carried an exceptionally large net surplus for many years past. The statement of the United States branch as of January 1, 1917, shows assets of $15,827,439; unearned premium reserve, $8,768,488, and net surplus over all liabilities, $5,460,746.59. In 1871 twenty years after the United States branch was established — J. E. Pulsford was appointed resident secretary, succeeding Alfred Pell, whose father was the first resident secretary. Mr. Pulsford remained in control until June 10, 1887, when he resigned on account of advanced years, and was succeeded by the present manager, Henry W. Eaton, who has been connected with the company for the past fifty years, first in England and since 1878 with the United States branch in New York, as assistant manager under Mr. Pulsford, previous to assuming his present position in 1887. Hugh R. Loudon is deputy manager; J. B. Kremer, assistant deputy manager; and T. A. Weed, agency superintendent. The managers in the other United States branches are as under: Chicago office, W. S. Warren, manager, and R. H. Purcell, assistant manager; W. P. Robertson, deputy assistant manager; San Francisco office, Thos. H. Anderson, manager, Geo. F. Guerraz, assistant manager; New Orleans office, Clarence F. Low, manager, J. G. Pepper, assistant manager, and R. H. Colcock, Jr., deputy assistant manager. LIVERPOOL AND LONDON AND GLOBE INSURANCE COMPANY, THE, of New York. Organized 1897; capital, $400,000. Henry W. Eaton, president; Hugh R. Loudon, secretary; J. B. Kremer and T. A. Weed, assistant secretaries. Action has been taken to change the name of the company to Star Fire Insurance Company. LLOYDS AND INTER-INSURERS. Although combinations of individual fire and marine underwriters had not been unknown in the United States, this form of insurance did not obtain prominence until 1892. During that and the following years, up to 1896, there was a rapid development of so-called Lloyds, and this form of underwriting had been applied not only to fire and marine but to casualty, surety, and liability business. Nearly all the so-called Lloyds were organized in New York and were not subject to the insurance laws, but in 1892 in a revision of the insurance laws conditions were prescribed under which such organizations should be permitted to transact the business of fire insurance. Through subsequent legislation and action of the courts in 1896 many of the Lloyds retired or were driven out of business, but it was not until 1910 that the Lloyds organizations came fully under the control and supervision of the insurance department. (For a history of the movement and action against Lloyds see Cyclopedia for 1897-98 and 1898-99.) The Lloyds in the United States although they have borrowed the name, have little else in common with the famous Lloyds in London. The members of Lloyds, London, do their own underwriting, whereas with the United States Lloyds, the business, or underwriting, is done by an attorney.' The members make a fixed deposit and agree to hold themselves liable in addition for a limited sum to insure against loss to a specified object, or, as described in the laws, associations "whereby each associate underwriter becomes liable for a proportionate part of the whole amount insured by a policy.' 44 The laws of Kentucky, Michigan, Minnesota, Washington, Wisconsin, Alabama, Maryland, New York, and Massachusetts provide for the organization and licensing of Lloyds. They cannot transact a life insurance business, and, as a rule are subject to the same terms and conditions as regular insurance companies. Illinois permits such associations to do business but does not mention Lloyds by name, and Maine extends all rights, powers, and privileges granted under the insurance laws to Lloyds transacting a marine business. Another form of insurance organization, which appears to have been an outgrowth of Lloyds, has come into existence in recent years. These are known as reciprocal underwriters, or inter-insurers, which are a form of association of individuals, partnerships, and corporations authorized under the laws to "exchange reciprocal or inter-insurance contracts with each other or with individuals, partnerships and corporations of other states and countries providing indemnity among themselves from any loss which may be insured against under other provisions of the laws excepting life insurance." The laws of the following states authorized inter-insurance contracts under the above quoted provision: Missouri, California, Kansas, Pennsylvania, Wisconsin, Oregon, Idaho, Arkansas, Colorado, Kentucky, North Carolina, Ohio, Nebraska, Maine, and Minnesota. Minnesota, however, adds marine insurance in addition to life insurance to the excepted class. Illinois, Washington, and New York permit such associations, but not under special laws. In Washington Inter-Insurers must qualify under laws relating to mutual companies. A Texas law was held unconstitutional by the attorney-general. These Exchanges operate through an attorney and are required to file an annual report with the insurance commissioner, who must also be appointed attorney for service of process, which process shall be binding upon all subscribers. Except for the requirements and conditions imposed in the act authorizing them such Inter-Insurers are exempt from all other insurance laws in Missouri, California, Pennsylvania, Wisconsin, Oregon, Idaho, Arkansas, Colorado, Kentucky, North Carolina, Maine, and Minnesota. The following is a list of the Lloyds in active operation and reporting to the New York department of December 31, 1917, with date of organization: Allied Underwriters at New York and Chicago Lloyds, E. A. G. Intemann, Jr., American Exchange Underwriters, Weed & Kennedy, Attorneys (1892). Lumber Underwriters, Eugene F. Perry, Attorney (1892). Manufacturers' Lloyds, Jameson & Frelinghuysen, Attorneys (1892). Merchants' Fire Lloyds, C. L. Faber, Clement D. Albrecht, and Henry Griffin, National Underwriters of America, Hall & Trowbridge, Attorneys (1892). New York Fire and Marine Underwriters (formerly New York Commercial New York Reciprocal Underwriters, Alfred G. Evans, Edward B. Swinney. North American Inter-Insurers, Benedict & Benedict, Attorneys (1892). United States Lloyds. Higgins & Cox, Attorneys (1866). (Incorporated 1918). The following is a list of other Lloyds and Inter-Insurers: Alpha Reciprocal Underwriters, St. Joseph, Mo. American Inter-Insurance Exchange, Kansas City, Mo. Anchor Fire Insurance Association, Dallas, Texas. Automobile Indemnity Exchange, Kansas City, Mo. Automobile Underwriters, San Antonio, Tex. Bankers Inter-Insurance Alliance of America, Kansas City, Mo. Brewers Reciprocal Exchange, Kansas City, Mo. Canners Exchange, Chicago, Ill. Casualty Indemnity Exchange, St. Louis, Mo. Casualty Reciprocal Exchange. Kansas City, Mo. Central States Inter-Insurance Exchange. St. Louis, Mo. Coal Operators Exchange, Kansas City, Mo. Commonwealth Underwriters, San Antonio, Tex. Cotton Seed Oil Millers Insurance Bureau, Dallas, Tex. Craft Owners Indemnity Exchange, Seattle, Wash. |