INSURANCE METHODS.

Dominion, Volume 3, Issue 828, 28 May 1910, Page 6

INSURANCE METHODS.

THE STATE DEPARTMENT.

ALLECED "UNDERHAND ' ENDEAVOURS."

A FARMERS' PROTEST,

(By TeleirnDh.—Press ; Assoclatlon.l Chrlstchurch, May 27. At tho Farmers' Union Conference today, the following remit from the Taranaki Provincial Executive was discussed :—

"That all tho provincial executives bo written to asking their co-operation in protesting against the extraordinary methods of the State Fire Insurance Department, and to resist the Department's underhand endeavours, by the improper use of confidential.. information, and by misleading suggestion, to steal the- business of tho Farmers' Mutual Firo Insurance Association."

Tho methods protested against wore: (1) State Firo Insurance agents were supplied with tho names of borrowers from tho Advances to Settlers Departs ment, tho amount of cover held'by tho Farmers' Mutual'on the properties of those borrowers, and tho date of renewal.

(2) Having obtained this information, agents wrote to those insurers well before tho date of renewal, and, inter alia, stated that it was the wish of tho Superintendent of tho Advances to Settlers Office that they insure in the State Office. A proposal form accompanied tho letter with certain particulars already filled in, which, particulars could only bo.'gdt from the policy with tho. Farmers' Mutual, and which that officio paid to get. The insurer was asked to complete the proposal and forward on so as to reach the Superintendent well prior to due.date. A remit by Mr. W. T. Lill (Ashburton) was also considered, aB follows :—

"That the attention of the North Canterbury Provincial. Conference should be called- to the methods employed by the State Fire Department in endeavouring to obtain the insurances of mortgages to the Government Advances to Settlers Department. It appears to us that there is a breach of confidence in one Department divulging its business to the other, and it is this phase of the question which calls for protest. Wo ask tho conference to endorse and emphasise this protest." Mr. Lijl said that the Government was taking an unfair advantage of other insurance companies. Ho considered tho Government, as mortgagee, had no right to dictate to the mortgagor in which office he should insure the security. Mr. C. Roid said the Government was creating a very big monopoly despite its avowed hatred of monopolies. . Mr. O'Halloran said that the farmers were a very important section of the people of New Zealand and as the people of New. Zealand wore the State they should certainly, if they embarked in business, get as much business as they could. He did not approve of the policy of State insurance, but saw no reason why, if the State lent money, _it should not compel the borrower to insure in the State office.

Mr. Roberts asked if any member present had had experience of the operation of the methods compiained of. The chairman said he thought the presence of the remit from Ashburton and also of a similar one from Darfield showed that there had been experience of tho methods in tho district.

Mr. 0. F. Clothier said he thought consideration of tho matter might very well be deferred till' some member was able to personally testify as to the matter.

Mr. Ml said that if that system was to, apply : . the operations of the conference 1 /would bo very circumscribed. \, 0 Ihe ; remits were adopted. ■•■ Mr. J. 0. A. Ruddenklau (Rangiora) moved that the Government be requested to enact that the Hospital and Charitable Aid Board should be the recipient of all auctioneers' and publichouse licenses. He said as the hotels made people poor, it was only right that the money the State got from the hotels should he devoted to charitable aid purposes. The motion was seconded by Mr. 0. F. Clothier. Mr. O'Hallpran said the proposal would relieve some of the burden of charitable aid expenditure from country districts, and would prove a more equitable way of levying the necessary funds. The motion was carried unanimously.