IMPORT OV THP, COMMISSIOR.Un OV 1XStJnAS0V,.


13


reviewing officer or tribunal is greatly enlarged. In Kansas the
insurance superintendent and in Kentucky the state insurance
board may not only hear and review complaints as to rates and
order corrections upon finding of unfairness or discriminations,
but also! fix the rate at which the risk in question shall thenceforth
be written. From this action of the insurance superintendent
or board an appeal is given to the courts.
STATE RATING.
Pure state rating is found only in Texas. In addition to all
the powers above mentioned, the Texas insurance commissioner
has the original and exclusive power of promulgating fire insur-
ance rates. These rates are maximum. The commission works
under a state appropriation; it employs its own expert raters; it
makes its own inspections; it formulates its own rating sched-
ule. Rates may from time to time be ordered changed or amend-
ed. The insurance, companies may not write property at any
other than the published rate. Rates are required to be reason-
able. Companies or any persons insured may appeal their griev-
ances to the commissioner, and the order of the commissioner may
be reviewed by the courts. The Texas law is very comprehensive
and provides in detail the methods and rules by which the com-
mission is to operate.
ADMISSION OF NEW COMPANIES.
The department has aimed to secure the admission of all legit-
imate and solvent agencies for effecting fire insurance. This
gives the insured the benefit from the greatest possible compe-
tition in rates and in service. While there often exists' little, if
any, competition in rates between companies of the same kind, the
presence of two or more kinds of companies or organizations,
seeking the samne class of business, often creates a lively competi-
tion in rates as to sucich class of business. During the past two
years there have been licensed and admitted in this state thirty-
four mutual fire insurance companies, ten inter-insurers and
five Lloyds associations, in addition to fifteen stock companies.