The Eastern Underwriter Volume 2-4 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1899 Excerpt: ...is, How can the Committee of Thirty determine what rates have proved unprofitable for the past five years and what rates have produced an excessive ratio of profit? The agreement intimates that it must be determined by the experience of underwriters. It does not say, however, whether this experience shall be based upon statistics or judgment. In other words, the interpretation of the committee's meaning in this respect, like the interpretation of "advisory" control of the Western Union and Pacific Board will rest largely with individual desires and expectations. It is known that the Committee of Twentyseven thoroughly discussed combined classification, and at one time appeared to be warmly in favor of a recommendation on the question. But the opposition of prominent companies made it appear inadvisable to cover the matter in specific terms. If the agreement is adopted.it will remain with the Committee of Thirty to consider what steps it will take to advance unprofitable rates and reduce those which arejnltraprofitable. It may be that such consideration will lead naturally and logically up to an attempt to classify statistics. The Committee of Twenty-seven ascertained very early in its work that there f, had been a marked change Compensation, . r of sentiment among com to Agents., panies and agents upon flat commissions. While many still believed that the flat commission basis of compensation was the most practicable, yet it was clear that opinion in favor of an alternative contingent or graded commission was too strong to be ignored. Both alternatives were considered, and, while theoretically the merits of the graded commission were recognized, yet there was so much to be said against it upon practical grounds that it was thrown aside in favor of t...