REVISION OF DISTRICT OF COLUMBIA LAWS ON RATE REGULATIONS IN FIRE AND CASUALTY INSURANCE INDUSTRIES COMMITTEE ON THE DISTRICT OF COLUMBIA EIGHTY-EIGHTH CONGRESS FIRST SESSION ON S. 1184 TO AMEND AND CONSOLIDATE THE LAWS PROVIDING FOR atements by Jordan, Albert F., Superintendent of Insurance, District of Columbia, favoring S. 1184 with amendments__. Page 20 Kelly, Ambrose, general counsel, Associated Factory Mutual, favoring S. 1184_. 36 Moyer, Thomas F., Assistant Corporation Counsel, District of Columbia, favoring S. 1184 with amendments. 19 Oxenham, Robert V., president, District of Columbia Association of Stringfellow, William A., general manager, National Association of White, V. V. Morton, chairman, Federal Affairs Committee, National ritten statements by Dedmen, Bertrom C., associate counsel, Insurance Co. of North Delaney, Edmund T., representing, National Association of Insurance Keating, T. Winston, representing New Hampshire Association of Rogers, George E., executive secretary, Legislative Committee, tters, reports, exhibits, and memorandums: S. 1184, text of__ Berry, J. Raymond, general counsel, the National Board of Fire Board of Commissioners, District of Columbia, Walter N. Tobriner, Boteler, Charles M., executive vice president, the Mutual Insurance Davidson, L. A., president, Government Employees Insurance Co., Hammell, Paul A., insurance commissioner, State of Nevada, letter Hoffman, V. Manning, president, Firemen's Insurance Co., of Wash- Kefauver, Hon. Estes, U.S. Senator from Tennessee, letter dated Kreeger, David Lloyd, representing Government Employees Insurance Lemmon, Vestal, general manager, National Association of Inde- 68 39 National Association of Insurance Agents, Inc., written questions submitted to, by Hon. Wayne Morse and reply to questions from__ Schinnerer, Victor A., president, Victor O. Schinnerer & Co., Inc., letter dated May 24, 1963, endorsing S. 1184 with amendments-Staff memorandum re S. 1184_. REVISION OF DISTRICT OF COLUMBIA LAWS ON RATE REGULATION IN FIRE AND CASUALTY INSURANCE INDUSTRIES TUESDAY, JULY 16, 1963 U.S. SENATE, SUBCOMMITTEE ON BUSINESS AND COMMERCE OF THE COMMITTEE ON THE DISTRICT OF COLUMBIA, The subcommittee met, pursuant to notice, at 10:50 a.m. in room 6226, New Senate Office Building, Senator Thomas J. McIntyre (chairman of the subcommittee) presiding. Present: Senators McIntyre and Morse. Also present: Chester H. Smith, staff director; Fred L. McIntyre, counsel; Martin A. Ferris III, assistant counsel; and Richard Judd, professional staff member. Senator MCINTYRE. The subcommittee will come to order. We are meeting this morning to consider S. 1184 which is a bill to amend and consolidate the laws providing for regulation of certain insurance rates in the District of Columbia, and for other purposes. There will be inserted in the hearing record at this point a memorandum prepared by the assistant counsel of the committee. (The memorandum referred to follows:) U.S. SENATE, COMMITTEE ON THE DISTRICT OF COLUMBIA, July 12, 1963. Re S. 1184, to amend and consolidate the laws providing for regulation of certain insurance rates in the District of Columbia, and for other purposes. Date of hearing: Tuesday, July 26, 1963, 10 a.m. MEMORANDUM FOR MEMBERS OF THE SUBCOMMITTEE ON BUSINESS AND COMMERCE The principal purposes of the bill and the amendments to be proposed by the Board of Commissioners are: (1) to abolish compulsory rating bureau membership for insurance companies writing fire insurance in the District of Columbia; (2) to permit rates filed by a rating organization and deviations filed by members of a rating organization to take effect when filed without prior approval by the Superintendent of Insurance but with the right in the Superintendent to disapprove such rates retroactively within 30 days after filing; and (3) to deny "aggrieved party" status to competitors of any company filing a rate at hearings held by the Superintendent of Insurance on rate filings. EXISTING LAW The Fire Rating Act of 1944 provides that all insurance companies writing fire insurance policies in the District of Columbia must be members of a rating organization. Such organization is required to file rates with the Superintendent of Insurance which thereafter control the insurance rates which may be charged by all of its members. Any member of a rating organization which wishes to charge a different rate than that filed by the rating organization and approved by the Superintendent of Insurance must obtain the prior approval |