SAMPLE PAGE OF COLLISION RATES

(Taken from Automobile Insurance Manual, effective May 1, 1922, p. 355) COLLISION RATES-PRIVATE PASSENGER AUTOMOBILES-GAS OR STEAM-TERRITORIES 1 AND 2

92 85

323 299

220 204 193

188

172

143

132

125 121 112

For bumper discounts, see list approved bumpers and form of endorsement required.

of coverage for a five passenger touring Buick (1922 list price of $1,395) are $312, $127 and $53 respectively; and for a seven passenger touring Packard (1922 list price of $3,850) $371, $209 and $119. Combining all the factors of territory, collision symbol, age group and degree of coverage, private passenger automobile collision rates vary from a minimum of $10 (for territory 8, collision symbol "A," age group five, $100 deductible) to $395 (for territory 1, collision symbol "U," age group one, full coverage). In the case of electric cars the rates quoted for gas and steam passenger cars are reduced by 25 per cent.

In rating commercial cars the aforementioned territorial division is also used, the rates again varying according to the three degrees of coverage. Twenty collision symbols for complete commercial cars (chassis, body and equipment) are used, ranging from "AA" to "UU." Combining all the factors of territory, collision symbol, age and coverage, the rates vary from a minimum of $10 (territory 8, age group 5, collision symbol AA, $100 deductible) to a maximum of $443 (territory 1, age group 1, collision symbol UU, and full coverage). Electric commercial cars are written at rates reduced by 25 per cent. With respect to certain classes of commercial cars-ambulances, baggage transfer, emergency cars of electric light, street railway and similar public service corporations, mail trucks, and automobiles operated by express companies, fire departments, fire patrols, police patrols, and newspaper delivery services-all rates are increased by 100 per cent.

In the case of private livery automobiles rates are equal to 150 per cent of the corresponding private passenger collision rates, while public livery automobiles, taxicabs, hotel omnibuses, jitneys and buses are written at twice the corresponding private passenger rate, if the public automobile is of the private passenger type, and at twice the corresponding commercial automobile collision rate if the

public automobile is of the bus or commercial automobile

type.

Dealers' and manufacturers' automobiles, or any other automobiles used for demonstrating or testing purposes, are written for collision insurance at the private passenger rates applicable, plus 25 per cent. A discount, however, is allowed to a dealer insured under a blanket collision policy for all new automobiles owned by him during the policy year. Thus where the dealer owns less than 100 new cars during the policy year, the rate charged is only 40 per cent of the full private passenger or commercial rate applicable. Where the number of new cars thus owned exceeds 100 but is less than 250, the rate is reduced still further to 35 per cent, and where the number of new cars owned exceeds 250 to only 30 per cent.

Special "bumper allowance endorsements" are used in connection with collision insurance and usually read to the following effect: "In consideration of the reduced collision premium charged, it is warranted by the insured that the automobile insured under this policy is and will be continuously equipped with a front bumper known as

and manufactured by

.......

The insured undertakes to use all diligence and care in maintaining the efficiency of said bumper throughout the life of this policy. The bumper allowance is granted only where the automobile is equipped with a bumper of make and type which has been approved by the Underwriters' Laboratories, Inc." With respect to private passenger cars, equipped with a front bumper of approved type, an allowance of 10 per cent from the collision premium is granted. When equipped with both front and rear bumpers the allowance is increased to 121/2 per cent. On commercial automobiles a discount of 5 per cent is allowed for the attachment of an approved front bumper and/or an approved radiator guard.

Fire and Transportation Coverage.-Definition of the coverage and leading conditions governing the same. This type of automobile policy protects "against direct loss or damage, from the perils insured against, to the body, machinery and equipment of the automobile described herein while within the limits of the United States (exclusive of Alaska, the Hawaiian Islands and Porto Rico) and Canada, including while in building, on road, on railroad car or other conveyance, ferry or inland steamer or coast wise steamer between ports within said limits." The following are the perils insured against: (1) "fire, arising from any cause whatsoever and lightning"; and (2) "while being transported in any conveyance by land or water, the stranding, sinking, collision, burning or derailment of such conveyance including general average and salvage charges for which the insured is legally liable." Usually, the insurance is based on the following warranty by the insured: "The insured's occupation or business where the subject of this insurance is used in connection therewith, the description of the automobile insured, the facts with respect to the purchase of same, the uses to which it is and will be put, and the place where it is usually kept, as set forth and contained in this policy, are statements of facts known to and warranted by the insured to be true, and this policy is issued by the company relying upon the truth thereof." In nearly all other respects the policy is similar to the standard fire policy. At times, however, valued policies are issued at an increased premium, the principle involved being similar to that discussed in connection with valued policies in marine insurance. (For sample copy of fire and transportation automobile policy see p. 451.)

Factors underlying the determination of rates.-Rates for fire and transportation coverage depend upon the use, construction and age of the car, its motive power, and the use of protective devices. Thus an examination of the

FIRE, TRANSPORTATION AND THEFT AUTOMOBILE RATES

(As published in the Automobile Insurance Manual for May 1,

1922.)

SCHEDULE "A"

(See Territorial Application appearing hereafter)

PRIVATE PASSENGER AUTOMOBILES

(Gasoline or Steam)

Class Symbols and Rates for Theft Coverage

NOP

T

U V

W

55 .75 1.00 1.50 2.00 2.50 3.25 4.00 5.85 6.85