Crime Insurance

A 1930 increase in crime, together with a new insurance policy to cover an old racket, were last week announced by R. A. Algire, vice president of National Surety Co. ("We bond more people than any other company in the world.") In 1929, said Mr. Algire, surety companies collected 35 million dollars in premiums representing burglary, robbery and theft insurance to the amount of five billion dollars. New York State spent nine million and New York City $6,500,000 to buy crime insurance. Mr. Algire estimated that in 1930 the surety companies would pay out large claims, as he anticipated a "very substantial increase" in burglaries. But he also expected an increase in insurance written and premiums collected.

The new insurance policy (adopted also by other surety companies) provides against losses through kidnaping robberies. Robber-kidnapers go to the home of the bank cashier, or other official, compel him to accompany them to the bank, to open the safe for them when the time-lock runs out. By the payment of a small extra premium, banks and businesses can protect themselves from such kidnap losses. National Surety Co. also wrote last week a suicide policy, said to be the first of its kind. A manufacturer (unspecified) wished to borrow $25,000 from his bank. As the business depended largely upon the well-being of the borrower, the bank wished to take over his insurance policy to protect itself in case of his death. But the life insurance policy contained a clause stipulating that no payment would be made in case the manufacturer committed suicide within two years. The National Surety Co. therefore gave the manufacturer a suicide policy for $30,000. Then the bank, holding both the life and the suicide insurance, granted the loan.

This file is automatically generated by a robot program, so reader's discretion is required.