THE INSURANCE INDUSTRY

HEARING

BEFORE THE

SUBCOMMITTEE ON
ANTITRUST AND MONOPOLY

OF THE

COMMITTEE ON THE JUDICIARY
UNITED STATES SENATE

NINETY-FIRST CONGRESS

FIRST SESSION

PURSUANT TO S. RES. 40

39-280 O

PART 17A

AUTOMOBILE LIABILITY INSURANCE

Printed for the use of the Committee on the Judiciary

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1970

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 - Price $4.75

Report of National Association of Insurance Commissioners Subcommittee,

1968___

10775

Background on Traveler's LMSC plan__.

10849

Background on Mercury Causalty Co. group plan.......

Background on family defender plan of Holland-American Insurance Co.. 10877

Miscellaneous information on group plans-

10872

10885

Article: "A Review of Summary Report, Prices, and Profits in the Property

and Liability Insurance Industry and the Hofflander-Mason Critique

Thereof," by Bernard L. Webb..

10892

Information supplied by Irving H. Plotkin of Arthur D. Little, Inc..

Report of the National Association of Insurance Commissioners Special

Committee on Automobile Insurance Problems..

10895

11289

A bill: Senate of Maryland "to establish fairness in insurance under-

writing".

11477

Letter from attorney general of Texas on using investment income as

factor in computing premium rates for automobile insurance..

Breakdown of clean risks and surcharged risks in assigned risk pools, from

National Association of Independent Insurers-

11479

11484

Discussions of rate competition....

11487

Background on State rate matters..

11551

Articles:

Statement of Lawrence Jones, president, American Insurance Asso-

ciation in support of Federal Insurance Guaranty Corp..

Excerpt: Public appraisal of Automobile Insurance Rates and Re-

lat-ed Topics, 1969, by staff of Insurance Information Institute... 11772

Except: Royal Commission on Automobile Insurance, British

11751

Columbia, 1968...

Statement of Vestal Lemmon, president, National Association of
Independent Insurers on Federal Insurance Guaranty Corp...

"The Controversy Over Profitability in the Property-Liability

Insurance Industry," the Insurance Stock Review, February 1970. 11834

"Lack of Precise Accounting Data Called Insurance Field Road-

block," Journal of Commerce, November 7, 1968..

11790

11846

11844

"Identifying Merger Targets in the Property and Liability Insurance

Industry," by Richard L. Norgaard and David T. Crary, Financial

Analysis Journal, January-February 1970__

"Insurer Diversification Dominates Trends in 1969", the National

Underwriter, January 24, 1970_.

11871

11875

"Accounting Practices and the Merger Movement," testimony of

Abraham J. Briloff before the Senate Antitrust and Monopoly

Subcommittee, February 5, 1970-

11883

"Insurance Company Groups 1969," by Dr. Richard de R. Kip,

Florida State University--

11928

"A vote on Surplus Accounts in Property-Liability Insurance Com-

panies," by Dr. de R. Kip, Florida State University.

11934

Pt.17A