Introductory: Omnipresence of the rate question, 704. — Two phases in fire insurance, 705. — I. Mediums for fixing fire rates, 705. — Cooperative rate-making, 707. — Underwriters' associations, 707. — Abuses of the coöperative system, 709. — Lack of classified statistics, 710. — Discrimination, 711. — Control over brokers, 714. — The regulation of associated activities, 715. — The common law, 715. — Antitrust statutes, 715. — Anti-compact laws, 716. — State-rating acts, 717. — Regulatory statutes, 718. — Criticisms of state-rating acts, 720. Advantages of the regulatory statutes, 720. — II. Methods of fire insurance rating, 721. — Development of classification, 721. — The judgment system, 723. — The schedule system, 723. — The Universal Mercantile Schedule, 724. — The Analytic System, 725. — Defects of the schedule system, 727. — Rehabilitation of the classification theory, 727. — The Experience Grading and Rating Schedule, 728. — Objections to the classification theory, 732. — Advantages of the latest schedule, 736. — III. Conclusion: The proper medium for fire insurance rating, 736. — Adoption of a satisfactory and equitable rate method, 737.

In a discussion of the methods of automobile insurance ratemaking it is essential to keep in mind that the measurement of risk in every branch of insurance has approached its present status by a series of improvements and that modern methods in personal and property insurance are a result of this progress. There is consequently no anomaly in the fact that in automobile insurance, one of the youngest branches of the business, a satisfactory system of ratemaking still awaits development. The automobile was of comparatively slight importance prior to I900; in the census of I899 its manufacture was reported only as a part of the wagon and carriage industry.' Motor-car insurance was introduced in this country in the same year. In the early years of the business, furthermore, co-operation was rendered impossible by the competitive practices of many companies. Promiscuous rate-cutting was a prominent and disturbing feature of the business, and it was not until I9IO that the predecessor of the present association for rating liability and property damage risks was formed. Associated action as regards fire and theft rates appears to have been initiated only one year earlier.2