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KINGS MOUNTAIN I^ERALD. KINGS MOUNTAIN. N. C.
Inaease In Nmnbei, Cost (H Claims
Causes Insurance Rate Inaease
Thursday, August 4, 1966
RALEIGH, N. C. — Increases
In the number and in the cost
of claims paid on behalf of
North Carolina motorists have
mads it necessary for insurance
comi^anies to ask higher
ty insurance rates for private
passenger cars an insurance
spokesman testified today.
At a public hearing before In
surance Commissioner Edwin S.
Lanier, a representative of the
North Carolina Automobile Rate
Administrative Office explained
why the companies need higher
Paul L. Mize, assistant man
ager of the rate administrative
office, said that premiums are
not sufficient to cover the cost
of claims and the operating ex
penses of the insurance com
The proposed rate adjustments.
he pointed out, are based upon
the latest loss experience of in
sured motorists in North Caro
The rate administrative office
has asked approval of rate ad
justments which would result in
an average statewide auto lia
bility insurance increase of 8.1
per cent for private passenger
cars. The proposal was filed July
1 under a new law requiring
such a filing on or before July
1 each year.
The rate changes vary by car
classification, Mize explained.
For most North Carolina motor
ists the requested rate changes
would mean an increase of $4!
per year for limits of coverage I
specified in the state financial
responsibility law. For other
drivers the rate increases would
range from^$3 to $13 or.morfe
BIG CORRAL DANCE
J & W RANCH
Located 1 Mile Behind Bethware School
SATURDAY. AUG. 6.1966
OPEN 1:00 PJN.
• HORSE RIDING • REFRESHMENTS
Dance-8H)0 P.M. Tdl?
COME AND HAVE FUN!
dan JENNINGS BUD WARE
Liability insurance is the form
of coverage under which insur
ance companies compensate per-,
sons who have sustained bodily
injury or property damage for
wfiich their insured motorists
are legally liable. It is the form
of coverage which motorists buy
to comply with the North Caro-,
lina financial responsibility law.
Mize said that North Carolina
private passenger car losses in
curred during the two years
1963 and 1964 exceeded by $15,-
969,428 the amount provided in
the premiums for the payment
“One reason for the under
writing losses is the steadily
worsening accident situation on
the streets and highways of
North Carolina,’’ Mize pointed
out, citing accident statistics
compiled by the North Carolina
Department of Motor Vehicles.
Traffic accidents increased from
65,338 in 1962 to 86,839 in 1965,
an increase of 32.9 per cent. Dur
ing, the samcL period car regis-
ti-ations in North ^Carolina in
creased only 17.2 per cent.
“This,” he said, “shows that
traffic accidents are rising much
faster than motor vehicle regis-
tiqj^ions.” He said that this
means that the source of insur
ance premium income (cars in
sured) is not increasing nearly
as rapidly as the source of in
surance losses (auto accidents).
“The other reason is that claim
costs are going up,” he said. He
cited examples of increasing
prices affecting automobile lia
bility insurance claims such as:
—Increase in cost of medical
care, up 7.1% in 1965 over 1962.
—Increase in the cost of auto
mobile parts. For a popular 1962
model car a trunk lid that cost
$78.00 in 1962 now costs $86.70.
—Increase in automobile re
pair labor rates. 'Die filing lists
eight repair shops in various
North Carolina cities making
charges ranging from $4.00 to
$5.00 in 1962 and from $4.50 to
$6.00 in 1966. ]■
WEEKLY CROSSWORD PUZZLE
11 It cxudtt
IS Short Jockate
Haro’s Om Aaswar
It Symbol for
32 German niltr 2SSct back
34 Paradis* 32 G«t UP
33 Greek Uttar
SO Barth soddats
34 Of the ear
33 Mak* loved
41 Pokar stake
43 Doctor (ab.)
Susan and Rachel Wright of
Raleigh spent the week with Mr.
and Mrs. Grady Ross and family.
Mr. and Mrs. Scott Wright and
daughter were visitors of Grady
Ross, the Stowe T. Wrights and
Mr. and Mrs. Otis Wright and
34 Tw* (praSx)
Vacation Bible School will be
held at Trinity Episcopal church
The proposed over-all rate
level increase was determined
on the basis of combined experi
ence under policies written
through regular channels and
policies written through the As
signed Risk Plan which are now
rated the same, but attention
was given to the wide differ
ence in experience for the two
groups. Mr. Mize said that if
separate rates for the two groups
were established on the basis of
their experience, the rates for
assigned insureds would be more
than 65% higher than the rates
for other insureds.
Under the law the Commis
sioner of Insurance is “author-
Classes for ages three years
and up will be held Mopday
through Friday fromi 3:30 until
5 p.m. Bible lessons, arts, crafts,
recreation and refreshments will
To retgister for classes, stu
dents should call 739-2213.
Lightning strikes the earth a-
bout 9-million times daily.
Iron is the most useful of all
ized but not required” to estab
lish higher rates for assigned
Mr. Mize stated that the pres
ent average auto liability rate
in North Carolina is among the
lowest in the country. “If the
proposed increase is granted,”
he said, “North Carolina’s aver
age rate would still be nearly
25% below the country - wide
Vicky Turner and a group of
Cleveland County girls and boys
attended the annual 4-H Club
week, July 25-29 in Raleigh.
Mr. and Mrs. B. F. Byrd at
tended the Kleckly reunion .on
Sunday in Lexington County.
They left Monday for a trip to
Gainesville, Florida for a five
day visit with Professor and
Mrs. Sheldon J. Pager and fam
ily. The Pager’s plan to return
to Illinois. Mrs. Pager is the
former Frankie Byrd.
Mr. and Mrs. Clarence Bell of
Belmont spent Sunday with Mr.
and Mrs. Bryan Shuford.
Mrs. Lula Peeler of Atlanta is
guest in the home of Mr. and
Mrs. D. J. Montgomery.
A drop-in shower for Mrs. Jer
ry Hamby was held at the home
of Mrs. Frank Hopper, of Pat
terson Springs Thursday night.
Mrs. Hamby is the former Jane
Mr. and Mrs. M. C. Norman
of Gaffney and Mr. and Mrs. D.
J. Montgomery returned from a
seven diay fishing and vacation
trip to Fort Pierce, Florida.
Gary Collins and roommates
at Wake Fbrest were in Atlanta
on Saturday attending a ball-
Mr. and Mrs. Dick Howell and
Billy, Mrs. Billy Montgomery,
Eva Jane, and Beth of Kannap
olis, were visitors of Mr. and
Mrs. D. J. Montgomery, Wednes
STA’TE OF NORTH CAROLINA
COUN’TY OF CLEVELAND
IN THE SUPERIOR COURT
Harold Lee Alexander,
Judith Ann Alexander,
NO'nCE SERVING SUMMONS
The defendant, Judith Ann
Alexander will take notice that
an action entitled as above has
been commenced in the Superior
Court of Cleveland County, North
Carolina, to obtain a divorce ab
solute from the defendant and
the said defendant will further
take notice that she is required
to appear at the Office of the
Clerk of Superior Court of Cleve
land County, in the courthouse
in Shelby, North Carolina, within
thirty-seven** (37) days after the
25th day of August, 1966, and
answer or demur to the com
plaint of the plaintiff, and noti
fying her that if she fails to do
so the plaintiff will apply to the
court for the relief demanded in
This the 2nd day of August,
Ruth S. Dedmon
Ass’t. Clerk Superior Court
FIRST FLASH ON CAMPUSI
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