Note 237d-2 — Chapter III

The first fire insurance provisions or regulations paid little attention to the danger of over-valuation. Similarly v. Justi, Abh. von der Macht, Glückseligkeit, etc., eines Staats. 1860, 81. Also Krünitz, Oekonom. Encyclopædie, 1788, XIII, considers it improbable that any one would have his home insured at a higher than its real value. On the other hand, there were formerly bitter complaints made in the United States that the agents, on whom the determination of the rate of premium and the control of the insurance-sum depended chiefly, were led to make over-valuations in furtherance of their own interests. (Mitth., 1871, 3; 1874, 95.)