The herald., 1898-11-26
PROSPERITY OF THE COMPANIES
DURING CURRENT YEAR
MUNICIPAL BANKING SCHEMES
Increasing charlottesville Of Chem.
ical Bank Stock-Bank Of
England Dividends
OFFICE OF THE HERALD,

The accident insurance companies have en-
joyed fairly prosperous year. Some
branches have not yielded as much profit as
formerly, and although exact figures are not
yet obtanable, it is believed that the VOL
ume of business will about equal that re-
ported year ago, when the showing was es-
pecially satisfactory. Although most of the
companies provided for the war hazard few
experienced much of loss from injuries to
policy holders at the front, so it is difficult
to say just what effect the hostilities with
Spain had upon the business. The extra
premiums were paid in some instances, and
few volunteers took out "war policies"
ihsuring against injuries received in battle,
but the rates charged for such indemnity
were so high as to preclude a general de-
mand for that sort of insurance. Inasmuch
as the companies are always more or less
affected during periods of commercial de-
preston, they suffered, no doubt, from loss
OF renewals while the war was in progress.
but the development OF the business along
other lines made up, it is thought, for much
that was lost.
The combination of health with accident
insurance has been a feature of the business
during the year, says the New York Evening
Post. Health insurance has been written
little was known of the business in this
country. The latest policy offers benefits
OF $500 where blindness results from dis
ease and the same amount for permanent
paralysis of the body or of both hands or of
both feet or of one hand and one foot. 1t
also guarantees $25 week if the assured
shall suffer from typhus fever, typhoid fever
scarlet fever, smallpox, varioloid, diphthera
measles, Asiatic cholera, pneumonia, cry
spelas, appendicitis, diabetes, pertonitis,
bronchitis and pleurisy, the limit of indem-
nity being twenty-six weeks The policy
covers also against ordinary and what are
known as travel accidents" double benefits
being provided for mishaps of the latter
SORT Such policies cost from S35 to $55
year and have taken well, it is said, with
the public.
The moral hazard of this sort of insurance
is difficult to provide for Accident COM
panies have to take unusual precautions
since dishonest claimants have been known
to dsfigure themselves so as to collect few
hundred dollars from an accident company
The following statement to agents made
some time ago by a prominent underwater
explains the situation: Moral hazard is the
gravest difficulty in accident underwriting.
1t is so grave that unless the most thorough
going care is exercised the loss ratio will de-
xelop on constantly ascending scale. Peo-
pie, as matter of fact, get educated in the
making OF claims. They learn the require
ments and they fit their proofs to the end in
view. There are careless companies, and
these are educators of claimants for the
whole line of companies. Agents have seen
policy holders shoot off hand or leg lust
to recover the indemnity provided for in ac-
cident policies taken out in preparation for
such accidents. They have seen croton oil
used as hypodermic to produce the ap-
pearapce of sprain of the wrist or ankle.
They have seen reputable men claiming dis
ability who have not lost day from their
business because of the slight injury actual
ly sustained They know of chronic claim
ants. If all agents would be Underwriters
and solicitors afterward' they would rid MS
measureably of the moral hazard. The ef-
forts of the home office will be futile without
the cooperation of agents. We have the
right to ask them to stand up to their duty
In the matter"