The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-04-02
Superintendent c. H. LuIing
Excludes Insurance Company.
Refused to Pay $4,000 Claim
After Agreeing to Do So.
CASE rs FROM TOPEKA.
DIR. III. Ill. Mcclellan, Drowned in
Bath Tub, Had Policy.
Company Refuses to Pay Daugh-
ter, Who Is BENEFICIARY.

c. H. Luling, superintend of in
surance has excluded from the state
the Aetna Accident Insurance company
of Hartford, Conn, or rather he has re-
fused to renew the certificate of the
company to do business in Kansas until
it carries out its agreements and the
requirements of law
The insurance department has two
things against the Aetna company. One
is that it refuses to pay the insurance
on a policy issued to DR.. H. H. McLel-
Ian. who died last July. after it had
agreed to abide by the decision of the
insurance department regarding the
matter, and the other is that the COM
pany is trying to get out of paying
some Of its Kansas taxes.
one evening last July the family of
DR.. Mcclellan went home and found him
dead in bath tub. He was lying face
downward. After a careful examina-
tion DR.. AIcClintock, DR. Barnes and DR..
| Grubbs decided that death had been
| caused by drowning. There was a
1 bruise on his forehead and it was be-
/ lieved DR.. Mcclellan had slipped as he
was getting out of the tub, struck his
head on the edge and fell back in un-
conscious.
Among the papers of the deceased
were found two accident insurance pol
icies, one in the Aetna company for
$1,000 and the other in the National
! Masonic Accident association OF DeS
Moines for $1,000. The insurance COM
/ panies contended that death was due
to vertigo or heart failure and was
1 therefore not an accident, in which
! case they would not have been liable.
On the other hand if death was caused
by drowning it was an accident and
| the companies were liable, and all the
physicians said death was caused by
drowning.
Eugene Hagan was employed to rep
resent Miss Leila Mcclellan, in whose
| favor the policies We're drawn, while
/ the companies were represented by L.
G. Boyle OF Kansas City and w. F.
Guthrie of Atchison. The matter was
taken to superintendent Luling and
last November the insurance depart
ment asked the company to make a
settlement At first the attorneys for
the Aetna company agreed to settle
al so cents on the dollar but that offer
! was refused.
/ After several conferences the attor-
| neys for the Aetna agreed to leave the
matter to Superintendent Luling for
settlement if he would thoroughly ex-
4 anime the case. Mr.. Luling did so and
claims against the companies were
| perfectly valid The Des Moines com
pany promptly paid, but the Aetna re-
fused to do so.
/ In the meantime trouble had arisen
/ between the Aetna company and the
| insurance department over the pay
I ment of the comDany's per cent tax
1 The law provides that insurance COM
| panies shall pay 2 per cent. of their
| gross receipts in Kansas each year into
the state treasury. The Aetna COM
pany wanted omake some deductions
4 and insisted on it, but Superintendent
Luling refused to stand for any de
/ ductionS."
The conDany's license to do business
| in Kansas expired on March l. Re
| Gently its officers applied for a renewal
| of their authority for another year, but
! Superintendent Luling has informed
them that no new license would be is
sued until they pay the Mcclellan
/ claim and also pay the taxes. and at
present the Aetna company has no
right to transact business in Kansas
There are other complaints filed with
the department against the Aetna COM
pany, two from Topeka When Webb
| McNall was superintendent of insur-
ance he had considerable trouble with
| this company, or rather the Aetna COM
pany had trouble with McNal.
| Superintendent Luling says he is sim
] ply compelling the company to carry
| out it's agreement. It agreed to abide
by his decision as to its liability after
/ he should make a thorough investiga-
ton Of the case, and then it went back
on the agreement.
The certificate of the physicians
named as to the cause of DR.. McLeI-
lan's death was as follows:
Deceased had completed his bath
and on getting out of the tub had
/ slipped and fell striking his forehead
/ on the edge of the tub, rendering him
unconscious, in which condition he
sank into the tub with his face under
I water and drowned before regaining
cause (of death) other than the injury
and subsequent and consequent drown
ing"