New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-15
METHODS BAD
Commissioners from Five States
SCrutinizing Companies.
POOR PEOPLE SUFFERERS.
Acts of Industrial and Accident
Concerns Especially Are
Under Probe.

Detroit. Aug. l4-Insurance commission
ers. representing the states OF Michigan
Illinois, Massachusetts. New York and VIZ
ginia. met here to-day 10 report OH tne
condition OF insurance companies "hi'h
do an industrial and accident husiheSs'
Various companies which are engaged III
this class OF work have come urdeI lhe
scrutiny OF the commissioners, and searc"-
ing criticism OF some OF the methods en-
ploved In settlement OF claims on accident
policies was made I'm the reports subniitteu.
The investigation Of Industrial an"
accident insurance now covers some nj
teen companies, and reports are bong pre-
pa-ed on each company. The committee
Of state representatives has not yet com
pleted It's final report. but alleged serious
evils in the settlement of various policies
are said 70 have been discovered. These
in the opinion OF the commissioners are
the more aggravated. because the sufferers
are usually workngmen. who. II is SAID
through ignorance Of their rights and ham,
pered by policy contracts Of wordy clauses
have apparently. in a number OF cases
been At the mercy OF calloused claim ad-
justers.
The Investigation is intended not only TO
bring out and inform the public as 70 the
facts and compel restitution where wrong
has been done. but by finding the causes
Of present conditions TO suggest proper
remedies.
In report already formulated by the
Insurance Department Of the State OF New
York. which was made public to-day par
ticular attention is directed 10 the large
selfish interest, which. through proft-shar-
ing contracts. its agents have saved IN
sums that may be saved on settlements
This company does a general casualty
business. and. aside from its Industrial
health and accident policy settlements
which amount 10 about % per cent OF us
business. the report says, was found 70 De
IN good shape financially and honestly con-
Quoted
The report notes that the company per-
sistently ignores what are known as ac-
emulation benefits on industrial policies
and the department empnatically con-
dennis what seems To be the practice OF
the cornpany's claim department IN evaa-
ing payment 70 benehciaries resluehl III
foreign lands Of laborers killed here.
Among the cases cited in the report was
one Of an insurance agent VINO was Sc
verely injured while trying 20 extinguish
fire I'm his own house and was declared 10
he a volunteer fireman and therefore
entitled 70 a smaller indemnity. Another
was Of an electrical worker. who went out
one evening 10 hunt frogs and was
drowned. and was pro-rated 10 the class
| hunter" and settlement refused on any
Ttresf NJ
compelled payment in full.
Cases whore delay in proof 81 death was
taken advantage Of were cited, together
with one where an adiuster had shaved
off 800 by talk.
A preliminary report Of the investigation
will be made at tho Convention or lnsur-
ance Commissioners. which is TO be hcld
at Milwaukee August =.
The Investigation by the special commit
tee OF the Nationai Convention OF Insur-
ance Commissioners into the settlements
made by various companies on claims
under so-caIled industrial. health and acci-
dent policies had its start from like ex-
animation OF the United States branch OF
the General Accident. Fire and Life Assur-
enca CORPORATION. Limited, Of Perth, scot
land made by the Insurance Department
NJ this state. II was learned yesterday.
This foreign corporation was first ad-
rni,ted 10 do business IL this state. It's
nrincipal place OF business is In Philadel-
nbia In the regular course Of business
an examination Of the General Accident
u-as undertaken in March Of this year, and
n condition was found in regard 70 the
conpauy's settlement OF claims under us
industrial. health and accident policies
which Superintendent Hotchkiss deemed
so serious that he laid it before the eXecu-
tive committee of the national convention.
As a result. the special committee was ap-
nointed 20 investigate the industrial settle
r,apts in all Of the companies carrying this
kind OF business.
Under the direction Of the committee
this work has been carried on by two eN-
aminers from the Illinois department. two
~ three from Massachusetts, five from
Michigan. seven from New York three
from, PENNSYLVANIA and two from Virginia.
IN addition 70 the General Accident. the
,-,.ostiqation has covered one company in
This state. TWO in Pennsylvania, two IN
Massachusetts. six in Michigan, one IN
Illinois and one Indiana company having
its Office in Chicago.
The reports from the committee on these
connanies are expected soon.