The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-08-15
CHICAGO CASUALTY
. COMPANY GIVEN
HARD SCORING
Investigating Committee of Insur-
ance Commissioners Shows How
Continental Concern Has Evad-
ed Payment of Claims.
Keeps Silent Where Benefciaries
Live in Foreign Lands-Presidenr
Promises Immediate Reforms.

Sensational disclosures as to tho
methods employed by the Continental
Casualty Co., OF Chicago, which has
an agency in this city, In settling
claims, are laid bare In bulletin CIV
en- out, Tuesday morning, by the spe'
cial committee on Industrial health
and accident settlements, OF the Ma
tional Convention Of Insurance COM
missioners, now In session In the Ho-
tel fuller. The committee, In the
bulletin, quotes from the company's
correspondence TO show the methods
resorted To In numerous instances 10
evade payment OF the full amount OF
the claims, and the iniquity OF the
profit-sharing contracts under which
many agents are wont to operate are
ruthiessly laid bare.
The Continental company Is the
largest OF those writing health and
accident insurance among the labor
Ing Glasses, and was one of the three
put on the grill In Mondays long ses-
sion, which continued until mid
night.
H. q. b. Alexander, president Of
the company, was before the COM
mittee. According to the information
given out, Mr.. Alexander accepted
the report of the examiners and stat
ed that his company had already put
In operation some Of the reforms.
suggested by the committee. He also
declared that all criticized claims
would be re-opened and full restitu-
ton made under his personal super
vision.
The bulletin on the Continental fol-
lows In part:
This company In many claims fails
to recognize what this committee
deems Ii it's moral obligations to pol
icyholders. Indeed its policy may be
indicated In the following phrases
tnken from its home office cores
pondence:
Disregard any notification which
may be made, directly or indi-
rectly, to your Office q. g., the
agents office).
When we receive notice by the
proper party interested In the
matter, will be pleased to give
the same consistent attention.
Certain requirements as to no
tice are made by the contract,
and the company cannot take ac-
ton in the matter until these re-
Quiremcnts are complied with.
Whenever you hear from your
sub-agents that somebody has
been accidentally killed, immedi-
ktely thank them for II and walt
for notice from the beneficiary,
named IN the policy before TAX
ing any notice OF claim.
| feel constrained to say, with
out casting any reflection upon
our claim department, that II Is
somewhat disposed to pro-rate
claims by the rule OF thumb"
We believe. however, that you
will be able to justify the sal.
wage.
THE word salvage applied to saw.
ings on settlements with industrial
policyholders, inevitably suggests
profit-sharing and dividends; while
the insistence OF the home Office on
the rule OF thumb in interpreting Its
ccntracts, and its frequent instruc-
tions to It's agents, In effect to keep
mum as to liability evidenced by Its
contracts, are far from the treatment
which should be accorded the indus
trial masses by this or any other In
surance company. II IL to be noted
also that there are many compromise
settlements, the reason for which
does not appear In the correspon-
6ence Of the company.
The policy indicated results in
numerous cases where this company,
Though informed OF the accident by
agents or undertakers, escapes max
ling payment because the beneficiary
lis not so well informed; In change Of
Occupation cases, where the change 10
more shadowy than real: and In a