The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-08-18
INSURANCE MEN
PROMISE REFORM
Industrial Sick and Ac-
cid Mt Companies
Critic zed.
TRIED To AVID
CLAIMS FOX 10. S
Commissioners of Insurance Pro
duce Remarkable Evidence to
Show Endeavors to Repress
knowledge of Rights by
Observation-Disclosures
Comes From Within.

Astounding revelations as to the
practices of accident and sickness in
surance companies doing an Industrial
business were brought to light THIS
week in the investigation conducted
in Detroit BY committee of the Ma
t!onal Convention OF Insurance Com
missioners. All sorts Of evasions OF
the payment of claims. scaling without
| cause and various irregularities of the
| graveS sort were presented TO the
committee By tie examiners of state
| departments who had been assigned to
the work of investigation.
AS result. promises of restitution
of amounts said to have been wrong
fully withheld from claimants were
made by at least some OF the companies,
through their presidents and other off,
GERS, who were present. Going still
further, the discharges of men who
nave been directly responsible for some
of these practices was demanded by
the insurance commissioners. Revoca-
ton of license. 1t is supposed would
have followed a refusal TO comply with
the dema nds.
Button Mt Meeting.
Colonel Joseph Button the Virginia
Commissioner of Insurance, was a mem
Der or the committee and attended the
Detroit meeting He is president of the
Association of Commissioners. Colonel
Button was back at his office vester-
day.
Statements have been given out by
the committee regarding the companie
investigated. while official reports of
Investigations will be presented next
week at the annual meeting of the
national Convention OF Insurance Com
missioners.
This development is regarded in the
insurance world as second only 10 the
sensations which came to light several
years ago in New York regarding life
compa MES, and has caused general
interest In the matter. The n1panies
afec'ed. which DO an Industrial busA
mess collect small amounts weekly or
monthly. mostly from the poor and is-
norant
Frenks I'm Insurance
one OF the companies referred TO is
the General Accident Fire and Life
Assurance Corporation, of Perth, Scot
land with an American branch. doing
business In practically all the States.
The committee of Insurance commits
sioners says that 1t has found that this
company had a man insured who was
injured while trying to save goods from
MS own burning building He was a
farmer. and yet. un Ter the clrcum-
stances, the concern rated him as a
volunteer fireman. and cut his claim
accordingly. In another case a small
sum was paid to the undertaken and
the remainder was not paid for two
years and then not until the employer
OF the insured bestirred himself. The
oenehciary seems to have been in E,u
rope CHARLES Fl. Boyer, who managed
the industrial department. received a
snare in the profits. and 1t is pointed
out that it was 10 his interest 70 scala
claims
An electrical worker. who was hur,
whiie hunting frogs. was rated as
hunter with the result THAI he Ice,
part OF his insurance. a man who took
bath in the Mississippi was scaIsd
because II was said the river was swif,
at the point, although this was stated
10 Dc untrue. In another instance the
proofs of death, said the Comnanv
were received too late, although in this
caae 'he oenehciary lived in Russia and
could not attend to it in time.
SO much impressed were tho com
missioners by this case that they de-.
Inanded that claims be adjusted in
way which would make "permanent,v
eHeetiVe-not merely to trumpet-the
matter of a square DEAL"
Should Keep Quiet.
inc continental Casualty Companv
comes In Tor a severe denunciation. 4
letter was produced from it to one of
IT'S agents telling him that when any
one mentioned to him that q lose ma
occurred. ne should express his thanks
and wait for developments. The lettnr
also referred TO its claim department
| as working by rule of thumb" ana
as able TO justify salvage"
G. Chamba. an italian. who was in
sured In the Continental. was muir
dereds 1t appeared from the records
that an undertaken sent in the policy
10 the company. and that the benefic-
iary probably never heard of II. II
was found marked "disallowed." II
is further charged that the concern
told its agents to suggest to the coro-
ners and undertakers that they did NOT
desire to hurry death claims
Next comes the National Casualty
Company. of Detroit. doing business in
thirty States The committee" said
the commissioners. in their authorized
statement, is not exactly satisfied
with the explanation given by the
company of the disappearance of a
large number of claim jackets cover
Ing adjustments made in these depart
ments. as to which the company states
that the missing Jackets In the East
ern department were used by some
boys. now no longer In tho employ OF
the company. In a pillow fight some
time since. and as to the Western
department that its files were left
where jEnitor had access to them
and were destroyed in the belief that
they were waste paper"
Quickened Memory.
In one case the insured in the Ma
tional Casualty was killed nv fan
from scaffold. The liability of the
company was prorated from $500 to
800. apparently by the means indi-