The Detroit times., 1911-08-28

MflgRAuKnR via, Aus, ~
BtnrliAs rssslakioAs ot fraud and
tricksry m me .indnstriAl health and
sccidsnk. insurance business were e.
possA 10 The national association Of
state insurance commissioner At
thelr,annnnl convention here. BY Com.
naissloners ralmor ot MiohiaAn, Pot
Ter az Illinois. HArdinon Of MAssAehu.
setts, Kotnhkiss Of New York, and
Hnttcn .of VirriniA 4 COMMITTEES ar
pointed last June 20 investigate set
tlensnts made BY companies selling
thar sort of insurance.
Fourteen companies were investi-
gatsd. inoluding some Of the largest
a. The country. OF the IL. only two
or thrive were found 70 be undeserv-
inx of Snriticism. Three or four othsrA
have sdms very serious weak spots
IN their methods OF settlement The
rsmaindar grAdsd al the way fron
bad 70 WORSE
Pear Man lsStilt Hard.
n = the moor man Who has been hit
b. this species Of knGvery. asserts the
oommiftee. fbr the vast bulk OF indus
trial health and accident insurance
policies are tAlnen out by laboring
men. The committee cites hundreds
81 cases whore widows, orphans and
other depnndent relatives have been
defrandsd Of the whole or part OF
irrurance rightly due them, by every
species Of trickery known 10 the un-
ecrupulous, and In some cases by
actual crime.
Torsigners have bean regarded as
Isgft;mats prey. Listen 10 this extract
fro,n q letter fnom one home once 70
claim agent:
we might cay for your information
thai this II en- opportunity for you 70
demonstrato your ability and-also
demonstrate that it r. your purpose
10 hold down these claims to q prop
er figure. You know that this man
Is foreigner"
me commonest method Of scaling
or evading sediment II proraung.
This provisicn has become one OF the
most iniQuieOus tricks Of the trade Tor
defrauding the defenseless Dene
flciary.
For example, when . man was
burned while endeavoring to ex-
tirguisA . IRE IN his house the COM
pany cIaimed that he should be rated
asl q volunteer, fireman and It forced
4 settlement at that rating.
In another case where the decqpsed
was insured a. Q stationary engineer.
the company shaved the death claim
ene-fourth because the stationary an.
gineer had assisted the regular IRE
man e times IN firing the boiler.
There are eases without number
where psrpons killed or injured when
fshinr or hunting for recreation have
bean pro-rnted 20 the status OF hunt
<ors or Waterman and their claims cut
Is the i0west possible figure on the
r1uunds that they were following
h sardOus occupations.
dne particularly Migrant instance OF
thet me Of this device occurred when
an A ndertaker, killed while travelling
With corpse, was prorated AZ an
axprpk q messenger and the company
tried 10 settle the claim for one-hah
its Han ility.
ho~ u 10 Done.
a prA cfice Of reducing the In
demntty TO one-nfth In case notice or
the acciden or illness fs given more
than ten O4y8 AIkeF tuo bhLn0 hllOWo
dishonest s,fhcers TO claim that notice
wa. not "a cived or that IL was sent
"a tie wronAy department, and this has
been used times without number.
The poor ynan who. after an acct
denf. needs hnmediste settlement. 10
constantly fegsced by interruptions
aranfa who ofrer to compromise by
the Immediate payment OF small
fraction OF the value Of the policy,
threatening 70 force the beneficiary to
rne n the ofam 10 not accepted. This
a what one once In letter to It's
aren't rsfes to as strong arm
msthOds.-
The utter dailure Of moettindustrial
accident companies to recognize their
moral obligations 20 policy holders
nav be gathered from these selections
from the mass OF letters offensd by the
committeo a.. evidence.
"Pieaae ret on the claim az cheap
A Won can. Considerable Is saved In
the payment by good talking and
twisting Of tho contract.
There II another:
~As have repeatedly advised you,
the company does, not desire that this
case should ever come 10 trial, and
our only intent 10 10 adopt dilatory
tactics. file demurrers, ETC., and thus
force an equitable settlement"