The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-08-24
NEW INSURANCE
LAWS REQUIRED
special COMMITTEES Finds, on Invest.
eating Different Companies, That
Many Reforms Are Needed.


portant legislation for the Control OF
insurance companies doing industrial,
health and accident business. is pro-
posed In the report Of the special
committee of the insurance commits
sioners OF the United States. which
was made public at the session Of the
convention here, Wednesday.
The basis for the legislation pro-
posed 10 given In reports on the ex-
hmination OF IA companies In which
neariy 1000 settlements effected by
these companies are examined. In
|discussing the settlement OF these
plains the report says:
"Of the specific claims examined,
where the amount involved 10 usually
considerable, the percentage OF scaled
pr rejected claims 10 high-yery much
too high to be explained by error OF
Judgment or carelessness. Indeed, the
committee feels warranted In con-
cluding that when dealing with COM
panies doing an industrial health or
hccident business, the policy holder
Particularly those who through ignor-
hnce or poverty are unable TO protect
themselves and therefore are pecu-
iarly the wards Of government as rep
resented In this convention-has too
frequently been the victim of incon-
cionable practices In the claims de-
bartments OF the companies criticized
n this report
Promises of reformation made at
he hearings are therefore not enough.
This convention should take action
which will guarantee the Just treat
hent OF policy holders In the future
The list Of companies whose exam
nation was the occasion for the re-
port ID as follows:
Standard Accident Insurance Co..
Detroit. Mich; National Casualty Co..
Detroit. Mich; Phoenix Preferred Ac-
ident Co., Detroit, Mich; Federal
Casualty Co., Detroit, Mich; United
states Health and Accident Insurance
co., Saginaw, Mich: Massachusetts,
accident Co., Boston, Mass: Great
Eastern Casualty Co., New York;
EQUITABLE Accident Co., Boston: Con-
mental Casualty Co., Hammond, Ind;
Worth American Accident Insurance
TO-, Chicago; Fidelity Accident Co..
aginaw, Mich; General Accident +.
l.. Assurance Corporation; Ameri
an Assurance Co., Philadelphia; Ger
ban Commercial Accident Co., Phila-
elphia.
The report says OF one company:
It Ia, impossible In language fitted
b an official document aptly to char.
cterize what seem TO have been the
ractices Of the Industrial department
this corporation In settling with its
olicy holders. II appears to have
esorted to every possible means. not
berely to protect itself against impo-
tion--for which 1t could not be criti-
sed-but to cut and shave down
aims, apparently. without conscience
nd certainly without right" ~
The report further says that only
wo or three OF the companies exam
bed have been found TO be substan-
ally undeserving of any criticism.
Three or four others merely show IN
easonably isolated cases either err
brs In adjustments, or that the bad
ractices of competitors were some
mes followed. bout half the COM
hnies examined show serious condi.
ons In their claim departments, par
cularly In the adjustments of specific
aiIub Ol CoublueTdDlo dIuou0ths WulIe
at least two of such companies
hese conditions are so shocking as
call for immediate and emphatic re-
brms." ~
The report concludes with "a rec
lamentations. the most important OF
hitch are:
"That standard Industrial health
I'D accident policy provision law be
hacted; that pro-rating for change
occupation should be permitted
ply when the insured has actually
hanged his occupation; that the pol
" fee be abolished; that all indus
ial agents and collectors be licensed
the state; that frequent examina-
ons covering not only financial con-
ton but also treatment OF policy
b1ders be conducted either by the
dividual states or by q committee
the convention and that publicity
given to the results of all such
Examinations"
Wante Local Heads "Flred.p
The committee asks as an evidence
good faith, the dismissal Of the
bads Of the claim departments or
o Continental Casualty Company OF
hicago, and the National Casualty
bmpany end the Phoenix Preferred
tcident Company, Of Detroit. The
tire Official staff of the industrial
partment OF the General Accident
Scotland, is also to be ousted.