The Detroit times., 1911-08-17
INSURANCE BOARD
PRAISES TWO,
WHACKS ONE
Commends Business Methods Of
Standard and Federal Companies Of
Detroit, But Accuses National, An
other Concern, of Dishonesty.
Bulletin on the Phoenix Preferred
Will Be Issued Friday--Inyesti-
cation Completed.

reports on three or the four De-
troit insurance companies doing an
Industrial health and accident busi-
ness. were made public by the special
committee OF the National Convention
OF Insurance Commissioners, Thurs
day morning. The committee, which
has been In session here since Mon
day morning, adjourned Wednesday
night and will submit the complete
report OF It's investigation to the ma
tional body in the annual convention
which begins In Milwaukee, next Tues
day.
The Detroit companies reported on
are the Standard Accident, the Fed
eral Casualty and the National Cas-
ualty companies. One or these, the
Standard, Is highly commended by
the committee. and is the first of those
reported on. thus far to receive such
an Endorsement
The Federal Co. Is also praised, the
only criticism being that 1t "at times
ignores the accumulation benefits
given by. its policies" rhe National
Casualty Co.. however. Is criticised
for questionable methods employed by
its eastern and western branches and
a number OF instances Of ''pro-rating"
are cited.
With reference to the Standard Ac-
cident. the bulletin says:
This company Is one OF the older
concerns. but though its general cas-
ualty business Is large, It's Industrial
health and accident business 10 rela-
lively small, the examination just nm
ished covers only its settlements with
Industrial policy holders. This com.
pany abandoned profit-sharing con
tracts three years ago, and Its loss
ratio, that is the proportion Of the
gross premiums paid to policy hold
ers, is commercially high, II having
been as per cent In 1910 and over 50
per cent for the first six months OF
1911"
The examination OF this company
failed 10 develop any Of the criticised
conditions or tendencies which have
previously been given to the public, by
the committee. Chairman Palmer, IN
surance commissioner OF Michigan,
speaking for the committee. said that
1t heartily concurred in the following
conclusion OF the examiners:
The policy of this company is to
make prompt and full payment OF all
legitimate claims presented. None Is
rejected except for good and sufficient
reasons in doubtful and disputed cases.
The company endeavors TO avoid liti-
CATION, preferring compromise with
the claimant on basis which will be
mutually advantageous. This COM
panys Treatment Of its policy holders
Is such that II Is fully entitled to the
confidence of the insuring public"
The Federal Is a young and COM
paratively small company. The report
says that It favors the profit-sharing
plan of compensating its agents and
even allows these agents to adjust
claims. It's industrial loss ratio for
1910 was 40.5 per cent. The exam
ination covered all accident and In
dustrial death claims for the past two
and one-half years, as well as several
thousand disability claims, and, as
previously stated, developed only. by
way of criticism. that this company.
like several others in the same Held,
at times ignores the accumulation ben
efits given by its policies"
Continuing, the report says:
Claims are not pro-rated for shad-
owy changes In occupation. Benen-
ciaries residing abroad are treated as
wen as those residing at home. In
deed. a member of the committee to-
day stated that this company, unlike
some OF those whose practices have
been severely criticised, even goes SO
far as to recognize the moral as well
as the technical law In It's settlements
with policyholders."
Commissioner Palmer, the report
states, was happy to call attention
10 the commendable conditions found
In those two companies, as indicating
that. at present rates and under pres
ent agency methods, this business can
he conducted honestly and satisfactor-
ily and at the same time q proper re-
turn made to stockholders on the
money they have invested"
The other Detroit company exam
ined was the Phoenix preferred, the
report on which will be made public
Friday.
According to the report on the Ma
tional Casualty Co., this concern does
business In 30 state and had an indus
trial premium income In 1910 OF more
than $500, 900. II has branch Offices In
New York, San Francisco and Mime
apolis. The committees examination OF
settlements with policy holders In the
Iaboring c!ssses covered every death
claim for the years 1908, 1909, 1910
and 1911, 10 the date OF examination
n, well as about 200 disability
claims. The examiners report that
DISABILITY adjustments at the home
ONCE ordinarily are fair, but that
this In no, so as TO the New York
branch. AS to death claims, while
the home Office oficials do not seem
disposed TO be technical or to adopt
secretive tactics when notified by
agents of death less, yet the con-
duct of the claim department In the
Ney York anu San Francisco branch
olTicee Is subject TO severe criticism
and the branch Offices being always
under instructions from the home OF
fice. and the correspondence In some
cases directly connecting the officers
of the company with unjustihable,
ano, indeed. dishonest settlements IN