The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-08-15

SUNS bCptCluCcQ III the poACye SUI
wage Is accomplished, which cannot be
justified save by the rule OF thumb
and, In some cases. not even by that.
"As In other companies examined
during this investigation, this company
also persistently evades the payment
OF accumulation dement's, evidently
considering the claimants right there
to In the same category as the right
OF the claimant who does not know
that he Is such and, therefore, makes
no claim There are also evidences
OF an eagerness to keep silent about
claims where the benefciaries live I'm
foreign lands; and purpose to evade
payment entirely In a goodly number
OF cases where. at least. the company
Is liable under the contract for one
(Continued on Page six.D
NTH OF the face OF the policy.
While the business transacted by
this company is large, the number Of
cases cited by the examiners for COM
ment on erjticism Is more than IL per
cent OF the cases examined and re-
ported on II the so-callcd railroad
cases are eliminated on account OF
the fact that the insurance company Is
forced for business reasons TO make
fair settlements with railroad en-
ployes, the cases subject TO criticism
appear TO be at least 20 per cent Of
those examined. Indeed, II may be
stated that a majority of the industrial
and monthly commercial policies seem
TO be cut down for one reason or an
other"
Among the cases brought to the at
tention OF the committee as indicating
ha m Of 10 Ia 10
OF an Italian, q. Chamba- He was a
coal miner and was murdered, and
the company, therefore, under the
policy was liable only for one-fifth OF
the principal sum, or $780, The bene-
fciary lived In italy. The undertaken
In some way got possession of the
policy and delivered It to the COM
panys agent, who turned II over to
the company, . stating that he believed
that you will never hear anything fur
Their In regard to this claim" The COM
pany thanked its agent for his act
and stated that 1t would await formal
presentation OF proofs before taking
the matter up. Nothing further was
done by II; no claim was presented;
and the claim jacket was later indors-
ed "disallowed."
Other cases cited by the examiners
include one where this company set
up as one Of its defenses breach OF
warranty because the insured had
stated in his application that he was
46 years old when he was really AZ;
another where effort to evade payment
was made because the insured had
asked that the policy be made payable
to his wife. naming her, the person
named, however, being at the first
time onyl his affianced wife. In still
another, II sought to reduce Its la
bility on the plea that the insured was
merely the proprietor OF a grocery
store, as he had stated In his applica-
ton, but proprietor with counter and
general duties, this though he was
making out statements In his Office at
the time of the injury, which was
caused by the accidental discharge OF
shotgun. A very large number OF
similar cases Is cited by the examiner.
In connection with this and other
similar cases. the following quotations
from letters of instructions sent by
the home office to claim adjuster
and an agent are significant:
Our cases need to be worked up
more completely IN detail TO get
the benefit OF every possible de-
Tense and to show in every pos
sible way the injustice of the
claim rather than to depend as
much as was done In former
years on what may be termed
strong-arm methods.
II Is our suggestion that the
next time you see Mr.. -- tan
undertaken or coroner) you sug-
gest to him In your usual diplo-
matte way that by allowing mo-
tice to. come TO the company
through the usual channels he
will confer great favor on us;
and at the same time II you can
advise him that the company. does
not desire to hurry death claims
along, especially where we have
no address OF the beneficiary-or
suggest q line of thought that
would change his erroneous con.
ception, IL he has any.
Among the particularly vicious cases
cited. is the following:
Claim 338,423, Grant Davenport;
liability $1,000-Insured was killed
while in the occupation as to which
he was insured. Ultimately suit was
brought and counsel for company
wrote attorney:
II all efforts In the way OF blum
and diplomacy fail, I believe we
will have no difficulty in settling
the case on the basis heretofore
proposed at any time before 1t
goes to the jury.
And later, In connection with In
structions to make overtures for q
compromise, this was written:
II you are totally unable TO do
so, you are authorized to draw
draft on this company in any sum
up to the face OF the policy and
dispose OF the case. rather than
to let II go to the jury.
A compromise settlement at $500
vas effected.
The other companies examined,
Monday. were the National Casualty
Co. of Detroit and the North Ameri.
can Accident Co., of Chicago, the
former being represented by w. q.
Curtis, president, and the latter by
A. Forest, vice-president and gen
ertl manager. The committee an
nounced that It would not be ready
TO report on these companies until
Wednesday.
Tuesday morning, the committee
gave Its attention to the Phoenix Pre-