The Colorado statesman., 1911-08-26
URGES CONTROL
OF INSURANCE
REPORT OF SPECIAL COMMITTEE
OF U. s. INSURANCE
COMMISSION.
METHODS CRITICIZED
ONLY FEW COMPANIES ARE
FOUND TO BE FAIR TO
POLICY HOLDERS.
Western New.paper Union News Service.


Milwaukee, Wis.-In the report OF
the special committee of the insurance
commissioners of the United States
important legislation for the control
of insurance companies doing an in
dustrial, health and accident business
is proposed The basis for the legis-
lation proposed is given in reports on
the examination of fourteen compa-
nies in which nearly 1000 settlements
effected by these companies are dis
cussed and criticised. In discussing
the settlement of these calims the re-
port says:
"Of the specific claims examined,
where the amount involved is consid-
cradle, the percentage of scaled or re-
jected claims is high; indeed, very
much too high to be explained by er-
ror of judgment or carelessness.
Indeed, the committee feels war
ranted in concluding that when deal
ing with companies doing an indus
trial, health or accident business, the
policy holder public of the country has
too frequently been the victim of in
considerable practices in the claim de-
partments of the companies criticised
in this report.
promises of reformation made at
the hearing are, therefore, not enough.
This convention should take action
which will guarantee the just treat
ment of policy holders in the future"
The companies whose examination
was the occasion for the report fol-
lows:
Standard Accident Insurance Com
pany, Detroit.
United States Health and Accident
Insurance Company, Saginaw.
Massachusetts Accident Company
Boston.
Great Easter Casualty Company,
New York.
Federal Casualty Company, Detroit.
Equitable Accident Company, Bos-
ton.
Continental Casualty Company,
Hammond, Ind.
North American Accident Insurance
Company, Chicago.
National Casualty Company, Detroit
Fidelity Accident Company, Sagi
nav.
General Accident F. and L. Insur
ance Corporation.
American Assurance Company, Phil
adelphia.
Phoenix Preferred Accident Com
pany, Detroit.
German Commercial Accident Com
pany, Philadelphia.
The report says of one company:
"It is impossible in language fitted
to an official document aptly to char
acterize what seems to have been the
practices and methods of the indus
trial department of this corporation in
settling with it's policy holders. 1t ap'
pears to have resorted to every pos
sible means, not merely to protect it
self against imposition, for which II
could not be criticised, but also, and
more particularly, to cut and shave
down claims apparently without con-
science and certainly without right
Three or four others merely show
in reasonably isolated cases either er-
rors in adjustment, or that the bad
practices of competitors were some
times followed. About half the com
panies examined show serious condi-
tions in their claim departments, par
ticularly in the adjustment of specific
claims of considerable amounts; while
at least two of such companies call
for immediate and emphatic reforms.
The report concludes with twenty
four recommendations, the most inn
portant of which are:
That a standard of health and acci-
dent provision law be enacted; that
pro rating for change for occupation
should be permitted only when the
insured has actually changed his oc-
cupation; that the policy fee be abol-
ished; that all industrial agents and
collectors be licensed by the state;
that frequent examinations for the
covering not only financial conditions
but also treatment of policy holders
be conducted either by the individual
states or by a committee of the con:
vention and that publicity be given to
the results of all such examinations.
Secretary Wilson Is Coming.