Omaha daily bee., 1911-08-24
FOURTEEN COMPANIES EXAMINED
Nearly Two Thousand Settlements Dis
cussed and Criticised.
TOO MANY CLAIMS ARE SHAVED
Only Two or Three Firms Are Found
Above Reprosch.
REFORM PROMISES NOT ENOUGH
Tventy-Four Recon- me N dHti"ns MADE,
Including Proposal 90 Enact
standard Industrial Health
aud Accident Policy Law.

MILWAUKEE. wis AUG eS-lmportant
LEG. Station for the control OF insurance
companies doing Bn Industrial health and
accident business il proposed iu the report
Of the special committee OF the Insurance
commissioners OF the United states msde
public at the session OF the convention To-
day.
The basis FOR the legislation proposed 10
given In reports ON the examination Of four
teen companies in which nearly 1000 settle
meuts effected 10y these companies are dis
cussed and criticised. in discussing the set
temeut Of these claims. the report says:
OF the specific claims examined, where
the amount involved is usually consider
BILE. the percentage Of scRled or rejected
claims is high. indeed, very much too high
TO be explained by error Of judgment or
csrelessuess. Indeed. the committee feels
warranted tn concluding that when dealing
with companies doing an Industrial health
or accident business. the policy holding
public Of the country. particularly those
who through ignorance or poverty are un-
able TO protect themselves ane therefore
are peculiarly the wards OF government as
represented in this convention, too fire.
uusrtly has been the victim OF incunscion-
able practices in the claim departments Of
the companies criticised in this report.
Promises Not Enough.
Promises Of reformation made al the
hearings are, therefore, not enough. This
convention should take action which will
guarantee the just treatment Of policy
holders in the future
The companies whose examination was
the occasion for the report follow:
Standard Accident Insurance company,
Detroit; United States Hea tn and Accident
Wra rTnEFH
Chusetts Accident Insurance company.
Boston. Great Eastern Casualty company,
New York. Federal Casualty COMPANY, De
troit. Equitable Accident company, Boston
Continental Casualty company Hammond
lnd.; North American ACCIDENT lnhuranee
company. Chicago; National Casualty com
pRry Detroit; Fidelity Accident company,
saginaw; General Accident, y. and L. .As-
sursnce corporation; American INSURANCE
conpRny. Philade phiR Phoenix Preferred
Accident company, Detroit; German Com
msrciHl Accident company. Philadelphia
The report says Of one company:
.It is Impossible in language fitted TO
an official document Hptlv TO characterize
what seems TO have been the practices and
methods Of the industrial department Of
this corporation in settling with Its policy
holders il appears 20 have resorted 20
every possible means. not merely TO pro
tect itself against imposition, for which II
could not be criticised. but also. and more
particularly, to cut and shave down clsimA
apparently without conscience. and GER
tsinly without right"
Bad Practices General.
The report further says that only two
or three Of the companies examined have
been found TO be substantially undeservinG
Of any criticism. Three or -four others
merely show in reasonably isolated cases
either errors in adjustments OF that the
bad practices Of competitors were some
times followed About half the companies
examined show serious conditions IN their
claim departments, particularly in the sd-
/ iustment OF specific claims, Of consider
able amount; while in ~ least two of such
companies these conditions are 10 shocking
as 70 call for immediate and emphatic re-
forms"
The report concludes with tweuty-four
Recommendations. the mosi important of
which are:
I That d standard industrial health and
accident policy provision law he enacted;
that prorbtinE for changes OF occupation
should be permitted only when the insured
has actually changed his occupation that
the policy fee be abolished; thai all IN
dustriEl agents and collectors he licensed
| by the state; that frequent examinations.
covering not only financial condition, but
also treatment Of pohcybolders, be con-
by COMMITTEES OF the convention. Hnd that
publicity be given 10 the results OF al such
examinations