The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-08-28
News Of the Insurance World
Criticise Adjustment Methods.

Criticise Adjustment Methods.
The sensation of the week in insur-
ance circles was the report Of the spe-
cial committee of insurance commission
ers on a number OF American and foreign
accident and health companies writing In
dustrial insurance having special refer
ence to the adjustment Of claims. Tho
report was not altogether unlocked for
home offices OF about fourteen companies
was made several weeks ago by ex-
aminers who took possession of the
claim files and made summary Of every
settlement during the past four years.
manifold copying OF the reports made
by the examiners to the committee was
it's representative might have an oppor-
tunity 10 explain why $500 claim was
| settled for 800 or less and so on.
What bothered the company officials
was that the most extraordinary stories
Of the shaving of industrial claims were
given to the newspapers. The damag-
ing effect upon the public II is believed.
Will be felt for many day
The commissioners figured roughly that
more than a million dollars had been
shaved on Industrial settlements during
| the last few years and they are now look
ing for some law by which they can force
the companies to reopen all cases In
which full indemnity was not paid and
pay the claimant the balance.
| In It's statement Issued to the public
| the committee summarizes the findings
| in the examination OF one company as
such report sharply criticises the in
| dustrial department OF this company Tor
It's conduct in settlements with policy
holders. and In particular because of the
| advantage taken to reduce Its liability
because Of the so-called changes OF occu-
patton and the tendency TO accomplish
quick settlements for lump sums less
than the amount of the policy In cases
where through tho death OF the insured
ficiary still suffering from grief due, to
recent bereavement. 1t also notes that
this company perststently ignores what
are known. as the accumulation benefits
OF it's policies. and emphatically condemns
| what seems to be the practice Of Its
claim department in evading payment 70
| lbeneficiarieS resident In foreign lands OF
MANY cases are cited by the examiners
and the New York superintendent. based
upon an examination OF the records and
correspondence of the company, the latter
being frequently quoted from, few oil
the cases so cited are indicated In the
following: An Insurance agent who was
| badly injured while trying TO eXtnguish
a fire in his own house was declared TO
be A volunteer fireman and therefore
entitled to less indemnity. An electrical
worker who went out one evening 10
hunt frogs and was drowned was pro-
rated TO the class hunter and settle,
ment refused on any other basis until
an insurance department compelled pay
ment in full. The beneficiary Of an in
sured who went in bathing In the Missis-
sippi river was compelled TO take one
fifth Of the amount mentioned IN the pol
lev because, as the company claimed. the
river was swift at the point. even though
there Is no evidence to support the claim.
Another beneficiary WIS paid nothing un-
I'll an insurance department interened.
because The proofs Of death weTe not m fT5 tb.
policy. though II was probably Impossible
so 10 do because the beneficiary lived in
e In OF ssoS
) $3.50 was due and the adiuster was able
TO get rid OF the claim at s4oo. though he
and that he had nothing to talk about,
but only imagined that he had and thus
shaved off 800 by talk
"In another case where there was ap-
parently no doubt OF liability. the COM
pany Instructed it's adjuster to get Off as
cheap as he could, the home office stat
considerable is saved in the payment by
! good talking and twisting OF the con-
tract. In still another case: that OF an
Italian laborer. though the company was
promptly informed OF the names and ad
dresses OF relatives and beneficiary In
Italy. il apparently settled the claim
dcrtaker and then. In spite OF importantly
on the part OF the Italian consul, dragged
the case out for two years, the COMPANY
only paying In the end when the insured's 9
employer interviewed, In still another
after promising the ipsured's employer TO
; communicate with the beneficiary, who
! and six months thereafter marked the
claim cancelled. While in still more
: that the undertaken should not be al
lowed TO run MP his bill 10 the amount
, OF the insurance which Is unfair TO rel.
I atives whoever they may be- II paid
such undertaken $50, took an assignment
: OF his claim against the insured's estate.
: and then In formal correspondence de
clared that II held release OF the 5000
claim deceived tho insurcd's son as 10
g the transaction. and utterly ignored In
! formal proofs furnished by the benefici-
AIRY. who lived IN Hungary.
In the Investigation there was no aues-
lion as 10 the entire solvencN OF the COM
panles under criticism. They have prom
iseG 10 mend their ways and Will make
restitution To claimants who have been
forced into compromises,