The Sentinel=record., 1911-08-24
INSURANCE
 LEGISLATION
SPECIAL COMMISSION REPORTS ON EXAMINATION OF Ac.
 CIDENT COMPANIES.
practice of Shaving Claims is Ser. iousiy Criticised by Report Tend dered by Government com
 u,ittee .. Milwaukee.

MIiwaukee, Wis, Aug. 2S. -import ant legislation for the control of Tn surance companies doing an indus trial health and accident business i proposed in the report O tne specia committee Of uhe insurance commis. sioners Of the United States, wnlcl was made public at he convention hess today.
 Fas.4 '1 ntw .gisia.,an is given ia reb,'i' on the .ast1iIauon of "A ,'eGen.s effected D, 'hesc coDpanes ar cis pssed and crit .cisei. in ais. cnsiss the settiem at of these e'aima the n, crt says:
 "Oi Ihe specins claims examined. w1.Ts'i the amo 1t invo.vei is ssu al C, nsiderable. 'hs percentage Cf d sealed or re5ct ed claim Is ngl. indeed very muc1 t0l nigh 10 De explained by er-tr of judgment or carelessness. indeed, the committee feels warSanted m concuding tlat when dealing with companies doing an industrial, health or accldent Dus- mess, the policy holilng pubic of une country --partlculsrIy nose who py ignorance or poverty are unable to TIT "a ct ty ly been the victim of lnconscionaDIe practices ill the claim departments of the companies criticised in this re- port. Promises of reformation mace at the hearings are, therefore, not enougn. This convention saouio take action which will guarantee the Just treatment of policy holders in the future.
 The list of companies wnose exam ination was the occasion for the re port is as follows:
 Standard Accident Insurance cam pany, Detroit, Mich.
 united States Health and Accident insurance Company, Saginaw, Micn.
 Massacnusetts Accident company, Boston.
 Great Eastern Casualty company, New york.
 federal Casualty Company. Detrolt.
 Equitable Accident Company, DOS ton.
 Continepal Casualty Company Hammond, Ind
 Norm American Accident insurance Company Chicago.
 Nauonal Casualty Company. De- troit.
 Fidelity Accident Company. Saginaw Mich.
 American Assurance Company, Phil adelphia.
 Phoenix Preferred Accident Compa- ny, Detroit.
 uerman Commercial Accident com. pany, Pniaueipna.
 The report says of one company:
 Tt is impossible in language fltted to an official document to aptly char acterize what seems to have been the practices and methods of the in- dustrial department of this eorpor' ation in settling with it's policy hold CTS.
 It appears to have resorted to every possible means, not merely to pro- tect itself against imposition-for which it could not be criticised-pu' also more particularly to cut ana shave down claims. apparently wiuh- out conscience and certainly wlthou' right
 The report further says that ohiy two or three Of the companies eN' amined have been found to be sup stantialiy undeserving of any cru cism.
 Three or four others merely snow in reasonable isloated cases either CT
 
 TOTS in adjustment or that the pad practices of competitors were some times followed.
 About half of the companies ex- amined, show serious conditions III tneir claims departments. especialiy adjustment of specific claims of con- siderable amounts, while in at ieas' two of such companies these condi- tions are so shocking as to call TOT immediate and emphatic reforms"
 The report concludes with A recom- mendations, the most important of which are:
 That standard industrial neaiIn