The Greeley tribune., 1911-09-21
FRAUDS IN INSURANCE
OF THE POOR PEOPLE

The helplessness OF the poo,
makes them such easy victims Oh
petty swindling that peculiar ihd's-
nation il reused when they are
swindled by concerns which pretenu
to protect them. Some OF the INDUS
trial insurance companies exercise
an almost fatherly watch-care over
their policy holders. building sana-
torioums for the consumptlye anu
providing doctors and nurses for the
sick. But it now appears that they
are not all of this good samaritan
sort. Investigations carried on by
committee of the national conven-
ton OF insurance commissioners, re-
Gently assembled in Detroit, uncoV-
cred some amazing practices on the
part of several prominent companies
issuing Industrial. health, or accl-
dent policies. These practices, re-
marks the New York Evening Post,
are "of different and lower order
OF wrong doing from those that we're
revealed in the life insurance inves-
LEGATIONS" since Ito buy legislation
is bad enough. but 1t is not so re-
voting as direct and systematic
plundering of policy holders in the
adjustment of their claims espec-
tally when the so-called "benehciar-
les" are untitled by ignorance to
make stand for their rights In
addition to advocating certain re-
,, forms in the methods of doing busi-
ness, the committee recommends the
dismissal of the heads of the claims
departments of several companies
and the reopening of many cases for
the purpose of making restitution TO
defrauded policy holders. Among
the companies specially mentioned
in the reports Of the committee are
the North American Accident Insur-
ance company of Chicago and the
National Casualty company of De-
troit.
From the news columns of the
New York Sun we gather the follow
ing further information:
"Of the Chicago company the re-
ports say that many cases disclosed
indicate a willingness not only TO
take advantage OF technical delenses
but also to resort to dilatory tactics
both in correspondence with claim
ants and in the progress OF any
suits which may be brought.
Among the claims was one of
man who was accidentally killed and
whose policy was in the possession
of the company's agent. The bene-
ticiary, not knowing of the exist
ence of the policy, made no claim
and the agent, who was operating
on profit-sharing contract. return
ed the policy to his home Office.
writing, If we let this case alone
and do not disturb there will be no
claim fled His advice was taken
and the company saved the liabili- |
ties.
In a similar case a more honest !
agent wrote to the company asking |
to be instructed. The home office |
replied: 1 would suggest that you |
let the matter rest. 1t is not our
business to establish the claim
OF another claim the agent wrote: |
Our defenses may be rather slim.
but l believe that If the claim is re-
jected and they are made to think |
they will perhaps not get anything
we will be able to get thein 70 take
something within reason or COM
promise
The committee finds the me-
thods of the National Casualty COM
pany to have been OF the same
brand. Instances were found by the
examiners in which, when claimants
were entitled to disability benefits.
the company insisted on the exclus-
ion OF Sundays from the period, and
in another case where a claimant
offered to accept indemnity for one
month, having been laid up thirty
four days, the company selected
February as q sample month and
paid for twenty-eight days"
A Detroit dispatch to another
New York paper describes the Chi
cago company as "one OF the larger
companies" and states that it is
sues its policies chiefly among the
laboring classes generally through
out the United States and Mexico.
Its industrial premium income in |
1910 was approximately s69O,OOO.
Literary Digest.