The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-08-31
PROTECT INSURED
BY LEGISLATION
Insurance Commissioners Rec
ommend New Laws for Acct
dent Concerns.
REGULATE OR ABOLISH
Warn Companies Public May
Demand Governmental
Insurance.
REGULATE OR ABOLISH

Feeling that promises of reforma-
ton were not sufficient, the National
Association OF Insurance Commission
ers. which has recently been investi-
eating industrial. accident and sick
benefit insurance concerns with such
startling results. has determined to de-
mand legislation for the protection OF
the policyholders. UnquestIonably tho
Virginia Legislature will be asked at
It's coming session to enact laws to
cover the recommends lions of the COM
missioners.
y significant statement is contained
In the statement just made public. 1T
should says the report, "be clear to
every one familiar with present social
and political conditions that unless
the policyholders among the iaboring
masses are to be treated fairly by
these companies-indeed. II the policy
settlements of industrial. health and
accident companies cannot he made
FAIR and clean-the public will demand
not the mere regulation of the com
panies now under investigation. but
the prohibition of this kind of insur-
ence by private corporations; in other
words. the furnishing of 1t by govern
ment itself. AS it is, the signs of
the times point in that direction.
Meanwhile. however. 1t is cleary the
duty of the governments represented
in this convention that there bu an
immediate cleaning up-perhaps oven
q cleaning out-and that hereafter the
companies involved be kept clean"
Fair Prorating.
In the list OF recommendations sug-
gested for legislation there is placed
first the proposition that "prorating
for change OF occupation should be
permitted only where tho insured has
actually changed his occupation or
means of livelihood. 1T is pointed
out in this connection that the elias
ITCHY of the present clause in the
policies. which permits the company
after loss to lower the classiticati lion
of the insured when he happens to
have been doing anything pertaining
to any occupation more hazadous than
that stated in the policy. as enforced
by many companies. is responsible for
large part OF the criticisms made.
Then. the commissioners believe
that operating should be up as we'll
as down" In other words that when
the insured changes his occupation to
one less hazardous the company should
pay accordingly. 1t seems that the
changes made have all been in the
direction OF the companies interest.
1t is also suggested tnet the one
fifth one-tenth and similar clauses
should be stricken out. These are ap-
piled In cases OF certain risks The
argument here Is that the experience
of companies in this fold is now sufii-
Client. SO that they ought to know
what risks. either OF illness or acct
dent. they should not insure against
THE policyholder should be insured In
full or not insured at all. The clauses
in question. while In some cases in
tended to give the insured something
rather than nothing. are usually avail
ed OF to force settlement and to fight
suits"
Another cause of trouble is that
companies have declined to recognize
notices of loss made by the agent
or the employer OF the insured. 1t is
therefore recommended that notices of
illness or injury given by the agent
of the company or the employed of
the insured should be notice within
the terms of the policy, and the com
pany. whether notified by agent or
employer or by insured or beneficiary.
should be required to deliver or for
ward proof blanks and instructions to
the insured or beneficiary within three
days after the receipt of such notice.
In case of its failue to do so, the
Insured should be entitled to double
Indemnity. 1t was brought out in the
investigation that companies have no.
tilted agents not to be too quick about
sending in claims.
4 large part OF the work of exam
nation which led to the recent SEN
sational disclosures was done by Act
uary Isaac Davenport and Examiner
Tscharner NJ Hobsou, OF tn, Virginia
Bureau OF Insurance.