Norwich bulletin., 1913-12-13
FINANCIAL ABILITY
Bulletin This Point Received by Dr. J. J. Donohue Work mems Compensation Conmissoner-App application of the Law Explained Methods of Procedure Indicated.

An Ideal ara cement Is at once to l make adequate tfovision or thls na 1 ture, and this n.~lter is under consld- i eration by some of the most pro-
 greSsiYe employ of the state. An other method where the one just out lined is 1mpiacUcaoIe IS 10 mahe periodical payments into sucn trust fund, making the payments of sufh-
 cient amounts to cover all reasonable risk, and withdrawing from the fund from time to time such portionrof 1t as may not be needed for this purpose, the question of such need being pass ] ed upon by the commissioner or the district.
 l As Is said by a banker and manufac- turer Tt seems to me that cases un- 1 der this section of the law should be
 left to the discretion and good judg-
 ment of the commissioner"
 The president of one of the trust
 companies of the state says: My ex-
 pertence in granting credits leads me l to believe that there is no absolute
 method or way to ascertain the sol- Vency of those seeking N."
 When application is made for a cer- i ttficate of solvency and financial abll- 1 ity, the applicant is asked to fill out | three forms. except in the case of em- ployers of household labor, in which | case only two forms need be employed l Information as to Hazard.
 1 In order to advise the commissioner
 as to the details with reference to the 1 hazard of the particular employment, | the employer will fill out whichever ] one of four forms may be applicable l to the employment. These forms are } No. 21, Factory Hazard; No. 25, Mer- i cantile, Office and Miscellaneous Haz- ard; No 24, Contracting and Building l Hazard, and No. 23. Farm Hazard. In : the case of an employer who does not | fall strictly within one of these classi- l fcations, he will use the form which
 most nearly meets his needs.
 As to Financial Standing.
 1 In order to get before the commits 1 sioner the facts as to his financial 1 standing, the employer should apply | for and fill out the blank adapted to l his particular form of business organ | ization. There are three of these fnan- cial forms. Form No. IS is to be used | by corporations; form No. 19 is to be
 used by individuals and partnerships; 1 form No 20, which is entitled House. 1 hold and Farm, is intended, as its title ] signifies, primarily for individual en- l ployers of these two classes; but in 1 the case of an individual conducting a 1 small business in some other line, this 1 form might be adequate and preferable.
 In the case of householders there is no l separate hazard form, the essential
 facts being called for in form No. 20. In this investigation it is to be re- membered that the moving party is the 1 one applying for the certificate. It is l for him to go to the commissioner and
 make his, application, and to furnish i the commissioner satisfactory proof of his financial ability" He must not ex-
 pect to be reminded of his duty by the | commissioner, and if he fails to obtain 1 a certificate, or in some other way au- 1 thoriZed by the act secure his em- l ployes, he will lose the benefit of Part l B of the act.
 | r A nna nf of nd
 member of the general assembly which l passed the act writes: "The next ques- 1 ton is how to calculate the liability. 1 The hule for testing the solvency of an 1 insurance company will not apply, be 1 cause an insurance company has a
 vast aggregate of such liabilities and is subject to the law of average. But the average to which an insurance com pany carrying a thousand risks is not applicable to an employer who carries l his own risk and no other"
 A manufacturer writes: Your sec ond question, Gas to how to determine financial ability) is a poser. I have 1 been trying ever since the hearings to l figure out how the com- pany of which I am Gan oficer) could satisfy your commission as to our ability to pay so that we might carry our own insurance, and have about come to the conclusion that until such time as these matters are adjusted ana clear interpretation Is put upon the law, and if possible amendments
 that we should feel required to insure as we do for our plain liability insur-
 ance at the present time"
 The employer is in the position of I a prospective debtor; the employee of a prospective creditor. The credit may
 extend over a period of many years
 It is the duty of the employer who
 seeks a certificate of financial ability
 to furnish his evidence to the com
 missioner, and the commissioner will receive and give due weight to any
 relevant matter which fairly tends
 to show the risk of the employer and his resources, together with proof ot what he does or agrees to do in the
 matter of furnishing a fund with
 which to respond to the demands
 which may be made upon him. The
 results of audits of his books, com mercial reports, the opinions of those
 familiar with his condition, facts bear ing upon the way in which he con- ducts his business and the way in which his risk is distributed among his
 employees will receive due consider
 ation. The commissioners, with all of
 the facts of which those given are but illustrations will find whether or not
 he may carry his own risk.