New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-29

ing and compels unscrupulous employ
ers to live up 70 the standards main,
tanned By those who are fair-minuea
and humaile, / believe that the business
men Of the state will regard this moe
ern solution OF Industrial accidents
with favor"
In statement explaining the work-
ings OF the new law issued Dy INC
State Insurance Department, the sub
iect is divided into FIVE groups, ss
follows:
First-The assurance Of conpensa..
ton payments 10 injured workmen ana
their dependents. In order to carry
out the provisions of the law the de-.
partment prescribes standard forms OF
contracts, which will be used uniformly
by all companies in this state. This
contract will give unlimited coverage
to the employer, protecting him against
loss from the laws Of negligence, as
we'll as from compensation losses. The
coverage is unlimited. so that no MAJ
ter how large verdict or how large
an award may be recovered against
him, the insurance company will pro-
tect him against pecuniary loss.
keductlOn OF Rates.
Second-Cost Of insurance to the
employer In order to determine ade-
quate and reasonable rates the de-
partmeut has obtained all the available
statistical data in other compensation
states and has prepared its manual
accordingly. The manual rates are
basic rates and are subject to a dis
count Of 20 per cent for such employ
ers as prefer TO provide medical BEN
efits for their employees and do not
desire to have such benefits covered un-
der the policy. Such basic rates are
subject TO further reduction of for
ty per cent, based upon physical and
moral conditions in manufacturing es-
adjustments and upon the accident ex-
perience of prior years.
Third-The organization of mutual
companies. Concurrently with the
passage Of the Compensation Act, the
Legislature provided for the incorpora-
ton of employers mutual companies.
Prior to 1914, all liability insurance
was written by stock companies ex-
clusively. AS a result of the legista-
ton referred to there will be probably
about twelve mutual companies OPP
Grating in this state Immediately after
next Wednesday. These mutual COM
panies will be under the supervision
of the department and will be COM
PEELED to carry an adequate reserve
fund for the protection Of their policy
holders and claimants.
Fourth-Reinsuran of excess LA
bility. To protect the solvency of
these mutual companies and the as
surance of compensation to claimants
in the event of abnormal losses, the de-
partment has perfected plan, as the
result of which mutual companies have
entered into reinsurance agreement
Pursuant to that agreement each COM
pany Obligates itself to pay per cent
Of its gross premiums and be subject
20 an additional assessment of 5 per
cent.
These contributions are to be held in
trust for the purpose Of covering losses
in excess of $4,000 on any one risk.
This plan, it is believed, will make rea-
sonably certain the payment of losses
IN the event of castrophe. A similar
reinsurance agreement is being entered
into at the present time for the purpose
of enabling stock companies to reinsure
their excess liabilities.
To Aid Prevention.
ifth-Accident prevention and merit
rating.
To promote ideas of accident proven
zion and to reduce the cost of COM
pensation TO the employers the de-
partment has perfected a plan by
which all insurance carriers in this
state, including all of the stock COM
panies, all of the mutual companies
and the State Insurance Fund, have en-
tered into a central bureau, TO be
known as the Compensation Inspection
Rating Board. A governing committee
has been appointed, consisting of five
representative underwriters. This gov
erning committee has already entered
upon its duties and has appointed q
committee, known as the committee on
classification, which will exercise the
function of deciding all questionable
items relating to the application OF
the New York rate manual in actual
practice.
The rating board has received au-
thOrity from the Insurance Depart
ment to take up the inspection reports
p covering industrial establishments in
the state which have been inspected by
the companies since March 1, 1914, and
to review such reports for the purpose
of determining the equitable rate to
which the employer is entitled.