Denver labor bulletin., 1915-07-24
COAL OPERATORS
FORM BIG MUTUAL
Will Thus Provide Workmen'S S
Compensation Insurance
Principal Companies Join Except C. F.
6 l. Which Will Garry Own Risks;
Proposed Rate $3.50 on 500 Wage

Colorado coal operators have organized
a mutual insurance company in prepar-
alton for compliance with the workmen's
compensation insurance law, which goes
into effect August ]. Every big coal
company in the state except the Colo
RADIO Fuel and Iron company was repre-
sented at the organization meeting. held
in the offices OF the Rocky Mountain
Fuel company. The Colorado Fuel and
Iron company Will carry its own insur-
ance.
The state industrial commission viii
permit the mutual company to write in
suranee for the operators on a basis of
S4.6O per 500 OF their payrolls, provided
the operators maintain a company physi-
clan and provide medical attendance
Members of the mutual company viii
be allowed to pay their premiums only
one month in advance. thus saving the
operators a large annual sum in interest.
Denver insurance agents, familiar with
the business. state that at the end of
six months the mutual company should
be able TO reduce the rate below S460.
perhaps getting the premium down to 81
7 his can be done only in case there are
no serious accidents.
May Reinsure Against Loss
1t has been suggested that the mutual
company will be able to reinsure the ex-
plosive or catastrophe hazard over and
above s25OO0 in old line companies or
in the London Lloyds. 1t has also been
suggested that the mutual company
build surplus OF $4,000 and reinsure
the difference on account of any loss
that might occur beyond $4,000.
1t is expected that the first S25 600
loss can easily be taken care OF out of
premiums and the reinsurance can also
be done, because the mutual company
can arrange to have a monthly income
sufficient TO cary company thru.
Careful figuring has demonstrated the
business can be carried for 81 a SlOO
and surplus accumulate to take care
of the first $4,000 loss and to reinsure
the excess.
1t is proposed to restrict the expense
OF the mutual company to about u per
cent, while the old line companies in
some instances have an expense ratio of
about 40 per cent.
Officers of the Company.
If a catastrophe should occur the first
five or six months, or before the mutual
company can get built up to 81. GOO.
then the only liability OF the members
belonging to the mutual company would
bean assessment TO each company equal
70 Us lldS i TO saw. Int
premium being $3.50. the operators
would be assessed for another $500 per
500 ON basis OF their pay roll, but not
/ beyond that.
The following directors OF the mutual
company were appointed: Harry Van
/ Mater, d. c. Brown, :. :. Murphy. s NJ
/ Perry. Lewis \. Hayden. w. W. Curtis.
| J. A. osgood, II. A Harris and R l.
Snodgrass.
To Insure in State Fund
/ Leading metslliferous mining opera
/ tors have agreed to take out their work
mems compensation insurance with the
state workmen's compensation insur-
anee fund instead OF private liability
companies. At a meeting OF several OF
the largest metal mining employers at
Colorado Springs on Monday they unani-
mously agreed to patronize the state
| fund
1t is estimated that this will mean
that payrolls amountingsto 5000. 200 in
the industry will be covered by insur-
ance with the state: that about Sl25.-
600 in premiums will be paid into the
state fund almost Immediately when the,
law goes into effect. and that injured
metalliferous miners will receive about
S5o.oo1 in indemnities during the first
five months OF the operation OF the law.
No matter how bad man may be,