Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1915-11-12
STATE INSURANCE
PLANS ARE GIVEN
Assistant Manager Allen Ampli-
fies Statement Issued by
Board Yesterday
STATE WILL PROTECT
Advantages of the State Fund
Are Pointed Out in State
ment by Expert
STATE WILL PROTECT

The announcement by Chairman
Robert X. Young. of the State work
mems Insurance fund. last night that
the rates would be 10 per cent. less
than the approved rates in the insur-
ance rate manual and that SO would
he the minimum premium is the be-
ginning of the States campaign IN
behalf of the fund for liability insur-
anCe.
MIR. Youngs announcement had
been awaited with interest by people
all over the State, every employer oe-
ing interested.
The State workmen's Insurance
Board. as a result of formal action
to-day, announces that the board
will make reduction from the
approved rates OF the insurance
rate manual of 10 per centum,
and that the minimum premium
is fixed at So.
R. K. YOUNG. Chairman,
State Workmen's Insurance Board.
In connection with this general an
nouncement Assistant Manager Albert
L. Allen, of the insurance fund, issues
the following explanatory remarks:
In the announcement of this ap-
proved rate reduction of 10 per centum
on all rates il is a matter of much in
terest and concerns all employers or
labor in the State of Pennsylvania.
The law creating the fund requires
that the premium rates shall be nNed
at the lowest amount consistent with
the maintenance of a solvent fund ana
the creating of an adequate surplus
and reserve. The fund pays no conf
missions to agents and does not nave
to earn profits for stockholders, and
for the first three and one-half years
the entire expenses of the manaSe-
ment are paid by the State. The eliml-
nation of these expenses is sufficient TO
allow the board TO write insurance at
this reduced original rate. The bal
ance remaining which may be ap-
plicable on the basis of an average eN-
perience also gives every prospect or
returning a very substantial rebate in
dividends to subscribers at the end OF
the year so as to bring the cost of
insurance in the State down to much
lower basis.
How to Obtain 1t
The employers may obtain their
compensation insurance in the state at
q rate lower than that charged by the
stock and mutual companies, and also
will receive the benefit of additional
advantages which cannot be obtained
by other forms of insurance. Employ
ers insuring i'm the State fund can OBJ
tain a complete release of their per-
sonal liability and full protection OF
their property against compensation
liens II the subscriber to the fund
makes the report of an accident within
seven days, his liability ceases and is
transferred automatically to the fund,
so that no valid lien can be filed
against the property of an employer
lnsuring in It. Every other form of
insurance leaves the employer per-
sonally liable, so that every agree
ment or award of compensation may
be entered as lien against his real
estate wherever situated within the
State. and this lien cannot be dis
charged until the whole compensation
agreed upon or awarded has been paid
in full. In serious cases this COM
pensation will run for number of
years. during which period the lien
must remain as a cloud upon the en-
ployer's property.
No Contingent Liability
There is also the advantage to sub
scribers in the State fund that there
will be no contingent liability to as
sessments to which all employers in
surfing in mutual associations are sub
iect. The purpose of the act was 20
make the payment of the premium the
sole liability to subscribers, and no
assessment will be levied in any case.
as there is not one word in the act
creating the State fund that directly
gives or by implication suggests the
right OF assessments.
The State fund will provide insur-
ance at net cost. and by the elimi-
nation of the operating expenses which
other companies must pay out of their
premiums it is reasonable to assume
that the State can furnish complete
protection under the new law at a
price below that of other insurance.
The Minimum Rate
''In the announcement of s5 as the
minimum premium the board has
solved the problem which has been
confronting the small employer with
one. two or less than five employees en-
gagged in occupations of a minor
hazard. This amount was decided
upon as an attractive inducement to
the small employer to insure in the
State fund. as it was apparent that it
would be necessary to issue the insur-
ance for the small employer at price
which would not be a burden to him.
The employer will have the same COM
plete protection and release from la
bility as the regular policy, and it is
intended to encourage the acceptance
Of the workmen's compensation act by
the employers whose estimated pay
roll is of an amount where the indi-
Vidual classifications are not COM
putable at n rate which would exceed
the minimum figure. 1t is probable
that this minimum adopted by the
State fund is less than the other COM
panies will desire to issue policies to
the employers who would come within