Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-12-09
STATE FUND WILL
GIVE BIG REBATE
Successful Operation Has Led
to Return Which Will Go
on Premium Account


Refunds of about 100000 will be
given to insurers in the State Work
mems Insurance Fund in the form OF
credits on payment of premiums fol-
1917 by the board of managers of the
State Fund according to an announce
ment made here to-day. The refund
which is styled a dividend, will be ten
per cent. for coal operators who in
sured their employers liability in the
fund and fifteen per cent. on all com
mercial and industrial risks insured in
the fund. The refund will not apply
to the SIS policies. which were written
at the minimum permitted by the
State law.
The fund office issued a statement
to-day in which it set forth that the
refund was based on the experience
of the fund for the first eleven months
of the year. This statement says in
part: ..
During the first eleven months of
1915, the State Fund paid to injured
employees, whose employees were in
sured in the State fund, a total of
S116,S09.74. During the same time
the fund set aside as financial reserve
to carry these compensation claims of
injured employees or dependents to
maturity, the amount of $309,597.27.
AS an additional safeguard to pro-
test the fund against the hazards of
catastrophes, the fund has set aside
from its 1916 premium income, $751;
917.14. This safeguard has been
adopted in addition to reinsuring the
catastrophe hazard of the fund.
After consideration of all the
necessary items, the statement showed
on November 30, a surplus of $122,-
494.71 from which the dividends de-
clared may be distributed.
THE investments of the State funds
premium income have been made al
most exclusively in public improve
ment bonds of municipalities, boroughs
and school districts in the State of
Pennsylvania. These investments ag-
gregate $492,S23.00 from which an
income of s17,5O7.9S has been de-
rived"
The State Workmen's Insurance
Board, comprising State Treasurer
Robert K. Young, chairman; ]. Denny
O'Neil, Insurance Commissioner and
John Price Jackson, Commissioner of
Labor and Industry, has authorized
Albert L. Allen. assistant manager of
the State fund to send tomorrow the
following statement to all State fund
policyholders:
THE State Workmen's Insurance
Board has authorized the manage
ment of the State Workmen's Insur-
ance Fund to announce that the fol-
lowing dividends will be declared, sub
iect to approval by the Insurance
Commissioner:
Commercial and Industrial Risks
Is per cent.
Coal Mining Rsks-10 per cent.
''It is impossible for us to declare
this dividend authentically at this
time as the reserves for the full year
cannot be computed until after
January 1 and it is probable that the
Insurance Commissioner will require
certain period before approving our
reserves which are set aside to carry
outstanding claims TO maturity.
This notice is for the advance in
formation of our policyholders as we
confidently believe on the basis of our
lose ratio for the eleven month period
ended November 80 that the total sur
plus to policyholders will be more than
ample to provide dividends to the
amount Professionally declared.
''These dividends, considered with
the initial premium rate of the State
fund which is 10 per cent. lower than
that of other insurance carriers
makes the cost to State fund policy
holders from 20 per cent to 25 per
cent. less than the cost of casualty
COMPANIES"