Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-02-02
Merit Rating Schedule

The schedule of merit ratings from
the basic rates has been compiled by
committee of six representatives, in
cluding representatives of three stock
companies, of two mutual companies
and the State Fund. In the formula
ton of this merit rating schedule, the
stock insurance companies occupied
controlling position, but the State
Fund accepted the schedule as equit-
able and sound.
Credits and charges will be applied
to the original compensation rates by
the application of this merit rating
schedule through the Pennsylvania
Compensation Rating and Inspection
Bureau, of which all companies writ
ing compensation insurance will be
members.
The merit schedule is based on the
principle that a guarded machine is a
normal condition and that an en-
ployer should not be credited for
merely supplying protection to an
unguarded point which should be pro-
tected under State Laws. Credits will
be given for efficient safety organiza-
ton and inspection and instruction
service with maximum of 24%o re-
duction from the premium rate.
Under this schedule unguarded
points are charged in proportion to
their relative values, but no charge
is made which cannot be removed by
the action of the employer conform
ing to safety standards The uneX-
pected grievances voiced by some
stock company agents against the
based on the fact that some agents
had promised to prospective customers
reduction of from 20%o to 400 from
the rates, which the merit rating sys-
tenn adopted will not allow them to do.
This schedule has been adopted ten
N,A 4
by the Safety Inspection Committee
and accepted by the governing Com
mittee of the Bureau.
Advantages of State Fund
The State Workmen's Insurance
Fund offers as its advantages compen-
sation liability insurance at net cost.
It's initial rate is 1919 below the rate
charged by stock companies with the
prospect of substantial dividends at
the end of the year. The State Fund
offers a guarantee of absolutely no
assessment against it's subscribers. 1t
removes absolutely from an employer
the probability of a lien being entered
against his property. 1t is the only
form of insurance which does give
this advantage. The liability of an
employer insured in the State Fund is
transferred Immediately to the Fund
when an employe is injured. The en-
ployer'S property is secure against
liens that the injured employe might
enter to prevent the sale of the en-
ployer's property if he were insured
in a private company.
The aim of the State Fund is to
exist successfully and to continue to
provide insurance at net cost for all
employers who desire so to insure.
The State Fund is community propo-
sition. 1t does not aim to be monopo-
listic.
There is adequate compensation liza
bility insurance business in Pennsyl-
vania to support all of the private
companies, as well as the State Fund.
There is little, If any reason, why the
relations of the State Fund and the
private companies should not be har-
monious and amicable, even though
competitive. The argument that the
Fund will be insolvent is negligible,
but from the wide dissemination of
that argument, by certain agents, one
might readily form the opinion that
a stock or mutual company, writing
compensation insurance could, under
no circumstances, become insolvent.