Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-01-22
GRAND JURY TO
PROBE CHARGES
OF INSURERS

The Fulton county grand jury, at
one of it's sessions next week, will
consider evidence in support OF
charges that certain Atlanta phys
icians have been implicated in con-
spiracies to defraud health and &C
cident insurance companies out OF
hundreds of thousands of dollars by
attesting fraudulent claims made by
dishonest policy holders.
| Solicitor General John A. Boykln
BY the insurance company officials
| and at a conference held Wednes-
day afternoon with Assistant So
lIicitor E. A. stephens, the matter
was investigated with a view to
physicians involved and against the
| policy holders who are alleged 10
! have defrauded the various COM
panies.
There are more than dozen health
and accident insurance companies
operating in Atlanta and 1t is claim
ed that during 1920 more than ST.
| 100000 was paid out In claims. Inc
insurance officials declare that their
private Investigations have SHOWN
that 60 per cent of this sum was
paid on fraudulent claims. so that
100000 was disbursed to dishonest
policy holders.
At Wednesdays conference with
the assistant solicitor general, It was
charged by the insurance oftlclals
that certain local physicians, both
white and colored, have been max
insurance claims, receiving either
share of the compensation paid
the policy holders. or taking Zee
of 81 or SO for their signatures. They
told authorities that some doctors 40
lucrat tive business signing these
claims, making daily rounds through
the negro quarters for this purpose
alone.
r. R. Shropshire, attorney for the
insurance companies, stated TO + MI
made by the various companies show
ed that fragrant violations of the
law were frequent, resulting IN
huge losses to the companies operat-
1--WE have evidence to show that
many policyholders have used their
insurance to live in idleness and COM
parative luxury" said Mr.. Shrop-
shore. "In many instances persons
laid off from their employment have
Immediately called in physician
and secured his signature on an in
demnity claim when the doctor knew
absolutely that the person was In
perfect health. We have paid from
SIS to SIS weekly in some cases where
our Investigations have shown there
was no ground for indemnity. The
period of business depression has
greatly augmented our flood of claims
although there is no epidemic of dis
ease in Atlanta"
In presenting their case to the au-
thorities, the insurance officials pro-
duced oral and documentary evidence
in support of their charge that some
doctors have signed as many as
twenty claims in a single day; that
the same doctors would sign claims
for the same persons for weeks at
time, but that investigation by the
companies revealed the fact that the
claimants were enjoying a life of
idleness, in perfect health.
ut has got to the point where
three colored insurance companies
have refused to issue any more
health and accident policies in At
lanta," said Mr.. Shropshire. land I'M
less the frauds are stopped, every
company will quit this field"
The insurance men were assured by
Mr.. STEPHENS that the matter would
be given the most careful consider
alton by the grand jury and that ev-
cry effort would be made to secure
indictments against physicians or
private individuals found to be i'm
plicated in the alleged frauds.