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FILE NAME Insurance Industry INS DATE 1938 Oct 27 DOC INS043 DOCUMENT DESCRIPTION Article from The National Underwriter - Workers Compensation eee October 27 1938 NATIONAL UNDERWRITER P29 7 indemnify the company for losses in excess of 10,000 on automobile bodily injury up to the limits of 290,000 It has a reinsurance agreement with Seaboard Surety on a facultative basis covering surety bonds only In addi tion reinsurance is placed on faculta tive basis with the Actua Casualty Ocean Accident and Excess on fidelity and surety Allied Mortgage Bonds Will Now Be Retired BALTIMORE a meeting of the directors of the United States Fidelity & Guaranty it was decided to place its subsidiary Allied Mortgage Companies in position to call in for par plus accrued interest is the next interest date retirement at Dec. 1 which the entire re- maining outstanding issue of bonds amounting to 3,162,000 These bonds were issued by the Allied Mortgage as part of an issue of 55,977,000 on Dec. 1 1933 payable Dec. 1 1953 and were guaranteed as to principal and interest by the U. S. F. & G. Of the original issue the mortgage company already has retired 2,815,000 through the liquidation of a portion of the collateral security It is understood that no action is contemplated with reference to the debentures issued by the Associated Mortgage with respect to which the U. S. F. & G. has only a contingent liability for the pay- menotf interest thereon Pennsylvania Casualty Report The Pennsylvania department report on the Pennsylvania Casualty of Lan- caster Pa as of July 1 shows assets 938,520 premium reserve 356,386 claim reserve 200,700 capital 200,000 net surplus 100,093 income first six months 656,903 disbursements 227,429 YOUR CLIE AND PROS WANT THI NEW POLIC There's a lot of good busine among banks financial institu WORKMEN'S COMPENSATION cial houses because the new Revise Rejected Risk Plan in New Jersey A revised rejected risk plan for workmen's compensation was adopted by the Compensation Rating & Inspection Bureau of New Jersey and ap- proved by the insurance department effective Nov. 1. Basic principles were not modified but attempt was made to correct defects discovered since the plan went in effect in April 1932 The revised plan is applicable to all employers entitled to compensation who are unable to obtain protection and have not failed to pay their compensa tion premiums in the last three years Written application must be made to the bureau accompanied by evidence of inability to obtain coverage including written rejections by at least three qualified companies The bureau then will designate a carrier and notify it and the employer The risks will be distributed by the bureau among car riers on the basis of their compensation and employers liability premium in- come in New Jersey the assignments being governed by exclusions under re insurance agreements treaties or contracts filed by individual carriers The companies may appeal for relief from an assignment but may not withhold or delay issuing policy pending appeal Rules Affecting Carriers crustant when Default in payment crustant crustant when due is deemed lack of good faith and if a policy is canceled for this reason a risk will not again be assigned until the bureau is satisfied the employer is entitled to insurance Companies to belong to the bureau must file formal acceptance of the as- signed risk plan and also a recorodf classes of risks which are excluded by its reinsurance agreements treaties or contracts Massachusetts Hearing Is Held on Compensation BOSTON Massachusetts legis- lature's special recess commission in- vestigating the workmen's compensation act with special reference to coverage for silicosis and other special hazards held its opening hearing which was taken up largely by representatives of labor A state fund for workmen's compensation to injured employes is inevitable said Samuel Horovitz coun- sel for the Massachusetts Federation of Labor on compensation matters He declared state funds operate at a cost of 7 percent while in Massachusetts the insurance companies are permitted an overhead of 61 percent and a loading factor of 67 percent Representative J. P. Donnelly of Law- rence assailed the impartial doctors hired by the industrial accident board to examine injured workmen Too often he said they send in reports stating a introduced by Indemnity affe need could not get befor damage to or destruction of m Form 2 covers Valuable Paper and securities Get the facts business - CAPITAL 1,0 Carriers when designated must make available immediately to employers a policy effective not more than five days after date of assignment provided the premium employer pays the premium is not paid within the company may withhold If the that time insurance until the day following payment Poli- cies will be issued for one year unless the employer requests a short term policy and will be subject to rules rates minimum premiums and classi fications in the manual An adequate rate agreement may be negotiated with the employer if the company considers the rates or mini mum premiums inadequate If em- ployer and carrier cannot agreement the company may reach an ask hear- ing before the bureau's governing com- mittee the employer attending Final power in approving rates in rests with the committee such cases If the insurance company wants to be relieved of an assigned risk it must notify the bureau not less than 60 days before expiration when the bureau will assign a new carrier If a company other than the one to which the risk was assigned desires to carry it it may take over the liability at any time and the assigned carrier may cancel pro- rata The company has the right to cancel with approval of the governing committee if unusual or unexpected cir- man is able to return to work when mere observation shows the workman is unable to do a day's work Carl W. Johnson of a Boston indus- trial insurance research firm urged the passage of a compulsory workmen's compensation law in Massachusetts with a insurance provision He suggested a plan for insurance companies to divide the risk so as to solve a public problem to cover silicosis in the granite industry E. E. Clark for seven years member of state industrial accident board urged a provision so that insurance com- panies cannot disclaim responsibility for payment when the onset of the disease is in doubt and they have not carried the risk beyond that point Kenneth Taylor legislative agent the | of state federation of labor claimed estimates showed injured only cents of the premium dollar Mr. Taylor said insurance companies should be compelled to take the bad with the good risks He stated the Massachusetts Federation of Labor will Sponsor a state fund compensation bill in the next legislature L. P. Henry of the American Mutual Liability denied insurance companies discriminate against workers because of old age He said the insurance problem in the granite industry could be solved by reducing the benefit to be obtained by the injured worker He claimed there Indemnity Insuran of NortAhn We are anxious to assist the Agent or coverage for unusual A was doubt as to constitutionality constitutionality the constitutionality p