Document 34yjBwL35wdwqvEZJp4ggrRa

FILE NAME Insurance Industry INS DATE 1937 Oct 1 DOC INS035 DOCUMENT DESCRIPTION Article in the Eastern Underwriter - Occupational Disease Covered in Symposium . . October 1 1937 a pe THE RCE Oc 1 eT RR UNDERWRITER bo alt NETO UNDERWRITER 7 er CoE 1 Insurance Section Meeting - Occupational Disease Covered in Symposium PAPERS REaA t bD ar meeting Situation in Illinois Operation of North Carolina Act and Costs To Industry Covered Symposium Speaker Occupational diseases was one of the timely round table discussions on the Insurance Section program of the Amer- ican Bar Association convention in Kan- sas City this week This discussion cen- tered around provisions which should appear in statutes for compensation to employes disabled on pational disease and should not be a part account of occuprovisions which of such statutes Speakers included Peter J. Angsten chairman Industrial Commission of Illi nois Carolina Dewey Dossett of the North Industrial Commission and Henry D. Sayer casualty manager Association of Casualty & Surety Executives who is a former Industrial Com- missioner of New York State High spots of their addresses are as follows Angsten on Illinois Situation Mr. Angsten reviewed the occupational disease situation in Illinois in much detail and noted that it was not the legislative intent to cover such dis eases under the compensation act He observed that at one time the situation in Illinois was aggravated by claims of the employers and the insurance carriers that the liability under the workmen's compensation act and the occu- HENRY D. SAYER difficulties present nearly all the pre- scated in all other occupational diseases what much of I shall have to experience say will be drawn from our experience wiwith th equally those two diseases but will be applicable to occupational diseases in general Essential Features of Law pational diseases act were distinct and separate and unrelated insurance__ submitted carriers to the Industrial Commission for annroval attemnting forms of en- dorsements clude from under the provisions ex- standard worknien's compensation policy covering liability all occupational dis- those cases and particularly arising of exposure to silica and asbestos Such endorswe erm e e sun bmit tts ed to the at- torney general and he held that any en- dorsement attempting to limit or modify the liability of an employer created under the provisions of Sec 2 of the oc- cupational diseases act was void Occupational discase in North Carolina stands administratively On the same footing as does the administration of accident compensation Our act was passed in 1935 and we have operated successfully under it I will discuss the provisions which I believe should be in- corporated in any occupational disease law " believe that primary emphasis should be placed on legislation to provide for prevention of occupational disease I believe that it is absolutely essential to make provision for some kind of impartial medical set Of much importance is the physical examination Compulsory Assignment Mr. Angsten said also that failure on the part of insurance carriers to issu policies covering occupational diseases coverage under the voluntary plan to- gether with the fear of the insurance carriers because of the broad provisions of Sec 6 of the workmen's occupational diseases act contributed in a large meas- ure to the enactment of the compulsory assignment bill He explained operation of the compulsory assignment act passed by the legislature in July of this year and said Both the occunational dis- eases law and the compulsoasrsiy gn- within year year iinment enacted the past Illinois should prove practicable The we will gather during experience that the next few years will determine whether or not there are any provisions in either or both of these laws that will require statutory remedy We look for- ward to both laws onerating with a decided degree of success Dorsett on N. C. Law of applicants for work in those places where there may be a silica dust hazard Our law will be amended to provide that no liability is to attach to employers until after an employe has been at work for some reasonable period say sixty or ninety days We feel that the plea that the subject of occupational disease is so complicated that it cannot be administered by a board or commission composed of persons not medically trained is not founded on fact We do believe that a provision for a medical board or advisory medical committee is a very important one in any type of silicosis act Employes employers and the medical profession all have confi- dence in our present set " believe that there should be com- pulsory coverage for silicosis and asbes tosis in the compensation acts of all states There is no sound reason for granting an election with respect to silicosis compensation differing from such elective provisions in the law of any state Election prevents preventive ef- Mr. Dorsett's paper was the occu- pational disease situation from the point of view of practical administrative ex- perience with an existing law He featured the North Carolina law saying in part forts as it invites unfair competition within an industry Disabled employes on account of occupational diseases should be granted the same compensation as those disabled in an accidental injury In North Carolina occupational dis- cases are synonymous with silicosis and asbestosis The run of mine occupa- tional disease in our state is not a proh- tem at all Out of our experience w have made some discoveries So many conflicting statements have been made about disease contracted in the dusty trades that many persons have become confused Since silicosis and asbestosis are genuine occupational diseases which Removal of Employes Sometimes we find that an employe for his own benefit ought to be removed If we find no tuberculosis associated with his occupational disease and if the employe desires to remain in the indus- try him tion we permit him to do to waive a part of benefits so but require the compensa- It is fundamental in law that the equitable adjustment of claitus involve a of American Bar A. Better Law Needed On Surety Joint Control KISSAM TELLS BAR MEMBERS Explains Improvements That Would Result From Enactment of Proposed Uniform Legislation Need for additional legislation was urged by Leo T. Kissam New York be- fore the Insurance Section of the Aineri- can Bar Association at Kansas City September 28 in a paper on Joint Controt by Sureties He said that in every judicial opinion condemning joint con- it trol of trust funds by sureties has been argued that the practice is contrary to public policy In some cases however the courts suggested that the practice could not be permitted without an act of the legislature The present unfortunate state of law he continued can only be removed by the enactment of a uniform law permitting sureties to exercise joint control of trust funds and until all the states enact such a law it must be anticipated that the existing inconsistencies in the law will continue as additional decisions are made Text of Model Bill Presenting an argument for bill to provide for a uniform a model law Mr. Kissam said in part During the past year the committee on fidelity and surety insurance law of the Insurance Section of the American Bar Association considered the problems of joint control and concluded that ex- isting conditions can best be corrected by the enactment of a unifone law After examination of existing legislation the committee found that the following proposed statute would be the most sat- isfactory one It shall be lawful for any party of whom a bond undertaking or other is obligation required to agree with his surety or sureties for the deposit of any or which he ale or ma a bank sa trust con do busines pository a judge then Wise prope of and in the withdr sets or an written com tits or thereof an m surety or judge may that such mauner It liability of established bond The effec fold It will public policy enacted and the argumen control over illegal The prol meet those bility of the cases of th through ban The bill ment that joi prive the cot administered Cen No subjet terest than t trust funds has passed control by s and in the 1 has had but to be hope time due coi all of the ment of the time element We have in our law a limitation of three years for silicosis and asbestosis as against one year for accidental injuries and occupational disease other than silicosis and asbestosis What is an equitable time limitation ranks in importance with what is a safe dust concentration It deserves study _* Minimum Exposure Period Only sixteen states compensate for silicosis The minimum exposure period deals with a problem more imaginary than real It is a phantom apparently visible by reason of the peculiar goy- ernmental set of eight stateThe minimum state exposure period tends to limit the opportunity of employes seeking employment in other states It may seriously affect the rights of those engaged in dusty vocations I think the idea of a minimum state ex- posure period should be discarded as soon as compensation coverage becomes general and reasonably uniform preventive measures have been put into effect in all the states If employment examinations are to accomplish the intended purpose pen- alties for false statements as to material facts concerning previous medical or occupational history are necessary Whether such penalty should completely har a claim or effect only a reduction in benefits is debatable The law should provide for the removal of workers found with active oul- monary tuberculosis at silicosis from The employment Such workers should he granted suitable compensation and oper medical care Effective Date of Act Another serious problem worked out in any legislative when shall the act take effect to be plan is parben- larly as silicosis to payment of or any other compensation for disease which is contracted Strange as over a it may long period of time seem since enactment of our silico tively few cl ed in the du been relativ amazement carriers Noi sisted that tl compensatior cases provisi bility From point it cert tion of the li The Nort covered ever time Insuran ingly The co been prohib have had no Regardless retroactive f ble to avoid Say Unrestricte benefits for i American inc as compensal it was indica the Associat Executives 1 recent eases legisl The threat dustry Mr. from the en of so called | erning comr diseases If cost of comp typical occup burden what workers com value of sick Citing spec charged that the New Yor nerable to ex up almost a ment The outloo Page 41 can Bar Ass'n ded On t ControlControlControlControl MEMBERS of any or all moneys and assets for which he and sureties are or may his surety or be held responsible a bank savings safe with or banks deposit trust company authorized by law to do business as such or with other de- That TofhatPropPorseodposed ition pository approved by the court or a judge thereof if such deposit is other- wise proper for the safekeeping thereof and in such manner as to prevent egislation was York Joint City New New be- nsas Sep- nsas CityConS-ep- n that every ing ing joint joint it has ureties is it has actice is con- ested that the the withdrawal of such or . sets or any part thereomf ownietyhout tthhe e written ties or thereof or consent of such surety an order of court made on such notice or surea judge to such surety or sureties as such court or . judge may direct provided however that such agreement shall not in any manner release from or change the . liability of the principal or sureties as - established by the terms of the said mitted without The present he continued the enactment bond The effect fold It will public policy this bill of this model bill is threeconstitute a declaration of in any state where it is ing sureties { trust funds act such a law enacted and thus in one stroke destroy the argument that the exercise of joint control over trust funds by sureties is at the existing illegal will continue continue The proposed bill will immediately e made Bill - meet those decisions extending the lia~- __ bility of the fiduciary and the surety in t for a model cases of the loss of bank deposits form law Mr. through bank failure form The bill meets the general argu- the committee ment that joint control arrangements de- urance law the American prive the courts of control over the trust administered under their supervision 1 the problems Century of Inactivity luded that ex: be corrected No subject is of more universal interest than the proper administration of uniform law ing legislation the following the most sat- trust funds But more than a century has passed since the subject of joint control by sureties was first considered and in the past fifty years this subject has had but scant attention It is now any party of to be hoped that within a reasonable king or other depo|sitment to agree with time due consideration will be given by all of the state legislatures to enact- or the depositment depositment of the model bill on this subject ~ our law a lim- of our silicosis law we have had rela- ~ r silicosis and year for acciational disease bestosis What tively few claims for diseases contract- ed in the dusty trades and the cost has been relatively insignificant to the amazement I think of our insurance ation ranks in carriers North Carolina employers in- a safe dust sisted that the legislature write into our study compensation act for occupational dis- Period ompensate for posure period eases provisions recognizing accrued liability From the administrative stand- point it certainly simplifies administration of the law ore imaginary om apparently peculiar goveight states posure period tunity of em ent in other fect the rights y vocations I The North = covered every Carolina act niediately person employed at that time Insurance rates were made accord- ingly The cost to the employer has not heen prohibitive Insurance companies have had no quarrel with this provision Regardless of the legal aspect as to the retroactive feature it seems impractica ble to avoid " num discarded as becomes effect iform iform preven put into effect minations minations Sayer Discusses Costs Unrestricted workmen's compensation benefits for industrial diseases may cost American industry seven times as much compensation industrial as it was indicated fobyr Henry accidents D. Saver of purpose pen- the Association of Casualty & Surety as to material Executives who presented a review of ~ medical s medical or recent legislation on occupational dis- eases uld completelv y a rerdeudcutci tioonn ith nul- forfor tthhee re- ith active nul- silicosis from orkers should pensation and f Act blem lative Effect to be plan is partion- ppensation for case which is riad of time dustry The threat of enormous cost dustry Mr. Sayer pointed out to in- arises from the enactment and interpretation of so called all inclusive statutes mov- erning compensation for occupational diseases If industry now regards the cost of compensation for accidents and typical occupational diseases as a hervv burden what will be the effect when the workers come to realize the value of sickness he asked capital Citing specific examples Mr. Sayer charged that a court interpretation of the New York law leaves industry vid nerable to un almost ment exploitation any discase It is easy to tie to the employ- nce enactment The outlook for industry is brighter . 7