Document 7MvzGDYvJneMN1kKNJYrgzkmj

FILE NAME Insurance Industry INS DATE 1936 June 12 DOC INS023 DOCUMENT DESCRIPTION Article from The Eastern Underwriter - Dust Disease Problem Gets Much Attention uality June 1936 5 Page 45 COMMISSIONERS ANNUAL MEETING IN ST PAUL Dust Disease Problem Gets Much Attention HUNT CARPENTER DISCUSS IT Pa Official Views Humane Side of Prob- 1933 and how it produced a great in- crease in claims filed with the industrial accident commission and caused considerable confusion The effect of the de- cision said Mr. Carpenter was that the statute of limitations for reporting in- jury does not begin to run against a claim for this disease until the employe Pink Urges Safety Fund's Extension Speaking yesterday in St. Paul at a held well attended meeting in conjunc- tion with the commissioners annual con- vention Superintendent of Insurance L. for the past twenty years broken into five year periods disclosed the interesting and surprising fact that more com- panies failed in normal times than in the lem Calif Commissioner Tells of knows or with reasonable diligence H. Pink of New York strongly urged period of collapse He said Surcharge Rating Plan should know that his disability is caused that the principle of insuring insurance Eighty companies were taken over by the by his occupation pointed be widely adopted He out that Department during the twenty twenty- two in the first period twenty in the legisla- June Owen B. This decision was considered to have this principle was embodied in ond period sixteen in the third and twenty commissioner from Pennsylvania L. workmen's and Samuel Carpenter Jr. commis- indefinitely extended the previous literal interpretation of six months for an in- tion a year ago creating workmen's com perisation security funds in New York in the fourth The answer is undoubtedly that only the small companies failed in ordmary sioner from California today made val- definite period in injuries of the injuri- State and several other states The times These failures were due largely to faults of management During the crisis some of the uable contributions to the convention in ous dust disease type Continuing he setup in New Yorkis for separate stock largest companies in the conditions went under their speeches on insurance coverage of said and mutual funds and Mr. Pink said due mainly to economic conditions occupational dust diseases under work- Insurance Co's Alarmed suf- that the money in both is already The net claims allowed to creditors in the eighty liquidations during the four periods the men's compensation laws A big subject The insurance carriers were greatly ficient to take care of the claims arising 554,356 to 72,508.161.88 largest being 61 it was well handled by both officials alarmed by the effect of the Marsh de- out of the failure of a sizeable company the 554,356 in the 1930-34 period The average loss from claims for entire twenty years unpaid cision Our statutes provide only for a Furthermore the principle of these se- Silicosis Superintendent N. Y. Bills three year of the Schedule curity funds he emphasized is far in Pink took up each maintenance P reserve and only specific case re- advance of the preference upon assets major line gave its depression position Simultaneous with the dust discase explained addresses by Commissioners Hunt serves were maintained beyond the three year period of carriers for compensation claimants which was previously relied on in New and how it would benefit by a safety fund providing security against and Carpenter at St. Paul Gov. Leh- It was difficult for the insurance car- York and four other states failure of small companies He defend- against man of New York State gave out riers to estimate what if any hidden Following up his suggestion to extend ed his proposal the criticism that the news that he had signed the liabilities would fall upon them The the security idca to cover lines it is a theory borderingon socialism Schwartzwald and Crews bills which Marsh case covered a seven year period other than workmen's compensation Su- and declared that it was in keeping with Leg 1 amended the compensation law and the weight of medical authority perintendent Pink said a study of liqui- the theory of spreading the risk upon in relation to occupational diseases seemed to indicate that in individual dation proceedings in New York State which all insurance is based and their control 2 authorized the cases as high as thirty years exposure F expenditure of moneys from the vo- to harmful dust might take place before cational rehabilitation fund for the total disability would result But em- exposure to dust required to develop this be imposed upon employers who do not a purpose of making studies and of ployers generally showed little alarm disease to a point of disability He also maintain safe working places for em- disseminating information -- --the The insurance carriers attack was in felt that the experience of other states ployes control and prevention of diseases the first instance a legislative one Re- should be used as a guide in determining Thus a schedule rating system design- fnew caused by the inhalation of harmful lief was sought in the 1935 legislative rates for California ed to carry into effect these conclusions dust and 3 the Crews bill which session by the introduction of several After weighing these and many other was approved by Commissioner Car- henc appropriated 100,000 for the preven- remedial bills all designed to place limi- conclusions Mr. Carpenter finally de- penter effecting possible rate savings . tion of silicosis tations upon recovery under the act by cided that due to the necessity of special up to 50 of the surcharge rate ap- we Gov. Lehman said the prevention injured workmen suffering from the di- loss reserve against the proved and affecting rate penalties up requirements feature would be tremendously help- sease and to fix a definite statute of hazards of this disease which special to 30 of such surcharge rates ful from the long run social view- limitations for reporting injury The requirements do not appear necessary Rates and rules for pneumonoconiosis point combined forces of Union Labor op- in respect to other hazards insured it were promulgated effective June , 1936 surcharge ordered posed these restrictions and the 1935 would be essential to attach Commissioner Carpenter the Among the chief points made by Mr. Hunt was that since dust diseases create a social and economic problem the burden of which must be borne by somebody somewhere it is not only unfair from a humanitarian viewpoint to unload this burden on the affected individual or to pass it on to the community as a whole but it is economically highly destructive public Silica Dust Exposure Legislature adjourned without any of the proposed bills having been adopted The insurance carriers then in July 1935 appealed to Commissioner Carpen- ter for increased rates The specific proposal contemplated a surcharge rate upon fifty classifications of employ ment involving injurious dust hazards When the proposed changes were published and hearings held whatever previous apathy on the part of employ- rates subject to the necessary special reserve requirements rather than to ap- ply an increase to the basic manual rates Mr. Carpenter further felt that the rating system he approved in order to give full support to the physical pro- tection of workmen should provide sub- stantial credits in the rate of the indi- vidual risks for the establishment of safety measures and equipment by the state rating bureau to revise the basic manual rates applicable to classifications upon which a surcharge was approved as soon as Schedule Z data covering policy year 1934 was received Loss reserves against the disease are to be maintained separately upon the surcharge premiums for a period of seven additional years beyond the statutory three period Commissioner Carpenter also ordered the companies to calculate the amount Of the 1,200,000 workers estimated to be exposed continually to serious dust hazards Mr. Hunt said by far the larg- st group so exposed are those in occu- ers may have existed immediately dis- appeared Employers and union labor groups in the affected industries united in vigorously opposing any rate increase employer and that such rate system should also provide for rate penalties to N XV7 T 1 T of premiums earned upon California policies under classifications on which a surcharge was allowed for each policy years from radial 211 prevention of used by the auhalation of . and 5 the Crows appeprated appeprated 100,000 for the tion of silicosis C. Luhman said the prevent feature would be tremendously 1 from the long run social view- pont mong the chief pants made by Mr ient was that dust diseases create socal and couonne problem problem the bu et of which must be borne by somebody is omewhere it not only unfair from a matarian viewpoint to unload this surden on the affected individual or to pass it on to the community as a whole ut it is economically highly destructive Silica Dust Exposure Of the 1,200,000 workers estimated to se exposedexposed continuallcyontinually to serious cust nazards Mr. Hunt said by far the larg est group so exposed are those in occh- He pations where silica dust prevails referred to the havoc wrought by silica defined the three dust in the lungs stages in the progress of the disease and told about exposare to the disease in the authracite mines of Pennsylvaux Pennsylvaux As to what has been done by legisla tures to meet this problem Mr Hunt sand me states have laws establishing general coverage on occupational di- Massa- Scases California Connecticut chusetts New York North Dakota Wisconsin Wyoming Illinois and Khode pines Philp Island adopted such laws in March 1930 The District of Columbia the and Hawain also have general coverage provisions do the two Fed- compensation Federal eral Acts the United States civil service compensation act and the long- shoremen's and barbor worker's act He referred to the amended New York law miting total compensation in sili- cosis cases to 3,000 and noted that and West Virginia have acts Kentucky provisions with elective provisions He was critical of the latter state's extremely hunted coverage In closing he eniphasized preventive the need for programs to be adopted as a subject for legislation by legislatrioencord the several states so thatthe of reduction of and mortality about sickness many about in so many bought can be duplicated other dice- California's Pneumonoconiosis Problem Commissioner Comisoner Carpenter's treatuxat dast disease subject was a effect of the Cand Court's decision in the case of ludustrial Accident Commas 338 decided January acts sapped recovery recovery under Pois Rote sulleting noured noured workmen sulleting sease and to is a denate price don the act bay than the da Statute of The fations for eating Dynas conlaned arees of Union Lab posed these restrictions carrers then . to fot - to Commissiona Commissiona rates The specuie contemplated proposal contemplated a surcharge rate upon fifty six classifications of employ cant involving injurious dust bazrds When the proposed changes changes were pub- ished and public employe apathy previousmay have whatever hearings held employe on the part existed amnediately apeardapearedappeared and umon Employers m acted industries 111 vigorous Nearly 1,500 bearnigs and granted 1,50 opposing any attended the held extension of tune long briefs proposed arguments given against the Old Found Inadequate Ratesthe Commissions Comisions Carpenter's a was decision available data upon wheeli upon rate estimates could be made convinced him that the old rules were madequate insofar they applied to classifications myoly ing dust disease hazards furtheri decided that the three year reserve pe- rod was too short that any ranng plan contemplated to appraise adequacy dust hazards Should be based upon of the average period of Defer Action on Plan ilical action on Firespective FirespectiveFirespctive appears likely at piecus of the commissioners The proposed plan came before the compensationcompensation Cotier nien on June S and the Consens was they were sat A enough informed on She S. amo amo act at this me S. |4 plan has been refured to a sub refured buttee which will report back to Amongthost | meeting meeting opposed Superintendent who miligent action would come are Study and Cogmanssione who said that each Mate official should decide for himself on tins maatte ai) tage 1 b ciber > Me coal aly of pectal spand the peate., 100 Up 100 100 a tig rate chat euste ed: proved and afccture life penalties up spectal Recessary Recessary unsured it subject to the re~ESTORYBES Tesive re~ESTORYBES increase 10 Fe the than to ap- the basse and further felt apuwed appuwed hul give support fection of workeen physical provide starud credits in the rate rate of the undi- vidual risks for the establishment establishment of safety measures and equajment equajment by the employer and that such rate system system should should also provide provide for rate penalties penalties to W. Hobbs ReportsReports Canned from Pare 44 enced a more frequent occurrence of rare reductives and also by the carance of underwone underwone gains or tidaltions duced losses in the tidalations of under- writing results by calendar year for the purpose of compounas conimgency load- to 30 of sus surcharge rates Kates al rides it paisumoconiosis paisumoconiosis paisumocnios work andate andte Comision effective June , 1930 Carpenter ordered the bureau bureau the basic upon ditta soon as 2 covelingpolicy year 1934 icerived icerived Lass reserves was the disease are to be mamand against separately upon the surcharge premums foi a end of seven additional years statutory beyond the Commissioner three period Carpenter also ordered the conquantes conquantes to calculate the amount of cats carned upon Califorma ces under classifications on which a surcharge was allowed for each of the pobey years from and including 1927 and dule, and repor the losses incurred and paid on account of claims arising from pcutionoconiosis pcutionoconiosis pcutionoconiosis pcutionconiosi Inspection The Canfora Bu- Canfora Rating rean was ordered to preparean endorse- policies ment compensation compensation compensation which unit compensation would unit them so as to entirely cled any clam or cost for the hazards of phemmunoconiosis phem unoconiosis so that companies could isse policies excluding the di- seatured Tan 11 seatured rating operations of the Council which were an strict con- sease at the basic rates and without the surcharge surcharge formity with the pier aproved approved at the commissioners St Petersburg Conven- Conven- uan Adunstanton of rates has rates began in South Carolina and Plonda latest The to adept a compensation compensation law states tread kuislative to bang having been diseases within the compensation noted such legislation charted in the recent sessions ve and Rhode Island Hobbs devoted Part 1 1. Council discussed Part VI contams a statement of progress in the introduc- introduc- Don of the unit statistical plan Part contens a brief description of a plan for retrospective rating adopted by the rates committee of the National Comel Part VIII contions a statement as to operations under the voluntary plan for dealing with unacceptable risks repoxi to the subject of ocupational discases and pointed out The tional Coune Coune has with respect to oc- cupational disease devised tls rating plan the of available experience and has also been modify the Part EX contains a statement asto man- changes nal Part X contains a state- Bicht as to changes in membership Membership Membership now stands at ninety a gam of four since the last report said Mr Mr Hobbs accupaten It discussing the standard voluntary dalies applical to Rsion of the schedule rat- plan for coveting risks unable to obtain coverage coverage which is 20W aa effect in other classifications present- present- cleven states Mr Hobbs declared that that ematuros ematuros and bum this The problem is not a large one and that has not packed waterally towards wateral y cabzauou cabzauou Report of operations in the line of basiell audit and classification jaspec- tions look Part IV of the de gens whde m the statistical plan on 114 114 I June 01 Cases HC DISured DISured does not want coverage when he finds he has to pay for et.cut show ed forty two risks assigned to date the largest amber m 902 State of 201216 Were subsequently with- Undra 11 into effect by the drawi