Document 93xr4oK6Qjknv84Zjv6zyGzmp

FILE NAME Insurance Industry INS DATE 1936 June 25 DOC INS009 DOCUMENT DESCRIPTION Article from The National Underwriter - Disease Rates Under New Illinois Laws are Given June 25 1936 R29 THE NATIONAL UNDERWRITER R29 Disease Rates Under New Illinois Laws Are Given PRESENT ALTERNATIVE PLANS Claimant's Attorney Wins Fee in Interference Suit Adjusters for casualty companies must Riders for High Discount Plans A be cautious about interfering with the Assured May Buy Full Coverage Loss Contribution Scheme signed Risk Still Problem Or relations between a claimant and his attorney The New York court of appeals has just decided against the com- pany in a suit for his fee brought by the injured's attorney on the ground that representatives of the company in- Companies have now been furnished by the Massachusetts Rating & Inspection Bureau with copies of retrospec- tive premium and premium discount endorsements for compensation risks These riders doubtless will serve as With 20 date of the be termine the losses includ the unpaid 1 months after policy The rates are now available for occu- pational disease coverage under the new laws which becomes effective in Illinois Oct. 1. The scale was prepared by the National Council on Compensation In- surance Employers will have the choice of purchasing full coverage or a plan under which the assured pays for 50 percent of every disease loss up to the maximum of 1,000 per casc The rates for the second plan will be 25 percent less than the full coverage rates A minimum premium of 5 is estab lished This is regarded as too low by most of the Chicago experts William Leslie associate general man- duced the claimant to repudiate the at- torney and settle without him The al- legations were that the retained by the injured attorney was claimant but that representatives of the threatened the claimant that company unless he repudiated his retainer he would receive no compensation for his injuries After the claimant broke off with the attorney the company paid 25,000 and took a general release The attorney thereupon brought suit and recovered a verdict for 6,250 on an alleged agreement of 25 percent of the recovery The court reduced this with the consent of the lawyer to 2,500 as the reasonable value of the lawyer's services in investigating the claim interviewing the witnesses taking models for other states Large risks that do not elect to be retrospectively rated will receive in Massachusetts a rebate on that portion of the | of 11.4 percent premium above 5,000 The bureau does not state whether commissions will be reduced on the premium above 5,000 In the retrospective plan no commission is paid on any premium above the retrospec- tive minimum The premium discount endorsement is to be attached to cach policy for which the estimated annual premium amounts to at least 2,000 where the retrospec- tive plan is not used | No policy may be canceled and rewritten for this pur- From the } curred losses shall then ma of the retros 4. Subseque spective pren the initial shall recomp mium on th determination curred losses mate of the 30 months af policy Twenty computation pute the ret basis of the the amount ager National Bureau of Casualty & Surety Underwriters returning from the meeting of the insurance commissioners in St. Paul had a conference with the membership of the Casualty Managers Club of Chicago following which he conferred with Chairman Angsten of the Illinois Industrial Commission Mr. photographs etc. The judgment as reduced was affirmed by the New York court of appeals Indemnity Policy Test Case Is Ruled Upon in Illinois pose Text of Discount Rider The reads premium discount endorsement It is agreed that all premium for the policy in excess of 5,000 developed by the application of the standard rates of the Massachusetts Rating & Inspection cluding ther paid losses a the effective The retros by the secon final premiu sequent roc the Massach Bureau Leslie was particularly interested in the problem of assigning risks which are unable to obtain occupational disease coverage At the meeting with man- agers the prevailing view was that the insuring of occupational disease under the new Illinois law should not be a problem if the assured does a proper job of housecleaning However it is ome recognized that a good many canployers will be lax The conclusion was that the companies as a group or through a committee would undertake to get the cooperation of the industrial commission in setting up requirements to which an assured must comply in order to get insurance Then when an assured has complied with those requirements the companies through their assigned risk committee would cooperate in seeing that coverage is obtained Under the new set up occupational disease legislation in Illinois is entirely What appears to be the first test under the Illinois law to provide claimants a direct recourse against the insurance company under automobile liability poli- cies has been ruled upon by the Illinois appellate court 1st district in of Trust Co. of Chicago vs. the case Iroquois Auto Insurance Underwriters Inc. The law provides that the insurance company shall be liable to the person entitled to recover for death or injury when caused by the insured in the same manner and to the same extent that such carrier is liable to the insured The curious effect of this is if taken liter- ally that the claimant is left just where he was before the law was passed under called indemnity policies Such laws were passed in most states for the very purpose of giving the injured claimant the benefit of the insurance when the insured driver is unable to pay The distinct from the law governing compensation for industrial accidents Pre viously where an uncertain measure of disease liability was included in the workmen's compensation law the companies have been getting a loading in the regular compensation premium This loading will be eliminated effective Oct. I and a revised accident compensation policy in this case was an indemnity policy by which payment was promised only to reimburse the insured after he had paid the injured In this case the insured had not paid the injured Without going into the reasoning which led to its conclusion the appellate court said that the indemnity provision was contrary to the statute and there- scale promulgated Below are given the new rates fore ineffective and void The case was for remanded with directions to enter a disease coverage Occupational in various classificationsclassifications in judgment in favor of amount of its claims plaintiff for the The trust com- Code Classification 1164 1165 Smelting 1430 Mining underground .2.74 surface ..1.95 loud sintering .ee ee cere .1.40 pany held a judgment of 3,000 for the death of Juzang Undoubtedly the appellate court gave the effect to the law that was intended 1438 Smelting sintering or reining- N. sintering ee ec eee eens .60 1472 Distillation of wood .07 but it had to go easy in giving its reasoning 1605 Rock excavation ... 2.13 Bureau shall be reduced 11.4 percent provided however that the provisions of this endorsement apply solely to the premium for operations covered by the policy which for purposes of premium determination are subject to the jurisdletion of said bureau The ment retrospective premium endorseomitting the table of rating values reads Additional percentage of standard premium required by paragraph 5 a of this endorsement percent It is agreed that the premium for the polley shall be determined as follows 1. Elements in development of retro- spective premium computation of the retrospective premium is based upon the following elements a Standard premium premium computed in accordance with the proviglons of the policy other than this endorsement shall be known as the standard premium The earned standard premlum shall be used to determine the basic premium the minimum retrospective premium and the maximum retro- spective premium b Basic premium basic pre- mium is that percentage of the earned standard premium stated in the basic premium column of the table of rating values schedule which forms a part of this endorsement c Incurred Incurred losses under the policy shall mean the actual paid losses and the reserves as estimated by the company for unpaid losses :: 2. Retrospective premium retrospective premium is the sum of a The basic premium and b The incurred losses and c 15 percent of the incurred losses The retrospective premium is the premium for the policy provided however that if such premium is less than the 5. Payme a Stand thereof company premium thereof stat dorsement b Retros company ha tion of the employer sl difference b mlum and to the comp mium is gr viously pai to the emp the retrosp mium if the prev retro the premium Correspu made at th of the retro All adjus to the min and to mium the Hi Cane a Canc the event ployer 1 The the period to be comp ance with table print 2 The computed : basic prem 3 The computed spective pi 4 The nfum sha standard the period 1624 Quarrios O. C. .1.17 minimum retrospective premium the tended to 1710 Stone crushing ... .2.13 Dust Disease Procedure minimum retrospective premium shall be the polley 1741 1745 1747 1748 1803 -1852 1860 2260 2280 2288 2538 2000 2623 Flint and spar grinding Spapstone products mfg wee -22 Emery works ....-..-Abrasive wheel mfg .. . .22 .56 Stone cutting and polishing 7.00 Asbestos goods mfg .. Abrasive paper mfg .. . 4.444.44 2.1 Wool combing or scouring .07 Hatter's fur mfg ... 16 Felting mfg .... .03 Iut mfg straw . .06 Fur mfg hatters .06 Tanning ..--.... wees .13 NEW YORK June Approval of rules and rates for classifications subject to specific dust hazards under the state law prepared by the Compensation Insurance Rating Board of New York having been given by Superintendent L. H. Pink became effective coincident with operation of dust disease amend- ments to the statute All carriers have the premium for the policy and if such premium is more than the maximum retrospective premium the maximum retrospective premium shall be the pre- mium for the polley Minimum retrospective premium minimum retrospective premium is that percentage of the earned standard premium stated in the minimum retrospective premium column of the table of rating values schedule b Can the event pany the the period to be com the retros puted on t ard premi^> 7 App mium onl 2660 3081 3082 3085 3089 3091 3093 Boot or shoe mfg ..--..- .04 Foundries O. 2.96 Foundries castings 2.96 Foundries 2.96 Pipo cast iron .. Enameled iron ware mfg .44 .80 Cast iron centrifugal ..,.- .71 been advised by General Manager L. S. Senior of the method to be followed Purchases Building Maximum retrospective premium maximum retrospective premium is that percentage of the earned standard preantum stated in the maximum retrospective premium column of the table of rating values schedule dorsement for opera which for nation ar the Mass Bureau etary antee idsay nobile ? 3122 3169 3175 3364 Cutlery mfg.-N. O. C. ... weno .71 Stove mig Radiator or -.rrerseee heater mufi .27 wee-- .90 Plumber's supplies mfx .. -. Agate or enamel ware mig Lead works .... sees we .07 .39 .80 Type foundries . vanes 1 .48 acetylene welding Electroplating ... .08 .03 CONTINUED ON PAGE 32 The State Automobile au automobile reciprocal of Indianapolis the Medical Arts building has bought in that city on southeast corner of Michigan and Pennsylvania streets of which it will occupy two floors and the basement for home office purposes ** * 3. tive Initial computation premium six of retrospec- months after the termination of the policy the company shall make an audit of the records of the employer standard in order to premium compute and LO the earned determine therefrom the basic premium compensa one and CO  THE NATIONAL UNDERWRITER cort now Sustains its contention se defnite understanding is the C | ing plan If so how many | . Will you present the plan to each will continue the National Surety Cor- risk in your section having more than poration as a distinct entity with Vin- 5,000 in premiumi cent Callen as its president The depart- 5. How many of the risks above re- } reed recently concluded an examination ferred to are in mutual companies In opISIONS company as Dec. 31 1935 lind- in highly prosperous condition with- 11- Riders for High and stock companies 6 Has the presentation of this plan to those risks now insured in mutual companies enabled you to secure the busmess for stock companies Discount Plans Are Given i Holds Outing at Freeport CONTINUED CONTINUED FROM PAGE 29 The Freeport Motor Casualty held its annual agency meeting and golf outing and experience of the agents of the at Freeport H. for agents in northern will be helpful to the insurance ' commissioner in making his decision as Hlinois and Chicago arca Paul F. Seitz president presided at to the voll K. future of the plan President CarSteele has sent out a question to the meeting and reported healthy gains in business for the first five months of tional members of the Massachusetts Associa 1936. Gustave Bartels of the auto theft theton tion theton of Insurance Agents to be answered Fitore July 17 The questions asked are division of the states attorney's office Chicago described how thefts have been of the Rs follows seduced and how insurance companies cae , the ustic da Toate DESAP ferent 1 Have you any compensation risk your territory which develops a name of 5,000 or more If so prehow any of those risks po Have you explained the retrospec- f bse plan of rating to any of your cus- tomers or prospects in your territory | have cooperated by reducing rates Special Agent Hoyman of the northern Hinois territory Leon F. Knipschild claims department tary and treasurer C. P. Young secreW. Richards and Chas M. Fish underwriting department also spoke Gwas ap | he lat who are eligible Have any of the risks above re to accepted the retrospective rat The Insurance Women's Association of Portland Ore elected Mildred Coleman as president j educed educed Rates automobile liability insurance is one Disease Rates Under New Illinois Law Are Given 3807 3822 3823 881 2883 1821 4024 4053 1054 1061 1062 Agricultural Textile Printing mi Boulcharding chinery : . Boot or shoe machinerind Condectioners Condectioners maternels Sewmg machine machine mfg Boulcharding oe : machinerind machinerind mig ee! ee me ne Valve mig Battery mily sae -Storag Thermometer mik Automobile FII are mfg radiator : Automobile radiator Automobile Automobile mfg body or as mfx - waa c e bee , Te, fe , K embl~-m ple<NIA , Automobili : Automobili body' body' mix body' fe bodies . . : Acroplane uts . : ue a mig unroad 6 ee wheel mig mix ue products Brick and stay products mix > Refractory Products R a China or tableware infe 43 Terra cotta fg : 17 ' Potteries leod molde re Potteries -tness foth R Plate Class glass inte mfx sheet se ee oe Glasswat f eet blew ae \ 4111 GlassWN Blg XOX " 1299 Printing " 4304 Newspaper bublishing " 4308 Linotype on hand complace poth me 4100 Rubber reclaming reclaming 4117 Rubber hoot or nlp 4420 Rubber tire onfe 4139 Lacquer mfe -- 4140 1452 Pyroxylin Pyroxylm mifg .. ; oils unfr Cable insulation . Composition goods mf" " Leather meg. --mit.in --mit.in . 4526 Acid mfulphuric mfulphuric Taint infg ~ Red or while Cleaning ev lead myfi renovating oulsb oulsb surfaces Street or of blogs hond consultan consultan consultan rock excavation Whiting mix 5 pneumat Tunneling not pneuma pnet umat Shaft sluking foe Caisson pneumatic Caisson found tions . blogs . Jie 5 ae - 27 9600 Taxidermists .- : It is interesting to compare the H nois rates with those in Whereas in Ilmois there other is a states rate of 206 for foundries in California are two foundiy classifien California there sous one of which takes rate of 8a and the othem othem 3.29 se many rewards to the community ch earnestly attacks the Traffic ty Problem It is the duty of the I agent to make this known and in its accomplishment Huge Loss to State Fund NEW YORK June 21- The 17 victim in the Roux apartment apartment builders se collapse ched today The tractor and a number of general the sub ' tractors on the job carried insurance in the New Yo compensate k state fund What the aggregate liabil y to the car rier for those killed and the consider Fin able number mured be conjectured now will It be can bound to heavy NKERS INDEMNITY URANCE COMPANY Pass Auto Inspection Bill +! NEWARK June 21.- wo moter hicle measures have been passed by 1: heier New Jersey legislature ad and Governor Hoffman for signature heier e had the backing of casua ly compani^'s One provides for the compulsory compulsory exara ination of automobiles while the other gives motor vehicle secters poker power There cents for the will be a charge of examination of the I which must be paid by the owner fine for the first offense all not exce 100 and 200 will be levied agamist an one refusing to make repairs or adres ments suggested by the rests by inspectors may nspecter Ar be made on for violations which occur on highw Newark New Jersey y Affiliate of The American Group Los Angeles Stag Dinner Casually & Suret Fiel M Association of Los Angeles hell a | dinner with E. Tucker special nat Globe Indemnity and presulent presulent club presiding Incorporate Bus Truck Agency The Transportation Insurers of mond Va has will specialize in been incorporated a writing motor bus 7 truck coverage L. Witherspoo president ae