Document dY5E6yMy2zrey7NGGgzM81B5

FILE NAME Insurance Industry INS DATE 1935 May 24 DOC INS025 DOCUMENT DESCRIPTION Article from The Eastern Underwriter - Vetoes Dust Disease Bill May 24 1935 Maryland Casualty VETOES DUST DISEASE BILL Gov. Lehman's Action on Canney Measure Follows Opposition to It Re- United States Fidelity & Guaranty Co. with which is affiliated Described In Brochure "fAgent's Importance was Established irst President 292,064,852 Paid ceived from Insurance Companies Yielding to the strong opposition on the part of industrialists and insurance companies to the Canney dust disease bill Governor Lehman vetoed this incasure late last week The bill adding new Fidelity & Guaranty Fire Corp. Home Offices Baltimore Md pany's 37 Year Existence aryland Hounded in the time is indsome om the est est ffeeaa-- seven 292,064 ms and poploilciyc-y- casure- A foreit today interest e foundmonths tal and ompany . Stone ind and of the o years mainly president of the company in 1920 and who was chairman of the board at the time of his death on March 30 1935 Describing early difficulties the brochure reads The organizers of the Maryland acted in the confidence tnerce industry that and trend of com- concentration of population in growing cities created an immense and as yet unappreciated field for the application of casualty insurance Already in the business ther wee re nine other casualty companies four plate glass one boiler and six accident and health companies writing annual prem- iums of about 11,500,000 Not by acquir ing a big share of this business but by promoting the principles of casualty in- surance and its application would the Maryland prosper The advent of the Maryland was greeted with general skepticism and with predictions early of insurance business insurance business failure The casualty directed at best directed by experienced executives was a hazardous avenue to profit New companies sprang up to flounder for a short while and then collapse What chance had the Maryland with small capitat resources steered by men who were newcomers to the busi- ness article a to the New York compensa- tion law fixed compensation for certain injuries lungs and respiratory tract resulting from inhalation of harmful dust Its effective date would have been im- mediately upon approval , In his vetoing of the bill the Governor said in part The provisions of this bill when first introduced were sponsored principally by representatives of industry and in- surance companies . Upon further consideration of the bill they now believe it contains certain in- advisable features Many industrialists and insurance companies have urged that the bill be vetoed Even though this bill does not be- come law workingmen who suffer injury from silicosis or other harmful dust dis- cases will nevertheless be protected and compensated under the workmen's compensation act because of the bill recommended by me to the legislature this year which will bring all occupational discases within the scope of the workmen's compensation law EFFECTIVE SAFETY SLOGAN Triple your caution when you double your speed is the effectively worded safety slogan which is being featured in New York's Subway Sun poster scries N. Y. Legislative Group To Probe Automobile Rates To correct a misunderstanding Leonard L. Saunders executive secretary of the Insurance Federation of the State of New York said this week that a legislative committee to investigate automobile in surance and rates in New York was 28- thorized by resolution in the last hours of the recent state session which passed both houses and carried 25,000 appropriation The original resolution carrying 75,000 did die in finance committee The investigating committee person nel of which is now being selected will . hold hearings and report at the next session of the legislature SIGHT NO COMPENSATION LAW IN . - In view of the fact that three candi- 7 dates for Governor of Mississippi are actively opposing the enactment of a workmens compensation law in that state it is unlikely that there will be any legislation on the subject next Jan11ary Another candidate has had noth- ing to say about workmen's compensation and the fifth is confining his can- vas to the single tax issue al build- Said one of the leading insurance 1. monthlics of the day 1. Mr. Stone's company does not start .. Recent Court Decisions aR ern auspiciously e Mary- Another widely publication com- T=" Mary- miserated with the Maryland stockhold- idequate idequate President President by John Simpson- idequate ers and suggested that they were hard- Compiled his task pushed for investment outlets to put up e recog- capital for new casualty company De- Author The Law Relating to Automobile Insurance clared Mr. Stone at the end of the first gSeanitpdortaanhnceed Said aires careind stand- . It is e a loyal CCR e Mary- ce there oyes inbecame ten month of operation The Maryland is now ready to sub- mit to any impartial insurance man or men a comparison of its assets investments liabilities risks adjusted claims methods and all other details alongside of theirs We believe the result will show that we will boil down the biggest chunk of clear assets and that we will show surest prospects of survival The Philadelphia Intelligencer a leading publication of the day retorted editorially with blunt frankness typical of that This is presumptuous and ignorant Caddy's Injury Compensable A caddy selected by a golf club and authorized by it to come upon the golf course for attendance upon players although paid by the players and not by the club is an employe of the club and cutitled to compensation under the Workmen's Compensation Act the New Jersey Supreme Court holds Essex County Country Club v Chapman 173 Atl 591. The caddy in this case had entered the club grounds and was on his way to the club house to await an assignment when he accepted a lift in an automobile supplied by the club to months after although he worked as best he could from the date of the accident until a few days before his death In an action on the policy the defense was that the death was not caused solely and independently of all other causes by accidental means and because the injury was not immediately disabling within the policy provision The policy did not insure against death due to dis- ease whether accidental or otherwise _ The defendant contended that it was not the trauma which produced death the dissemination of a existing ease ease preventing recovery under the 11 but dis- pol- " On n Mo. HONORED AT FRENCH LICK Day Testimonial Meeting Held by U.S.F. There in Honor of Foster transport caddies to the first tee and was injured when alighting from it It was held the accident happened in the course of his employment * * * The Third Circuit Court of Appeals Massachusetts Protective Ass'n v Lewis 72 F. 2d 952 said that in all the cases on which the defendant relied the court found that the insured was not in normal rance Mistomobile tomobile similar indirect orization dder er sent company ompanies in olicies service ry com- rder the have to of & Messick's 30th Anniversary There was a fine U.S.F. G. turnout at French Lick Springs for three week in honor of Poster & days last Messick's thirtieth anniversary as managers of that company in Indiana notch home office executives were present as well as some 250 Indiana agents The testimonial conceived and achieved by the Indiana agents who produced in three months new business totaling 175,000 to make this event possible This business was done in the months of February March and April Effect on Banker's Blanket Bond of Employe's Dishonest Acts A surely company which issued a banker's blanket bond to a bank and ac- cepted premiums thereon after the expiration of the time allowed by the state Alabama under whose laws the bank was organized was held estopped to set up as a defense to an action on the bond for losses through the dishonest acts of an employe that the bond was void because incident to ultra vires business The case was American Surety Co. v Moran 75 F. 2d * 646 health but was suffering from some well recognized present persistent disease at the time of the accident which aggravat ed the effects of the accident or which itself was aggravated by the accident and which disease was a factor in caus- ing death in- In this case the court said the in- sured was in normal and good health The presence of the streptococcic germs in an apparently normal and healthy body it held is not a disease within the meaning of this policy The policy did not provide that a body must perfectly sound free from every germ and defect but simply provided that t follows < Superin- busines business in of insur- The notables to join in the anniversary celebration included E. Asbury Davis president of the company R. Howard Bland chairman of the board presidents Hugh D. Combs Charles C. Conlon Phil F. Lec Joseph F. Matthai and S. Blount Mason Frank A. Gantert Streptococcus Germs Not a Disease An insured against accident due solely to external violent and lake involuntary causes while diving in a lake struck his head on the bottom of the lake and broke off part of one of his upper teeth The injury produced a concussion of the does not cover death due to disease cases such as those mentioned in the cited Consequently the insured died as a result of bodily injuries directly and independently of all other causes by accidental means It therefore affirmed judg ment of the Federal District Court for manner in president Fidelity & Guaranty Fire brain and the fracture of the tooth Western Pennsylvania for plaintiff for viola rtificate of ness in the Harry McClain Indiana insurance_com- insurance_com- missioner Ernest Palmer Illinois ance director Lloyd Thomson R. Nel- caused the dissemination of streptoccic organisms or germs which were at the root of the tooth through the body But on record as uous total reargument it held that the it stood did not show contin disability of the deceased from on business business the policy- Williams son Irving R. Davidson and Fred Cunningham were other prominent insurance men who were guests which infected the brain and this alone in conjunction with the injury caused his death He died more than two the date of the accident and for reason it reversed the judgment awarded a new trial tanhdis