Document oeo7w0e1w2DNbRbY92vDg4v6r

FILE NAME Insurance Industry INS DATE 1937 Jan DOC INS048 DOCUMENT DESCRIPTION Article from Insurance Counsel Journal - Dust Diseases as a Legislative Problem , cy we pepe pis gh COATN EE ty] Insurance + Insurance 7 Journal 4 a VOL IV . January 1937 ~ . | No. 1 ~~ WINTER ISSUE = 4 . Committees ., Standing Page = The President's _ _~. 2 n 3 a - Maezees ae Report to Winter Meeting of Executive President's Committee _ _ Resolution Regarding Insurance Adjusters State Legislative Committees _ State Membership Committees___ gi- : . a a . nenbeecere fo2. -een-ne 6. 8: . _____10 Injuriesby B. Coe > "+ ', Committee______ Mason Michigan ' Lawyers Ill - Discretionary Power of Courts Regarding Testimony of .. Salmon Schenectady New York , : Report of Health and Accident Fair Construction of Surety Bonds by Stevens T. Detroit Insurance Companies and the by John A. Appleman Del _.. 2 __15 c38 Bloomington 3+ Le New Legislationby Russell M. Knepper Columbus Ohio 2+. -------- 20 Security L. Aiken Whatis This Thing Called Old Age by Arthur Fort O: ane +21 +21 Wayne Indiana vec vy Resume of Executive Committee Meeting August 18 1936 seman 23.22 2 An Equitable Disclaimer by Benj Brooks Boston Massachusetts tet jee _24 EG j : rane = - 4 Safety by Ambrose Illinois . .'* - Unauthorized Practice of Law by Hervey J. Drake New York N. : Report of Committee B. Kelly Chicago . . _26 : _ RDousstterDoif sMeemabseaersssahLiepgiAslrartaivnegPerdAolbplhaebmetbiycaRlalyym----o-----ndCaverly N=e. w YYork ork. N. Y 231 Alabama - , Massey Building ::Birmingham ; Entered as Second Class Mail Matter at thePostOffice at BirminghamAlabama January 1937 INSURANCE COUNSEL JOURNAL Page 27 Commerce be at all times not even the writer of this article munity welfare is more less on We must pay the price of safety and the price or active includ ing the Chamber of Commerce of .se is high in money in loss of individual freedom States and the local Chambers of the United ve of action in self discipline the American Legion the Teachers nd The International Association of Insurance Association and all of the service ey Counsel has a special interest in this problem organiza- tions such as Rotary Kiwanis and Lions of since its members are not only lawyers with a With them are the real concern for the public interest but their newspapers and magazines Last of all the elected officials of city county work on behalf of their insurance clients and state are preaching the need for action brings them into daily touch with the victims Recognizing that the Bar has a substantial of auto accidents No one appreciates better interest a complete session of the Insurance than they do the damage to the human body Section of the American Bar Association that can result from the collision of two given to this subject at the Boston was speeding cars or the economic loss and human meeting At its conclusion the Automobile Insurance suffering that are the inevitable consequences Law Committee was directed to devote its of such a crash It was only natural therefore that we should see in this situation an energies to the problem during the coming year opportunity to render a real public service by on joining the forces which will attempt to apply the indicated remedies and give to them the benefit of our experience and training The campaign for highway safety will be 1 waged by many of the best known organizations in the United States Two groups set up primarily for this purpose are the Presidents Committee for Safety and the National Conference on Street and Highway Safety Others with a direct interest are the National Safety Council the American Automobile As- sociation and its affiliated local clubs and the National Automobile Chamber of Commerce Almost every group with an interest in com- The Committee on Safety of our Associa- tion appointed by President Chrestman consists of Ambrose B. Kelly Chairman C. Donald Swartz Douglas Hudson C. F. Merrill and William O. Reeder It is planned to supplement this group with state committees who will be expected to take an active part in safety work in their respective states Up to the present very little has been done except making contact with the other organizations in an effort to determine the manner in which our efforts can be most effective It is hoped that the new Committee on Safety will have its work organized and well under way within a few weeks ates oe eee 1 ec |p d lide atible ube Selo tied | Salita Adie 2 lio Dust Diseases as a Legislative Problem RAYMOND N. CAVERLY Vice President Fidelity & Casualty Company of New York New York City MUCH inexisted this silicaMUCH has been written and said during asbestosis Silicosis and asbestosis are not the last few years about the occupa- new diseases Silicosis probably existed in tional diseases which from the in- the Stone Age of Civilization These dis- halation of silica dust and asbestos dust eases however have been recognized There has already been some legislation with country only in recent years as presenting a respect to them mostly of an unsatisfactory major social and industrial problem type and new legislation is imminent in a number of states It is important that it be a These diseases are peculiar and distinguish- - from all other situations in conceived wisely and that it be just and fair industry af- to Labor Industry Insurance and the Public feing the health and being of the worker in - for are parti^s in interest at the worker becomes disabled only after arolonged and continuous exposure to the It isgenerally agreed that the inhalation du in concentrated form The best medical of dust or asbestos dust over a long opion is that the average exposure preced- of time a period will produce fibrotic condition ~ in disablement in most industries is upwards silicosis of of the lungs known respectively as or en years Dr. R. R. Sayers and E. x oT . =e os : =, 77 _ \ ' [. i ie . ~- f: gue: , Page 28 INSURANCE COUNSEL JOURNAL January 1937 R. Jones of the United States Public Health Service in a bulletin entitled Silicosis and Similar Dust Diseases state that in the absence of infection silicosis is a slowly pro- gressing disease and develops at such a late date that the individual affected lbiefceome disabled during his ordinarymwaoyrkinnogt is a social problem with very definite public aspects rather than an industrial problem and should be dealt with as such We recently witnessed a most unfortunate experiment with an attempt to place the en- tire load of accrued liability on industry The State of New York in 1935 amended its Most states are committed to the principle ccloumspievnesation law so as to make it in- that industry should bear the with respect to occupational diseases cost of indus- trial accidents through the workmen's com- This meant that upon the effective date of the law every employer who employed men pensation plan Some states have likewise accepted the principle that the subject to breathing either silica or asbestos well defined occupational diseases other than dust diseases dust and the compensation insurer of such every fall in the same category as industrial acci- employer became responsible for the dents and should be treated in the same way disability or death of every such worker for full and unlimited compensation benefits for from a compensation point of view few states the In a the full period of disability which of compensation laws do not dis- tinguish between accidental injuries and in- course meant to the end of the worker's life and thereafter for death benefits to his juries resulting from diseases of this type and in these other dependents if it could be wife or states disablement and death result- ing from silicosis and asbestosis of established that death resulted from the disease The result compensable are course In three states there are special was disastrous to industry and to labor Industry found it impossible secure provisions for compensation for dust diseases men's work- with certain limitations In many of the compensation coverage where a silicosis states however which do not now take or asbestosis hazard existed or if it was pro- and asbestosis into silicosis curable the cost of insurance was so account there is acute necessity for providing some plan of relief for that as a practical proposition it was imgproesa-t sible for the employer to buy it The law the unfortunate victims of these diseases It is important that provided that the employer must either furnish surate with the any such plan be commen- evidence of financial and the responsibility of the employer or carry workmen's responsibility himself ability of industry to pay The pur- of Many employers compensation insurance pose this article is to outline in a brief way close their were therefore forced to a plan by which justice can be done to the up shop with the resulting unem- unfortunate victims and at the ployment of thousands of workmen Some same time avoid crushing industry and harming all those employers moved from that state to other dependent upon states with more favorable laws leaving the industry The first workmen without work and causing the com- consideration in any such plan is munities to lose such basic what to do with the called accrued liability There are thousands of workers in the permanently labor as well industries possibly It was soon recognized by United States who have been as by industry and also by the or --silica dust asbestos dust exposed over a to Industrial Commissioner who sponsored of time in the service long period the law that such a situation could not con- ployers who still of one or more em- tinue Within less than a year the in- are at work and still able -clusive occupational disease to work Some these workmen will become amended insofar it provision was disabled at some time in the future If the by a legislative aacst applied to diseases last employer under some which had been agreed suddenly to be made new legislation is upon by Labor Industry and the Industrial Commissioner sins of the responsible for all the representing the public and a that past including exposures to dust new and more practical method substituted were not only lawful but not even under compensation laws obviously the burden on This new plan which is being followed in New industry is going to be well York is the plan which is recommended nigh intolerable - If the employer is not so to be for adoption in other states insofar as it ap- + made respon- sible what is to be done with the disabled plies to accrued liability It provides for a graduated increasing maximum benefits workers or those who have a presently condition not on the following basis The maximum total disabling but likely to become so this at any time I respectfully submit that of compensation benefits if disablement curs or if there been oc- | has no claim dis- January 19 ablement if month in \ 500 If d n prior cla curs during which the la is 550 T creased on t a limit is re the top limi death comb years after t states having laws for dea better to p benefits up limit provide It is importa of the combi death for ur the disablen from silicosis period of ma ability and o each with the the burden o nigh twice a The advar would seem : the honest cla lowing the ef some small : after the law short as to be On the other employer und fective date o contributed in importantly i deterrent to a tial period of enactment of ~ the instant the has a legitima der this law I able to get wo Exposure fo will be compe . is related to ti law in a reas is fair to assu in benefits me for increase of Compensatio all sorts and bestosis preser are not involv ig Sayer 8 Mae ero Mere Whe eet ties fothnaypcamnda Ju rs Masulja vMaisuljja 1 cee , tees 4 6 January 1937 INSURANCE COUNSEL JOURNAL Page 29 ablement if death occurs in the first calendar month in which the law became effective 500 If disablement or if there has been n prior claim for disablement and death oc- curs during the second calendar month in which the law is effective the maximum total is 550 The maximum total benefits are in- creased on the basis of 50 each month until a limit is reached of 3,000 This is fixed as the top limit of benefits for disablement and death combined and is reached about four years after the effective date of the act In states having an expressed maximum in their laws for death benefits it probably would be better to provide for monthly increase in benefits up to an amount equivalent to the limit provided for such disablement or death It is important that the top limit be the limit for accidental injuries It is accordingly inconsistent and impractical to attempt to cover compensation for occupational diseases in a law set up primarily to cover compensation for accidental injuries An occupational disease compensation law should parallel the compensation law in many respects but there are likewise many situations which must be treated separately and differently For instance most workmen's compensation laws which provide compensation for accidental injuries grant certain presumptions in favor of claimants These presumptions cannot properly be applied to occupational disease and particularly to the dust diseases Accidents are generally definite and specific as to time place and manner of happening occupational diseases are not In the case of of the combined benefits for disablement and death for unlike accidental injury situations the disablement preceding death resulting from silicosis or asbestosis may extend over a period of many years In such a case if dis- ability and death be paid for separately and each with the maximum expressed in the law the burden of accrued liabilities will be well nigh twice as great The advantages of this graduated plan death from sation laws determined death cases accidental injuries most compenprovide that dependency is to be as of the date of death while in resulting from dust diseases such provisions are unfair to the employer inasmuch as disablement is usually prolonged and the claimant's domestic situation may change during disablement There are many ad- vantages likewise in permitting insurance coverage separate and distinct from the in- would seem to be obvious It will result in surance coverage required under the compen- the honest claimant who becomes disabled fol- lowing the effective date of the law receiving sation law applying to accidental injuries For example An employer may wish to be a some small sum even though his exposure after the law became effective has been so insurer with respect to one and carry insurance with respect to the other remained short as to be negligible as a causative factor In dust disease situations there should On the other hand it will not penalize the last employer unduly for exposure prior to the ef- likewise be some provision made for respon- sibility on the part of the employer at the time fective date of the law to which he may have of the last injurious exposure for all of the contributed in but small measure But more compensation due Any other plan leads to importantly it has in New York proven a confusion inasmuch as it is impractical to deterrent to a person who has had a substan- establish any method of rating respon- tial period of exposure to dust prior to the sibility between successive employers The : enactment the law from presenting claim insurance company carrying the risk at the ._ - - the instant the law became effective unless he time of the last injurious exposure should also has a legitimate and proper disability Un- be solely responsible It can well be imagined this law men who could work have been what vexations and insolvable problems would ~~ able to get work and have at work arise if the attempt were made to apportion Exposure following the passage of the law liability against insurers according to the ex- will be compensated for in a manner which tent of their policy coverage is related to the period of exposure under the Silicosis and asbestosis should be carefully law in a reasonably fair and just way It and accurately defied in the following man- is fair to assume that the graduated increase ner Whenever in this law silicosis in benefits measures the employer's liability for increase of exposure under the new law . shall mean a charaer^>stic of the lungs caused charaer^>stic fibrotic condition the inhalation of silical Compensationparticularly for occupational diseases of - all sorts and particularly silicosis and as- bestosis present a proboflpe robmlesms which are not involved in providing compensation dust and asbestos shall mean a character- istic fibrotic condition of the lungs caused by _ the inhalation of a estos dust Any law covericovering ng occupational diseases t a 4 1 , | ot:e, Sragie e ag has wertemnarD 9 : Page 30 INSURANCE COUNSEL neremve JOURNAL January 1937 Jani should be as definite and specific as possible Act The employer should be apprised of his liabil- to which reference has been made a misf ity to compensate for diseases by language that is reasonably understandable For this limitation is provided of medical benefits in cases of simple silicosis to ninety days with a in it caus vague and all inclusive reason permissive additional ninety days upon order avoided language should be The most satisfactory way of in- of the board be made This presumably would only any indu cluding diseases within the coverage of the law upon some showing that such further pose is to set forth in a schedule those specific diseases that are deemed to be occupational treatment will be beneficial In other dis- eases however medical benefits should be the and ably disability Some of the laws also set forth in parallel same as are provided by law for following accidental injury ratho the columns the processes or exposures from ; ene which such diseases are presumed to arise As an alternative to the graduated limited It is aes Failure to fix reasonable limitations on the benefits referred to some provision might be coop number of diseases covered may result in the made for the continuance in industry of work- istrat Anat law becoming a general life and health in- men suffering from disabling uncom- thm surance law for workers at the expense of the plicated silicosis or asbestosis through waiver employer Such was never the intent and of full compensation benefits in the event that disability such a burden would be intolerable and unin- ultimately results This plan does surable not eliminate entirely the payment of com- A proper law should provide that an em- pensation in such cases where disability re- ployer shall not be liable for any compen- sults but merely provides for the reduction sation for any occupational disease unless of benefits Thus it may be possible for the such disease shall be due to the nature of the employer to continue workmen in employ- employment in which the hazards of such dis- ment who are working in trades involving the ease are actually present and are characteristic silicosis or asbestosis hazard even though thereof and peculiar to the trade occupation showing some physiological evidence of the process or employment and is actually incur- disease but not necessarily disabled thereby red in his employment and unless disable- Such of course is desirable in the case of ment or death results in cases of silicosis or asbestosis within three years after the last injurious exposure to such disease in such skilled workers and it may prevent hardship to a worker who might otherwise be removed from employment employment or within one year in the case of The waiver plan while embodying some any other occupational disease helpful principles does not It should further provide in the case of appear to offer a completely satisfactory solution to the death even where such death follows a peroid of continuous disability in which compensation silicosis and asbestosis burden of accrued liabilities It is of doubtful value as a factor for has been paid or awarded or a timely claim therefor made that no death benefits shall reduction of costs and it has within its provisions possibilities of abuse that may be hurtful Ex- be allowed unless death shall have resulted perience under this plan is as yet insufficient within seven years Manifestly some reason- to warrant conclusions able limit must be made for asserting a liabil- One of the big problems in for condition due to disease alleged to asbestosis is silicosis and " have been the direct result of the proper diagnosis is respect- There should be employment fully submitted that lay compensation tribu- tion of some provision for reduc- nals are incapable of properly weighing such compensation where disability death is medical evidence as is usually submitted in or due to silicosis or asbestosis com- connection with silicosis or asbestosis plicated by tuberculosis of the lungs or with It is desirable therefore that a claims medical any other disease of a board Proper limitation of medical benefits is essential in the cases of silicosis and political nature consisting of specially qualified doctors be provided with full au- asbestosis thority to determine all medical questions not uncomplicated with tuberculosis The weight only in connection with silicosis and medical opinion is that such treatment is claims but in connection with all asbestosis- unavailing in such cases The likelihood of disease claims occupational possiblity long continuing disability in such cases gests the sug- ., of useless medical ex- pense that may greatly exceed the total of , compensation benefits In the New York In conclusion it may be properly suggested that the real remedy is prevention The com- . pensation of disabled employees is at best only | an attempt to make partial reparation for a ADAMS St. Am ADKINS Mac Fisk AGAR T -357 -357 AGOR H Van Capi AIKEN J. Citiz AIKINS Aikir Some ALBERT New 227 : ALEXANDE Alexa First e January 1937 INSURANCE COUNSEL JOURNAL Page 31 misfortune which probably could be eliminated in its entirety through proper control of the causes This can best be accomplished in any state by a properly manned bureau of industrial hygiene established for the sole pur- pose of studying ways and means of control and prevention Such a bureau should probably be set up in the state health department rather than in the department charged with the administration of the compensation law It is essential of course that there be close cooperation in such a bureau and the administrative department Some plan for the establishment of such an industrial hygiene bureau should be tied in with any plan providing for compensation Footnote Mr. Caverly is a member of the Advisory Committee on Occupational Disease of the Association of Casualty and Surety Executives This Committee has been studying the dust disease prob- lem for the past four years and as a result of this study has prepared for distribution a publication en- titled Suggestions for Provisions for Workmen's Compensation Plan for Occupational Diseases This publication may be obtained by addressing the Association of Casualty and Surety Executives located at No. 1 Park Avenue New York City New York Roster of Membership Arranged Alphabetically A ABERNATHY GEO Shawnee Okla Abernathy Howell & Abernathy Masonic Temple Abney James Brownsville Tex Abney & Whitelaw . State National Bank Building ABRAHAMS EDMUND Savannah Ga Abrahams Bouhan Atkinson & Lawrence Commercial Building ADAMS A. Savannah Ga Adams Adams Douglas & Brennan Drayton Street ADAMS H. Beloit Wis Public Service Building ADAMS J. Asheville N. Adams & Adams 15 Church Street ADAMS ROBERT A. Indianapolis Ind Denny Adams Baker & Orbison Consolidated Building ADAMS ST CLAIR Orleans La St. Clair Adams & Son American Bank Building ADAMS ST CLAIR New Orleans La St. Clair Adams & Son ~~ American Building ADKINS H. Amarillo Tex a Madden Adkins Pipkin & Keffer , Fisk Building Te. AGAR THOMAS J. K. Toronto Canada _ 357 Street-- ton aa AGOR Aberdeen S. D. Van Slyke & Agor > Capital Building AIKEN ARTHUR Fort Wayne J. H. & A. L. Aiken Ind Citizens Trust Building Winnipeg AIKINS G. H. K. Winnipeg Canada _ Aikins Loftus Aikins Williams & MacAuley Somerset Block watt - ALBERT MILTON Baltimore Md ~ Cot New Amsterdam Casualty Co. > =~.) 227 St. Paul Street ALEXANDER E. Detroit Mich - Alexander McCaslin & Cholette First National Bank Building . ALEXANDER JEWELL Francisco Cal Redman Alexander & Bacon 333 Pine Street ALLEBAUGH CARL Steubenville Ohio Box 249 ALLEN ARTHUR Springfield Mo. Woodruff Building ALLEN MURRAY N. C. Citizens National Bank Building ALLEN T. Lincoln Neb Ambler Harry S. Philadelphia Pa 12 S. 12th Street AMBLER MASON Parkersburg W. Pa Ambler McCluer & Ambler 306 Juliana Street . AMBRISTER C. Muskogee Okla Barnes Building ANDERSON E. Owensboro Ky P. O. Box 494 ANDERSON LYON Louis Mo. Leahy Walther Hecker & Ely National Bank of Commerce Building ANDERSON R. LANIER Macon Ga Ryals Anderson & Anderson First National Bank Building ANDERSON ROSCOE Louis Mo. _ Anderson Gilbert & Wolfort Federal Commerce Trust Building ANDREWS HAROLD Providence R. I. -Hinckley Allen Tillinghast& Wheeler Industrial Trust BuildingTilinghast ANDREWS JOHN Hamilton Ohio Rentsbler Building APPERSON HARVEY Roanoke Va Apperson Rush_ Gentry Boxley Building ARMSTRONG W. Memphis Tenn Armstrong McCadden Allen Braden & man Good- Commerce Title Building ARNOLD D. H. Elkins W. Va ARNOLD RICHard Texarkana Ark "A-rnold & Arnold ~~. ' " _ 11 East Broad Street . ARNOLD WILLIAM Texarkana Ark Arnold & Arnold . : _ 117 East Broad Street a,eel e ee pan pant a Sar Ebola 9 Aare 2:5 tether tt. Sage dling Ba Phil | -LARNDI ANN ie fad Kase ane Bm bec1-21 Adiga 2