Document qmnYDj3G86gorMXNme6nX49yE

FILE NAME: Insurance Industry (INS) DATE: 1934 May 24 DOC#: INS029 DOCUMENT DESCRIPTION: Article from The National Underwriter - Occupational Diseases CASUALTY AND SURETY SECTION Page Thirty-five d ove cialty kr- :n d s ability tu- zation is was :r, asnental ession t and ted at y Asat re nts of equipuction rdized and a ohcies end in .ok in tes to of the inctly e with :au of rwritmnied many pecial Nicies atmgs liraseertheinctly semi- rnt in hange lealth new es in tealth :s at pre tange made :prese the fiicies >mpa)rt to iewed ty to f the d en ts of lat if : and is re- Occupational Diseases By CHARLES C. KIRK Subject Now Looming Up With Growing Importance to All Interests Involved Within the last few years there has arisen a new legal, and a new insurance question regarding occupational dis eases, their nature and origin. The legal question is one of remedy. Is the right of action a common law right, or "u nd er" the w o rk m e n 's compensation act? Further, what, if any, occupa tional diseases are subject to the ad m inistration of th e w o rk m e n 's com pensation act as it now exists, and if so, to w hat extent? Much Solicitude Is Seen Among Insurance Carriers These questions affect the terms and conditions of the now existing standard type of compensation policy. If all oc cupational diseases are "without" the policy, then the employer and employe are without the protection of such pol icy, and the liability by virtue of an oc cupational disease is against the em ployer. These questions have caused consid erable agitation among those insurance companies writing compensation insur similar occupational disease acts or a similar factory act. The following states have similar oc cupational disease laws: A labam a A laska C o lo ra d o G eorgia South D akota Idaho Indiana Iw a K entucky Tennessee Louisiana Maine. M ichigan M ontana V erm ont N ebraska N ew Mexico N orth Carolina Rhode Island V irginia I t will readily be seen that some of these are manufacturing states, while others are concerned with mining and the kindred industries. Rider Is Needed on the Compensation Policy I he usual and standard form of com pensation policy, particularly in Illinois, refers to various house and senate bills, which, upon careful reading definitely state that it is the intention of the legis lature to cover those accidental injuries trit might arise in the course of trie employment from which the emplover The subject of occupational diseases in connection with workmen's compensation insurance is one of growing importance and is drawing the at- tC> ltS SC0.pe- Frotn tbe standpoint of the employer, the C,aT-fr an? the Public at IarSe th* interest is in an hablbty of the employer for disease contracted by n n f s Z Kni connection with his occupation, it is a comparatively new question but is growing m importance. Charles C. Kirk, a well known Chicago attorney who is maintaining his office in the Harris Trust build- . 18 regarded as one of the authorities on the subject. He began varlo1us. a??les occupational diseases three years oinkin'thi^enhW t ,relataonsblP of employer, employe and insurance com pany in this subject became of importance in connection with his legal work He has gone into the medical side profoundly. His contribution to this en grossing topic will receive rapt attention. ance. In many instances they have led to drastic changes of the policy on the part of the companies, many of which have discontinued writing compensation where the nature of the business of the insured is such that an occupational risk may occur. _ O ther companies have can celled existing policies when requested by the insured to add riders covering occupational diseases to their then ex isting compensation policies. States Having Occupational Disease Statutes Such action and cancellation, and the refusal to add riders, have left the em ployer without insurance coverage on either question. Where this has occurred, the employer has been compelled to seek some method of self insurance under the w o rk m e n 's compensation act for insurance required thereunder, and likewise a method of protection by in surance in case of occupational disease risk. In the last named instance, this protection has not been found. W h a t is here said of Illinois and its laws reg ard in g the w o rk m en 's com pen sation act, and likewise the occupational disease law, applies with equal force to all other states whose compensation laws are based upon the happening of an "accidental injury" and who have becomes liable to pay a fixed compensa tion. The policy contains definite lan guage that the "accidental injury" or "injuries" be sustained by the person or persons employed by the assured, and in the course of his employment. Therefore the terms "accidental injury" and "injury" definitely eliminate from the terms and conditions of the policy an occupational disease. The coverage of an occupational disease in such policy can be had only by a definite and specific occupational disease rider clearly manifesting the intention to pro vide such coverage. Occupational Diseases Within Workmen's Compensation. Act In 1923, the legislature of Illinois, be cause of the many lead and chemical poisoning cases, amended Section 2 of the occupational disease act by declar ing lead and its by-products, paris green, or the manufacture of brass and the smelter of lead or zinc, to be espe cially dangerous to the life of employes and likewise, the p r o c e s s o f m a n u f a c t u r e or labor in which poisonous chemicals and minerals or other substances, are handled in harmful quantities or under harmful conditions, shall he subject to additional precautionary appliances and (C O N T IN U E D ON P A G E 42) Credit Practice Causing Waste Casualty Companies Seek Some Plan to Reduce Not-Taken Policies. ADDING TO THE DEFICIT Automatic Cancellation Method Has Been Suggested by Some of the Executives N EW YORK, M ay 23.-- T he N iltio n a l Itureuu o f C uualty & Surety U nderw riter w ill v o te in Ju n e on th e <lue**tion o f iiutting; a it a u t o m a t ic c a n ce lla tio n clauNe in a ll p olicie pro viding1 th a t w here th e prem ium are n ot puid w ith in 30 or 40 day, the policy w ill he au tom atically canceled. A num ber of com pnnie are consider in g etablihing th is procedure indi vid u ally if th e N ational liureau doe not act a an organization. N K W Y O R K , May 23.-- Casualty ex ecutives are giving considerable thought these days to what plan can be put into effect that will reduce the credit practice especially with regard to com pensation policies. Thousands of poli cies are sent out and then at the end of 60 days or later returned with a no tation that they are not wanted. The holders refuse to pay any earned pre mium and thus the companies have had their contracts out exposed to loss and have not received a cent in recompense. I m p o s i t i o n i s I n j u.s titla h U ' T his imposition or, companies espe cially in an unprofitable class like com pensation is regarded as unjustifiable from many standpoints. In numerous cases agents and brokers send out poli cies ahead of time for approval hoping that they will be accepted. The assured decides he does not want them and re turns them for flat cancellation. T he expense of putting the item through the books in the first place and then the cancellation probably costs from $5 to $7.50. T h e companies and agents lose money merely on the expense item. A company is often caught with losses because an assured is certain to retain a policy and pay for it if he has a claim. As executives have discussed this question it has become more and more apparent that it is a waste that is growing and has become a real bur den on companies. In these days when business is difficult to get and profits are reduced, head offices are studying means to conserve resources and reduce outlay. Joint C om m ittee a t W ork The joint committee of the National Bureau of Casualty & Surety Underwrit ers and the agents that have been dis cu ssin g the compensation program have had the matter tinder discussion and it may be possible to work out some plan that can be recommended in connection with the draft to be submitted to the insurance commissioners. Some coin- ( CONTINUED ON PAG E 42) CASUALTY THE NATIONAL" UNDERWRITER OCCUPATIONAL DISEASE BIG PROBLEM (CONTINUED PROM PAGE 35) methods of safeguard than previously provided. This amendment also made those industries, and occupational dis eases arising therefrom, part of and sub ject to the workmen's compensation act in the administration of all claims of disease and the payment by way of compensation, and not common law. Right of Common Law Action Is Not Changed , This amendment, and the occupational diseases that may arise in the industries that have to do with the manufacture of lead and its by-products, the manufac ture of brass and the smelting of lead or zinc as well as the chemical poisons, does not change the right of a common law action, when an occupational disease arises in the same industry, and is con tracted otherwise than in the direct manufacturing process of lead, brass, zinc or chemicals. This principle can be best illustrated by the decision of the supreme court in the case of the Belle ville Enamel & Stamping Co. This company used lead and zinc in its fac tory in large and dangerous quantities. The plaintiff was employed as a "sand blaster." His duty had nothing to do with any foundry or moulding operation of the parts or sections of the stoves manufactured. Certain parts or sections of the stove were delivered to him, from which, by compressed air, the employe was required to remove the excess sand. It was the defendant's contention that the plaintiff should proceed under the workmen's compensation act instead of under the occupational disease act at common law, because such industry, under section 2, sub-division (b) of section 15 of the occupational disease act, became part of the workmen's com pensation act, and that act gave ex clusive jurisdiction to the industrial hoard. The court found that the plain tiff's injury was not the result of lead poisoning, but was an occupational dis ease known as silicosis, and regardless of the fact that the employe was en gaged as stated, his duties were such that he did not become subject to nor did he contract lead poisoning. Likewise in Kelly vs. St. Louis Smelt ing & Refining Co., 307 111., 367, the court states that such section 2 relates to certain lines of industry which are declared to be especially dangerous to the life of the employe. That section only purports to cover those employ ments which require the using of a va riety of lead preparations in harmful quantities or under harmful conditions, and where brass is manufactured, and where lead or zinc is smeltered, and because of such specific statement, excludes all other intendments. It is therefore evi dent that there are many occupational diseases that may or could arise in the industries under Section 2 that cannot be termed a disease arising from lead, zinc, brass or chemical poisoning. The Illinois supreme court, in the First National Bank vs. Wedron Silica Co., 351 111., 561, in passing upon and considering Sections 1 and 2 of the oc cupational disease act, states in refer ence to Section 2, that it was evident that the legislature intended to compel the employer under Section 2, to match the hazards and risks of those indus tries, mentioned in Section 2, with protection or precautionary measures of a higher degree and effective ness _than it required of those in dustries classified as not especially dan gerous to life. The classification men tioned was further approved in Madison v. Wedron Silica Co., 352 111., 62. In Kelly vs. St. Louis Smelting Co., 307 111., 372, in commenting upon Sec- "The square deal companies" Pennsplbanta Casualty Company anb ^ssoctateb jftre insurance Co. Q Q U A R E dealings with agents, brokers and policyholders have built for these companies an enviable reputation. Small enough to take a personal interest in agents, yet large and strong enough to give thorough protection, these com panies offer sincere agents a real opportunity. If interested write directly to the Home Office, tions 1 and 2 of the occupatic ease act, the court says "there a occupational diseases which contracted which are covered tion 1 and are without the limits tion 2." The industries from v occupational disease may aris Section 1 are probably in the n hood of 300 to 350. They may t fied as to_ type of industry fror certain ^kinds of occupational may arise. The general classification of tional diseases is as follows: 1. Diseases of the respiratory 2. Diseases of the circulation 3. Diseases of the urogenital : 4. Diseases of the alimentary 5. Diseases of the skin. 6. Diseases of the nerves and 7. Diseases'of the eye and ear 8. Diseases of the bones. 9. Diseases of the endocrinal 10. Diseases of nutrition. (TO B E CONTINUED) Credit Practice Causing (CONTINUED PROM PAGE panies are already taking the the horns and are endeavoring action individually. The Zurich, ample, when it issues a policy endorsement sent out providing less the assured signs the endo and returns it within 20 days, th becomes void. Therefore the fre ance evil is reduced so far as it cerned to 20 days. That is quite When the Zurich sends out a f does not mean that the assured pelled to pay the premium. Ii cumbent on him, however, to sig willingness to accept it within Some companies have worked automatic cancellation clause th expect to put into effect providi unless the payment is made wi days after the issuance of the p will be canceled automatically *f payment of premium. The through this method has certain able to_ show a much better ret this point than many other con Credit has been carried too far surance companies and there is eral disposition to tighten up al the line. Last year the stock cor reported a ratio of 95.1 percent oi and adjustment expenses. The reported gross premiums $10 in 1933 and premiums on not taken policies $728,327. The fo table taken from the 1933 staterr of interest: G ross Prem P rem ium s "N ot W ritten Pol A e t n a C a s u a l t y .$23,150,432 $3,4 A e t n a L if e ............ 31,471,940 4,6: C o lu m b ia C a s. . . 4,461,134 61 F i d e l i t y & C a s . . 35,168,703 9,11 G e n e r a l A cci. . . . 21,084,354 3,7: G lo b e, I n d ............... 24,869,231 4,21 I n d e m . o f N . A . . 17,477,618 2,1! L o n d o n G u a r . . . 11,917,178 1,2) O c e a n A c c i............ 15,081,390 1,51 P h o e n ix I n d ........... 5,357,791 6! T r a v e l e r s .............. 49,587,325 7,01 T r a v . I n d ................ 18,981,594 4,4! U . S. F . & G ___ 37,816,193 3,61 asking about our special feature policies. AUTOM OBILE IN SU R A N CE with attractive selling features which make it easy to keep sold including preferred rates to careful and cautious drivers. The Zurich plan may not be t o r t h e most practical but it has fairly successfully for that co Under the plan that it follm Zurich does not put business books as live policies until the ances are obtained. A C C ID E N T & H EA LTH IN SU R A N CE which covers every kind of accident or sickness and is free from annoying restrictions and technicalities. HOME OFFICE, LANCASTER, PA. J- BW-,JSm'Uy Pr,',d*nt LW .C ook 6nl. Mgr. Hyde With London Guara A. W. Hyde, who has been agent of the credit insurance depa of the National Surety in Detroi 1922, has been appointed genera of that department of the London antee & Accident, which took o' National Surety's credit business . He has been engaged in this ! ized form of insurance business years, operating in N e w York Pennsylvania and Kentucky going to Detroit 20 years ago. ] opened offices in the National building.