Document zQJYpe1xkbGQ5ZZE7pwqE0Q2n

FILE NAME Insurance Industry INS DATE 1935 Oct 11 DOC INS018 DOCUMENT DESCRIPTION Article from The Eastern Underwriter - Need Better Interpretative Facilities In Solving Dust Disease Enigma THE EASTERN UNDERWRITER rett October 11 1935 Sulphur Sulphur Sulphur Sulphur Springs Joint Joint Casualty Convention Convention Convention Convention Convention Log (7! bleblems ms tion tary \ Then the Rentenmark WR25 I ed the Reilisp which was put ad twin in ... bes Obviously almost all went the 14 hegam- hegam- derring from the old mark het ta the new one The leg Background Dr. Landis panker of Background derable promi- i backend backend backend Landis is ws agaceway COMPETTY COMCPETTOY MPETTY ts .| : chemical companies 18. Lyana OharOt hartpp as of te of OT the chemical Apprican Apprican Lyana increasinglyincreasingly increasingly Lacomble Lacomble Lacombwle orld attention and its in m stack the now | 1...: *...1 1 ... : ursuance compan compan compan i | ole tn paty come rifo law s to beaver no delimite delimite insurance insurance permulted by WADA OT law law to vald comment comment boads 50 7 the dust minntmiennte dies dies the prop bonds bonds was indicated indicated morts acc . there bol on so penst s^'curities^'curitess stearin 070- sunce , and the wet issued Canda PS TAP H compmercial common anges anges and thr sold sufion yetuks yetuks the nsurance nsurance were in such bad bad quadend inet that that they of the new could rec not not + take Hithat fixed fixed from Hithat what it had been in 1913. be interest bearing paper ^ ad shrunk 151 silhon silhon marks to mullion marks altl~-q 1 question whether they had not disposed on much of this paper and that the diffectnce is not entirely a Lessons Learned by Casualty Co.'s The Osualty sand had assets complies of one billion the speaker speaker billion 000 mahon marks m 1913 and the first cold mark January Lalance sheet on January 785 million Thee 1921 showed had turned their invesuaents invesuaents qinte materially materially toto real es- period tate dining this presenting only real estate values of their their portfolios in 1913 and 1664 in 1924 Correspondingly there was very large reduction in their Babelings of mortgages and fixed interest interest interest b paper Ther business improved minterally with the stabilization of the mark and by 1927 then assets very nem ly equded those of 1913 The lessons taught by the inflation are shown in their 1927 had pontiolo twice In percentage they as much real estate were as 1013 and the bulk of their portfolio was unvestedunvested in muscellaneous which Their w19e27 have us portfolio specific carved security of description five tubes as much in * ... O1ne comunen stocksas in 1913 trking lesson is brought out this German Sifmatiter and that is that legal restrictions on has are drung a period bound to cause investment portis of extreme inflation emonitions Tosses The michimmery for revisius such restrictions so slow and cumbersome that the poet- fal may he completely wiped out an there may be little left to take advantage provisions the rige regulshon3 bheral This applies of also negally negally beal frivi revised to the French Situation Better TX prefore Lands prefore as painted painted move French cheerful situation prouting out that bronch bronch renev id ight notch notch anythme like the low 3 the German murk that when i an revued in 1927 and placed on a i medemption hases the new French Fase texas of cold was approximately one 61th the old car None of the French ra life msamance companies went bankrupt This was because the hinatation on they portfolios was more liberal liberal than that of Crempaty They could load a large pro estate os huch gave them appreciated appreciated m value One becabar aspect however said Di Landis was that pauni Jost are conservative ones youneer the conservative com heavily than the loss He explained Oue Prene life insurance Companies inveded inveded under the liberalized deeters in spec dative freign freign bonds ar made a handane showing This pai- ticular company was a pivate pivate stock com pany whose shares sold on the market m 1920 at thirty five fame the 1913 price whereas gold party would have been five A much larger and older and more conservative company twice the 1913 price in Before closing Dr. Landis sold 929 at only Landis touched on certain interesting phases of insurance adumustration them decbring value the during inflation One ot is the decbring problem value or hedging againse of the currency unit taM of various genius nuthai Germany fire in to matum covera insurance but none ni then proved satisfactory als The additional problem Thoe of hedin hedin the premeums against a modity pricipal which was cold or done by com fol fol the tae ger sccunities sccunities e abated wtern wtern of this same gold or econendity econendity Tu France Le said erverage was more easily at be akma abie fron yitbe insurance as the New anquing franc drooged drooged in were Written thehout the millation period Straupe Prenums Prenums by collected companies increased Landis nected the com- mondy accepted behef that banks and sance companies are not affected ins by inflation since they crely trade dat a The sud The dividend dividend record of lan groups of con panies which we have tudied shows that the stockholder certamey paid his share of the cost of intateas He also gaze specific exam- plost the thesh thesh tax burden In French comita were amazing amazing Need Better Interpretative Facilities In Solving Dust Discase Enigma Recovery for Old Policyhnirieu the ra the Banda : sesezed las we facts That the 1913 pivote 1.empon ale billen billen marks balance east face Bulben make ebat no corporation could stand dumkate dumkate dumkate and the contuanes contuanes contuanes went entreanization entreanization tnsferring tnsferring tnsferring deir m^'s compuration compuration fiequently which immediately immediately quenced quenced to busines on a new ami proceeded with the liquidation he chl accounts While While our stubes no estensive estensive an early specific and represent examples we more hice : that reyes around the 50 cl of the Achadden Achadden the face valac may of Me yoo a oe io Sass Coe German insurance compania 5 Granted their riveshaenis as capas fared in hitly better the He noted that in 1913 the the fire insurance Gezoume fataled 23 ml They did ciot alfomat to Low they revised balance Porat) the resabat sectioned but on Stars after the stabilization bear assets assets were The 1925 ptickos about the value 18 Borleng Borleng account Dr. O. Sappington in Thoughtful Address Suggests Appointment of Advisory Board on O. D. Risks in Each Insurance Company : 0 Sappmpton consulting in destal hveinist or Chicago known as arthority on ocenpational diseases brought tion to the White Sulplea concen Wednesday an array of tmely ate estions on how the present ents matic and puzzling situation in this field could be moved to the benelit of case ualtv est armanet armanet companies companies Speaking anthutative knowlede knowlede he de clared that because of lack of proper peerpretative peerpretative peerpretative perpetaive fachats and adequate Somme Poccupational diseases will prob- ably continue to midnice surprisine aud astonishing situations in the future But Dr Sap ington was convinced that with methods now available and judged com- com- petent upcally by authoritiesauthorities authorities to the major health measure hazards seien in in- dustry the effects of exposures upon the human body be evaluated medically and diagnostically so as to ascertain with reasonable certainty whether not any Liven exposure in industry constitutes a health hazud upon exposed and would employes in work injury injury the future Demand the Facts The speaker urged that the underwrit- ing and compensation departments of the insipance companies who are some to occupational diseasdeisease risks shand demand the facts relative to occupatio exposure and physical effects as mani by dewed and erecting erecting medical medical daya 1 cautioned But they should not stop there there pretation should be these intelligent int and iransiano1 of them into termsof -nderwriting vaine so that the uk may be properly cater upon same derw.aften derw.aften same for it that that the that nating ne judic.ously ra There is to Blu^ ing in th this is not noker bm I take misurance misurance companies akhon k plaving Lhing a upon fact gaubling game in gani- the issue as to wher wher am our of group will develop ocent pational are sincerely and vitally metting the the facts relative ta Seppimaton was convinced that in- surance companies have been repeated themselys Boling themselys by placing upon ersual inspection too much in the es- tination tination tination tination tination of occupational disease hazards Freemded his audience that this haz which is of en hidden in fac properly spoken of as a hidde hazard Therefore he suggested Ss need here to se sentific methods ci quantitative determinations and after get ting then to interpret intelligently the results and apply ther to each individual 1 1935 ankrupt on their that of ge prove them ated in said Dr. ve com- the less 1 One Osurance eralized nds and his parck comarket in 3 price -een five der and at only ched on isurance methods overage none of ere was hedging or com- by find- n terms as more at addi- apped in written strange ected by d he comand in- ected by ide dol- I record hich we ckholder cost of c exam- | compa- we gma ts Ap- ch ipational is mani- cal data not stop nt inter- anslation ng value ly rated usly unx in this it I take although ct gain- ther any -- -- id vitally Native to --,- that in- epeatedly oo much n the es- hazards this haz, in fact a hidden ted we thods of after getently the ndividual | P47 P47 October 11 1935 Des hak Me Cauditio Cauditio Cauditio Cauditio Cauditio White Sulphur Springs Joint Casual situation in industry before arriving at any conclusion as to what the hazard may be if any and then translate it into writing terms By the same token we can never as- sume that because potentially dangerous substances are used in manufacturing a processes hazard really exists This has been the foundation for what we have previously called missed business Prevention the Keystone The speaker then called attention to the need for special adaptation of the industrial physical examination to occi- pational disease problems and said that the results of such examination should always be interpreted in the light of the possibility of industrial environment af- fecting the exposed employe Prevention was hailed by Dr. Sapping- ton as the keystone of all occupational disease work and far more significant than any other phase in the field of industrial medicine and hygiene He drew comparative analogies between the evolutionary processes of occupational diseases and those of fire insurance and of accidental injuries and then said am not very much mistaken we If I shall probably have to learn the same lessons in occupational discases that have been previously taught to us regarding fires and accidental injuries Dr. Sappington in closing made the following suggestions which he believed could be made the basis for improving the present enigmatic and puzzling oc- cupational disease situation puzling Six Suggestions 1. That an advisory board on occupational disease risks be appointed in each insurance company this board to consist of representatives of the underwriting compensation inspection and engineering and legal departments together with a competent representative of the medical profession who is able to interpret in under standable terms the nature of a given industrial hazard and its effects upon the human body This board should have regular and periodic meetings for exchange of information by Intelligent Middle Ground The spirit behind Dr. Sappington's approach to his subject was appreci- ated as he set himself up as neither optimistic nor pessimistic in discuss- ing the occupational disease enigma Furthermore either he saw hysteria or for no need smugness for and complacency in approaching this problem and said I have this faith in the insurance fraternity and in the engineering and medical professions that such a degree of interlocking and reciprocity of effort will be attained that stabilization will result I believe that there is an intelligent middle ground : its members and regarding specific come to definite conclusions examples of industrial under writing 2. The institution of regular and periodic lec- tures and informal discussions separately for the medical men engineers and inspectors and for the underwriting and compensation experts in each company 3. The regular publication of a question answer column in insurance company papers 4. fem The gradual building up of a rating sysin which the rating compensation and un derwriting departments shall correlate information with the engineering inspection and medical groups the objective being a rating plan which can be intelligently applied to under- writing " 5. The continuous amassing of all possible information regarding scientific measurement of industrial exposures of various types and co- ordinating and integrating with this the medical findings so that as a background for intelligent underwriting these cause rela tionships can form an invaluable body of data useful for years to come 6. Finally the preparation of standard files of procedure for each department concerned in this work which may grow into manuals of in- structions an eventuality contingent upon gath ering basis a great body of data which will form for abstract conclusions which can be the set . down for guidance duced in Alabama Delaware diana Maryland Massachuse gan Minnesota Missouri Hampshire New Jersey Oklahoma Pennsylvania Rho Tennessee and Utah In son states there was more that The situation wherever there of one It was was potentia was a bill or critical in Illi sylvania and New York whe had strong backing They fa nois and Pennsylvania but i in New York effective Septen You will recall that sens portaon f ctheis problem the pointed January 9 1934 i committee on the occupatio situation The committee com Travelers chairman the Acti Employers Liability the Ma & ualty the Fidelity Casual Hartford Accident & Inden ff lowing a prompt survey of nation the committee ~ efforts toward two major ob " The prompt handling tions in those states where ' required immediate attention compilation of literature and relative to the subject genera of toward the undertaking ar al campaign and the formu Hale Anders Official I With characteristic thorou Anderson president Casualty gave the White S ventioners on Wednesday better appreciation of the p bond problem than many o had before He brought of really should be no battle t | F. R. Jones Legislative Report The annual report of F. Robertson Jones as secretary of the International Association of Casualty & Surety Underwriters a carefully pre- pared digest of the legislative activities of the past years as affecting casualty and surety interests was available to all at the convention Mr. Jones confined his comments largely to surety taxation workmen's compensation and financial responsibility for automobile accidents He has never seen a legislative year which equaled that of 1935 for intensity and he described it in fact as the worst within his experience not because of the number of legislative sessions but by reason of the number of bills pending and their importance He said Some conception of the size of the task may be had from the fact that to date we have prepared and distributed 3,528 memoranda on bills affecting our business as compared with 3,121 on the same date in 1933 last comparable year . Security Funds An Innovation An innovation in the field of work- men's compensation he said was the introduction of bills providing for the creation of security funds for insolvent insurers and he said In general they required contributions from solvent com- panies to pay the compensation awards against any company that failed or provided for the creation of state funds for the same purpose Ten bills were intro- duced in seven states viz Maryland Minnesota New Jersey New York North Carolina Pennsylvania and Wis- consin They became law in Minnesota New Jersey New York North Carolina and Wisconsin In Kansas New Hampshire New Jer- sey Oklahoma and Pennsylvania bills were introduced proposing a complete revision of the workmen's compensation law but all failed Bills proposing a compensation law were introduced in Arkansas Florida and South Carolina and were enacted in Florida and South Carolina Only two states remain with- out a compensation law viz Arkansas and Mississippi Wide O.D. Coverage The outstanding development in the compensation field Mr. Jones reported was the renewed agitation for called wide open occupational disease coverage He gave the following review of the situation explaining the work of a special advisory committee tional diseases which has on occupa- done good work since its appointment January 9 1934 Bills proposing either outright wide coverage or the equivalent by loose covered definition of the diseases to be or that were otherwise so in- adequately drawn as to ment by interpretation invite enlargethat rendered them equally objectionable intro- resentatives of the public companies over this whole phasized that state bonding never solve the situation Ir son's opinion there is a tre to done in reforming th public affairs and he said Surety companies with th data and experience can be able assistance to those wh to plan such reforms ness and worthiness Stan for must be raised and surety | partisan risk selection political influence can do : raising those standards An reforms have been accomplis standards have been raise always remain the unay properly insurable risk c and of official misconduct o That risk we submit can : sured more expertly more and more certainly by tho interest is the science and insurance than it can be by chief interest is the mome of the electorate and the p tity of the next governor Men Not Fitted for One of Mr. Anderson's vast sums of public money administered and the heav ities of public affairs are n Tule by men trained for a li time career of civil servic Can one properly be she that under such a system stolen annually or are lost lesseness or even are nevt all when collection is quite Convinced that someth _ must be done to remedy su he gave his audience first a of security for the losses c