HGT n ACCIDENT D3 -^ ZP 1 and HEALTH ' INSURANCE THE INSURANCE r;STITU1 E OF HARTFORD. In^ : ioraitu NINETEEN FifTEEN Accident and rlealtn Insurance A series of Lectures aeliverea before The Insurance Institute of Hartford Edited and ComJ)iled by H. PI Dunham and J . E. Rnodes, 2nd HARTFORD. CONNECTICUT Tne Insurance Institvite of Hartford Incorf)oratGd 1915 ^^ c^ CONTENTS Page The Pioneers, 4 William John Vian, 5 James Goodwin Batterson, 8 The Scope of Accident Insurance, by J. E. Rhodes, 2nd, . 10 The History and Development of Accident Insurance, by W. C. Faxon, 19 Accident Underwriting, by B. A. Page, 30 The Accident Policy, by A. P. Woodward, . . . . 46 The Insuring Clause of Accident Policies, by M. P. Cornelius, 58 The Relation of the Medical Examiner to Casualty Insurance, by E. A. Wells, M. D., 65 Personal Accident Adjustments, by J. M. Parker, Jr., . . 78 Advertising as a Factor in the Selling of Accident Insurance, by Harry Porter, 93 Methods of Securing and Training Agents and Developing Territory, by L. N. Denniston, 108 Co-operation, by R. A. Person, 117 Health Insurance, by McL. C. Wilson, M. D., . . . 121 Accident Statistics and Reserves, by E. S. Fallow, . . 128 The Conduct of Suits under Insurance Policies, by Howard P. Dunham, 137 rr^t^A r-r\ Tne Pioneers Two names are consJ)icviously J)reeminent m connection witn tne inceJ)tion ana aeveloJ)ment of accident vinaerwriting m tne old and new worlds, that of William Jonn Vian m Eurojje and James Goodwin Batterson m America. It nas been tnougnt a|)t)ro|)riate to include brief aJ)^reciations of these two men m tnis comJ)ilation. That of Mr. Vian is furnisked Ly Mr. F. Harding, of Tne Railway Passengers Assurance Comf)any, London: tkat of Mr. Batterson Ly Mr. G. W. Ellis, of Tke Travelers Insurance Comt)any, Hartford, Connecticut. WILLIAM JOHN VIAN As the acorn is to the oak, so is the old "Railway Passen- gers" of London to the Accident Insurance world of to-day; and William John Vian, the virtual Founder of the Company may rightly be entitled the Father of Accident Insurance as we know it. Mr. Vian, who was born in 1827 and entered the Company's service in 1849, became its Secretary in 1852, at which time the Company was transacting only Insurance against Railway Accidents, for which purpose, solely — as its name implies — it was originally founded in 1849. The system of Railway Accident Insurance was, as it still is by this Company in the British Isles, carried on by means of tickets for individual journeys, purchased at Railway Stations and costing from one penny to sixpence and by period- ical tickets. This system speedily became popular and made its way, but Mr. Vian soon realised the fact that it was too narrow to constitute a paying commercial enterprise. More- over the Capital (fulh^ subscribed) of a Million Pounds was out of all proportion to the necessities of a business of such restricted scope, even when it should have attained its full possible growth. Immediately upon his appointment as Secretary, there- fore — that is in 1852 — Mr. Vian persuaded his Board to apply to Parliament for further powers, the result being an Act, passed in the same year, enabling the Company to insure against Accidents of all kinds. These powers Mr. Vian de- veloped year by year, with consummate ability creating and meeting the demand for personal Insurance of divers types and patterns. It should always be borne in mind that Mr. W. J. Vian's Premium Tables for Personal Accident Insurance were his own creation; and it is a remarkable evidence of his genius that those tables, founded of necessity largely on his innate judgment, have borne the test of time; are still the standard in England; and have formed the basis of Accident rates in America and all over the world. As modern Companies, one after another, come into existence and start business by the simple method of drawing upon their predecessors for their Rates and Policies, how many of their originators give a thought to the 'Tons et Origo," William John Vian! "W^ell, one Coiiipar^yv. at" all events, owns its parentage; and this is the story : '—^' In the early sixties the late Mr. James G. Batterson vis- ited England, when he saw the "Railway Passengers" Insurance Tickets advertised, and bought one. Being a practical man, and ready to learn anything worth knowing from the Old World, he considered whether here was not something suitable for acclimatization in the New. The result of his cogitations was that he called upon Mr. Vian and found himself received with the utmost friendliness, and was afforded by Mr. Vian the fullest information with regard to his Company's opera- tions, and supplied with copies of all papers constituting the machinery in use. The personal result of this was the creation of a mutual regard which lasted the whole of their lives. The public result was that Mr. Batterson became the founder and first President of the "Travelers" of Hartford, whose phenomenal success is of worldwide notoriety. Mr. Vian always took the greatest interest in the "Travelers," looking upon it as the daughter of his own Company, while Mr. Batter- son on his part always took an equal interest in the fortunes of what he recognized as the parent Company. This interest has been happily continued by Mr. Batterson's successor, Mr. Sylvester C. Dunham, who a few years back sent to the "Railway Passengers" the portraits of Mr. Batterson and himself, which now hang among other treasured portraits in the Company's new and handsome London Offices, Mr. Dunham's bearing his signature and the following graceful inscription : — "With best wishes for the continued prosperity of the original Railway Passengers of England the progenitor of the Travelers of America." Seeing the portraits of Mr. W. J. Vian and Mr. J. G. Batter- son side by side, one cannot help being struck by quite a re- markable resemblance between the two powerful, massive, heads with their full beards. This is not a little curious and interesting. Personally, Mr. W. J. Vian was kindly, genial, and liberal- minded — qualities, which, applied to his Company's busi- ness, contributed in a very large degree to its success. His relations with his Staff were significantly indicated by the fact that he was never referred to by the formal title of "Mana- ger" or "Secretary" but always as the "Gov'nor," a familiar title, suggesting a blend of respect and affection, and one to which there could be no successor. There are not many remaining in the "Railway Passengers" who were associated with William John Vian: the writer of these all too inadequate notes is one of the few, and he has a very vivid recollection of the sense of- loss, cynd void crqat^d by his Chief's death in 1890, after a r'eign — ^^ horiourable and successful — of 38 years. Although he had the satisfaction and happiness of seeing the fruit of his labours in a liberal degree, William John Vian can hardly have known how big he was building — can hardly have forecast in his mind the immense structure which would be raised on his foundation. Surely, his best epitaph is that, in St. Paul's Cathedral, of its Architect, Wren: — "Si Monumentum Requiris, Circumspice." JAMES GOODWIN BATTERSON James G. Batterson, the pioneer of accident insurance in the new world , the founder and for thirty-eight years the Presi- dent of The Travelers Insurance Company, was bom in Bloomfield, Connecticut, February 23, 1823, and died Sep- tember 18, 1901. Prevented by circumstances from obtaining a college education he went to school with himself, working hard at his trade as a printer by day, he studied the classics, sciences and mathematics at night, and he kept on developing and perfecting himself to the end of his life. He read law with Origen S. Seymour, afterwards Chief Justice of Connecticut, then he went to marble cutting with his father. He came to be a great builder in granite, a geologist, a mineralogist, and an engineer. He loved to read and translate Homer and Virgil. He made himself familiar with French, Italian and Spanish, and grappled joyously with statistics and political economy. During the Civil War he was Chairman of the Republican State Central Committee and of the War Committee, and a presidential elector of the electoral college which elected Abra- ham Lincoln to his second term as President. Mr. Batterson's chief title to fame, however, was as the pioneer of accident insurance in the new world, and The Travelers of Hartford, the largest accident company in the world, is the greatest monument to his business career. While traveling in England, Mr. Batterson purchased a railroad accident policy issued by The Railway Passengers Assurance Company of London, insuring against death and injury while traveling from Liverpool to Leamington. The idea immediately impressed him as being capable of a great development, and that it was as feasible against all accidents as against accidents of travel only. After consulting William John Vian of The Railway Passengers Assurance Society, and Cornelius Walford, author of the Encyclopedia of Insurance, he returned home fully determined to make the venture of this new form of insurance. The Travelers Insurance Company was accordingly chartered by the State of Connecticut July 17, 1863, and issued its first policy April 1st. 1864. The company started in a quiet way and only with the greatest care and perseverance was it kept alive during the first few years of its existence. The first rates, based on English statistics, were found inapplicable to American risks, and the company was compelled to experiment with great caution and gather itvS own experience. A series of great railroad and steamship disasters called public attention to the fact that accident insurance was of considerable value. The wreck of an excursion train, among whose passen- gers a considerable number carried insurance in The Travelers, almost bankrupted the company, but at the same time gave it its first great impetus. From that time its business increased continuously. Mr. Batterson lived to see the company which he had founded become the largest accident and liability company in the world, and one of the foremost life companies. 1 ne ScoJ)e of Accident Insurance BY J. E. RHODES. 2nd The Travelers Insurance ComJ)any JANUARY 15. 1915 Until within very recent years the use of the term "ac- cident insurance" in this country has been associated in our minds only with that particular branch of underwriting which indemnifies in event of personal injuries, or death, caused by ac- cident. This branch has come to be classed as one of the principal lines of "casualty insurance," so called. While I do not intend to take any exception to the practical use of these terms, still I think we can all see that the use of the word "accident" and of the word "casualty" as applied to any special branch of insurance is, to a certain extent, an inaccuracy, and is sanc- tioned only by usage rather than by a scientific classification. All insurance is essentially a provision and a protection against some accident or casualty. The words "accident" and "casualty" are practically synonymous. When we look for authoritative definitions of the two words we find that, among other definitions, the Standard Dictionary defines an accident as "any unpleasant or unfortunate occurence that causes injury, loss, suffering, or death; a casualty; mishap; as a railroad accident] the travelers insure against accident ^ The same authority defines casualty as "a fatal or serious ac- cident or disaster; accidental death or disablement." In con- nection with both definitions each word is given as a synonym of the other, so it will be seen that there is little or no theoretical distinction between the two terms, and the inclusion of accident insurance as a branch of casualty insurance is merely a matter of practical usage. That all insurance is essentially a provision against the effects of some loss which may never occur, or some event which though bound to occur is uncertain as to the time of its occur- rence, is an axiom of underwriting. The distinction between events which may never occur and those which are bound to occur is intended to emphasize the difference between life in- surance and all other forms of insurance, in that the former is a protection against the economic effect of the death of an ♦This talk was also given at the University of Pennsylvania, Philadelphia, on Octo- ber 27, 1914. 11 assured, an event certain to occur but uncertain as to the time of its occurrence, based on the principles of mortaUty, interest and accumulations, while all other forms of underwriting are designed to protect against uncertain events which may never occur. Thus, in the broad sense of the word, all insurance may be considered "accident insurance." This branch of underwriting is a development of the last half-century; it might almost be said that it is a development of the last twenty-five years, because, for the first twenty-five years or so, few changes were made in the contract, while for the past twenty-five years its development has been hindered only by the lack of further imagination on the part of the under- writer. It may be stated, however, that during the past few years accident underwriters have been giving serious con- sideration to the apparently unwarranted increases in benefits with no corresponding increases in premium charges, and that a reaction against such further increases is noticeable among conservative underwriters. Any thorough study of accident insurance must now in- clude as an essential part, I might say as its essential part, a consideration of the problems which have been forced on casu- alty underwriters by workmen's compensation laws, for the underwriting of workmen's compensation insurance is in its very essence a problem of accident underwriting. The funda- mental difference between the workmen's compensation policy and the commercial or industrial policy lies in the fact that, in the underwriting, the compensation policy is a contract between the employer and the insurance company, made for the benefit and protection of the employee, and that the benefits are not a matter of contract but of statutory regulation; the commercial or industrial policy is, as we well know, a direct contract between the insurer and the assured, the terms of which are a matter of agreement between the contracting parties. The workmen's compensation policy had its prototype in the old workmen's collective policy, but as workmen's collective insurance was never written to any considerable extent in this country it can hardly be considered a factor in accident under- writing. Accident insurance is of British origin, but of American development. Its inception is attributed to the dangers appar- ently connected with railway travel, and in its origin the pur- pose of the contract was to indemnify for injuries so sustained. In its development it has been extended so as to cover prac- tically all accidental injuries. Like all legitimate insurance contracts it depends for its validity on the legal doctrine of insurable interest, which, in brief, is that an assured must be able to show some direct loss from the occurence of an event before he can insure against the consequences of it. As far as the accident contract relates to payments to beneficiaries 12 in event of accidental death, the contract rests on the same basis as the life contract, for it is, to that extent, a limited form of life insurance; as to dismemberment and disability pay- ments, there is no question but that a person sustains financial loss by reason of the loss of a member, or the interruption or cessation of his earning capacity because of an accident, so the presence of an insurable interest as the basis of an accident contract is assumed. Accident insurance, as already stated, is of British origin. It was intended in its inception to provide indemnity for ac- cidents sustained in the course of railway travel. The dangers incident to this form of transportation were so apparent when it came into general use that this form of underwriting was devised to mitigate the financial losses caused by railway ac- cidents. Although several corporations were formed in Eng- land prior to 1849 for the purpose of writing accident insurance. The Railway Passengers Assurance Company, formed in that 3^ear, was the first company to grant insurance against acci- dental injury, and is therefore, the pioneer accident company of the world. The records show that several companies were incorpor- ated in Massachusetts in the late forties of the last century for the purpose of writing health insurance, and that the char- ters of two of these companies were amended so as to permit them to write accident insurance. It does not appear that any of these companies ever engaged in the business of writing either health or accident insurance to any extent, so the fact of their incorporation is merely a matter of passing historical interest. The semi-centennial of accident underwriting in America was celebrated in Hartford in April of last year. I will allude briefly to the coverage of the personal accident policy of April 1864 and that of April 1914, so as to show incidentally the extension of the contract. The purpose of accident insurance, in brief, is threefold. To the extent that it provides for in- surance in event of accidental death it is a limited form of life insurance; certain indemnities are provided for certain dis- memberments; weekly indemnity is specified for total or par- tial disability caused by accidental injuries. There are other features in the modern contract, but they are merely subsidiary to its main purpose. The poHcy of 1864 provided only for the payment of the principal sum in event of death, and the pay- ment of weekly indemnity for total disability for a period not exceeding twenty -six weeks. That of 1914 provides, in brief, for the pa3mient of the principal sum in event of death ; for specific sums for specific dismemberments; for total disability payments during the continuance of total disability and for partial disability payments for a limited period. These benefits are doubled for certain accidents. 13 The problem of accident insurance in its application to those who are not engaged in occupations which involve any great amount of occupational dangers is easy in its solution. It is merely a matter of individual foresight for each person so situated to provide for himself the proper protection. It is in its application to the person engaged in dangerous occu- pations that the problem of accident insurance becomxcs a pressing social problem. Since the inception of scientific acci- dent "underwriting the rates have been based on occupational hazards, so that the person who is engaged in a non-hazardous occupation pays much less for his protection than the person who is engaged in hazardous work. This is the only true prin- ciple on which any system of accident underwriting can be based. The practical result, therefore, of this principle is that the person engaged in an occupation with little or no danger inherent in it can carry adequate protection, while to the person who is engaged in hazardous work, and to whom this protection is a necessity, the cost of such protection is almost prohibitive. It may be said, in fact, that the cost of adequate protection, is prohibitive. In addition to this the amount written, both as to the principal sum and the weekly indemnity, for persons classified in the hazardous occupation is small, and the companies which cater to those engaged in occvipations of lesser hazard do not cultivate the business of those engaged in hazardous occupations to any extent. The greater portion of the claims paid by companies whose business is largely confined to policyholders whose occupations do not involve any particular degree of hazard is for non-occupa- tional injuries. It is with the occupational injury that the social problem of accident insurance begins. Companies have been formed for the purpose of writing accident insurance among the wage-earning classes, their business being termed "industrial accident insurance." That branch of the business relates, how- ever, to the operation of the companies which offer to workingmen the opportunity to insure against accidents on the so-called ''industrial" plan, as distinguished from commercial and other policies, and not to the solution of the social problem of industrial accidents and the mitigation of their financial losses. I will do nothing more than refer to the subject of industrial accidents as an incident of modern industry, and pass along to the discussion of the problem of the industrial accident in its relation to accident insurance. The catastrophies of industry are a lamentable phenomenon in our industrial life, and give rise to a situation which it has been shown that the individual is unable to meet. Because it has appeared that the individual was practically powerless to protect himself from such hazards, and to provide against their effects to himself and his dependents, the state, in its sovereign capacity and in the exercise of the police power, has been obliged to intervene. 14 At this point, and at the risk of reciting principles which are famiHar to all, I think it necessary to review briefly the common law rules as to employer's liability, because of the influence of this legal doctrine on accident insurance, and par- ticularly the larger problems of accident underwriting in its social aspect. At common law the victim of an industrial accident must bear the loss himself, unless it happened under such circumstances as to impose legal liability on his employer. The law recognized a certain indefinite standard to which the employer must conform and when compliance with that standard could be shown the employer was exempt from liability. This standard, that of the "ordinarily prudent man," when applied to the relation of em- ployer and employee expressed itself in certain general regulations which may be briefly stated as follows : — I. The employer must furnish the employee with a safe and suitable place in which to work. II. He must furnish him with safe and suitable tools and appliances with which to do the work. III. He must surround him with safe and com- petent fellow-employees. IV. He must see that the employee is properly instructed as to the hazards involved in the work. The foregoing were, in general, the common law obligations of an employer to his employee. In event of an industrial accident the employee had no redress against his employer unless a breach of some one of those obligations could be es- tablished, and the only finality in the attempt to impose lia- bility on the employer was the judgment of a court of last re- sort at the termination of litigation. In defense of an action three particular defenses were recognized, any one of which, if established, would defeat recovery on the part of the employee. These were: — I. That the accident was caused by a danger in- herent in the business, and incident to it, the defense of assumption of risk. II. That the accident was caused by a co- employee, the fellow-servant rule. III. That the accident was caused wholly or partially by the carelessness of the injured himself, the defense of contributory negligence. The legal principles of the liability of the employer to his employee can be expressed in a very few words, but the applica- tion of these principles has resulted in a tremendous volume of litigation, thousands of reported cases, and a condition of chaos as to the rights of both employer and employee. Statutes have 15 been passed to remedy this condition, but the doubts which have arisen regarding their construction have frequently increased rather than diminished the uncertainty. In addition to the difficulties involved in the application of the law, we have had the unsatisfactory rules as to the assessment of damages in personal injury cases. The underlying principle of the rule of damages is that, when liability is shown, the award shall be compensatory, but with no fixed standards to follow a most unsatisfactory condition has arisen in this particular. The statutory changes in the common law, purporting to increase the liability of the employer, and the increasing disposition on the part of employees to hold their employers for damages for occupational injuries, gave rise to the under- writing of liability insurance, which is a form of accident in- surance. It is the object of liability insurance when written in the employer's liability form to cover the legal liability of employers for injuries to their employees. Employer's lia- bility is being so rapidly superceded by workmen's compen- sation that it seems that the employer's liability policy will soon be an underwriting relic, and the study of employer's liability insurance merely a matter of historical interest in the education of any thoroughly trained casualty insurance man. This brief survey of the common law doctrines of em- ployer's liability is a necessary introduction to the subject of workmen's compensation, which is essentially a problem of accident insurance and accident prevention. Without con- sidering in detail any of the steps in the transition from the system of employer's liability to that of workmen's compen- sation, it may be stated that the injustice of the former system in our modem industrial life became so apparent that the system as a whole fell before the theory that industry should as a matter of social justice bear at least a part of the financial losses caused by industrial accidents, and thus workmen's compensation became an accomplished fact. The common law system of employer's liability is founded on the idea of fault on the part of the employer; the workmen's compensation system is, on the other hand, based on the prin- ciple that a workman should receive compensation for injuries sustained during the course of and arising out of his employ- ment, regardless of fault on the part of his employer, and of his own fault unless the injury is caused by his intentional carelessness. The common law doctrines of employer's liabil- ity were from time to time changed by statute, but the effect of this legislation was only to increase the liability of the em- ployer and not to make him liable regardless of the element of fault on his part, or to make certain the payment of damages to the injured. Workmen's compensation legislation was revolutionary in both of these particulars. 16 I have stated that the subject of workmen's compen- sation is essentially a problem of accident insurance. One of the elements of any well considered compensation law is the matter of security of payment of the obligations it imposes. A failure to secure the payments might make its obligations nugatory. Under the common law system of employer's liability the payment of a judgment depended on the finan- cial ability of the defendant to pay it, and if he was unable to pay the judgment was worthless. The employer's liability contract, in theory, afforded no security of payment to the injured, for it was an agreement between the employer and the insurer to indemnify the employer, and the employee was not a party to it, hence he was not protected by it. The manner of security of payment of compensation has been the battleground of the compensation agitation in this country. There has been general agreement on the proposi- tion that such payments should be secured, but the question as to whether the insurance should be by stock companies, by mutual organizations, or by state administered funds has been a subject of contention. While several states have com- mitted themselves to a state insurance system to the exclusion of all other systems, the general result has been that the choice of institutions has been left to the employer, and that where state funds were provided the employer might, if he so chose, insure his obligations in private organizations. The spirit of all compensation insurance is against any limitation of lia- bility on the part of the insurer, who must, when he assumes the compensation obligation, assume it all. This is in con- trast to the practice in liability underwriting of placing a limit on the risk assumed by the liability company. It is the spirit of compensation that all expense of the system shall be borne by the employer, and hence be made a part of the cost of production, and that the employee shall not be made to bear any part of it. In some acts any attempt on the part of the employer to place the cost of compensation, or any part of it, on the employee is specifically penalized. The assumption of the compensation obligations by the em- ployer is in theory elective in the larger number of the states that have passed compensation laws, but in practice the laws are compulsory. The employer electing to pay compensation must, in most states, secure the payment of the obligations in one of the ways provided by the law, so the result of the system is that some form of compensation insurance is com- pulsory. While compensation for industrial accidents is the apparent purpose of the compensation system, the fact is recognized that it has a higher social service to perform in the conserva- tion of human lives and human resources rather than in finan- cial compensation for their destruction. An essential element 17 in connection with any insurance system of compensation obligations is that of accident prevention, the object of which is to reduce the possibihty of accidents to a minimum. This idea is not an invention of the compensation system, for many of the statutes which were passed in connection with employer's liability legislation before any compensation laws were enacted required employers to adopt certain precautions to prevent* injuries, and the liability insurance companies made the inspection of risks and the recommendation of safeguards an essential element of liability protection. Mention should also be made of the efforts of enlightened and humane employ- ers, independent of any legal compulsion, to devise and adopt all possible precautions to prevent accidents to their employees. Under compensation, however, this element of accident pre- vention is specially emphasized and is made an important part of the system. Workmen's compensation laws provide only for accidents which happen during the course of and arise out of the employ- ment of the injured. Workingmen in common with all other persons are exposed to the non-occupational hazards of life, and there is no coverage under compensation policies for any such accidents. It will be seen, therefore, that the workmen's compensation system does not furnish full accident protection. The old workmen's collective policies were at one time written to cover either for accidents of occupation only, or to cover for the full twenty-four hours, so the latter furnished protection for both occupational and non-occupational accidents. It is possible, of course, for the workman to provide him- self with accident insurance on his own account which will supplement the compensation pa3nnents for occupational injuries and also furnish him protection for non-occupational injuries. It will be seen, however, that the compensation system opens up a new field for the activities of accident com- panies in offering protection for accidents caused by non- occupational hazards only. We have, therefore, the signifi- cant announcement that one of the large life insurance com- panies, a leader in the industrial field and one of the leaders in the efforts of the life companies to prolong and conserve human life, is about to enter this field and write this line of insurance on the group plan, entering into contracts with em- ployers to insure their employees against sickness and against accidental injuries not arising out of and in the course of em- ployment. Inasmuch as this is a matter of contractual as distinguished from statutory regulation the premiums may be paid by the employers, the employees, or by joint contri- butions from both employers and employees. This seems to be only a logical underwriting development. The subject of health insurance is closely related to that of accident insurance, so close in fact that the com- panies which write accident insurance usually write health 18 insurance, and it is written in the same policy in connection with accident insurance. The Massachusetts records to which I have referred show that the consideration of health insurance in this country antedates that of accident insurance, but the matter of the actual inception of health underwriting in the United States was some thirty years after the inception of the accident contract, so that health insurance is an underwriting development of the last twenty years. It is the function of health insurance to furnish indemnity in case of interruption of earning power by reason of disease, and in this function it is analogous to the accident contract in furnishing similar indemnity for accidental injuries. The basis of the insurable interest necessary to support the contract is the same, for it may be assumed that an assured has the same right to protect his earning power from the effects of disease that he has to protect it from the effect of accidents. The problem of disease is inevitable, and is as old as the human race itself, but it is only within recent years that efforts have been made to prevent this misfortune and to distribute the losses which it causes. While the element of prevention is not overlooked as an underwriting factor, that of compensation for the interruption of earning power is at present the principal factor in health underwriting. The fact of our familiarity with bodily diseases, and that such misfortunes were considered an unpreventable incident of life, doubtless retarded the inception and development of any systematic effort to distribute the losses which they occasion. While according to the policy contract it appears that the insurance undertaking is primarily one of compensation for losses that may be sustained, it has been seen that modem underwriting recognizes a more important and a more humane function, that of the prevention of misfortunes rather than compensation for the losses attendant upon them. It may be said that the spirit of modem underwriting is prevention, not compensation. Prevention first; compensation after all efforts at prevention have failed . Tne History and DGveloJ)ment of Acciaent Insurance BY WALTER C. FAXON. Vice-Presic3ent JEtna Life Insurance Company. JANUARY 22. 1915 The history of Accident Insurance in this Country has been written many times and you are all, no doubt, reason- ably familiar with it. Commencing with the organization in 1863 of the Travelers Insurance Company, as the sole exponent of that form of Insurance, its early days were the ones in which the problems of an entirely new line of business were solved by the little group of pioneers, James G." Batterson, Rodney Dennis and John E. Morris, President, Secretary and Office Boy, respectively of the Travelers Insurance Company. Its first office was located in a single room on the second floor of the building now standing in Hartford on Main Street, at the Corner of Kingsley, in which building the United States Bank has its banking rooms. Prior even to this time we are advised, from the researches made by your Vice President, Mr. H. P. Dunham, in his "His- tory of Insurance," that the Hon. Sherman Leland, Judge of Probate* and General H. A. S. Dearborn, Mayor, both of Rox- bury, Mass., appear to have been the originators of Accident Insurance in this Country. In February, 1850, approximately 65 years ago, they organized the Franklin Health Assurance Co. of Massachusetts, with a capital stock of $50,000. Its Charter empowered the Company to issue Accident Policies, but while the word "Policy" was used in the documents issued by the Company, they were, like those previously and con- currently issued by Accident Companies in England, really Accident Tickets, or Ticket Policies as the small premium charged, the limited term covered and the restricted coverage granted all indicate. Let me give you the language used in one of these unique Ticket policy contracts. Perhaps it may suggest something we have overlooked. It reads as follows: "President, Hon. Sherman Leland, Judge of Probate. 20 Vice President, Gen. H. A. S. Dearborn, Mayor of City of Roxbury. FRANKLIN HEALTH ASSSURANCE COMPANY OF MASSACHUSETTS. Capital $50,000.00 Especially empowered to insure against accidents. This policy of insurance witnesseth that, in consideration of 15 cents, paid therefor, the Franklin Health Assurance Com- pajiy do assure the party, whose name with the time of purchase and delivery is endorsed hereon, for the term of 24 hours, from and after the date as endorsed, and promise to pay to the said party, the sum of two hundred dollars, provided the said party shall, during the continuance of this policy, receive any bodily injury in consequence of an accident by a railroad or steam- boat, and thereby be detained for the term of ten days; or if by such accident, caused by a railroad or steamboat, the said party shall be totally disabled from attending to any business for the term of two months next succeeding such accident and injury, this Company hereby agree and promise to pay, in lieu of the above named sum, the sum of four hundred dollars, payment to be made within thirty days after notice and proof are given to the Company. (Signed) Stephen Bates, Secretary. Boston, July 1st, 1850." This particular policy was issued at 4 o'clock p. m. October 25th, 1850. It insured travelers only and not persons employ- ed on railroads or steamboats. The activities of the Companies that during the early years were organized for Accident business were devoted largely to the sale of Accident Tickets covering railway travel, and these companies became so numerous that the business was split up so fine there was not enough of it to go around. So they were all amalgamated, so far as their ticket business was concerned, into one Company, The Railway Passengers Assur- ance Corporation, the Capital Stock of which was owned by the several Companies that had turned over their Ticket busi- ness to the new Company. This stock gradually drifted into the possession of the Travelers and in due time a Ticket De- partment was organized and the Railway Passengers Assurance Company went out of existence. Meanwhile the development of the business designed to afford financial indemnification for the losses being constantly suffered because of bodily injuries sustained by accidents, 21 many of which resulted fatally, or in material losses such as the loss of limbs or sight, as well as the loss of time, progressed substantially and steadily. Accident Insurance, as now conducted, may readily be considered in three principal groups: viz.. Stock Personal Accident Insurance, as sold by Corpora- tions at fixed prices, the profits, if any, belonging to the Stock- holders. Industrial Insurance, also sold by Stock Companies, and differing only from the Commercial Personal Accident business in methods adopted for the payment of premiums, and the writing of relatively small amounts of insurance on individual risks. As their name indicates, these Companies operate main- ly among men engaged in the so-called industrial occupations, but they are also extending their operations into the field of Commercial Accident Insurance. Fraternal Associations, composed of groups of men allied to each other by some common interest, such as membership in a fraternal organization, or a common occupation like Com- mercial Travelers, or in local societies of men engaged in the several trades or mercantile employments. As conducted by Stock Companies, the business of Accident Insurance has increased in volume amazingly during the past few years, or since the dawn of the twentieth century. Prior to that time the contracts of insurance contained many re- strictions and by some companies these restrictions were used in a way that tended to make the business unpopular. At about that time the Companies voluntarily abolished many restrictions and added many new features to their contracts, resulting in the tremendous growth in volume of business trans- acted, already referred to, and to an increased popularity of this kind of insurance, so that now a very much larger per centage of the insurable male risks are carrying Accident In- surance than before that time. I understand that the policy contracts are to be analyzed by someone else during this course of lectures, so I will refrain from going into details along that line, however interesting it might be to do so in sketching the development of the business. The Industrial methods of selling accident insurance have likewise produced a very large volume of business, but it can hardly be truthfully said that the methods of claim settlements adopted by many of the Industrial Companies have helped to make the business of Accident Insurance popular. These Companies have undertaken the task of finding more than one hundred cents in a dollar. Their plan has been to collect $1.00 per month from each one of their policyholders, and pro- vide variable amounts of insurance for this fixed premium, according to the classification of the occupation in which the Insured was engaged. These policies were, as a rule, adver- 22 tised to cover "every accident and every illness" but upon careful scrutiny were found to contain clauses materially re- stricting the amounts payable under specified conditions, and, if government reports are to be relied upon, the adjustment of claims was in many cases made without due regard to the equities of the cases but with frequent use of defenses based on alleged technical violations of the contracts, and much dis- satisfaction resulted. If the monthly payments were not made on or before their due date they would be accepted but a penalty for delay, viz. the suspension of the Health insurance for thirty days would be imposed, so that a man might continuously pay his monthly premiums and at the same time be continuously "suspended" by reason of delays in making such pa3nnents. It might also be the fault of the collector rather than his own that the delay occurred. Let us hope that these conditions have improved very considerably of late and that the Industrial business is being much more satisfactorily, and so, of course, more success- fully conducted. The Commercial Travelers Associations and other frater- nal organizations have acquired a very large membership and are generally satisfactorily conducted, the field being amply sufficient to provide for all kinds just the same as we have electric Hghts and candles and all the other intermediate means of illuminating the darkness when the sun sets. Through the favoring legislation, of which they are in- variably the recipients, and the lack of expenditures for agents' commissions, taxes, licenses, rents, traveling expenses and all that sort of thing, these associations are enabled to provide for the payment of their claims by the collection of a consider- ably less amount of money from each member than the Stock Companies have to collect from their policy holders for the degree of protection afforded by the respective organizations. Under the rules governing the membership in fraternal organizations the payment of a calamity loss would have to be met by extra assessments, and to what extent the members would stand for heavy extra assessments, when their main object in belonging to the associations is to get their protection at the lowest possible cost, is a question which you can answer fully as well as I can. Some people, you know, think it is cheaper to move at frequent intervals than to pay rent. The manifest advantage of insurance in a large Stock Company as compared with the degree of protection afforded by the fraternal organization is the absolute security of the insurance provided by the Stock Company in cases where great disasters involve many lives and call for the payment of vast sums of insurance money. Take such a disaster as the 23 wreck of the Titanic, not only were there many large policies carried by the persons whose lives were lost, but in nearly all of them the amounts payable were doubled by the character of the accident. The payments amounted to over $700,000.00. Take the recent accident in the New York subway, while fortunately only one life 'was lost, some 200 were injured and the possibilities of the accident in losses to the Insurance Com- panies were immeasurable. ASSESSMENT PLAN. Accident Insurance as well as Life Insurance was for many years conducted upon the assessment plan, the most notable organization of this kind being the United States Mutual Accident Association, of New York, which finally failed in 1894. This Association was organized by Mr. Jas. R. Pitcher while he was employed as a clerk in a department store, I think, and was built up by his persistent energy and resourcefullness to a point where it had a very large membership. The Policies of this Association were the first to contain the provision for paying double benefits for railroad accidents and they were attractive in many ways. Mr. Pitcher arranged to have his compensation based upon the payment to him of one dollar a year for each member of the Association and it was his effort to have this salary contract capitalized and thereby made permanent, I understand that created the dissatisfaction which brought about the failure of the Association. Two organizations now in existence grew out of this one» the Preferred Accident Company and the United States Casualty Company. The Preferred was an assessment company at first, com- posed of men who had withdrawn from the United States Mutual Accident Association under the leadership of Mr. Kimball C. At wood, and after a few years it was reorganized as a Stock Company and has conducted its business along the lines of insuring risks classed "Preferred" in the prevailing classification of risks. The United States Casualty Company was the immediate successor of the defunct United States Mutual Accident As- sociation and started with the business upon the books at the time of its failure. Many of the General Agents of the As- sociation were not content to cast in their lot with that organ- ization and sought connections elsewhere, some with the Travel- ers and some with the ^tna Life, and they naturally brought their business with them, much of which is even now upon the books of these Companies, and many of the Agents and others asso- ciated with that organization are sti]l with these two Companies. 24 HEALTH INSURANCE. That indemnification for loss of time resulting from sick- ness could also be made a successful business proposition and be put upon a sound financial basis, was regarded as impractic- able as was the successful conduct of Accident insurance in the early years of its experimentation. This sort of thing had been tried and had failed, as had the insurance of horses, mules and slaves. Such losses had been, to a degree, taken care of through local fraternal associations, which could be conducted without expense and without the legal and financial obligations imposed upon the insurance institutions that might have the temerity to assume the risks as a business proposition. However, taking it up in a tentative way, and in a way that seemed ridiculous as well, the Accident Companies, one after another, began writing Health Insurance. The coverage granted was extremely limited, the premiums were low, the commissions restricted, medical examinations required and generally speaking the Companies handled Health Insurance with apparent fear and tremiling from within the office walls, and with more or less ridicule and amazement coupled with prophecies of dire disaster from the public. Much to their amazement, however, it was discovered that not everybody who had a policy of Health Insurance had also a spell of sickness every year, and gradually the scope of the coverage was broadened, commissions and expenses increased, medical examinations were abandoned and the busi- ness firmly established as an essential complement to that of Accident Insurance. It may not be out of order to indicate that the same lack of conservatism that has of late prevailed in the Accident In- surance business, has also manifested itself in the Health In- surance business and danger signals from Maine to California should be displayed if the Companies engaged in this line of insurance are not to be wTecked opon the rocks of disaster by the adoption and maintenance of features in their policy con- tracts that are bound to involve obligations for the payment of much greater amounts in losses than reasonable and obtain- able premium rates can produce at existing cost of production. MULTIPLE LINE COMPANIES. The tendency of Stock Companies has been to affiliate other Casualty lines with the transaction of Accident and Health business, and also in some instances to add Life In- surance to the Accident lines or Life Insurance Companies have added Accident and Health Insurance to their Life lines. Of late, the Fire Insurance Companies have established Accident and Health Departments and Liability and Compensation In- 25 surance has also been taken up by Companies that had re- sisted temptation in that direction a long time. Under the laws of the leading States, Companies trans- acting Life Insurance could not transact other than Accident, Health and Liability insurance, which left the field of mis- cellaneous casualty lines such as Plate Glass, Steam Boiler, Fly Wheel, Sprinkler Leakage, Burglary, Automobile Property Damage, Automobile Collision, also Fidelity and Surety Bond- ing open to companies organized mainly for Accident business to exploit and so become multiple line companies. This gave them a certain advantage in the placing of their agencies espec- ially in- localities where the most desirable Agents were men desirous of having all or most of these lines to handle in con- junction with their Fire Insurance business. Of course, the Life Insurance Companies that also wrote Accident, Health and Liability Insurance had advantages in the selection of Agents in some instances but not to the extent that the ability to write all casualty lines favored the Companies other than Life. To m.eet this situation, the Life Companies have organ- ized casualty companies as subsidiary companies and the Fire Insurance companies have done the same thing until now there are many instances in which the desired protection as against all the contingencies that confront the automoble owner, for in- stance, can be procured not only through one agency in his home town, but practically from one Company. The Fidelity and Casualty Company of New York was one of the first and has come to be one of the largest of the Com.panies writing multiple lines — other than Life and Fire — of the Companies in this class. In marked contrast there is the Continental Casualty Company of Chicago — which as a single line company, con- sidering Accident and Health as one line, — has built up a very large premium income without the assistance of mis- cellaneous casualty lines. It is, however, yielding to the pre- vailing temptation. This Company has operated very extensively in the Indus- trial line and has also a very large business in the insuring of railroad employees upon the pay order plan, with some com- mercial business. There is still anothei company located in the extreme west, the Pacific Mutual Life Ins. Co., which has established a sizable Accident and Health Department, in the Commercial lines, also a considerable volume of railroad pay order business. Hartford is entitled to more or less credit on account of this Company inasmuch as its Vice President, Mr. Danford N. Baker, in charge of the Accident and Health business, received his early training in the office of the Travelers Ins. Co., where as his associate, I had strongly impressed upon my memory his tireless energy and activity. Not content with doing his office work 26 simply, he was constantly on the alert to secure accident appli- cations, having the qualifications of a salesman to a marked degree, constantly urging him on. He is just the same now. INTERNATIONAL ASSOCIATION OF ACCIDENT UNDERWRITERS. A brief reference to the part that has been taken in the growth, development and to some degree, control of the ac- cident and Health business by the International Association of Accident Underwriters is not out of place in this review, I think. This organization was first • established by the Assess- ment and Traveling Men's Associations and for many years membership was confined to such organizations. Its prin- cipal work was the m^aintenance of a bureau for the exchange of information among its mxem.bers concerning risks found to be undesirable physically, etc., also fraudulent claimants, crooked lawyers, doctors and agents; and the holding of an annual convention by m.eans of which the delegates established social relations with each other and learned to know and to love each other better. About the year 1900, the Association decided to increase its membership and invite Stock Companies to join. Within a few years, nearly all the Stock Companies of the United States and Canada joined the Association and its annual conventions were held alternately in the States and in Canada. Mr. William DeM. Hooper, a most earnest and thorough student of the Accident and Health business, a man that it was always a pleasure and advantage to meet, social, kindly, courteous and wise, conducted the Information Bureau, already referred to, for a long while and then the Bureau was turned over to him and established as a separate business enter- prise, being now known as the Hooper-Holmes Information Bureau. It is now conducted by Mr. Bayard P. Holm.es, its President, and has extended its operations concurrently with the growth of the interests intrusted to its care. This Bureau always reported to the International Association and does now to its successor. At the Conventions of this International Association the various and sundry questions connected with the evolution of Accident and Health insurance were profoundly discussed, and radicalism and conservatism contended annually for su- premacy without much avail. The scope and meaning of the "Double- Benefit" clauses of the policy, the payment of indemnity for partial disability and for how long ; the insurance of beneficiaries either with or without extra premium, the insuring of children free of charge; the Missouri suicide law; the payment of claims for death or disability due to sunstroke, asphyxiation, gas or septic infection; the automobile hazard; 27 the granting of accumulations, the transferring of accrued accumulations, the twisting of Agents, the co-operation of Claim Departments, the loss ratio, the expense ratio, taxation. State or Federal supervision, all these and many more topics claimed their attention, while golf, baseball, bridge, excursions, dancing, music, and most of all, the banquets and the ladies, established friendly relations among the fifty or sixty Companies that could never have been accomplished in any other way. While the Association is not credited with having accomplished substantial reforms, where would the mad craze for business have landed the Companies except for the restraining influences and the degree of co-operation that really was accomplished through this instrumentality ? About three years ago, the International Association of Accident Underwriters was consolidated with the Board of Casualty and Surety Underwriters and the two became the International Association of Casualty and Surety Underwriters. This organization comprises membership of Companies in all the Casualty lines and has Sections devoted to the special interests of the several lines, the m.ain body caring for inter- ests common to all, such as legislation, taxation, etc. By the amalgam.ation, the Accident business was left without any separate complete organization to look after its special inter- ests, the sectional plan not seeming to accomplish that result. Recently, however, there has been organized a Bureau of Personal Accident and Health Underwriters which is expected to supply the necessary organization to promote the welfare of the Accident and Health business. STATISTICS. I have refrained thus far from indulging in statistics, but a paper of this sort would hardly be complete without a few being thrown in to enliven its monotony. There are approximately 70 companies transacting personal accident and health insurance in this country, 91 in Great Britain and 33 in Canada. Of the first 70 Stock Companies there is only one company with a five milHon dollar capital, one with four million, one with three, one with two and nine with capital of a million dollars each. The other companies, although a great many are just as secure as are the million dollar companies, range in capital from $10,000.00 up. Since the commencement of the business in this country fully forty companies have failed or been re-insured. Besides the Stock Companies there are 65 mutual, fraternal and Traveling Men's organizations. The net gross premiums written for personal Accident and Health business in 1913 were $41,451,216.00 as against $36,131,- 879.00 in 1912 and the losses paid in 1913 were $18,837,461.00 28 as against $16,534,712.00 in 1912, with an average loss ratio in each year of approximately 47 per cent. The number of accidents reported to the Hooper-Holmes Bureau by the 158 subscribing Casualty Companies and Associations, for the year ending June 30th, 1914, was 280,247 as compared with 255,550 reported in the previous year. COMPETITION. Competition has entered into the conduct of the Accident and Health business as in everything else. Possibly everyone thinks that the competition in his line of business is greater than that of any other line. However that may be, while some combinations in restraint of trade were discovered by the U. S. Government officials, no actual monoply of any line of business has been discovered and governmental supervision and control of many lines of business has very nearly suppressed the individual or corporate initiative and activities, which had resulted in the great developrnxcnt of the vast resources and unlimited possibilities of this great country of ours. Com- petition has its advantages and its evils. In Accident Insurance the difficulty has been to get the public to realize the value of and necessity for its protection, making the cost of procuring the requisite volume of business through the personal activities of the agents alone much too expensive. The Companies have therefore resorted to the adoption of competitive selling features in their policies, many of which would be of great value if held down to reasonable limits, but the excessive and wholly unscien- tific offers for loss of one eye or one hand or one foot have simply placed irresistible temptation in the path of those of get-rich- quick ambition, to bring about the condition under which the payment of these large sums would be called for and the inge- nuity displayed to make the conditions appear to have been ''accidental" are very extraordinary. Fraudulent claims are perpetrated against all companies but mainly against large companies, and notwithstanding success- ful claim adjustments they have a very appreciable effect upon the loss and loss expense ratios. With this competitive situation eliminated, and co-operation substituted, the possiblities of furnishing adequate Accident Insurance protection to the greatest number of honest insured at minimum cost would be materially increased. And now that we have touched a few of the high places in personal accident insurance history, the question may be asked by some of you young gentlemen, ''What is the use of our review- ing this historical vista — Of what material good will it be to us?" To answer that question, to urge you to delve deeper into the general history of the subject and to study the history of your own particular company so that you may be stronger in your 29 work, and more loyal to your company than ever before, I will quote one of the world's famous historians. He was generaliz- ing when he spoke, but the truth of his statement applies to whatever history you study, whether it is the history of the world, the history of your race or the history of your business. "What then," said he, "is the use of history?" "It teaches on a large scale what the experience of life teaches to each of ourselves — that life must not be played with, that there are laws which we must learn and understand as universal and as inexorable as Physical Laws." In this course of Institute Lectures, you have a splendid opportunity to deepen your knowledge of the personal accident business in which you are engaged, and make yourselves stronger and better fitted to cope with the many and varied problems which each successive year, and oftentimes each successive week, will bring to your attention, demanding solution, and upon the correct solving of which rests the future advancement of the business and the welfare of the millions of people who now rely and will always rely upon it for protection when calam- ity in the form of accident or illness befalls them. Do not look upon it as a money-making proposition altogether — it has a much wider scope, the full value of which cannot, however, be realized until many of the elements of commercialism which now impede its progress are eliminated through co-operative efforts. Accident Underwriting BY B. A. PAGE Trie Travelers Insurance Comt)any JANUARY 29. 1915 One who carries on the business of insurance has come to be known as an underwriter. The term was first used in con- nection with marine insurance. The several persons who shared in assuming the risk of a proposed voyage wrote their names under the contract of insurance, and opposite their signatures the amounts for which each was bound in case of loss. An underwriter, from the Agent's viewpoint, is one who for inconse- quential reasons, prevents the company from accepting per- fectly good business. Accident underwriting may be considered as an art to be acquired by experience and study. Accident insurance was first introduced in this country in 1864. For several years, the business was a series of experi- ments. The underwriter had little to guide him in the formula- tion of policies, the making of rates and rules, — frequent changes were necessary, — policies and rates were announced only to be withdrawn. The Companies in the business were swamped with a flood of unworthy and fraudulent claims. By the pioneer company (The Travelers) no less than seven manuals were issued during the years 1864 to 1868. As the writing of this kind of insurance advanced changes were less frequent; the early underwriter learned to protect his company from the collective hazard, the designs of unscrupulous individu- als whose purposes were speculative, but of the seventy odd companies organized to write accident insurance in the United States during the years 1864 to 1869 only one survived beyond the year 1870. Present rates are based upon the experience on hundreds of thousands of risks, and are advanced or decreased as the experience shows changes to be necessary. This experience is kept on a completed basis, i. e., all policies issued and renewed in the year are grouped and all claims arising from injuries sustained during the term of such policies are charged to the experience of that year. It is essential to know the benefits in the policies under which the experience was obtained to draw correct conclusions. The statistical showing cannot be regarded as conclusive, when 31 applied to the present-day forms, and the hazards of life have changed as well. A record is kept of accidents ''foreign to occupation" and those "at occupation." It shows the premiums received in any given year or term of 3^ears from the risks in each occupation, and the losses paid, under both "at occupation" and "foreign to occupation" claims. Under the "foreign to occuptaion" claims, sub-divisions are made of accidents "at home," — "on the street," — "horse and vehicle, ' ' — ' 'automobile, " — " travel, " — ' 'recreation, ' ' — "bic^^cles and motorcycles," etc. The following table will illustrate, also show the rise in certain classes of accidents and the decline in others. TABLE A. ACCIDENTS RESULTING FROM CAUSES TO WHICH ALL MEN ARE EXPOSED WITHOUT REGARD TO THEIR EMPLOYMENT FOR WHICH THE TRAVELERS PAID CLAIMS IN 1913 Per cent. Automobiles, 21.8 Travel, 19.5 At Home, 16.9 Sports and Recreation, 15.3 Pedestrians, 13.8 Horse and Vehicles, 3.5 Bicycles and Motorcycles, 1.5 Miscellaneous, 7.7 CAUSES OF ACCIDENTS, 1913 Automobiles, Travel, .... At Home, Sports and Recreation, Pedestrians, . Number Amount Claims Paid 1,762 $312,51.7.78 1,294 279,595.47 2,613 241,384.11 1,931 218,554.04 2,038 197,342.71 32 Horses and Vehicles, .... 631 50,259.34 Miscellaneous, 765 100,286.69 Bicycles and Motorcycles, . . 259 20,811.76 Elevators, 45 10,779.42 Occupation, 6,520 423,613.87 Total 17,858 $1,855,145.19 AUTO ACCIDENTS, 1913 Cranking, . . . . Foreign matter in eye, Jolting, Entering or leaving. Skidding or ditching, Operating, . . . . Caretaking or repairing, Collisions, . . . . Around Garage, Miscellaneous, . Total, . Number Amount Claims Paid 723 $61,820.89 32 1,065.97 32 2,384.00 130 18,948.65 163 110,124.83 111 23,312.34 188 7,929.68 199 74,794.48 72 2,780.73 112 9,356.21 1,762 $312,517.78 AT HOME ACCIDENTS, 1913 Burned to Death in Burning House, Scalded and Burned While Cooking etc., Cleaning Clothes, etc., . Injured while working around barn, shed, etc., Falls on stairs, Cutting corns, toe nails, finger nails, Shaving, Slipped in bath tub, .... Slipped on rugs, floor, etc.. Falls from chairs, tables, etc.. Number Amount Claims Paid 2 $13,500.00 161 11,855.19 377 19,730.46 369 30,469.17 45 2,842.31 54 4,105.75 57 5,205.67 115 16,428.65 59 3,816.46 33 Run into beds, bureaus, doors, etc., Cut on bottles, sharp instruments, etc.. Slips on lawn, etc., ..... Falls from ladders, Foreign particles in eye. Hit by falling objects, .... Getting in and out of bed. Poisoned or infected, .... Finger caught in door, etc.. Stepped on broken glass, sharp instru- ments, etc., Carving, Pet animals' bites, etc.. Carrying children, finger in eye, etc.. Lifting and moving articles. Miscellaneous, Total, 123 5,340.86 297 11,702.15 54 3,661.64 47 3,737.45 9 595.72 75 5,878.48 22 2,755.19 170 16,682.43 52 4,666.25 88 3,329.17 11 287.34 31 833.92 8 2,392.90 95 4,512.54 292 67,054.41 2,613 $241,384.11 ACCIDENTS TO PEDESTRIANS Struck by automobile, . Struck by team, .... Struck by bicycle and motorcycle Struck by train and street car. Struck by falling object, . Bitten by dog, Slipped on ice or wet pavement, Foreign particles in eye, Fall caused by uneven ground curbing, Stepped on nail, glass, etc.. Stepped on by horse. Fell over object on ground. Collisions with inanimate objects, Collision with another pedestrian, Miscellaneous and Total, . Number Amount Claims Paid 87 $27,390.39 21 2,621.67 35 3,165.36 37 18,224.93 45 3,190.40 37 1,200.76 627 48,428.35 113 7,805.33 413 46,441.01 75 2,334.07 8 230.35 181 10,417.09 53 1,864.21 21 855.70 285 23,173.09 2,038 $197,342.71 34 HORSE AND VEHICLE ACCIDENTS, 1913 Number Amount Claims Paid Collisions with Automobiles, . Runaways, Collisions, Defective Appliances, .... Getting in or out, Shying, ........ Horseback Riding, Bites and Kicks, Working around vehicles, etc.. Miscellaneous, Total, HORSE AND VEHICLE AND AUTO ACCIDENTS BY YEARS, 1902-1913, INCLUSIVE 8 $ 410.74 130 16,839.31 41 2,997.36 20 1,410.89 75 3,478.05 57 4,896.19 108 7,679.14 76 4,251.75 16 1,258.37 100 7,037.54 631 $50,259.34 Horses an id Vehicles Automobiles Year Number Amount Number Amount 902-1906 4,117 $441,620 843 $124,540 1907 1,056 134,634 384 52,467 1908 873 104,732 498 72,820 1909 801 102,679 708 119,633 1910 897 108,218 1,163 167,946 1911 877 101,721 1,239 333,911 1912 953 113,230 1,525 300,106 1913 631 50,259 1,762 312,518 On the assumption that exposure to accidents "common to all" is practically the same for all risks, the rate is principally based on the occupational exposure, and how widely this differs is evident from the fact that the premium varies from $5.00 to $30.00 for each $1,000 principal sum and $5.00 weekly indemnity. The Manual lists over six thousand occupations. There are ten classes within which nearly all occupations come, — special hazards, such as mining and certain railway operations requiring special combinations, limits and rates. The regular classes are as follows : 35 Ex. Special Hazard- ous $15.00 18.00 24.00 o o d CO CO 03 $12.50 15.00 20.00 s to ^ $10.00 12.00 16.00 20.00 24.00 28.00 d CO sss o o o o o o o o o to o o o o o O to o t^ Oi (N to 00 ^ ^ rH (M (M TtH l:^ CS| (M (M O !>. to CO CO Tt^ 3 a CO (N to O to O to »o o o I> O to o to O O (M to g^2 0 OO t^ CO CO ss§ K8S 8K8 Tt^ to CO 00 O tH T-i T— 1 (M CO to i—ir-ir-i t^ ^ to T-H (N (M Oi rtH (M (N CO '^ T— 1 CO to to CO 00 c O to o o t^ to o to O to to O O (M O to 8SS Ol O 1—1 r-H (M CO T— 1 T— 1 T— 1 to 00 (M r-H T-H C^ CO o t^ (M CO CO to o to TJH to t^ Extra Preferred o o o O CO 00 o o o O (M tH O O O O CO 00 O O O O O O O O O OOO 888 CO CO TtH CO t^ 00 Oi Oi O T— 1 (N to 00 T-H rH i-H ^ rtH O (M