Salt Lake Telegram | 1931-07-20 | Page 9 | Utah Rates on Compensation May be Raised

UTAH RATS RATES ON N NG G COMPENSATION MAY BE RAISED in Insurance Costs Demanded by National Nation Nation- al Council An Increase of 30 percent per cent in compensation compensation com Insurance rates is 15 being bring considered by the state industrial comm commission slon I The Increase is being demanded demand d b by bythe the he National Council of Compensation tion Insurance according to O. O F. F McShane member of the industrial commission Mr tr McShane declares that hat the council has compiled figures for tor or the last five years c rs showing that Utah is among the states where the toll of Industrial accidents has been on the increase and that the insuring companies feel that a raise is not only warranted but necessary H. H F. F Richardson treas ry of or the national council will meet with the Utah industrial commission com mission Monday August 3 and will attempt to support the claim that the insurers are entitled to increases in separate insurance schedules Some of the schedules call for an increase of or per cent Building wrecking concerns which now pay about 13 a month for eve every on the pay roll are being asked by the insurers to pay 26 a a. month Metal mining companies will pay about 12 per cent more I 1 if the insurers are given the rates they the ns ask Metal min mth Ing jug companies at the present time pay 6 per month Insurance for lor ever every Continued on Pate Pale Sixteen UTAH RATES ON COMPENSATION I l MAY BE RAISED Continued from Irom Pare Pace Nine a month man The rates per man manary vary ary with the pay roll roIl In a a. letter to the industrial commission com corn mission the National Council of Compensation Com Com- Insurance sets forth the following In Utah the loss ratio forthe for the he combined 1928 and 1929 fiscal years ears was as per cent as compared with a a. permissible loss s of ot 60 per cent The premiums collected amounted to and the loss losses came to 1 This would necessitate an Increase of per cent Applying the he loading factor of 1043 the Increase in in- crease rease would be I DEFICIENCY SHOWN I Records of the national organization I tion on show that in the last eight years earsl the pren premium um inadequacy in workmen's workmen's work work- mens men's compensation Insurance has has' mounted amounted to more than The deficiency during the last two years ears ealS has jum Jumped d upward in an alarming arming manner The reasons for the upward trend are an increase in hazard per unit of ofay pa pay ay roll due to the Increased use of machines steady Increase in fri hospital and nd medical costs a gradual liber liner of the interpretation of the benefit provisions of ot the on acts Even during normal times these forces have operated to produce heavy eavy underwriting losses Josses but now with ith the present depression their ef ef- lect has been tremendously tremendous I magni magni- fled fied ed premiums have been reduced because of ot declining wages and fall fall- lug Ing ng pay rolls without a n. nd- nd ing reduction in losses Mr McShane in analyzing a Utah schedule reports the following five five- year ear experience Total pay rolls amounted to 10 premiums collected col col- totaled losses incurred aggregated pern permissible loss was as 60 In other words the Insuring inuring in In- suring company lost on that schedule This loss represents the cost ost of ot getting the business office inspection and profits The rate in this particular Industry had hadeen been een per of ot pay roll On the he last of or the five ive years upon which experience was t taken ken the rate had hadeen been een raised to 4 Had the rate been 4 02 for the five years the insurers would have made their permissible pronto profit