restricted in their methods of insuring. Many large employers wanted to carry their own risks without insurance, provided they could show that their financial condition would warrant it, claiming that in that way they could better carry on their safety plans. Employers, generally, objected to being confined to any particular class of insurance. Some wanted power to create mutual insurance companies and, in most States, laws have been passed permitting this; others desired permission to insure in stock companies; while others wanted the State to create an insurance fund by assessment upon employers. There was found no great objection among employers to either of these three forms of insurance, provided the employer is not restricted to any one method but is given the option of procuring his insurance through either one of them. In States in which either of these methods, or all of them, were in operation, there was little, if any, complaint as to the methods of making settlements or payments. It was generally felt that, with an industrial accident board passing upon all settlements and determining all differences and with such other restrictions and regulations as might be necessary, both employer and employee were protected under these three methods of insurance, and that the employer received the benefit of the competition resulting between them. The mutual companies have undoubtedly, by their competition, aided in the reduction of rates to a larger extent than the amount of their business would indicate, as they furnish a field to which employers can go in case they feel that the rates of stock companies are too high. This is also true of the State insurance funds, except that they have been organized to a less extent and have done a smaller business than the mutual companies. Respectfully submitted. CYRUS W. PHILLIPS, Chairman, LOUIS B. SCHRAM, JOHN MITCHELL, Commission to Study Operation of JANUARY 15, 1914. APPENDIX. No. 1. DIGEST OF PRINCIPAL PROVISIONS OF STATUTES IN FORCE JANUARY 1, 1914. (1) ELECTION-HOW MADE. Arizona.-Elective with respect to nonhazardous employments only. (Compulsory on employers engaged in enumerated hazardous employments.) Election made by agreement between employer and employee. Connecticut.-Contracts of employment conclusively presumed to include mutual agreement between employer and employee to accept unless contract contains written stipulation to the contrary, or unless a written or printed notice indicating a refusal to accept the act is made by one party to the other and to the compensation commissioner of the district in which the employee is employed. Illinois.-Acceptance is presumed as to certain classes of employers enumerated in the statute in the absence of a notice to the contrary posted in place of business and filed with the industrial board. As to all other employers, an affirmative election to accept the act must be made by notice of such election filed with the industrial board. All employees of employers who have accepted the act are presumed to have made a similar election, unless within 30 days after employment or acceptance by employer such employee files notice of nonacceptance with the industrial board, which in turn notifies the employer of his employee's nonacceptance. Iowa.-Acceptance of the act is conclusively presumed on the part of employers in the absence of a notice posted in a conspicuous place and filed with the industrial commissioner. Employees of such employers are presumed to have accepted in the absence of notice served upon employer and industrial commissioner. Kansas. Election by employer to accept presumed in absence of notice thereof posted on the premises of the employer and filed with the secretary of state. Every employee of an employer who has not rejected the act is presumed to have accepted it unless he files with the secretary of state before injury a written declaration of the intent not to accept. Maryland. By contract in writing between employer and employee. Massachusetts.-On part of employer, by becoming a subscriber either to the Employees' Mutual Insurance Association created by the act or insuring in an authorized liability insurance company, and giving written or printed notice to employees of such fact, and filing duplicate with the industrial board. The employee of an employer who has accepted the act is presumed to have accepted it unless written notice to the contrary has been given by him to the employer either (1) at the time of hiring or (2) within 30 days after the employer's acceptance, if such acceptance be subsequent to date of hiring. Michigan. On the part of employers, by filing with the industrial accident board written acceptance, stating method proposed for payment of compensation; which, however, does not become effective until approved by that board. Must, within 10 days after approval, post notice of acceptance of act. Acceptance binding for one year and for each successive year, but employer may withdraw such acceptance as of the expiration of any year by filing notice with board at least 30 days prior to expiration of such year. Employee must give employer notice in writing of election not to be subject to provisions of act within 30 days after acceptance by employer, or, where he enters employment after acceptance by the employer, he must give notice in writing at that time that he elects not to be subject to the provisions of the act. Employee may subsequently waive such notice of nonacceptance by a statement in writing, which takes effect five days after it is submitted to the employer. Minnesota. On part of employers: Election to come under compensation features of the act is presumed in the absence of affirmative election to the contrary, by written notice posted in place of business and duplicate thereof filed with labor commissioner. On part of employees: Election to accept compensation under the provisions of the act is presumed in the absence of affirmative election to the contrary, by written notice to employer and duplicate, with proof of service, filed with labor commissioner. Nebraska.-Employer's acceptance of act presumed unless otherwise expressly stated in the contract of employment, or unless notice to the contrary be posted in the place of business and filed with the insurance commissioner. Employees of one accepting the act presumed to accept unless notice of rejection is served upon employer and filed with insurance commissioner. Nevada.-Every employer covered by the act is conclusively presumed to have elected the compensation provisions of the act, in the absence of affirmative election to the contrary, by written notice posted in the place of business and filed with the commission. All employees affected by the act are conclusively presumed to have elected to take compensation in accordance with the terms of the act, in the absence of written notice served upon the employer and filed with the commission. New Hampshire. By employer filing notice with commissioner of labor and either filing bond for payment of compensation or receiving certificate from commission of labor as to his financial responsibility. Election by employee is not made until after injury and then by his election to accept compensation in lieu of right of action for damages as it existed prior to the act. New Jersey.-Employer's election presumed in absence of written notice to employee or expressed in a provision in the contract in hiring. Employee's acceptance, where employer has accepted the act, is presumed in absence of written notice to the employer or stipulation in contract of hiring to the contrary. Oregon.-Employer's acceptance presumed in the absence of a written notice to the contrary filed with State industrial accident commission. Acceptance by employee of an employer who has not rejected the act, presumed unless notice to the contrary is given the employer at the time of hiring or within 15 days after recall by employer of his own nonacceptance. Rhode Island. On the part of the employer by filing with the commissioner of industrial statistics a written acceptance of the provisions of the act, and by giving reasonable notice to his workmen by posting copies of such statement in conspicuous places about the places where the workmen are employed. Acceptance binding for one year and sucessive years, subject to cancellation as of expiration, of any year upon 60 days' notice as provided in case of acceptance. An employee of an employer who has elected to accept the act is bound by the same unless he gives notice to the employer and files a copy with the commissioner of industrial statistics, which acceptance can be revoked by the employee by filing with the commissioner a notice, at least 60 days prior to the expiration of the first or any succeeding year and giving notice of the same to his employer. Minors shall be deemed sui juris for the purpose of the act; but if a minor has a parent or guardian, such parent or guardian may give notice. In the absence of notice the minor employee is bound by the act. Texas. By the employer by becoming a subscriber to the Texas Employees Insurance Association or insuring his employees under the compensation act in some stock company authorized to do business in the State. The employer's election is binding upon all his employees. Washington.--Any employer and his employees engaged in works not specified as extra hazardous may, by their joint election, filed with the department, accept the provisions of this act, otherwise the act is compulsory. West Virginia.-By the employer's electing to pay premiums into the State workmen's compensation fund and posting notices in conspicuous places about his place of business. Employees remaining in their employment after such notice are bound by it. Wisconsin. Every employer with more than four employees is presumed to have accepted the act unless he files with the industrial commission a statement to the contrary. Other employers must make an affirmative election and file a' statement of same with the industrial commission. Employees of an employer subject to the compensation provisions of the act are bound by same unless they serve notice of rejection to employer, either (1) at time of hiring, or (2) within 30 days after the employer's acceptance, if such acceptance be subsequent to date of hiring. 30003-S. Doc. 419, 63-2-5 |