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to Chairmen.
Date March 5, 1921.
From Office Wanager.
Subject
I attach a report from the Supervisor of Insurance in regard
to the treatment to be accorded those persons who have been drawing weekly
benefite under our life insurance plan and who at the termination of the
period during which these weekly indemnities are paid find thomselves still
incapacitated either permanently or to such an extent that they are unable
to retura to nermal life and their ultimate recovery is a satter of doubt.
1 concur in Mr. wilson's recommendation and suggest that the following
plan be (tentatively) adopted to emable ue to handle e number of cassa which
require immediate disposition.
1.
In those cases in which the preliminary weekly indeunity has been
paid and the ineured is pronounced pernanently and totally incepacitated,
and the lump sum of $1.000 is due under the teras of the contract, the
Insurance Bureau may. with the consent of the insured, pay this remeining
$1,000 at the rate of $20 a week for fifty weeks with accrued interest at
3% at the termination of this period.
2.
That where the preliminary payments have been concluded and the
attending physiciane are unable to etste definitely that the total incapacity
is persanent, the Insurence Buresu may continue the indemnity payment of
$20 a week for such pertion of the period of fifty weeks as the insured may
remain totelly incepacitated.
3.
It is understood that the substitution of the $20 weekly indemnity
for total permenent dianbility, in lieu of the $1,000 lump sum payment, does
not relieve the Red Cross from its obligation to pay the unpaid balance of
the full sum of $1,000 with accrued interest in case of death of the insured
during the fifty week period.
The general effect of this plan is to provide maintenance for
those persons who, as a result of their work in the Red Cross, are totelly
disabled for the time being, whose weekly indemnity insurance has been completed
under the contract but who, becnuse they are unable to show conclusively that
they are disabled, are not, under a strict interpretation of the
life insurance contract, entitled to the payment of $1,000 due in cases of
permenent and totel disability. That the plen further substitutes a $20 weekly
payment for the $1,000 payment to avoid any early dissipation of the lump sum
and a call upon the Red Cross for additional necessary relief.
(Signed) B. A. Harlan
Office Manager.
Approved subject to Mr.
Rathbone's approval.
(Signed) L. Farrand.
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Document data
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"ocrText": "I\nI\n+\nto Chairmen.\nDate March 5, 1921.\nFrom Office Wanager.\nSubject\nI attach a report from the Supervisor of Insurance in regard\nto the treatment to be accorded those persons who have been drawing weekly\nbenefite under our life insurance plan and who at the termination of the\nperiod during which these weekly indemnities are paid find thomselves still\nincapacitated either permanently or to such an extent that they are unable\nto retura to nermal life and their ultimate recovery is a satter of doubt.\n1 concur in Mr. wilson's recommendation and suggest that the following\nplan be (tentatively) adopted to emable ue to handle e number of cassa which\nrequire immediate disposition.\n1.\nIn those cases in which the preliminary weekly indeunity has been\npaid and the ineured is pronounced pernanently and totally incepacitated,\nand the lump sum of $1.000 is due under the teras of the contract, the\nInsurance Bureau may. with the consent of the insured, pay this remeining\n$1,000 at the rate of $20 a week for fifty weeks with accrued interest at\n3% at the termination of this period.\n2.\nThat where the preliminary payments have been concluded and the\nattending physiciane are unable to etste definitely that the total incapacity\nis persanent, the Insurence Buresu may continue the indemnity payment of\n$20 a week for such pertion of the period of fifty weeks as the insured may\nremain totelly incepacitated.\n3.\nIt is understood that the substitution of the $20 weekly indemnity\nfor total permenent dianbility, in lieu of the $1,000 lump sum payment, does\nnot relieve the Red Cross from its obligation to pay the unpaid balance of\nthe full sum of $1,000 with accrued interest in case of death of the insured\nduring the fifty week period.\nThe general effect of this plan is to provide maintenance for\nthose persons who, as a result of their work in the Red Cross, are totelly\ndisabled for the time being, whose weekly indemnity insurance has been completed\nunder the contract but who, becnuse they are unable to show conclusively that\nthey are disabled, are not, under a strict interpretation of the\nlife insurance contract, entitled to the payment of $1,000 due in cases of\npermenent and totel disability. That the plen further substitutes a $20 weekly\npayment for the $1,000 payment to avoid any early dissipation of the lump sum\nand a call upon the Red Cross for additional necessary relief.\n(Signed) B. A. Harlan\nOffice Manager.\nApproved subject to Mr.\nRathbone's approval.\n(Signed) L. Farrand."
}