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Wisconsin State Cranberry Growers Association / Wisconsin State Cranberry Growers' Association. Forty-seventh annual meeting, Wisconsin Rapids, Wisconsin, December 14, 1933. Forty-seventh summer convention, Wisconsin Rapids, Wisconsin, August 8, 1933

Scott, A. B.
Compensation insurance,   pp. 20-22 PDF (825.6 KB)

Page 22

possibly be a determining factor, for the simple reason that work in-
cident to harvesting and sorting cranberries would not develop suf-
ficient experience in twenty-five years in the State of Wisconsin to
furnish us with any defensible criteria. Before you could claim dis-
crimination in the fixation of your rates, you would have to be able to
prove discrimination insofar as similar operations are concerned, such
as the harvesting, sorting, and packing of other berries.
"Naturally, all classifications of industry must necessarily be broad
as an insurance principle, and must incorporate all risks falling
within the various classifications, ranging from those with the least
hazard to those with the most hazard. We are not prepared to make
any definite statement, but, it would appear from your statement that
possibly the harvesting, packing and sorting of cranberries would
constitute a very good risk in comparison to other operations pron-
erly falling within the market and truck gardening classification."
Recently it came to my notice that there was an application from
the insurance company for another increase in rates. If this in-
crease takes effect, it will be a blanket increase of 21 per cent. I took
that matter up with Mr. Mortensen at that time, as well as Mr. Law-
ton, and asked them to let us know when they had a public hearil-
in order that we may present our evidence in protesting such a rate,
but they informed me that no such rate would be granted unless it
could be made very clear that it was absolutely necessary.
While talking to Mr. Lawton, I inquired regarding rates for com-
pensation insurance in other states and the plans under which it was
handled. In the states of Washington and Ohio this class of insur-
ance is handled entirely through an organization maintained by the
state. The rate in Ohio is 16% lower than that in Wisconsin. New
York and one or two other states, California is one I believe, have
competing state organizations with the private corporations writing
Workmen's Compensation Insurance. This tends to keep the rates
from becoming too high.
Bringing the important points together for a review of the Work-
men's Compensation Insurance question, we have:
1st. There apparently is no hope of getting a separate rate classifi-
cation for cranberry growers due to the small amount of business that
comes from their insurance premiums.
2nd. Any individual or corporation can elect to carry his own com-
pensation insurance providing he can show the Industrial Commission
that he is financially responsible to take care of any losses accordin-
to the loss rate tables in effect and will file with the commission a bond
to that effect.
3rd. Organization of a mutual compensation insurance company re-
quires that a minimum of 1500 employees be under its protection or
that there will be a minimum of 200 premiums paid in annually to the
mutual company.
4th. So far as our committee has gone into the matter, we are not
prepared to advise the members of our association to consider the
organization of a mutual company to take care of our compensation
insurance. Before this is done, a considerable amount of data on
rates and plans of operations of other mutuals should be gathered.
also a possible working plan of such an organization should be made
including the listing of all the possible hazards, a vlan of finsnc"--
and a statement of estimated savings such an organization would give
over the present rates.

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