disability shall be paid to the insured, which shall not be less than 50 per cent. of his average weekly wages during the previous twelve months, if he has been so long employed by the contracting employer; if not, then a weekly benefit during the period of such disability which shall not be less than 50 per cent. of his average weekly wages during such shorter period as he has been in the employment of said employer.

(iii) In case of injury not resulting in death, where partial disability results, such weekly payment shall be made during the period of such partial disability as is equal to the difference between the weekly benefit payment during the period of total disability and the average amount which the injured person is able to earn after the accident. Loss by actual separation at or above the wrists or ankles of both hands or both feet, or of one hand and one foot, or the irrevocable loss of both eyes shall be deemed to be equal to total disability; the loss by actual separation at or above the wrist or ankle of one hand or one foot shall be equal to one-half of total disability; and the loss of one eye shall be equal to one-fifth of total disability. Total disability shall be deemed to mean inability to carry on any gainful occupation.

The contract or the policy herein referred to may provide that no benefits shall be paid in case of any injury which does not incapacitate the employee for a period of at least one week from earning full wages at the work at which he was employed at the time of the accident.

SEC. 6. Any contract, in order to satisfy the requirements of this act, shall provide that the employer shall contribute not less than 50 per cent. of the insurance premiums and the employees shall contribute the remainder of the premiums. In case the employer provides any insurance fund out of contributions made by himself and his own employees, as above provided, such employer shall pay the whole of the expenses of the management of such fund and all contributions shall be paid into such fund without any deduction by reason of such expense.

SEC. 7. The contract may provide that upon penalty of forfeiture of the benefits of the insurance the employee shall give reasonable and timely notice to his employer, to be fixed by the terms of the contract, of any accident which may entitle him to the benefits of such insurance, and that he shall submit himself to medical examination as required by the employer at the employer's expense.

SEC. 8. The contract may provide that the premium payable by the

employees shall be deducted from their wages. An employer who shall willfully and feloniously appropriate the amounts so deducted from the wages to any use other than the payment of insurance premiums as stipulated in the contract shall be guilty of embezzlement, and shall be punished accordingly.

SEC. 9. The contract between the employer and employee may provide that the insurance premiums shall be paid into the hands of a treasurer to be elected or appointed by the employees or by the employer and the employees in such manner and under such voting arrangements as the contract may specify. The payment of the premiums to the treasurer shall relieve the employer, and the penalty above prescribed for misappropriation of the funds required to be applied to insurance shall apply to such treasurer.

SEC. 10. In case of non-payment of the premiums within one month after the same are payable, the insurance company shall within two months after the expiration of such month send notice of such default by mail to the insured and to the insurance superintendent of the state. The insurance policy or the contract between the employer or employee may specify a shorter period than the one herein provided for. Until the required notice shall have been sent, the policy shall not be forfeited for non-payment of the premium.

SEC. 11. The employer may also advance the premiums of insurance for such number of employees and at such rates as may be agreed upon between him and the insurance company, and may thereupon be supplied by the insurance company with blank policies to be filled in by him with the name of any beneficiary under the provisions of this act and to be executed by him as agent of such company; and he may thereupon reimburse himself for the amounts payable by the employee by deducting the same from the wages of such employee.

SEC. 12. Such contract may provide that upon termination of his employment, from any cause whatever, the employee and his dependents shall cease to be entitled to the benefits of such insurance except as regards accidents occurring before the termination of his employ

ment.

SEC. 13. Such contract may provide that any controversy regarding the extent of disability or the extent of dependency, or any controversy between dependents as to the amounts payable to them respectively, shall be settled by arbitration, the arbitrators to be named by the mutual consent of the parties, and should the parties fail to agree upon an arbitrator, then the arbitrator to be named by a

judge of the circuit court of the county in which the accident happened, and the reward of such arbitrator shall be binding upon both the employer and the employee, or his dependents, as the case may be.

SEC. 14. Any insurance paid in accordance with the provisions of this act shall not be liable to attachment by trustee, garnishee, or other process, and shall not be seized, taken, appropriated, or applied by any legal or equitable process, or by operation of law, to pay any debt or liability of the insured or any beneficiary, nor shall any claim to insurance money be assignable by the payee before the same is paid.

SEC. 15. A contract for insurance in pursuance of the terms of this Act shall not relieve the employer from liability for any accident due to his failure to comply with the lawful directions of any competent administrative authority given in the interest of the safety of employees, unless it shall have been impossible to carry out such directions by the time that the accident happened, or unless the enforcement of such directions has been suspended by the order of a court of competent jurisdiction.

SEC. 16. Every employer shall file with the insurance superintendent a copy of the form of contract and policy which he shall use under the provisions of this act, and in the event of such form being departed from in any particular case, shall also file a copy of such particular contract. If he shall fail to do so he shall be liable to a penalty of $50.00, in each case to be recovered in an action of debt in the name of the people of the state.

SEC. 17. A quarterly report of all settlements and payments of insurance benefits shall be filed by the employer with the insurance superintendent. If such employer shall fail to make such report in thirty days after demand by the insurance superintendent, he shall be liable to a penalty of $50.00, to be recovered in an action of debt in the name of the people of the state.

SEC. 18. The insurance superintendent shall prepare blanks of contract and policies complying with the provisions of this act and shall distribute the same upon application free of charge.

SEC. 19. Nothing in this act contained shall be construed as authorizing any employer and any officer or agent of such employer to require any employee or any person seeking employment as a condition of such employment, or of the continuance of such employment, to enter into a contract, or to continue in such contract, such as is authorized to be made by sec. I of this act.

APPENDIX E

CASUALTY INSURANCE COMPANY CONTRACTS1

The following are the forms of policies and applications as adopted by the Liability Conference, June, 1904, and now in use by the companies forming the conference. Thirteen liability companies are members of the conference, but the policies issued by them follow the same general lines. The character of the liability insuranc contract, the extent of liability of the insuring company, and the duties of the insured in respect to such contracts are clearly set forth in these documents.

FORM OF LIABILITY POLICY AND GENERAL AGREEMENTS

The following skeleton, or general form of liability, and the conditions appended, are the same in all liability contracts approved by the Conference. Special agreements, or conditions, as given herewith, adapt this form to each class of the liability contract:

In consideration of the application for this policy, a copy of which is hereto attached and which is made part of this contract, and of dollars ($..) premium, hereinafter called "the company," does

hereby agree to indemnify

...

of . . . ., County of

hereinafter called "the assured," for the term of

....

...

State of beginning

on the . . . . day of . . . ., at noon, and ending on the . . . ., day of 190.., at noon, standard time, at the place where this policy has been countersigned.

GENERAL AGREEMENTS

This insurance is subject to the following conditions, which are to be construed as conditions precedent of this contract:

1. The assured, upon the occurrence of an accident, shall give immediate notice thereof in writing, with full particulars, to the home office of the company, or to its duly authorized agent. He shall give like notices, with full particulars, of any claim which may be made on account of such accident.

2. If thereafter any suit is brought against the assured to enforce a claim for damages on account of an accident covered by this policy, immediate notice thereof shall be given to the company, and the company

1 Manual of Liability Insurance (March, 1905), pp. 39 ff.; New York, The Spectator Co. For recent modifications see The Insurance Year Book (1910), The Spectator Co., New York, pp. 84 ff.

339

will defend against such proceedings, in the name and on behalf of the assured, or settle the same at its own cost, unless it shall elect to pay to the assured the indemnity provided for in clause "A" of special agreements as limited therein.

3. The assured shall not settle any claim, except at his own cost, nor incur any expense, nor interfere in any negotiation for settlement or in any legal proceeding without the consent of the company previously given in writing, but he may provide at the time of the accident such immediate surgical relief as is imperative. The assured, when requested by the company, shall aid in securing information and evidence and in effecting settlements, and in case the company calls for the attendance of any employee or employees as witnesses at inquests and in suits, the assured will secure his or their attendance, making no charge for his or their loss of time.

4. This policy does not cover loss from liability for injuries when the assured has failed to observe any statute affecting the safety of persons or has with knowledge violated any local ordinance made in the same behalf.

5. This policy does not cover loss for liability for injuries to any child employed contrary to law, nor to any child so employed under fourteen years of age, where no statute restricts the age of employment, nor does this policy cover any injury due wholly or in part to the employment of any such child.

6. If the assured carry a policy of another insurer, whether valid or not, against a claim arising under this policy, he shall not be entitled to recover from the company a larger proportion of the loss than the sum hereby insured bears to the whole amount of insurance. If the assured has any other policy in this company, in respect of any injury covered hereby, the assured shall elect the policy under which the accident shall be treated, but the company shall not be held responsible for a liability under more than one policy.

7. Any assignment of interest under this policy shall be void unless the written consent of the company is indorsed hereon by one of its officers. 8. No action shall lie against the company as respects any loss under this policy unless it shall be brought by the assured himself to reimburse him for loss actually sustained and paid by him in satisfaction of a judgment after trial of the issue. No such action shall lie unless brought within the period within which a claimant might sue the assured for damages unless at the expiry of such period there is such an action pending against the assured, in which case an action may be brought against the company by the assured within thirty days after final judgment has been rendered and satisfied as above. In no case, except that of minors, shall any action lie against the company after the expiration of six years from the date of the given injuries or death. The company does not prejudice