Every policy of insurance must contain a provision setting forth the right of the compensation commission to enforce the policy for the benefit of the persons entitled to the compensation insured by the policy.

Every policy shall contain a provision that as between the parties to or knowledge of the occurrence of the injury on the part of the employer shall be deemed notice or knowledge on the part of the insurance carrier, and the insurance carrier shall in all things be bound by orders, findings, decisions, or awards rendered against the employer.

Every policy shall contain a provision to the effect that the insolvency or bankruptcy of the employer shall not relieve the insurance carrier from liability.

A State insurance fund is created to be administered by the compensation commission. Ten per cent of the premiums collected from the employers insured in the fund shall be set aside by the commission for the creation of a surplus until such surplus amounts to the sum of $100,000, and thereafter 5 per cent of such premiums until such time that, in the judgment of the commission, such surplus shall be sufficiently large to cover the catastrophe hazard. The commission shall also set up and maintain a reserve adequate to meet anticipated losses and carry all claims and policies to maturity.

The entire expense of the administration of the State insurance fund shall be paid in the first instance by the State out of moneys appropriated therefor. All expenses so incurred by the State shall be refunded to the State treasurer out of such State insurance fund.

The workmen's compensation commission shall have power to rearrange the groups of industries, determine the hazards of the different classes, and fix the rates of premiums. The commission may adopt a system of schedule rating in such a manner as to take account of the peculiar hazard of each individual risk.

Under the statute authorizing the creation of mutual companies these companies are given power to write not only compensation risks, but also insure their members against public liability. These associations must have at least 40 members and 2,500 employees.

Ohio. The State insurance fund is created and insurance in such fund is compulsory. The State liability board of awards is required to classify occupations with respect to their degree of hazard and determine the risks of the different classes and fix the rates of premiums for the risks for a sum sufficiently large to provide an adequate fund for the compensation provided for under the act and to maintain the State insurance

fund from year to year. The rate of premium is required to be the lowest possible consistent with the maintenance of a solvent State insurance fund and the creation and maintenance of a reasonable surplus for the payment of legitimate claims.

The board is required to keep an accurate account of the money paid in premiums by each of the several classes of occupations or industries and the disbursements on account

of injuries and deaths of employees thereof; and is also required to keep an account of money received from each individual employer and the amount disbursed from the State insurance fund on account of injuries and death of the employees of such employer. Ten per cent of the money heretofore paid into the State insurance fund and 10 per cent of all that may hereafter be paid into such a fund shall be set aside for the creation of a surplus until such surplus shall amount to the sum of $100,000, after which time the sum of 5 per cent of all the money paid into the State insurance fund shall be credited to such surplus fund unless such surplus, in the judgment of the board, shall be sufficiently large to guarantee the State insurance fund from year to

year.

Any employer who neglects to comply with the requirements with regard to insurance is made liable to the injured employee for full damages without the common-law defenses, or the injured employee, at his option, may claim compensation from the insurance fund, whereupon such fund may recover total amount of its liability, with 50 per cent additional as a penalty, from the employer.

Oregon. The State insurance fund is created to be contributed to by the employers and workmen who elect to accept the act. The State appropriated $50,000 to the fund, and annually donates one-seventh of the total amount of contributions.

Every employer under the act is authorized and required to retain from the moneys earned by each of his workmen who is subject to the act a sum equal to five-tenths of 1 per cent of the moneys so earned in each calendar month, and, in any event, at least 25 cents each month; and is further required to pay the sum so retained to the industrial accident commission, with an additional sum equal to six times such an amount.

Rhode Island.-Insurance not compulsory.

Texas. Employers accepting the act are required to insure in either the Texas Employers' Insurance Association, created under the terms of the compensation act, or in any mutual or stock company. Insurance associations or companies are required to file with the commissioner of banking and insurance classification of premiums, none of which shall take effect until the commissioner of banking and insurance has approved same as adequate to the risks to which they respectively apply and not higher than charged by the Texas Employers' Insurance Association. Mutual companies must have at least 50 subscriptions and not less than 2,000 employees. Washington. The State insurance fund is created, to which all employers under the act must contribute. The statute fixes the premium rates for each group of industries enumerated or directs that each class make as an initial payment into the accident fund one-fourth of the premium of the next succeeding year and one-twelfth thereof at the close of each month after 1911, with the proviso that any class having sufficient funds credited to its account at the end of the first

three months or any month thereafter to meet the requirements of the accident fund shall not be called upon for such month.

It is the intent that the fund created shall ultimately become neither more nor less self-supporting, exclusive of the expense of administration.

West Virginia.-The State insurance fund is created, to which those who accept the act must contribute. The commission is given power to determine the risk of the different classes and fix the rates of premium in each class according to the risks of the same, to provide an adequate fund for the compensation required under the act, and to create a surplus sufficiently large to guarantee a workmen's compensation fund from year to year, with the proviso that the rates so fixed shall not exceed a maximum of $1 on each $100 of the gross annual pay roll of each employer in any class. The premiums of the State fund are contributed to in the proportion of 90 per cent by the employers and 10 per cent by the employees.

Wisconsin. The employers accepting the act are required to insure payment of the compensation in either a stock or mutual company authorized to do business in the State, unless exempted from such insurance by the industrial commission. The commission may make such exemption upon proof by the employer as to his financial ability to pay compensation, which provision may be revoked upon 10 days' notice in writing. Every insurance company doing business within the State shall file with the industrial commission its classifications of risks and rates of premium relating thereto. Discrimination between insured having risks in the same class and degree of hazard by the granting of any rebate or deduction in such rate of premium, or by any change of classification for the purpose of granting such deduction, or in any other manner, is forbidden. Any employer against whom liability may exist for compensation may, with the approval of the industrial commission, be relieved therefrom by either depositing the present value of the total unpaid compensation for which such liability exists or by the purchase of an annuity.

NO. 2. RULES ADOPTED BY STATE BOARDS OR COMMISSIONS.

Under the statutes creating the special boards charged with the duties of administering the law the boards are given power to make rules for the enforcement of such laws. The various boards have adopted rules pursuant to such authority, and the following rules are published as illustrating the extent to which this authority aids the State boards or commissions in bringing about prompt and inexpensive adjustments and fair dealing between employer and employee:

MASSACHUSETTS.

RULE NO. 1.- Manner of giving notice by employer of acceptance of the act.

If personal service is not made of the notices required by sections 20 and 21 of Part IV, chapter 751 of the acts of 1911, and the amendments thereto, said notices may be given by posting the same at one or more of the principal entrances to the factory, shop, or place of business of the employer and in each room where labor is employed, said notices to be printed or typewritten.

Supplement to rule 1.-It has been represented to the industrial accident board that it is possible that employees may be engaged for labor away from the office or headquarters of the subscriber, or may be employed in more than one place or office, and that in these cases personal notice is not always possible or practical. To meet this situation the board has passed the following supplement to rule No. 1:

Where the same employees are employed in more than one room in a building, or in various places, or where employers are engaged in such business as that of managing office buildings, and personal service of the notices required by sections 20 and 21, Part IV, chapter 751 of the acts of 1911, and amendments thereto, is not made, said notices can be served by posting the same at one or more of the principal entrances to each building so managed or where labor is employed, or by posting the same in a conspicuous place near any time clock or other registering device which employees in any such building are required to use, or by posting the same at the entrance to the office of the janitor of said building, or by posting the same at the place where the employee is hired.

RULE NO. 2.- Manner of giving notice by employee to employer.

In each instance the notice shall be served upon the employer, or upon one employer if there are more employers than one, or upon any officer or agent of a corporation if the employer is a corporation, by delivering the same to the person on whom it is to be served, or by leaving it at his residence or place of business, or by sending it

by registered mail addressed to the person or corporation on whom it is to be served, at his last known residence or place of business. (Sec. 5, Part I, ch. 751, of the acts of 1911, and amendments thereto.)

RULE NO. 3.-Report of accidents by association or insurance companies to the board.

That the association and liability insurance companies report to it all accidents within five days after receipt of notice thereof by them from any subscriber, by sending to the industrial accident board a list or brief statement of the same.

RULE NO. 4. Additional copy of employee's claim for compensation to be sent to insurance association or company.

An employee making a claim for compensation under this act shall furnish the association or insurance company against whom said claim is made with a copy thereof by mail or otherwise forthwith, upon the fiiling of the same with the industrial accident board. This rule shall be without prejudice to any rights acquired by the filing of said claim with the board under the provisions of Part II, section 23, chapter 751, of the acts of 1911, and amendments thereto, or by other provisions of said act.

RULE NO. 5.-Insurance association and companies to notify industrial accident board of employers who insure or cease to insure.

That the insurance association and all liability insurance companies shall notify the industrial accident board of the names and addresses of all employers who insure their liability under the workmen's compensation act, notice to be given forthwith upon the issuance of such insurance and a further notice to be given when employers cease to be so insured.

RULE NO. 6.-Agreements between the insurer and employee.

Every agreement in regard to compensation under this act is subject to approval by the industrial accident board, and a memorandum of the same must be filed with the board, whether said agreement is written or oral, and whether it is made by one or both parties, or in the form of a receipt. Any weekly payment or settlement under the act, whether purporting to be final or otherwise, may be reviewed by the board. (Sec. 20, Part II, and secs. 4 and 12, Part III, ch. 751, of the acts of 1911, and amendments thereto, and rule adopted by the board.)

The above paragraph of this rule shall be written or printed at the head of every agreement regarding compensation, and of every receipt taken by the insurer from the employee.

RULE NO. 7.-Employer to file notice of insurance with the board.

Every employer shall file with the industrial accident board a copy of the form of notice, including the signature thereto, which he has given to his employees that he has insured under this act.