Reductions in workmen's compensation insurance premiums for farmers

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Reductions in workmen's compensation insurance premiums for farmers
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United States -- Bureau of Agricultural Economics
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S|UNlTED SBU S DZPAZRUNT OF AGRICULTURE
ME` Bujeau of Agricultural Economics

P ------ September 1943
U.S DEPOSITORY ,

PM-UCTIONS IN WO.ZMMN' S COMPENSAlON INSUAN(M PREMIUMS FOR FARElRS

Last spring 'there was offered by 65 insurance companies a special
"WV7" accident policy for -workers in the Victory Farm Volunteers and "."onc;t's
Lanc'. Armyi.I/ This policy is very good for the purpose for which it was
C.esigaed. It does not, however, protect a farmer from suit by an injured
employee. He must buy employer's liability, or preferably, workmen's cTr-
A i -ensation insurance in order to obtain this protection.
.W 'orkmen's compensation insurance guarantees the employee that he
Will receive certain "benefits" or payments in case he is injured, proviXed
he agrees to forego his right of suing the employer.2! In this sense it
-)rotects the employer against claims or court awards arising from injury
to ennloyees, the same as employer's liability insurance. Yet workmen's
compensation insurance generally costs no more than straight employer's
liability coverage without the worker benefits. This "double-act-ing" _"ro-
tection is the best form of insurance for the farmer, as well as the
industrial employer, since the question of who was negligent is not con-
sidlered by insurance companies in making settlementst.

Farmers in almost all States are not required to take this insurance.
Farmers in Ohio who hire more than three employees, farmers in California
who hire more than $500 worth of labor a year, and farmers in a few other
Stites,--because of special conditions, must take the insurance orprove
that. they are able to pay the benefits specified in the 'law if an accident
injures one of their employees. Many farmers choose of their own accord
to take the insurance to "protect themselves against suit in case an employee
is injured. Without the insurance a farmer would have to prove that he Was
not nogligent, with respect to his working facilities, if an accident
occurrecl and he were sued. If he is not able to do this, a judgment
against-him could result in severe financial loss.

S l/ The -iolicyv "protects" the insured worker 24 hours a day in all places,
whatever he (or she) might be doing, and provides $500 for loss of life,
un to $1,000 for dismemberment or loss of sight, and up to $250 for hospital
and .-nedical expenses. The premium of $4 for 3 months, or $1.50 per month,
is paid by the worker.
2/ The benefits payable to an injured employee under the compensation act
of each State are the same for all kinds of employment in a given State.
They are summarized in table 1 of a report entitled "Insurance Protection
Against Farm Accidents," issued in April 1943, by the Bureau of Agricultural
Economics, U. S. Department of Agriculture, Washington, D. C. A copy of
S this report was inserted as section 6 of the Victory Farm Volunteers Hand-
book, which was distributed to State extension directors by the Extension
Service, U." S. Department of Agriculture.





-2-

Insuranbe companies iusualy' place upon themselVes the responas1bili'tyV
of keening up with changes it workmen's comrpehsation I&i. XIf the beiselt*i:
are increased, the cobmpanies merely increase their rates. The rate "i .::::i
percentage of pay roll, so that an employer may add on the mines of new : .
eimnloyees and remove the names of former employees. The benefits specified". .
in State laws, and also the. accident. experience, vary, so that rates differ w'
by States. The experience of companies with a particular type of employ-
mont in a State is popled by a central rating bureau, which in this way r...
obtains the xate charged by most insurance companies. Under the insurance 4",:l^
the medical expenses of the injured employee are paid and. there are payments .....
.... T : :T...:i i
for time lost, etc. The amount of the liability protection offered a far=e9r -s '"l
under the insurance is discussed in a succeeding paragraph.

A recent report shows that, as late as April 1943, the minimum anr ual
premiums charged general farmers by insurance companies for workmen'1p corn- GOif,
sensation insurance were very high.2/ Tor 31 of 39 States listed in this ] ..
re-nort the annual minimum premiums were $50 or more.. ...
These minimum premiums (not the manual rates) for general farmers ,,
have been reduced in most States for the duration of the war. The reduc-. ,
tions are most substantial in the South. Efforts to get the costs reduced., 4...
were begun in the spring of 1943, but many authorities and agencies are ,
Aii4
involved in State regulation and considerable time elapsed before the pros- 6Io.::
ent announcement could be made. : l'

Table 1 shows the new minimum premiums, present base rates per $100" ,i|
of pay roll for the "general farming" classification, the amount of animal i iri
pay roll (or pay roll for, shorter periods if minimum premiums are shown for-..
such periods) necessary to obtain these rates, whether or not it is necesB,- :.:.j :7 !
sary to insure all hired labor if the insurance is taken, and the agencies.
from whom compensation insurance may be obtained.- / The minimum premiums. *.:.
and rates shown for "private insurance companies" in table 1 are for those A
companies subscribing to the rate compilations of the National Council on
Compensation Insurance. The reduced minimum premiums make it possible for
farmers to obtain employer's liability (including voluntary compensation i'
insurance without paying so large a premium down payment as heretofore. 21
The proposed minimum premium reductions were pending in the States ..: .
of Arizona, Colorado, Indiana, Minnesota, New York, Utah, and Wisconsin as
of the date of this report, so before the reduced minimum premiums shown .i'
opposite these States in table 1 for private companies are accepted, inquiry .":Vi
should be made as to whether such minimum premiums have been approved..
See footnote 2 for name of report. .,
SRates are subject to revision to reflect trends in experience and changes...:i;I
in the benefit provisions of the workmen's compensation laws. Current rates ::" .;
nay be obtained from the person from whom the insurance is purchased. See: ......j.
example of how premiums are calculated and how the minimum premium applies 4 a'
(table 2). ""m
2/ If an employee does not elect to be bound by the provisions of. the Com-
nensation Act, along with his employer, in order to retain his right of /
suit in case of injury, the insurance protects the employer against suit :i
and pays court awards up to $25,000 or $5,000/$10,000 depending on the amj ount
of liability protection attached to the policy. : A







Table 1.- Minimum premium, rate per S100o of pay roll nd mirnitmum pAy roll In a.t1l. rate. eir.lri .hrv.lni c;aaulfl'-al on wor an,'
coOmp)ensation iLjpsur.nce or empl'l:.rr's I.1'Jtjlltt itDLurlriCe I. r jitnry comppr.avatlon enlorstmnotl
by States and fri'. or.om the Irnurranca ma, t- *ttlnd
i I "llNaiu't u ', N -t a farmer I .. .
Minimum premium late per I pay roll : insure all of I
State I _____________ 1 $100 Inecesary: its employees Ifro wriaou nh a insurance be o.'.aneAl
I Amount I Period I pay roll Ito ottainIllf nhe '!aR; teI
__ covered I rate I lns.rnnce? I
'r-- z zr-- *,-'- .. ... -,-_ --...... ....... --
I Dollars Dollare I-Tlffers -
Alabama 2 ....... 25 I 1 year I 1.12 2 A p 0,i rr., P trtiete nr ,,anl .
Ariona .0. ..... 50 1 year I 4.-O 1. 1,' i OIptlinrvL I Arirora Industrlel "osission-r. Stat. Piildlr,.. anrx
1O I year ?. 14 j:-1 Cy t:. w,& I Private i.rnurn.r Comp&bIniP
Arkansas ....... .. 25 I 1 year i 2. 1 I ,- i vp'.. 1 -,I Frivats Insurance companiesi
CalIfornia I./ y/ 15 i 1 year I I I I Y St.mte -*>Openeatiaon Ic,..i. Ynt a Trnd *"'A rc,&ilrer St. San Francisco
Colorado J ..... 2 I1 year I 1.' ..ye I Sitale ':..Lr.ersar!1jn Ir:.B..'nc:? Fr-I 'r. ai.'.rl Ar er. rcver
o/40 1 yea"r 2.n.t "t l'-I1 i ,i.t'.:r.i. rrtlvte Inursr.ce cB,-enlo
Connecticut ....... 30 I 1yenr I "7 I'l inhal I Private Insurance con-ilee
Delaware ......... 16 I 1 year I .l."I 1. .p.t..a Prletl i"t-ur-,re r'Mfl.O.ra
Florida ........... 25 1 year "Il1 I 1.'. 1ptIoaI I Prlvate ine.rernre cc.nanirea
Georgia ............. 25 1 year I 1.6t0.1 1.5 I '.,. 1. i i" Prlatn ir lrsjrri:e coru.f.lei
Idah / .......... I year I 3-75 I g .,B I Srr' ..1. r r,.( liee
14011 year I p691 iG'. i Cvlklnal i Fri r............. Lee
Illinois .......... 30 I 1 year I 2.73 1 ? C' Ll a *.r'. .m ... -r.
Indiana ........... / 30 1 1 year 2.8:b 1, 17? I uto.aI I .I rn .:r. -x, .
loe .............. / 30 I 1 year I 1.82 i t'L C;.l ln' i o c. r z .n -'. *,cri. n lsr
ranas ............. 30 I 1 year 1 259 1 lB i Opi.I.cil 2,L ? t ..i-n.t cDat..n'.-e
Kentucly......... ?5 1 1 year I 1.54 I 1.572 I' F.-. 1- 15 core c7a.ie
Louisiaa ........ 5 1 year 1.91 I C30, -., t.,',j Prlt'et 1 '1i-1- L6e .';1pa6I.'B
Maine ............. JO0 1 year 1 .' !. '' "Inn, L ? i J I- r 1.. ",- coMipa Maryland / ....... 12 6 moe. ...CC' I T r t.-' r.c. -,'el- Pnd. ,I Calvert Suilding, Baltimore
I 30 I 1 year I 2. 1 '.', j :.,1 .-r -.'- nien -rice cnmnitnles
Massachusetts 6/ .. 30 I 1 year I P.'7 1 LI '1 .1 .rnI I Fr'vaere l-e.,..r 3om pailes6
Michigan 3/ ....... 60 I 1 year I 3.31 3 S1; I e-e State A-.: .....- fund1. Dept. of Insrance. Pruddeo B ulding Lansing. Mich.
30 1 year 3, i l'4 ,.l' P-.,te ,.'a.iranIe .omnTrenle
MtInnaota / ...... / 0 1 .rear 3 C4* I l C,' .' t -'r .iir.1-ra'nce rompan.es
Miesissippi .......N.o worktie7.'4e. ri' .r. lc.-in i Pee ",,e 4. for E'.il.oyer's liability rate@
Mie ouru .......... 30 ;1 year I .11 9t '.-'.. '1. itr, i .rtInce -'!1oaniito
Montana j/ ........ _/ 0 I 1 year I .00 r I e) I i,,:.i' A.cli.nt B-ard Helena
I 40 I 1 year I _-7? I I. .S .7 i1 fri-ni U.eurenco cmpa3nlesB
BNebraika .......... 8/ 30 1 year I 3. I 91 I ..'- I fri'v.e inuratrce craf-nlnem
Nevada 10/ ........ 5 I mo2 3.. 1I l.)o aee ;eveds Industrial Commiseiion, Carson City
ew Hamplbire ..... 30 1 year 2.L. I .?37 *n.''J' -.'''lvt Iturince companies
New Jersey 6/ ..... ear 14.20 I 6:' C'p.-. |n u,:rate inesurarc companies
Novw Mexico ....... year ?.146 1,7)9 CT I'.l'.Il Privi .e liteurnce c3 arilaee
New York I/ .... l16 1 o. 1j/ .66 I PE3 I et I Stnte Ir,.-urnce Fund, 625 Madison Avenue. llNe Tork City
I 32 I 2 mOe.il 5.66 bI t ie i State ;r.aurane F'uad, 625 Madaison Avenue. New York City
I 8 | 3 moe.n. 5.66 d8 Y'e Slit' In'.-ance F,-- 6?5 Madlbon Avenue. New York City
1'7 14-12 me! 5.66 I1,71' Y'A State Insurance Tsind, 625 Madison Avenue. Nlo TOrk City
V/ 30 1 l year 5.66 1 531 OCp.l I Prirva Insurance companies
North Carolina / 2?5 1 year 1.77 I I.'f9 Optt 1..l P "-v.-.:e Insuranre companies
North Dakota 10 .. 12 1 year I 3.00 I 4.0 Tj.. i -'ijern's Compenaatlon Bureau, Bismarck
Ohio V12/ ...... L0 I l.1/ 3.90 I 0 i Tee I Loduatri Commission of Chio, Columbus
Oklahoma ....... I 25 I 1 year I 2.64 I 947 Tea I State A'-cl.dont Pind. State Capitol. Oklahoma City
2? 1 1 year I 2.614 I 947 Opt I.-Ai I PrIva'.e neu.rance companies
Oregon O/ ........ 5 I year I 4.Oo 1 125 1 YTea I fif. Industrial Accident Commission., Salem
Peoneylvanuia/ / I 2 1 year 2.00 I 1.250 I TYe I State Workmen's Insurance rund. Department of Labor. Narrimbarg
I 25 1 year 2.00 I 1.250 i Optinnel ; .Ivato lrsurarnce companies
aoda Island ...... 3C 1 year I .3. 1 885 I IPlu1. ". I Private Inereance companies
Both Carolina .... 25 1 yar 1.59 I 1,57.2 i Optin i Private risurance companies
Bath Dakota ...... 30 1 year .15 1. .21i 1 JOLonal I rtvate insurance co-nanies
Tennessee ......... 25 1 year 1.49 I ,, ..ptilr.' rtvate tnrur noe cOmpanlem
Texas .............I 25 1 year 2.43 I 893 I tIonal P rivate kn aurance c8mpanoes
Utah 3/ ......... I '7 1 I year 2.85 I l..29& I Tee i j'ae In-.,drce Fund. State Capitol, Salt Lake City
I j (s 1 year I 3.5b I 1:1'4' I Cptt.rl I Pri-.tpe iueuance companies
VeTrmont ........... 30 I year 1.87 1.7t I 3'pi n,l riatiu Is-.urance companies
Virginiala 6/ ....... ?5 I1 year 1.75 1.c;17 I q.tt-.w, I PrIata ire-"rice companies
Vashliogton 1m/ .... I I no. I / I YThe PDivison of induat-1-1 Insurance. Dept. of Labor and Industr Oly0mpia
fest Virginia VIl _I 0/ 1 OpLI)nal I Private Ineurance comp anea
Wiconi 6/ ...... I / 30 I 1 year I 3.8? I 75 I Optirul I Private insurance companies
Wyoming SJ 10/ ... I I 1 / I I Optional Private inotararce "ampanies
If itn optional" cases, all earloyees are not covered. th? lns'-ur,,i-e woula c.e obtained 'rom private companies throe.h the endorsement mentioned in
footnote 2. In such caaes the 00,,OQ/$lO.OOC, liability limits iat !r.' be.je rare hnovwn)l apply. If. In "optional" casee, all employees are Insured. the
farmer may file an "election" to come uineJr the act and thus )tila' 1.', rr 11.4.illty coverage lexcevpt .laW.. Va., Wyo. See footnote 2.) Where 'ye"
ie ehown Call epployeee required to be Insured if insu-erce Is tae..1 the el-ction Ic also necessary except In Ohio and California. here the insurance
may be mandatory because of the number of e-mplcyees a former hires &rd the '5 '0'0 liability limit applies
/ A farmer cannot come ,-der the compensation act even bL elei:tl:n: ..i h, c.iptnin inn 15.000/Sl0.000 liability protection (together wivlth the work-
era' benefits stipulated by his compensation act) from private Lriqr-rce coamprf.lt ti.r"r... a voluntary compensation endorsement attached to a straight
employer's liability policy.
/ Underwriting statutory workmen's compensation Insurance ts competitive bet.er. 5'eati. fund and private companies.
Pending as of August 13 19143.
A farmer with a pay roll for previous year of $500 or more must carrj com?-r.gatliion ineurncs or post notices on his property that he has rejected the
law and file proof of posting with Industrial Accident Comieselon. A former -It' r, lesser pay roll may elect to take the Insurance.
/Independent rating bureau control the rates and minimum premiums in theee S-.t.-s
/ The rates vary for 13 farming classificsations from $1.26 to S5.'. per W0C' a;' roll. depending on the largest acreage devoted to a single crop.
Minimum premium amount Ie advisory only.
SIf, after a year of Ineurance, the former hire lee than 56P... wortn of IReor ht must ray a $2.50 minimum premium for the year. This payment is
not in advance, however.
10_ UnAerwriting statutory workmenoe compeneation insorance by StAr f ad is o "pcinll pti
SWhere transient. labor Is hired for first harvesting or similar 3rK '.p praemiaum .- a flat 15 per person per month.
f Farmer having 3 or mote year-round employees must take the Insurn.,:e
After r the first year the rate is reduced to 63 per $100 pay roll
Rate Is 10.023 per hour the first year: thereafter eact farmer has 1.1 tr,.n L.jIu."' r.n' beslaa on giving 0 percent weight to him own loss experience
and 40 percent weight to the class ( i8-3) rate to which re otlor's. r.p "r firrpr I,' 'ases the Insurance RnI -n3 has no claim coats would obtain a
rate of I40 percent of the base rate.
f/ Rot available; may be obtained by negotiation with a private Ir.seau rce ci.r f.,,-










mining if an additional premium-payment Is Sue the insurance i9mpany aV te.:A& ::.:|: ;|*q
end. of the period or (2) endeavoring to obtain a refund of part of his pro -.':
m1iu.i under the short-term cancellation rates of some State tunas, if his "t ("!
:?na roll for such part of a year multiplied by the rate does not equal the ,":i
ramiuru down payment.l( The values placed on board and/or lodging furnishe.I:i
as 3art of the remuneration are shown in table 3, by States.

Unoer the two kinds of insurance discussed in this report, farmers
a.o p-)rotectod against suit either (1) up to $25,000 for any one accident or-t;.ii
(2) u7 to $5,000 for any one claim and *10,000 for more than one claim
resulting ; from one accident depending on whether they insure all or part .
of their eraployees and whether they obtain their insurance from a State .
fundC (Ste.te insurance organization) or from private insurance companiesI. :.-
If a farmer obtains his insurance from the State, he must insure all of hi 'd'
erniloyees and is protected up to a maximum liability of $25,000, If he
obtains his insurance from a private company, he may apply to "come under"
his State compensation act and insure all of his employees and& obtain the
$25,000 liability coverage. S/ Exceptions are discussed by individual StIteiS|
elsewhere in this report. If, however, he desires to insure only part of
them, he should not file an application to be bound by the provisions of iii
compensation act of his State, but should obtain partial coverage from a
private insurance company through a "voluntary compensation endorsement"
attr.chcd to a regular employer's liability policy. Such voluntary coMpOe-;n
station insurance, permitting partial coverage, binds the company o pay"irUm
benefits of the compensation act of the State of location, but does not
inclucdo an; payment for double compensation or other penalties as may be o
stipuir.ted in some State acts because of employment in violation of law a
to age. This seems proper since the coverage is on a voluntary basis on
the part of the insurance company and the insurance as issued does not btr
the employee under the compensation act. In such cases the penalty paymei l
set u' in the law are merely excluded by the company from a contract whi. :.-:,.
it offers to the farmer. 0'Jj
If he files an application to place his operation within the scoped.,"i24
of the compensation act of his State (see footnote 8), he may obtain
"stetutor;-" coverage and all of the features of the compensation act of hiej."
....................................il...,.'.
0fPrivate companies, in setting the reduced minimum premiums have withdraww'.
the privilege of canceling a policy for the purpose of obtaining a partialvl:'i
refu_,A.
/ In Mississippi, where there is no workmen's compensation act, farmers: -rIaN
obtrt.i omTloror's liability insurance from private companies, which Irnb.11&t'
*sore medical reimbursements but no compensation for time lost. The present
rate is $1.74 per $100 of pay roll, with an annual minimum premium of $2..,,
It -rotects the farmer up to the $5,000/$10,000 limits discussed. elsewher-e 4,, ,
in this report.
8/ Porm"s for this purpose may be obtained from either the State insurance
?and (if a farmer lives in a State which has its own insurance organizations.:.:
or from a private insurance company which writes workmen's compensation i ii.\
surance. Not all private companies write it. -.:*'',
J..:.:... ...:E.




-5-


State are annlied by either the State fund or private company in the regular
manner, In such cases, the ernmloyecr's liability protection is not reduced
from $25,000 to $5,000/$10,000. If private company issues either (I) the
stnndn.rd workmen's compensation policy or (2) an employer's liability policy
carrying the reduced linbility limits, but which has a voluntary compensa-
tion endorsement P.ttachod to it for the benefit of the worker, the minimum
nromi'ums and rates shown in table 1 apply. In the latter case the farmer
c.n secure greeter coverage at a slightly higher cost.


TSble 2.- Exarnles of -remiums calculated for workmen's compensation
Insurance for various nay rolls
(Alabama, with a rate of $1.12 per $100 of pay roll end a minimum annual
______ premium of S, is used as an illustration; see table )
A.iotnt of annual pay
roll -olus board and/or Amount of the
lodging furnished in premium Explanation
r.tL6ition thereto _________________ ______
Dollars Dollars

500 25.00 Minimum premium applies
1,000 25.00 do. do. do.
2,232 25.00 l/
3,000 33.60 (3,000 x 1.12) -:- 100

O/ On r.- ay" roll of $2,232 or less the ;aiininum premium, which is payable
in advance, woulC. be the only" parent. If, however, the pay roll is more
than $2,232, there would be an additional pa-ment, which for a pay roll of
$3,000 %,roulc. amount to $8.60. The ?2,232 was obtained as follows:
($25 -4- 1.12) x 100. Column 4 of table 1 shows the minimum pag, roll neces-
sary to obtain the rates quoted in col:u.m 3 of the same table.


If a farmer interested in obtaining the insurance lives in a State
where there is a State insurance fund, he may apply for the insurance from
such fund (except in West Virginia and Wyoning), or he may obtain it from
.rivate insurance companies in some of these same States and in the remain-
ing States, except Mississippi. Farmers in WIfest Virginia and Wyoming cannot
obtain their insurance from their State insurance companies since they, like
the farmers in Alabama, cannot come under their workmen's compensation acts.
In all States except Mississippi, which has no compensation act (see foot-
note 7), and P few other States where, because of the number of employees
hired, size of pay roll, or the hazardous nature of the work, the act is
compulsory for particular farmers, the remaining farmers may obtain $5,000/
$10,000 liability coverage, with alternative compensation benefits to
e..plo:'ees, from private companies through the use of the employer's liability-
voluntary compensation policy discussed elsewhere in this report. The rates
and minimum premiums for this type of coverage are shown in table 1 for
"private insurance companies" operating in these States. By paying slightly
higher rates than those shown, a farmer may obtain mole than the $5,000/
$10,000 liability coverage.












state


Source of
insurance


One
meal


meals


Per
day


fa I -a
Per Pejonr
wee = mnth


Par
night


Per


Per
me"th'


Per
week


'Fir-'
m-*th,*!!i^l


h------- 52-gl, l T. i ol. l. I-Del. i--el. l -lr
OI I I' ."
Ala b-a Private companlea 0.25 I 3.00 I .50 1 5.50. 'I..
Ai"-a state f%"
Private companies .5 0.0 751 i 2.00
Arkanas Private ooQpaes .25 50 3.00 0.30 2.00 1. j
California State fund 30.00 1 .1 I 6.,0 1 1' 36'A
ColoaPrivatoe copane .25 .50 75I 2 00 I i j 1
Colorado State fund .75 1 1 12.00 1 1 **
Private co ie .25 .50 .75 1 1 1 2.00i j 1 1 1 _i _
Connecticut 1Private oo companies .5 .75 2.00 1 1 .1
Delaware Private companies .25 1 .50 I .75 I I I 1 2.-00 I I '
norida Private companies .25 .50 .75 I I 2.00 I I i'; I :.:i
Georgia Private companies .25 I .50 1 .75 i I I 1 2.00 I I I..
Idaho Statefund I 1 .75 f 1 5 I I I' .25 .
r________ivate compae 1 .25 I.I 75 1 1 12.00 1 L
Illinois l Private companl:eI .125 ,50 1 75 1 I I 1 2.00 1 t'1
Indiana IPrivate coapanism :25 .50 I .75-.1 I I 2.00 I 11
Iowa Private companies .25 I .50 I .75 I I I I 2.00 1I
Kansas IPrivate companies .25 1 .50 I .75 1 I I I 2.00 I I! -1
Kentucy t Private eo2anie .2j J .257 | I _____1 2.00. 1I
Louisiana I Private companies 1 .25 1 .50 .75 1 I I 2.00 I 1 I
Maine Private companies .25 .50 1 .75 i I 2.00 i I
Maryland I State fund I .20 .351 .50 I I .50 I i :I
IPrivate company .as .251 50 .75 I 1 2.00 I i
Massachusetts I Private companies I .25 I .50 I .75 I I 2.00 1 I |1
Michigan I Statefund I .51 I I U.50 I .401 2.50 I 1 7.00 I 1
___________ Private companies .25 *I ..15.50|.7..I |----- -----I J.O-----00- 1
Kinnemota Private companies .251 .50 1 .75 1 I I I 2.00 1 1 l
Miss -iss ip....... ... -B No woukmsanqa' 0ce aiiae.1g. Jimuuaavce ailABLe ... -- -... Ta
Miemoui l Private companies I .25 I .50 .75 I 2.00* '
S1. 00 .
Montana State fund .25 .75 5.-25 22.50 .25 1.75 I 7.50 100 7.00
S Private companies. .25 .50 .75 I2.00
Nebraska Private companies .25 1 .5 _____ 2.00 ____. _J51i0
*levads, State fund 1.00 :1W~
Private companies .25 .50 .75 2.00.Hn
Noew Hampshire Private companies .25 .50 .75 1 2.00
New Jerxei Private companies .25 .50 .75 2.00l
low Mexico Private companies .25 -50 .75 2.00 7__
New York State fund .3331 1.:00 3l I J0 3o,10.50
_Private companies .25 .50 .Vi 2l.00oo
North Carolina Trivate companies .25 .50 .75 I 210
North Dakota I State fund 500 I 2.50 7.50
Private cospanie .25 .50 .5 I 2.00 1
Ohio State fund .20 3 .5 I .50 1.00
I Private companies .25 .50 .75 12.00 '
Oklahoma I State fund .25 .50 .75 2.00 1
IPrivate companies .25 .50 75 2.00
Oregon State fund 22.50 MW IS
___________Private companies 25 .50 .75 2.00 1:
Pennsylvania State fund Q .501 .501 1.0011
Private companies .25 .50 .751 2.00 I Ii
Rhodp Island Private companies .25 I .50 .75 2.01.; .0
South Carolina Private companies .25 .501 .75 2.00 .
South Dakota Prints companies .25 .50 .75 '' 2.00 ..
Tennessee Private companies .25 .50 .75 2.00
Te Prlvate companies .25 .i .50 .75 1 2.00 _i
Utah oState fund I 2.00 I i ,
Private companies .25 .50 .75 2.00 I 1
Vermont I Privl companies .25 .50 .75 2.00 ... "
Virginia Private companies .25 .50 I .75 "2.00 .i .
___________ Private companies .2r,.L.. .7% a-no-
Wat Virginia Private opane .25 .50 b75sa on o o work2.00
Wisconsin Private companies .25 .50 .75 2.00o
Vyonlg State fund I
I Private companies .25 .50 .75 2.00 -
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The addresses of the various State insurance funds are given in
table 1. If a farmer desires to obtain his insurance from a private com-
pany, so a.s to be able to insure only part of his employees or for another
reason, he should ask an insurance agent if his company writes workmen's
cor.uensation insurance. If his company writes the insurance and subscribes
to the rp.tes compiled by the National Council on Compensation Insurance, he
cn. obtain the insurance from the agent at the reduced minimum premium
which is nov in effect in his State.

By filing an application to be bound by the provisions of the con-
.ensation -.ct of his State (this procedure, which is possible in most States,
is known as "electing to come under the act"), a farmer obtains $25,000
'',orth of liability coverage instead of $5,000/$10,000 whether he obtains
".is insurance from. a State fund or from a private company. He must, however,
i-sur-e all of `is employees and not just part of them to obtain the $25,000
liability: coverage. Since c.. farmer with a pay roll smaller than the figure
shoun o Mosite his State in column 4 of table 1 will have to pay the full
annual 9:inimur. premium anyway (see column I of table 1), he will want to
"cover" all of his employees. It will cost him no more to insure all of
then thpn -.art of them and he will obtain, in addition, the full $25,000
liability protection. Anc. if he lives in a State where the State insurance
company -..oss not charge a minimum premium (Montana and Ohio) or where the
mini-iium re.niiu.n it charges is small in amount (California, Delaware, Maryland,
~evr.d&a, North Dakota, Oregon, and. Washington), he will want to take his
insurance from the State insurance company even though he must cover all
of his employees. If, however, a farmer has a larger pay roll than that
s:iown o-pnosite his State in column 4 of table 1, he may prefer the partial
coverage -pernlssible under .the voluntary compensation policy in order to
hole. his premium down to the annual minimum even though it reduces his
maxir.um liability protection from $25,000 to the $5,000/$10,000 limits.
He wouldd in such case, obtain his insurance from a private company and
would not have to file an application with the company to come under the
State workmen's compensation act.












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UNIVERSITY OF FLORIDA


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UNITED STATES DEPARTMENT OF AGRICULTURE
Bureau of Agricultural Economics
Washington, 25, D. 0.


Penalty for Private Use
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OnICIAL BUSINESS


ZACH SAVAGE
AGR'L ECOHOIICS
UNlYV OF FLORIDA
SAE GAINESVILLE FLA


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