Verhovayak Lapja, 1947 (30. évfolyam, 1-24. szám)

1947 / Verhovay Journal

Why Change The Provisions Of The Sick Benefit Department?

FAGE6___________________________________Verhovay

Journal______________________________October 8, 1947

DOUBLE INDEMNITY

(Continued from page 5)

excesive claims resulting from such exceptional cases.

While the average member’s privileges will not be affected in any way by these amendments, they will, undoubtedly, serve to strengthen the Sick Benefit Fund of the Association, since it is the excessive claims growing out of unusual cases that represent its greatest burden.

Naturally, the question will be asked: “It the Sick Benefit Fund of the Verhovay in such bad shape that it needs strengthening?”

The answer is: No, it is not in bad shape, and, yes, it needs strengthening. This sounds like a contradiction, but it isn’t as will be shown by the following.

The Condition of the Sick Benefit Fund.

We quote from the report of ► the Certified Public Accountant to the National Convention: “The Disability Fund collects additional dues from members who desire health protection; it pays sick, maiming and birth benefits and should pay its share of expense incurred in the administration of such benefits.

However, with the exception of a very small amount for medical examiners’ fees, this Fund has not borne any burden for expense. The Insurance Department has objected to the manner in which this Fund is operated and has requested that the dues for sick benefits should be established on an actuarial insurance basis and should be operated accordingly. The fact that this Fund has collected dues in the amount of $593,- 204.07 during the four year period and has paid out $512,- 801.13 for sick benefits during the same period makes it obvious that the dues paid by your members have been inadequate for the operation of this Fund.”

In compliance with the instructions of the Insurance Department, the actuary of the Association has made a complete evaluation of the Sick Benefit Fund of the Verhovay. While his findings were similar to those of the C.P.A., his conclusions were more favorable. What is most important: he found that it will not be necessary to increase the dues of the Sick Benefit Department. This, in itself, proves the STRENGTH of our Sick Benefit Fund which is further substantiated

by the fact that the Insurance Department concurred with the opinion of our actuary. Both agreed, however, that some changes in the provisions are necessary if the Sick Benefit Department is to be brought up to modern business standards which is something the Insurance Department rightfully insists upon.

This insistence has become increasingly emphatic during the last few years. Some societies, convinced of the adequacy of their sick benefit funds, have tried to resist the demands of the Insurance Departments and, as a result, one of the 100% Hungarian fraternal societies, since then merged with another, found itself compelled to close its branches in the State of New York. Naturally, Verhovayans do not want to force their Association into a similar position and, therefore, nothingremains but to cooperate with the entirely justified demands of the Insurance Departments.

What, actually, is the demand of the Insurance Department? The answer is simple: it demands that health insurance be put on' a legal reserve basis. The Association was faced with the same demand, in reference to its Mortuary Fund, in 1924, when the transition to legal reserve life insurance was effected. Now the insurance authorities have gone one step further. They demand that health insurance also, be put on the legal reserve basis. This means that all present and future health insurance liabilities must be backed up by adequate reserves in the Sick Benefit Fund. This demand can be met by some societies only by an increasing of the rates, and by others by decreasing the benefits. The strength of Verhovay’s Sick Benefit Fund is proven by the fact that no such radical changes are necessary. The moderate adjustments made by the above outlined amendments will strengthen the reserves of the Sick Benefit Department so as to increase its solvency to 100%. Nothing more is asked, nothing less will suffice.

We feel that out fellowmembers, if acquainted with the above facts, will gladly give their approval to the amendments of the Sick Benefit By-laws, adopted by the XXI. National Convention.

Sad ending to Jack and the Beanstalk: Beanstalk got so high, Jack couldn’t buy the beans.

— The Insurance Story Of A

This is the story of the late Michael Sitko, one of the four sons of Mr. and Mrs. Stephen Sitko of Williamson, W. Va., all of whom had served through World War II., and, then, returned to civilian life. Of the four probably Michael saw the most action, judging from the decorations awarded to him in recognition of gallantry in action.

Upon returning from the war, all four applied for reinstatement in both the Sick Benefit and Accidental Death Benefit Classes of the Association. The application of Michael, who joined the Verhovay at Branch 343 in January 1932, was rejected by the chief medical adviser of the Association, though he was automatically reinstated in the Accidental Death Benefit Class. It didn't mater, after all, for he wouldn’t have benefitted from his membership in the Sick Benefit Department anyhow, while his reinstatement in the Accidental Death Benefit Department proved an act of Providence.

Upon his return to civilian life, Michael found employment at the Scamnel China Company in Trenton, N. J., where he became a member by transfer of Branch 13. He has worked there for a year when a tragic accident occurred. Michael fell from a hayloft, while at work. The unconscious young man was rushed to the St. Francis Hospital in Trenton where he expired 5 days later, on September 8th, 1947.

Father and mother were his beneficiaries to whom the death benefits were paid. Michael had a $1,000 membership certificate with the reinstated Double Indemnity Rider attached. Thus, the mourning parents received $2,000 after their son who survived the dangers and horrors of war only to lose his life in an accident a year and a half after his return.

This story is told for the benefit of our veterans. More than 6,000 members of the Verhovay had served with the armed forces in World War II., and nearly 1,500 of them were members of either or both the Sick Benefit and Accidental Death Benefit Departments. In accordance with the provisions of the By-laws the sick and accident benefit membership certificates of these fellowmembers had been cancelled upon their induction, with the understanding, however, that the applications for reinstatement of these fellowmembers, if filed shortly after their return, will be given preferred treatment by the Association. Yet, many of our veterans appear reluctant to

Veteran Who Died At Home. —

apply for reinstatement in the sick benefit and accidental death benefit classes. Though this may be understandable in some instances, still the case of the late Michael Sitko proves how great a loss may be incurred if these privileges are not restored. Had Michael Sitko not applied for his reinstatement, his parents would have lost, in addition to their beloved son, a thousand dol- Issr in benefits. Had he assumed a resentful attitude because of the rejection of his application for reinstatement in the Sick Benefit Department, insisting, like so many others, that if he couldn’t get back all of his privileges then he wanted none of them, his parents may have lost all of the benefits. But Michael Sitko acted like a sensible man. Accepting his rejection from the Sick Benefit Department, he still kept his original membership certificate in force and availed himself of the privilege of reinstating his Double Indemnity certificate. He could not save his beloved parents from the bitter sorrow of losing their son, but he was able, thereby, . to extend, as a last act of filial love, his helping hand toward them.

In view of the ever increasing hazards of civilian life, it seems foolish to drop any protection risking, thereby, benefits which may become a source of comfort and help to our loved ones in the darkest hour of need and sorrow. In most instances, such protection has been purchased originally by the parents who continued paying its costs for many years, often at a great sacrifice to themselves. It seems more an act of ingratitude, than anything else, when a member simply neglects, or purposely forgets about his membership privileges, which have cost his parents many a selfdenial. While gaining very little, actually only a few cents each month, his loved ones may lose what, in many instances, may become their only resource. That one has survived the war does not mean that he will survive the risks and dangers of “peaceful” living. We hope, therefore, that the lesson of the tragic story of the late Mifhael Sitko will not be lost on our veteran fellowmembers and that they will decide to apply for the restoration^"of all of the membership privileges which they had enjoyed before entering the armed forces. Calamity strikes when it is least expected and against its tragic effects on our loved ones preparedness by all-around protection is the only defense.

NEVER QUIT!

When things go wrong, as they sometimes will,

When the road you're trudging seems all up hill,

When the funds are low and the debts are high,

And you want to smile, but you have to sigh,

When care is pressing you down a bit,

Rest, if you must—but don't you quit.

Life is queer with its twists and turns,

.4s everyone of us sometimes learns,

And many a failure turns about

When he might have icon had he stuck it out;

Don’t give up, though the pace seems slow—

You might succeed with another blow.

Success is failure turned inside out—

The silver tint of the clouds of doubt—

And you never can tell how close you are,

It may be near when it seems afar;

So stick to the fight when you’re hardest hit—

It’s when things seem worst that you mustn't quit.

—AUTHOR UNKOWN.