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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (June 25, 1963)
MEDFORD MAIL TRIBUNE. MEDFORD. OREGON Confidence Expressed That Insurance Claims Will Be Paid TUESDAY. JUNE 25. HIS - insurance atnt nf iu ki .--.,. tju.i u record for Mcdford School ' Branchfield, were consulted ' with was a representative of District 549C expressed con- Dy school officials at the time National Scholastic Agency, lidence Monday that au I the student accident and med- which has maintained offices school district claims against a' lnsurance policy was tak- in Portland for several years. California Lite Insi,ran.- ' e" out. i Further, he said, the com- companv tually."" 'will be paid even- Not Unusual The speaker explained it In a talk before the Med-! was not unusual that he ford Chamber of Commerce ! should not have been consult Roundtable the agent, Fred ed, however, since no public Brennan of the Medford In-1 'ax money was involved in surance Agency, reviewed the i 'he transaction. Premium on circumstances s u r rounding the more than $6,000 of Med ford accident claims against the Calfornia firm which have not been settled. Brennan noted that neith er he nor the attorney for the insurance plan was paid for by parents of the indi vidual students involved. brennan added that school officials who negotiated the policy "had no reason to doubt the wisdom of their Dennis the Menace We oontuke the way you drive i pany involved. California Life insurance, has been licensed to do business in both Ore gon and California for some time and had a record of prompt payment of claims in the past. What could not be antici pated, Brennan said, was the action of the agent in mak ing modifications in the pol icy "beyond the scope of her authority." Displays Copy At that point, . Brennan dis played a photostatic copy of the original insurance con tract. Pointing to ink lines drawn across two of the pages of the policy, Brennan said they represented where cer tain endorsements had been cut from the policy and the pieces had been taped back together. This is standard operating procedure in the insurance business, the speaker said, in qrder to hold down printing costs. But it is precisely this. he said, which California Life insists "constitutes a fore gery" of their contract. Brennan explained that a standard contract form is frequently changed or alter ed by an agent to "tailor" ii to the particular needs of an individual school. Does Not Have Right California Life contends, Brennan said, that an agent does not have the right to alter the contract in such a manner, but the speaker pointed out that the "en dorsements carried the fac simile signatures, of the sec retary and general counsel and the president of the company." "In each case, the National 0" 1)'" 4 V If 1. li I I ill 1 iLi t.ti yrnw .jr.. 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The agency has written pol icies for 27 other Oregon schools besides Medford, Brennan pointed out. To Hit Attention Brennan said the matter first came to his attention in December last year when he was called one day by Dr. Elliott Becken, assistant su perintendent of schools for 549C, to discuss the non-payment of claims bv California Life. "I suggested that I letter threatening action by sent to the company," Brennan said. and the next day I called the Insurance Department in Salem and asked their sup port in the matter." The speaker said he was called the next day by Ed ward Zorn, chief deputy com missioner wno said he had Beryl Stolphel of California Life in his office at the time. Brennan said he was assured over the telephone by Stolp hel that his office was work ing on the case and hoped the Medford people would be "patient." Several days later, Bren nan said, he was called by school officials who said they had two representatives from Georgia International Life Insurance company in their offices "who wanted to talk to me." Reinsures Company The Georgia firm, Bren nan explained, had "reinsur ed California Life, who, the agents said, was not set up properly to handle the claims," Georgia Internation al was taking over the pro cessing of the claims, Bren nan said he was told. The speaker said he spent part of that afternoon taking the two Georgia a g e n ts around Medford to visit the various doctors who had treated injured Medford stu dents, but who had never been paid for their services by California Life. During the next month, Brennan said, the Georgia firm paid off about $6,000 in claims by Medford residents. But then suddenly the pay ment of claims stopped. A long-distance telephone call to officials of Georgia Inter national revealed that pay ments had been stopped be cause they had been advised by California Life that the contract was "illegal"' claim ing the contracting agent had made several unauthorized modifications in the policy. Starts Filt on Subject Brennan said he collected a file of all material on the matter, including newspaper clippings, and went to Salem to discuss the matter with Oregon Insurance Commis sioner Walter G. Korlann, Branchfield and Zorn. The speaker said he also talked that day with Glen McCarty; representative of National Scholastic Agency, who assured Brennan that California Life "would honor the claims," but counseled patience pending the outcome of a "friendly suit" which the firm was instituting against David Douglas High school in Portland over a similar situation. On June 12, the matter still having been unresolved, Bren nan accompanied Branch field, Becken and Lee Rags dale, physical education di rector at Medford High, to Oakland. Calif., to talk with officers of California Life. Prepared To Fight Case Brennan said the delega tion was advised during the conversation with Stolphel, general counsel for the firm, that California Life would not pay the claims and was prepared to fight the case all the way to the U.S. Supreme Court if necessary. Later that day, the Med ford delegation talked with a deputy in the Insurance Commission office in San Francisco, who asked Branch field to put all the pertinent information in the case in letter form so that his office could study the situation. Medford School Superin tendent Dr. Leonard B. May field, who was at the Round table luncheon, stated at the end of Brennan's talk that up to this year the firm had paid promptly on claims against it. "Coos Bay has carried its policy with the firm for years." Mayfield said, "and had never had any trouble." The superintendent stress ed that public tax money was not used to pay the premium on the policy, but rather it was paid with funds from parents of students covered by the policy. As of last week, Brennan said, the Oregon Insurance Department had asked Med ford school officials to with hold legal action against Cal fornia Life until after the the David Douglas suit is decided. 1 W -tmn, T 1 WAREHOUSE IN FLAMES Billowing smoke encircles tall buildings as firemen battle a fire in warehouse on the south bank of the Chicago river in downtown Chicago. Fire boats and snorkel devices were called into action and firemen were able to confine the fire to the warehouse. Traffic on busy Michigan ave. was suspended due to the heavy smoke which settled over the city. (UP1) IKE FLIES AT LAST Kansas City, Mo. -(UPll- A bird that has not flown for 14 years is traveling at last - on a transatlantic trip. The bird, a cardinal named Ike, has only one wing. Miss Mar garet Herkrath, a local hos pital worker who found the wounded bird 14 years ago and has cared for him since, decided to retire In Cologne Germany. She obtained a spe cinl permit from the U.S. Fish and Wildlife Service to get Ike out of the country. Hoffa To Ponder Driver Pay Hike;- Washington JlTD Team sters' president James R. Hof fa said Monday he would weigh tax angles carefully be fore presenting . wage de mands to trucking firms this fall because union drivers are moving into higher tax brackets. Hoffa said in an interview that he might await congres sional action on President Kennedy's tax cut proposals before deciding how much of: a pay increase to seek at the opening of negotiations in October. If taxes are lowered, he in dicated he might seek more pay and fewer fringe benefits in forthcoming bargaining. The head of the nation's largest union said a nation wide minimum for truck dri vers of $3.03 an hour has now been established. Many road drivers could earn $200 by working longer than 40 hours. Overtime is common in the trucking industry. Local Cadet Completes Phase of Program Provo Cadet Howard E. Lantz of Medford has com pleted the first year curricu lum in Air Science of a four year program at Brigham Young university, Provo, Utah. - Lantz has been accepted in the sophomore phase of air science and upon completion of this second phase will be eligible for acceptance in tha advanced AFROTC program. Recreation Program Under Way in City The Medford park and rec reation department's summer program is now under way. featuring a broad variety of activities again this year, ac cording to a department spokesman. Activities include games and sports, arts and crafts, music and drama, nature lore and a number of special events. The program is being con ducted simultaneously at five city schools and at Hawthorne park. Recreation leaders in clude Micke Noble, Jackson school; Mary Ann Robinson, Jefferson school; Sue Bren nan, Hawthorne park; Janet Pfaff, Howard school; Peggy Kicth, Washington school; and Jerilyn Smith, Wilson school. The program with its vari ous acitivitics Is designed specifically for youngsters be tween 6 and 12, but younger children may enroll if they are accompanied by an old er brother or sister. Activities are conducted Monday through Thursday from 9 a.m. to 4 p.m, at each of the various locations. Spe cific information about class es or activities may be ob tained by calling the depart ment office in Medford city hall. Counsel Committee Budget Approved Salem-(IP1)-The Legislative Counsel Committee has ap proved a $228,829 budget for its staff for the 1963-65 bien nium. The legislature appropriat ed $235,000, but the commit tee decided to leave some staff positions vacant temporarily. Committee Chairman Rep. C. R. Hoyt (R-Corvallis) said if the legislative counsel's staff needed additional help in the future, additional funds could be provided at that time. The committee reaffirmed its policy of not furnishing any staff members to legisla tive interim committees for use as executive secretaries. In addition to the approved Budget, the committee was given $2,000 by the legislature for law revision work during the biennium. Court Records ( tflCI IT ( OI RT Penny Vinrent vi dtvorct complaint Boy Vincent. M ARR I ff.lt KSRB API'I.K ATlONft Dennn Vtntn Keyi 48n Hope dr . Central Point, and Patricia Iiite fioi.mm. 439 Gibbon rd.. Central Point Liod Arden Dunham. 3AI Sav age Creek rd . Grant Paai. and LaMora Ann Gurney, Mitt Whit man it . Medford Flovd r.Hel Gilbert. 439 Chestnut ft . AtHUnd. and Mama Sua. 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