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Tmt 1955 1956 1957 1958 iHeialtic Jutor TIB—li« 58.0% 83.0% 50.0% 49.34% Tear 1955 1956 1957 1958 125 134 159 152 570 57 64 66 64 245 37 46 61 226 68 51 45 55 214 13 19 11 9 52 6 1 6 S 23 6 6 23 35 41 178 "ZAJEDNIČAR^ IU56 1956 195? IMS October T, 195® \n\n Members of the Tenth Regular Convention of the Croatian Fraternal Union of America The Ninth Regular Convention held four years ago gave me the privilege of presenting this report to you as a summary of the past years work in the Medical Depart ment of our Society. Annual reports were given the Su preme Board, and also semi-annual reports. These were published ki our Official Organ, the Zajedničar. Before we get into the details of this report, may Fraternal greetings be extended to you. It is our sincere wish that your de liberations during the Tenth Regular Convention will con tinue to promote the Fraternal services that make the Croatian Fraternal Union one of the really great leaders in its field. Our Society has reached its highest point in its sixty five year history, and all the members of this Con vention are to be congratulated on their efforts in helping it reach this high peak. Ow duties are at times unpleasant. Were it possible for us to approve all claims for payment when presented, and reject none, we would never have any difficulty with keeping pleasant public relations. However, as you know, we must at times reject applications for membership, and also claims for benefits. When we do this we are always aware erf the rights of the applicant the rights of the mem ber when claims are considered and also the rights of the organization as a whole. Applications for membership into the adult department approved and rejected, both medical and non-medical during the past four years are as follows: Tear Approved Rejected Total 1955 2148 98 2246 1956 2732 98 2830 1957 2546 113 2659 1956 2539 34 2573 The experience we have had with non-medical applica tions has been highly satisfactory. We made a little study of the deaths of members who were admitted with non-medical applications during the past three years. The percentage of the total was, 1956—1.75% 1957—1.89% 1958—1.74%. These included any member admitted since we began non medical admissions, and the deaths occured during the years aa stated. We have discussed these non-medical risks with our actuary, and with various members of our Executive Board. Oar thoughts and our recommendations ar« inclu ded in the new by-laws draft which you will consider. The Junior Order Department is our most valued asset. This is common knowledge, and a strong Junior Order with its transfere to the adult department has a decided influence on the average age of the senior membership as shown the following: The only conclusion to be drawn from the above is con tinued building of a stronger Junior Department, and con centration on transfers to the senior membership between the ages of 16 to 18 years. The table below will show that our mortality experi ence has been very good, and that the selection of risks in the past has been conservative with toh? resultant in crease in our reserves. S Cerebral Vascular Disease 4 Kidney and Digestive Dis eases 5 Lung Disease (Acute non 6 Accidents and Suicides .... 7 Tuberculosis 8 Leukemia, Anemia (Blood 9 Miscellaneous (unclassified above*) Average Age af Ad«H Dept. 44.32 years 44.70 years 44.00 years 45.38 years Mortality hpwwn 55.1% 55.19% 59.10% 55.87% The progress made by modern medicine, new drugs, better nutrition, more sanitary living conditions all have their effect on the increase life expectancy we have to day aH are mirrored in the above mortality experience. The causes of death in the adult department were: MM IMC 1967 1968 Total 415 405 444 454 J.718 198 186 220 222 821 The influenza epidemic, although mild, in 1958 is re-* fleeted in the increase of deaths from acute lung disease I such as pneumonia, and influenzal pneumonia. This is the i largest number in this category for the past eight years, or since we started to keep these statistics. The number of deaths in the Junior Department was 83. This is comparable with the four years prior to the last Convention when the number was 85. Accidents cause the greatest number of deaths, with congenital defects and cancer also playing a prominent part in the total. The sick benefit department with its sick and/or acci dent. operation, disability, and maternity benefit claims for benefits provides the largest volume of work in the Home Office. The following table shows this: Claims Approved 2,072 2,168 2,200 2,122 Maternity Benefit Claims Approved 839 1,112 1,199 1,097 Total Approved Claims 16,816 15,751 15,051 14,511 Rejected Claims 734 711 829 770 Total 17,550 16,462 15,880 15,281 You will note from the above that the number of sick and/or accident claims have decreased in number. This is, of course, the result of eliminating the half day or 50 cents per day benefits, and making the limit of benefits payable in five months. Even though there was a decrease in the number of claims, there was an increase in payments which you will see from the report of the Secretary of the Sick Benefit Department Brother Ovcarich. Disability claims are quite stable in number. Most of the requests are for loss of vision, loss of limb, and loss of fingers. There was no appreciable increase in number. Operation benefit claims have, on the other hand been on the increase. This because of the new surgical and dis memberment, or so called new plan. The following opera tions have accounted for 76.3% of all paid operation claims namely, hernia of all types operations on female generative organs hemorrhoids varicose veins appendix abdom inal cancer and stomach operations open reductions of fractures of bones eye operations prostate operations and gall bladder operation. As stated above, we have shown some slight loss in the sick benefit funds from time to time. The disability fund, mi the other hand has not shown this loss. The combined sick and disability funds shown an increase, maybe not too great, but never the less present. Our reserves in this department, in our humble opinion, are sufficient to carry on for many years without too much danger of special as sessments. After careful thought, and study, we have come to the conclusion that no change be made in payments, with the exception of one or two changes proposed in the draft of the new by-laws. The same holds true for assessments in this department. No change should be made at this time. The average annual payments the sick benefit depart ment makes amounted to over $602,000.00 during the past four years. It can, therefore, be stated that we, as a Soci ety are actually providing many Fraternal services to our members when some help is moot needed. We have tried to give you a fairly comprehensive res ume of our work during the past four years. The Medical Department considers, on an a v wage, and in round num bers, 2000 applications and claims per month, or annually about 24,000 claims and applications. The knowledge gained in over thirty years of insurance Medicine within the Fra ternal field is used at aH times in making our decisions and recommendations. We could not conclude this report without stating that our contacts, and associations in the Home Office have been most pleasant and cordial. The Supreme Executive Com mittee, the Supreme Board, the Legal Counsellor, the Edi tors of the Zajedničar, the Director of Sports and Educa tion, members of the High Trial Board, the employees at the Home Office, all have been courteous and helpful our work. For this our grateful thanks. We are also thankful for the kind understanding and splendid cooperation of all the local Lodge officers. You, the members of this con vention are the judges as to the effect* of our modest ef forts and their influence on the success of our Society. Our sincere hope and desire is that this Convention wiH be another monument in the development of Fraternal service for the members of the Croatian Fraternal Union. The advances of the past sixty five years must be con tinued and improved for the future. Fraternally and respectfully submitted, Report of Supreme Medical Director Report Of The General Counsel Sick and/or Accident Claims Approved 13,905 12,471 11,652 11,292 Operation and Disability Francis J. Anki M. D. To The Delegates of the Tenth Convention Covering the period of time between December 1, 1955 to December 31, 1958 It gives me great pleasure to submit to you a brief report of my activities as General Counsel for the period of time mentioned above. Your Counsel has reported semi annually and at length to the Supreme Board of Directors of the Croatian Fraternal Union of America. By reason of that and space limitations, I will not go int6 great detail regarding all of my activities. I consider the office of General Counsel to be primarily devoted to the art of. counselling and acting in a consul tative capacity to all of the officials and various boards of the Society and to its members. Following in the same vein, I determined to advise every official, board, and as many members as possible as to the laws governing a particular situation. Consequently, I am pleased to report to you that during the time mentioned above, there was only one minor suit filed in the County Court of Allegheny County, Pennsylva nia, by the executrix of the estate of Catherine Mateljan relating to a question as to disability payment accruing af ter death. Your counsel anticipates no difficulty in dispo sition of this case either by settlement or by verdict. I am pleased to report to you that all of the litigation affecting the Society prior to the time that I took office has now been successfully terminated. Of all the matters referred to me, one suit was sent to trial and a verdict in favor of the Society was obtained. I wish to report to you that the jury in the County Court of Allegheny County re turned a verdict in favor of our society. This case con cerned itself primarily with the interpretation of the pro visions of the by-laws concerning the suspension and con tinuation of benefits as affect a beneficiary, A number of situations arose wherein your Counsel was called upon to take immediate positive action. Speci fically, I would like to mention the matter of a publication which cited our official organ, the "Zajedničar". After a formal complaint was filed on behalf of the society by the Executive Board, this matter was terminated to the satis faction of all parties concerned. A great deal of correspondence involving death claims, and disability benefits was carried on by your Counsel. I am happy to report that all of the matters were disposed of without the necessity of legal action against the society. In addition to that, your Counsel carried on a heavy corres pondence with many lawyers along with state and admin istrative agencies relating to beneficiaries, death claim dis positions and matters involving taxation. In November of 1956, your counsel was a member of the committee which conducted an investigation of the Children's Home at Des Plaines, Illinois. The report of this committee contained the proceeds of three days of very extehsive research, investigation, and study. The general conclusions and recommendations were adopted by the Su preme Board of the Croatian Fraternal Union at the March 1957 sessions. I would strongly urge that each delegate study carefully the entire report of this committee. There has been no change in the formal licensing pro-j visions in the state of New York since my last report to you. However, I am pleased to inform you that a great many technical details respecting our business in the state of New York have been solved. The barriers to the conduct of our fraternal activities have been removed. You are assured that I will not rest in my efforts to convince the insurance de partment of the state of \*ew York to reverse their refusal to review their long standing denial order. Many contractual matters were submitted to Counsel for preparation and have been completed. Your Counsel, among other things, assisted in the preparation of all the leases for the Children's Home, many contracts with the union governing the employees of the Croatian Fraternal Union, and the contract relating to the use of the hotel for the convention site. In addition to that, assistance was rendered to facilitate the completion' of the re-insurance agreement with the Croatian Brotherhood of Montana and the various re-insurance agreements to cover our sub-stan dard under-writing risks. Your Counsel was called upon to assist in the referen dum of the delegates concerning the changes ki the Cro atian Fraternal Union by-laws, specifically those relating to funeral expenses and beneficiaries. The recommendations of the Supreme Board won an overwhelming endorsement by the delegates and the changes are now incorporated in the present by-laws. Another referendum, specifically relating to the pro posed amendment to the charter and the sale of the present home office and the purchase of a new home office build ing were presented to the ninth convention delegates for their approval. A very large majority of the delegates wholeheartedly endorsed this resolution. Progress has been mads on this ueaoiutwn and I am quits eertaan thai it will SOUTH CHICAGO Senior and Junior Kolo Dancers on the eve of the resumption Oct. 15 of a new series of Kolo Classes. These groups are one of the many facets of th^ Society's United Lodges of South Chicago, among the CFU's most active such organizations in the United States. Story page 8 this issue. ral Address be brought to your attention again for further considera tion. Pursuant to the mandate of the 1955 ninth convention and the resolution of the directors of the Supreme Board, an amendment to the original articles of incorporation of the Croatian Fraternal Union was duly decreed on July 3, 1957. The amendment formally increased the number of directors of the society from thirteen to fifteen. Your Counsel, through a very extensive correspon dence, assisted in the disposition of questions which arose by reason of the very successful campaign prize-award trip to Yugoslavia in 1956. Similarly, by attendance at a number of fraternal af fairs and conferences including the National Conference on Citizenship and a number of fraternal group conventions, your Counsel tried to further the interests of the society in every possible way. Much has been said and written concerning the pro posed by-laws of the Croatian Fraternal Union. The by-laws govern the internal affairs of the society and determine the conduct of relationships of members with each other and the relationship of the entire membership and its lodges. It behooves us to observe very closely and to pay attention to the judgment of experienced men in this field. We must learn to compromise our old traditions and fraternal be havior with the complexities of the modern insurance in dustry. I have tried to interpret the by-laws of the Cro atian Fraternal Union to convey a simplicity of logical thought and expression. I know that this convention will share this point of view. On June 27, 1958, your Counsel was extremely proud to be present at the inception of the Croatian Fraternal Union Scholarship Foundation, Inc. Much has been said and written concerning the operation of the foundation for the benefit of the society and its members. The public re sponse and international appeal of the idea and work of the scholarship foundation to date has been enormous. You will all be given a special report from the directors of the foundation. I sincerely hope that you will continue the magnificent effort made by the delegates of the ninth con vention when they earmarked some of the funds of the society for the purposes of the foundation. The delegates to this convention can and I hope will make an even greater contribution to this significant promotion of the fraternal spirit among our own ethnic groups. The activities of any one official of your society are only as good as the co-operation received from all the members of the society. For the co-operation and support I have received, I am indeed grateful. Accordingly, I ex tend my sincere thanks to the Supreme Board, Executive Board, and the High Trial Board, to the various lodges, of ficers and members who have assisted me during my tenure in office. The most obvious requisite of membership in a fraternal society is one which manifests itself in the desire of each member to do what is best for the entire group. Accordingly, I recommend to you that the spirit of the convention be con ducted with that in mind. Before any criticisms are fos tered, and before any violent demands are made, and be fore any action is taken, we should be reminded of the above principles. Let us then, hope that the unprejudiced objec tivity, which should be our legislative goal, will be fulfilled in the best interests of our fraternal society. Respectfully submitted, Edward B. Servo v General Counsel KNOW YOUR SOCIETY... READ THE ZAJEDNIČAR Croatian Fiatumal Union of America Scholarship Foundation, Inc. Supporter Lodge Ka. Inclosed find dNck, or oftfw, for (............i...*«« Make AM Checks, Mom? Orders, Payable To CROATIAN FRATERNAL UNION SCHOLARSHIP FOUNDATION, INC. and sudi to Foundation Treasurer Martin Krastah 3441 Forbes Ave—e Pittsburgh IS, Petma.