MARYLAND MANUAL. 57
During the operation of the Fund a net surplus for the protection
of the policyholders amounting to $470,000.00 has been accumulated,
and as this surplus is in addition to adequate reserves which have been
set up to carry all unpaid, or undetermined claims to completion, it
leaves the Fund in a strong financial condition.
In carrying out the idea of the General Assembly when it created
the State Accident Fund—that the Fund should endeavor to write busi-
ness at cost and also to keep this cost as low as possible—it would
appear this purpose has been accomplished. The average expense
ratio of the private companies carrying this form of insurance is from
35 per cent to 40 per cent of the premiums written, while the expense
ratio covering all operations of the Fund has always been materially
lower than this, and tor the last fiscal year was 8 8/10 per cent of the
premiums written. During that year the interest earned on the invest-
ments of the Fund practically paid the entire operating cost of the
Fund.
Effective March 1, 1926, the Commission inaugurated a new merit-
rating system, the purpose of which is to reward and stimulate the
policyholders of the Fund in their work of accident prevention and to
measure the rate more closely to the individual hazard of the policy-
holder, preserving to the policyholder, of course, the basic principles
of insurance protection, so that any severe losses will still be distributed.
This merit-rating system is working out very satisfactorily, and is
offering an incentive to the policyholder to take a greater interest in
accident prevention in his plant.
There is no doubt that the State Accident Fund has saved to the
employers insuring with the Fund many thousands of dollars, and at
the same time giving them full protection under the Workmen's Com-
pensation Law of Maryland,
THE COMMISSIONER OF LABOR
AND STATISTICS
Office. 16 West Saratoga Street, Baltimore
Name. Postoffice.
Commissioner.
Dr. J. Knox Insley Baltimore
(Term Expires 1929)
Medical Examiners-
Dr. Samuel A. Keene Baltimore
Dr. Anna S. Abercrombie Baltimore
Examining Physician and Psychiatrist:
Dr. Edward A. Kitlowski Baltimore
Chief Clerk:
Kathryne M. Phelan Baltimore
Statistician.
A, Louise Murphy Baltimore
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