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Contract of Personal Accident and Health Insurance
ness is concerned, and the earliest efforts at policy drafting were
by men with no experience in the practical operation of the busi-
ness, no data to guide them, no real knowledge of probable costs
nor adequate appreciation of relative risks. They often worked
under a great fear of unknown hazards and usually had limited
financial resources with which to face untoward results. More-
over, while a few old-line companies, managed by trained insur-
ance men, engaged in the business, the bulk of pioneering was
done by many newly organized companies, associations, and
so-called fraternal organizations, managed by men with little or
no insurance training or background and drawn fresh from other
businesses. Policy drafting, therefore, began as a process of
experimentation by inexperienced men whose aim was to make
attractive offerings to the public while safeguarding their com-
panies against disaster from the uncertainties of a venture into
an uncharted field. Above all, they saw dimly the fearsome ele-
ments of adverse selection, moral hazard and the machinations
of the unscrupulous or predatory.
Early Exclusions o] Coverage
The early fear of the unknown revealed itself in the many limi-
tations put upon the scope of the insurance. A policy would
purport to insure basically against accidental injuries but would
contain a limiting provision excluding, for example, injuries due
to voluntary exposure to danger; contributory negligence; viola-
tion of law, or of the rules of any corporation; walking or being
on a railroad bridge or roadbed ; inhaling gas ; poison or anything
accidentally or otherwise taken, administered, absorbed or in-
haled ; lifting ; over-exertion ; fighting; wrestling ; playing foot-
ball or polo; bicycling; sunstroke or freezing; getting on or off
of conveyances ; riding on the platform of a car ; or injuries inten-
tionally inflicted by another, or sustained while under the influ-
ence of intoxicants, or while failing to exercise due care and
diligence; or injuries of which there should be no external mark,
the body itself not to be deemed such mark; or injuries due
partly or wholly to fits, vertigo, somnambulism, or disease or
infirmity of any kind.
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