Illinois Traveling Men'S Health Association

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In THE Martrer OF ILLINOIS TRAVELING MEN’S HEALTH ASSOCIATION ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6454. Complaint, Nov. 18, 1955—Decision, Sept. 25, 1956 Consent order requiring a Chicago insurance company to cease misrepresenting the terms and conditions of its accident and health insurance policies in advertising matter and statements made by its agents, Mr. William A. Somers for the Commission. Ryan, Condon & Livingston, by Mr. Earle Hurley and Mr. Hayes Kennedy, of Chicago, Ill., for respondent. Init1au Decision By Frank Hier, Heartnec EXAMINER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on November 18, 1955, issued and subsequently served its complaint in this proceeding against respondent Illinois Traveling Men’s Health Association, a corporation existing and doing business under and by virtue of the laws of the State of Illinois, with its office and principal place of business located at 332 South Michigan Avenue, Chicago, Illinois. On August 14, 1956, there was submitted to the undersigned hearing examiner an agreement between the respondent and counsel supporting the complaint providing for the entry of a consent order. By the terms of said agreement, respondent admits all the jurisdictional facts alleged in the complaint; agrees that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations; and agrees that the answer of respondent herein to the complaint shall be considered as having been withdrawn. By such agreement, respondent waives any further procedural steps before the hearing examiner and the Commission; waives the making of findings of fact and conclusions of law; and waives all of the rights it may have to challenge or contest the validity of the order to cease and desist entered in accordance with this agreement. Such agreement further provides that it disposes of all of this proceeding as to all parties; that the record on which this initial decision and the decision of the Commission shall be based shall consist solely of the complaint and this agreement; that the latter shall not become a part of the official record unless and until it becomes a part of the decision of the Commission; that the agreement is for settlement purposes only and does not consti- 511071—60-———-20 Order 58 E.T.C.

tute an admission by respondent that it has violated the law as alleged in the complaint; and that the following order to cease and desist may be entered in this proceeding by the Commission without further notice to respondent, and, when so entered, it shall have the same force and effect as if entered after a full hearing, and may be altered, modified, or set aside in the manner provided for other orders; and that the complaint may be used in construing the terms of the order.

' The hearing examiner having considered the agreement and proposed order, and being of the opinion that they provide an appropriate basis for settlement and disposition of this proceeding, the agreement is hereby accepted, the following jurisdictional findings made, and the following order issued:

1. Respondent, Illinois Traveling Men’s Health Association, is a corporation existing and doing business under the laws of the State of Illinois, with its office and principal place of business located at 332 South Michigan Avenue, Chicago, Iinois. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It ts ordered, That respondent, Illinois Traveling Men’s Health Association, a corporation, and its officers, agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution in commerce, as “commerce” is defined in the Federal Trade Commission Act, of any accident insurance policy, or health insurance policy, do forthwith cease and desist from:

(A) Representing, directly or by implication: (1) That said insurance policy may be continued in effect indefinitely or for any period of time, when, in fact, said policy provides that it may be cancelled by respondent or terminated under any circumstances over which the insured has no control, during the period of time represented.

(2) That said policy of accidental insurance provides for indemnification to insured in cases of accident generally or in any or all cases of all accident, when such is not the fact. (3) That said policy of health insurance provides for indemnification to insured for all disability caused by illness generally when such is not the fact.

(4) That said accident policy provides for the payment of certain benefits in addition to other benefits when such is not a fact. ILLINOIS TRAVELING MEN’S HEALTH ASSN. 289 287 Decision DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission’s Rules of Practice, the initial decision of the hearing examiner shall, on the 25th day of September, 1956, become the decision of the Commission; and, accordingly :

It is ordered, That the respondent herein shall, within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to cease and desist. Complaint 53 B.T.C.