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the same degree of protection against medical expenses that can be provided on a group basis.

In order to get a general picture of the differences between grouphealth insurance and individual insurance, our fourth witness today will cover the subject of individual accident and health insurance. Finally, we shall hear testimony on the financial contributions made by life-insurance companies to medical research.

Our first witness this morning is Mr. Frazier Wilson, manager, insurance, United Airlines, 5959 South Cicero Avenue, Chicago, Ill. He will be followed by Mr. James C. Cristy, insurance manager of the Upjohn Co., Kalamazoo, Mich., who in turn will be followed by Mr. George K. Barrett, assistant personnel manager, Ohio Oil Co., Findlay, Ohio.

Our fourth witness covering individual insurance will be Mr. E. J. Faulkner, president of the Woodmen Central Life Insurance Co. of Lincoln, Nebr.

Off the record.

(Discussion off the record.)

Mr. HESELTON. We will hear first this morning from the last witness we have scheduled, Mr. Eugene M. Thoré, general counsel of the Life Insurance Association of America, who will discuss the subject of financial contributions to medical research made by life-insurance companies.

STATEMENT OF EUGENE M. THORÉ, GENERAL COUNSEL, LIFE INSURANCE ASSOCIATION OF AMERICA

Mr. THORE. Thank you, Mr. Chairman.

My name is Eugene M. Thoré. I am the general counsel of the Life Insurance Association of America, an association of life-insurance companies in the United States and Canada, with its principal office in New York City. My appearance was prompted by the interest shown by your committee in the life insurance medical research fund. I had hoped that we could supply the desired information through testimony of the scientific director of the fund, Dr. Francis R. Dieuaide, but, unfortunately, Dr. Dieuaide had commitments which prevented him from attending these hearings. Under the circumstances, I shall endeavor to describe the fund to you.

The life insurance medical research fund was organized in 1945 by a group of United States and Canadian life insurance companies whose combined business in the United States exceeds 90 percent of the total life insurance in force in this country. Life insurance leaders and outstanding doctors throughout the country held a conference in 1944, at which time the fund was proposed and its objectives in the field of medical research were outlined. The medical men who participated in that conference disclosed that medical research was greatly needed in the field of heart disease. Research in other diseases, such as cancer and polio, was attracting more support than heart research. The fund was therefore established to meet the need for research in the heart field. Within the last 12 months a review of this policy was made in consultation with leading doctors in the medical-research field. The original conclusion that research in the field of other diseases was being financed to a greater extent than research in heart diseases was again confirmed.

The resources of the fund are derived from annual contributions made by company members in proportion to the volume of their business. There is no capital endowment. A list of the companies supporting the fund on June 30, 1953, is attached hereto.

I pause to comment and call your attention to the fact that these companies are located in practically every State in the Union. Also, many of them come from Canada.

(The information is as follows:)

1952-53 ANNUAL REPORT-MEMBERS OF THE LIFE INSURANCE MEDICAL RESEARCH

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California-Western States Life Insur- Gulf Life Insurance Co.

ance Co.

Occidental Life Insurance Co., of Cali-
fornia

Pacific Mutual Life Insurance Co.
West Coast Life Insurance Co.

CANADA

The Canada Life Assurance Co., Toronto
Confederation Life Association, Toronto
The Crown Life Insurance Co., Toronto
The Dominion Life Assurance Co.,
Waterloo

The Great-West Life Assurance Co.,
Winnipeg

Peninsular Life Insurance Co.

GEORGIA

Life Insurance Co., of Georgia

ILLINOIS

Central Standard Life Insurance Co.
Federal Life Insurance Co.
Mutual Trust Life Insurance Co.
State Farm Life Insurance Co.
Washington National Insurance Co.

INDIANA

The Imperial Life Assurance Co., of American United Life Insurance Co.

Canada, Toronto

The London Life Insurance Co., London
The Manufacturers Life Insurance Co.,
Toronto

Empire Life & Accident Insurance Co.
Indianapolis Life Insurance Co.
The Lincoln National Life Insurance
Co.

The Mutual Life Assurance Co., of Peoples Life Insurance Co.
Canada, Waterloo

North American Life Assurance Co.,
Toronto

Northern Life Assurance Co., of Canada,

London

Sun Life Assurance Co., of Canada,

Montreal

CONNECTICUT

Aetna Life Insurance Co.

Connecticut General Life Insurance Co.
The Connecticut Mutual Life Insurance
Co.

Phoenix Mutual Life Insurance Co.
The Travelers Insurance Co.

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DELAWARE

KENTUCKY

Continental American Life Insurance Kentucky Central Life & Accident In

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1952-53 ANNUAL REPORT-MEMBERS OF THE LIFE INSURANCE MEDICAL RESEARCH FUND-Continued

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Business Men's Assurance Co., of The Midland Mutual Life Insurance Co. America

General American Life Insurance Co. Kansas City Life Insurance Co. Missouri Insurance Co.

Mutual Savings Life Insurance Co. The Reliable Life Insurance Co.

ΜΟΝΤΑΝΑ

Western Life Insurance Co.

NEBRASKA

Bankers Life Insurance Co., of Nebraska

Guarantee Mutual Life Co.

The Midwest Life Insurance Co.

Ohio National Life Insurance Co.
The Ohio State Life Insurance Co.
The Union Central Life Insurance Co.

OKLAHOMA

Atlas Life Insurance Co.

Home State Life Insurance Co.

OREGON

Standard Insurance Co.

PENNSYLVANIA

The Security Mutual Life Insurance Co. The Fidelity Mutual Life Insurance Co.

United Benefit Life Insurance Co. Woodmen Central Life Insurance Co.

NEW HAMPSHIRE

United Life & Accident Insurance Co.

Home Life Insurance Co. of America The Penn Mutual Life Insurance Co. Pennsylvania Mutual Life Insurance Co. Philadelphia Life Insurance Co. Provident Mutual Life Insurance Co. of Philadelphia

1952-53 ANNUAL REPORT-MEMBERS OF THE LIFE INSURANCE MEDICAL RESEARCH FUND-Continued

RHODE ISLAND

TEXAS-Continued

Puritan Life Insurance Co. of Rhode Southwestern Life Insurance Co.

Island

SOUTH CAROLINA

State Reserve Life Insurance Co.
Universal Life & Accident Insurance Co.
Western Reserve Life Insurance Co.

Liberty Life Insurance Co.

SOUTH DAKOTA

Midland National Life Insurance Co.

UTAH

Beneficial Life Insurance Co.

VERMONT

TENNESSEE

Interstate Life & Accident Co.

Life & Casualty Insurance Co. of Ten

nessee

National Life Insurance Co.

VIRGINIA

The National Life & Accident Insurance The Life Insurance Co. of Virginia
Co.
Shenandoah Life Insurance Co., Inc.

Provident Life & Accident Insurance Co.
The Volunteer State Life Insurance Co.

TEXAS

American General Life Insurance Co.
The American Hospital & Life Insur-
ance Co.

The American National Insurance Co.
Great American Reserve Insurance Co.
Great National Life Insurance Co.
Great Southern Life Insurance Co.
Republic National Life Insurance Co.
Southland Life Insurance Co.

WASHINGTON

New World Life Insurance Co.
Northern Life Insurance Co.

WISCONSIN

National Guardian Life Insuranc Co.
The Northwestern Mutual Life Insur-
ance Co.

The Old Line Life Insurance Co. of
America

Wisconsin National Life Insurance Co.

Mr. THORE. The eighth annual report of the life insurance medical research fund is now in the hands of the printer and when it is available we shall see that the staff of your committee receives a copy. This report will show that since its inception the fund has contributed $5,501,000 to medical research and to research fellowships. During the year ending June 30, 1953, the fund supported 88 research projects and approved 92 grants for future projects. In addition, it supported 38 research fellowship grants. Its receipts during this period amounted to $856,000 and the disbursements for grants were $792,000. Expenses in connection with the fund were $56,500, less than 7 percent of receipts. New grants approved during the year amounted to $814,000.

Since the organization of the fund, 1,100 articles have been published describing results of research. Grants have been made to 97 institutions engaged in medical education in 33 States, the District of Columbia, Canada, Puerto Rico, and 4 other countries.

The outstanding need for control of diseases of the heart and arteries is shown by the fact that over 50 percent of all deaths at all ages are due to causes in this category. Cardiovascular renal diseases are now the first cause of death at all ages over 25. These diseases comprise a wide variety of ailments and may affect any of the vital organs, including especially the brain, lungs, and kidneys, as well as the heart itself. This is indeed a very wide field of work. Since the causes of heart and arterial disease are unknown in most cases, research is the only means of obtaining methods of control.

The life insurance medical research fund is the largest private fund engaged in this type of research. I am informed that results to date have been encouraging, but not spectacular. The need, however, is great. During the year ending June 30, 1953, the fund received 262 applications, and grants were made in the case of 92 of these applications. Since its organization in 1945 there has been a gradual increase in the size of the fund and the number of companies participating. As of June 30, 1953, there were 146 companies participating and their contributions show an increase of approximately 5 percent over the total for the preceding year.

The annual report which will be available shortly will show in detail the various research projects and will give complete information regarding the fellowships granted to support men and women while they are obtaining training and experience in research under expert guidance. It also provides a complete financial statement for

1952-53.

Since your committee has shown interest in the life insurance medical research fund, I believe that I should also bring to your attention the fact that United States life insurance companies make substantial contributions to medical education and research in addition to the fund we have been discussing. A survey made by the Life Insurance Association of America for the year 1951 showed contributions in that year of approximately $650,000 to various other funds engaged in medical education and research, including the national fund for medical education, the American and local cancer societies, national and local tuberculosis associations, the National Foundation for Infantile Paralysis, and miscellaneous laboratories and clinics for research and teaching, in the field of heart, cancer, and other major diseases. I am told that a number of life insurance companies also liberally support medical research and education in their local areas in addition to contributing to these national programs.

(The following report of the board of directors of the life insurance medical research fund was submitted by Mr. Thoré :)

REPORT OF THE BOARD OF DIRECTORS

Since its establishment in 1945, the life insurance medical research fund has been helping to meet the challenge of heart disease-by far the greatest cause of death among us today. The fund's purpose is to aid in the development of the means of controlling high blood pressure, hardening of the arteries, coronary disease, and other circulatory disorders now so frequently fatal in our society.

To this end, the fund has encouraged and supported research on cardiovascular disease by allocating to it a total of over $5,500,000 in the past 8 years. Over 200 research programs have thus been aided. Some 240 fellowships have helped young students of disease to become qualified research workers in the field. Awards have helped research in 97 institutions, including centers widely distributed in the United States and Canada and a few abroad.

Recent research has supplied many promising leads to complex problems of heart disease which a short time ago presented such a discouraging prospect that investigators shunned them. With the opening of new avenues and the provision of needed support, the past few years have witnessed a large increase in the number of workers interested in and qualified for research on heart disease. A large number of keen, trained workers in the field is the best means of speeding the attainment of our goal.

The results of research aided by the fund are described in the scientific director's report. Many helpful contributions to knowledge of arteriosclerosis, hypertension, and other cardiovasular disorders have been made by investigators working with the help of grants. We believe you will find his report well worth read

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