[Congressional Record Volume 143, Number 75 (Wednesday, June 4, 1997)]
[Extensions of Remarks]
[Pages E1118-E1119]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  CNA CELEBRATES ITS 100TH ANNIVERSARY

                                 ______
                                 

                         HON. HARRIS W. FAWELL

                              of illinois

                    in the house of representatives

                        Wednesday, June 4, 1997

  Mr. FAWELL. Mr. Speaker, this year marks the 100th anniversary of 
CNA, the third largest property/casualty insurer in the United States 
and the leading provider of commercial insurance.
  Founded in Detroit by Collins Hubbard with 15 employees, CNA moved to 
Chicago in 1900. It employs over 6,000 people in Illinois--many of whom 
reside in my congressional district--and 20,000 throughout the country.
  During its 100 years of providing security to Americans, CNA has been 
a pioneer in developing insurance products to respond to rapidly 
changing lifestyles in the 20th century.
  Its first product, accident and health insurance, was offered at a 
time when most insurance companies provided only coverage for 
accidents. Responding to the needs of farmers as agricultural 
production grew, CNA developed special accident and health insurance. 
In 1910 CNA moved into auto insurance and burglary insurance. The next 
year life insurance was added to CNA's products. During World War I, as 
factories dramatically increased output to meet war needs, CNA offered 
workers' compensation coverage.
  At this point, I ask unanimous consent to insert in the Record a more 
complete history of CNA which was prepared by the company in 
anticipation of this important anniversary. I congratulate CNA for its 
remarkable achievements and for its service to all Americans:

   A Tribute to CNA in Celebration of its Centennial, CNA Stands for 
                         Commitment, 1897-1997


                              Introduction

       CNA, one of the country's largest commercial insurance 
     groups, is celebrating one hundred years of commitment and 
     service to the American people both at home and

[[Page E1119]]

     abroad. Since 1897, whenever America has sought a sense of 
     security, CNA has been there, anticipating that need and 
     forging its reputation as an industry innovator. Railroad 
     workers, teachers, movie stars, athletes, even U.S. 
     Presidents have depended on CNA's protection against both 
     expected risks and unforeseen dangers.
       Since its modest beginnings in Detroit, Michigan, with 
     $100,000 in capital stock and a $60,000 surplus, CNA has 
     become one of the largest property/casualty insurers in the 
     nation, with over $60 billion in assets. Originally operating 
     out of a two-room office with 15 employees, CNA today 
     occupies some 400 office sites in over 100 cities and employs 
     over 20,000 people nationwide. Now headquartered in Chicago, 
     CNA directly employs more than 6,000 people in Illinois 
     alone. Almost 80,000 agents currently represent CNA 
     throughout the United States, testament to the company's 
     successful alliance with independent agents.
       CNA's exemplary accomplishment--a century culminating in 
     financial stability and preeminence in the industry--attests 
     to its history of astute leadership, integrity and commitment 
     to quality service.


                              The Founding

       Collins Hubbard, CNA's founder, set the course of 
     perceptive leadership that has guided CNA to the top of the 
     insurance industry. Calling together several of his 
     colleagues, Hubbard proposed a company that would insure 
     America's working class against unexpected disasters. The 
     Continental Assurance Company of North America, as CNA was 
     then known, provided coverage with an innovative twist: both 
     accident and health insurance, at a time when most of its 
     contemporaries offered only accident coverage.
       Focusing on railroad workers as its initial customer base, 
     CNA became the largest insurer in Michigan within two years 
     of its founding. Despite its rapid growth, the fledgling 
     company faced intense competition from other insurance 
     companies. In light of this, the company underwent two major 
     changes. First, it changed its name to the more forceful and 
     representative, Continental Casualty Company. Then, in 
     September 1900, the company merged with Metropolitan Accident 
     Company, a Chicago insurer, and moved its headquarters to 
     Chicago. This strategy catapulted the combined companies to 
     fifth among the nation's accident insurers.


                     CNA Becomes an Industry Leader

       Early in the 20th century, CNA distinguished itself as a 
     leader in the insurance industry by demonstrating the 
     capacity for discerning new markets and developing innovative 
     products. When women began to enter the work force, CNA was 
     among the first to provide them with accident and health 
     coverage. As agricultural production expanded, CNA devised 
     new products specifically geared to farmers' accident and 
     health concerns.
       CNA reinforced its position at the forefront of the 
     industry in 1910 by expanding beyond accident and health into 
     different lines of insurance such as liability, auto 
     insurance and burglary. In 1911, the company entered the life 
     insurance field by forming the Continental Assurance Company. 
     In 1915, CNA began offering workers' compensation coverage as 
     factories employed more people to increase output for the 
     World War I effort.
       Policies combining multiple lines of insurance proved 
     successful, particularly as automobiles--and accidents 
     involving automobiles--became commonplace. Motorist coverage 
     insured both the driver and any persons injured or property 
     damaged.
       The growth of an affluent American middle-class meant 
     increased incidents of theft. Property owners' concerns were 
     met by CNA's wide range of burglary insurance--protecting 
     against bank robberies, home break-ins and safe deposit box 
     theft.


                        Groups and Associations

       By the early 1920s, the flourishing company was operating 
     in every state and territory of the United States, as well as 
     every province in Canada. That decade also marked the 
     beginning of CNA's pioneering relationship with associations, 
     a relationship that has lasted until the present day and has 
     played a significant role in CNA's rise to the upper echelon 
     of insurance companies.
       CNA is credited with the first teachers association group 
     policy, written for the Cleveland Teachers Association in 
     1921. CNA insured the American Society of Civil Engineers in 
     1945, becoming the first insurer to successfully install a 
     group plan for a nationwide association. Teaming up with the 
     American Camping Association in the 1950s, CNA initiated an 
     educational campaign to promote camp safety and insure 
     campers. Camp insurance led to the formation of ``PONY,'' 
     Protect Our Nation's Youth, a youth program offering medical 
     expense reimbursement from kindergarten through college.
       CNA has also demonstrated unwavering commitment to the 
     nation's retirement-age population. In the 1930s, before 
     compulsory Social Security, the company was among the first 
     to offer retirement income annuities. By 1955, CNA had 
     developed the first group health plan for those over 65. 
     Originally conceived as a group medical insurance plan for 
     retired teachers associations, the plan evolved into ``Golden 
     65'', a policy offered directly to the individual. After the 
     implementation of Medicare in the summer of 1965, CNA 
     redesigned Golden 65 to complement the Medicare plan, while 
     other insurers exited the over-65 health insurance field.


                    Dependability in Times of Crisis

       Dependability in times of crisis is a CNA hallmark. The 
     company refused to exit the field of polio insurance at a 
     time when the nation was literally crippled by the rampant, 
     dreaded disease. CNA introduced its polio coverage the year 
     of the worse polio outbreak in two decades. It continued to 
     provide comprehensive and affordable polio coverage for the 
     duration of the epidemic.
       The company's willingness to take on the challenge of even 
     the most unusual coverage request has marked its true 
     American spirit--bold, enterprising and innovative. Where 
     other companies see uninsurable risks, CNA sees 
     possibilities--a company trait that has ensured its success 
     and longevity in the insurance business. CNA has staunchly 
     stood behind Americans in all manner of pursuits and 
     ventures, these past 100 years.
       CNA insured presidential hopefuls Adlai Stevenson and 
     Dwight Eisenhower against accidents during their campaign 
     trips in 1952. When John F. Kennedy was inaugurated as the 
     nation's 35th president, CNA provided liability coverage for 
     the ceremonial activities. In 1965, President Lyndon B. 
     Johnson asked CNA to write the bond for the train that stood 
     waiting in case emergency evacuation was necessary during 
     Martin Luther King's civil rights protest march to 
     Montgomery, Alabama. The 1968 Democratic Convention in 
     Chicago was covered by CNA's liability insurance.
       A special CNA reinsurance policy covered the cancellation 
     or postponement of the 1965 Shea Stadium performance of the 
     Beatles for the Ed Sullivan show. The Apollo 16 astronauts 
     were insured in case of accidental death on their 1972 flight 
     to the moon.
       Little League teams around the country have enjoyed CNA 
     protection since 1948, as have Indianapolis 500 drivers, pit 
     crews and race officials. The American athletes competing in 
     the 1952 Helsinki Olympic games were insured by CNA. Water 
     events at the 1996 Atlanta Olympics were covered by MOAC, 
     CNA's marine insurance unit.


                       CNA Cares About Community

       CNA's commitment to its employees, its clients, and the 
     American people extends far beyond insurance. The company 
     encourages and subsidizes both employees and CNA leadership 
     in community projects. In the 1920's, the company sought to 
     enrich the lives of its employees through its Continental 
     Welfare Association which offered disability pensions, life 
     insurance and retirement pensions.
       Later, during World War II, the employees reached out to 
     help in the war effort. CNA employees organized their own 
     chapter of the Red Cross, calling it the Continental Red 
     Cross. By the midpoint of the war, Continental employees had 
     invested $232,418 in war bonds.
       Today, in more peaceful times, CNA and its employees have 
     dedicated time and resources toward the education of the 
     nation's youth. In the early 1980's, CNA sponsored Illinois' 
     first math contest. With the Chicago Urban League, the 
     Chicago Board of Education, and the Illinois Council of 
     Teachers of Mathematics, CNA developed MATHCOUNTS, a model 
     math tutorial program. The program quickly garnered 
     nationwide attention. By 1984, MATCHCOUNTS had evolved into 
     the county's first nationwide math contest boasting as 
     cosponsors the National Society of Professional Engineers, 
     the National Council of Teachers of Mathematics, the National 
     Aeronautics and Space Administration, and the U.S. Department 
     of Education.
       CNA's investment in the nation's future--its children--is 
     evident in CNA's involvement with the Leadership for Quality 
     Education, a coalition of business and civil leaders working 
     to improve the Chicago school system. Out of this, CNA 
     created Project Participate, providing paid time off, 
     resources and training to employees wishing to run for 
     Chicago's Local School Councils. CNA has also adopted 
     Chicago's Mark Skinner School as part of the Chicago Board of 
     Education's Adopt-A-School Program.


                               Conclusion

       CNA stands for a century of commitment, stability and 
     financial strength. Entering the final years of the 20th 
     century, the company prepared for the 21st century in typical 
     CNA fashion--it acquired the Continental Insurance Company in 
     1995. This merger, the most significant property/casualty 
     insurance merger in the last 25 years, expanded CNA's scope--
     elevating its presence worldwide, adding new specialty 
     operations and pooling the considerable talent and resources 
     of both companies.
       As the new millennium approaches, unfathomable leaps in 
     technology, social transformations and economic upheaval are 
     as much a source of apprehension today as in 1897. CNA saw 
     the birth of a new century that brought with it several wars, 
     a severe economic depression, fantastic advances in modes of 
     travel and communication, social change and natural 
     disasters. It has met the challenges of the past 100 years 
     and stands poised for another century, confident of its 
     continued success based on its core values: commitment, 
     stability and financial strength.



     

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