A Winona, Minn., woman has been charged in Winona County District Court with one count of workers' compensation fraud for allegedly collecting $2,715 in workers' compensation benefits she was not entitled to, the Minnesota Department of Labor and Industry (DLI) announced today.

Debra Elaine Bjork, 44, received workers' compensation benefits from February through April 2001, based on her claim of an injury to her knee area. Bjork claimed she could not work and refused "light duty" work because of her injury. She told her doctor she was unable to walk without the assistance of crutches and that her knee was very painful. Later, Bjork was observed shopping in a grocery store without the assistance of crutches and was not limping in any way.

Bjork was also videotaped walking and descending several flights of stairs without crutches, driving a car and performing numerous errands at gas stations, stores and banks. She was observed loading her car with laundry, driving, unloading the laundry and carrying it into a Laundromat, all without the use of her crutches.

After traveling to a doctor's appointment, Bjork got out of the car, retrieved her crutches and carried them with her as she walked into the building; she did not use the crutches. When she entered the doctor's office, she started limping and began using the crutches, appearing to be having discomfort.

The maximum penalty Bjork could face is 10 years in prison and a $20,000 fine.

Source: State of Minnesota

Citing unfavorable trends of collision, uninsured motorist and property damage liability claims, Commissioner Jose Montemayor has approved private passenger automobile benchmark rates. While benchmark rates will increase by a statewide average of 5.3 percent, not all drivers may experience such a change in their auto policies.

The average benchmark rate increase approved by Montemayor late Thursday is below that recommended by the insurance industry (6.9 percent), state administrative law judges (5.8 percent) and a consulting actuary who proposed a 5.7 percent increase on behalf of TDI staff. The state's Office of Public Insurance Counsel recommended increases averaging 5.1 percent.

"In the face of increasing auto insurance claims, the Texas Department of Insurance has no alternative but to change benchmark rates," Montemayor said. "At the same time, each company has its own unique experience, which may vary substantially from the industrywide results. Texas Department of Insurance staff will examine filed rates very closely to make sure they are justified by each company's individual experience and are fair to consumers."

New benchmark rates will take effect on December 31, 2001. Rate-regulated car insurers then will have 30 days to file their own rates, based on individual company experience. These rates vary widely from company to company.

A National Association of Insurance Commissioners study, released in May, indicated that Texas' average annual expenditure for car insurance in 1999 ranked 19th in the nation even though Texas is the second most populous state and has three of the nation's 10 largest cities.

"The changes to the benchmark rates are based upon insurance loss data for 1999, the latest year that could be used in this rate case," said Montemayor. "The overall average rate change was primarily driven by increases in the cost of uninsured motorist coverage, up 23.5 percent, property damage liability insurance, up 11.9 percent, and collision insurance, up 7.8 percent."

On the other hand, benchmark rates for bodily injury liability insurance, a state-required coverage, and for comprehensive insurance, which pays for non-accident losses such as hail damage, vandalism and auto theft, are coming down. Montemayor reduced benchmark rates by 6.7 percent for bodily injury liability and by 1.8 percent for comprehensive.

Companies may use their new rates immediately after they file them if the rates are within a range 30 percent above or below the benchmark rates. They also have the right to delay the effect of their new rates for as long as 60 days after filing them. Filed rates are subject to challenge by Texas Department of Insurance actuaries if not supported mathematically by the companies' own claim experience.

Drivers in 20 of the 52 rating territories will have smaller than average increases in their benchmark rates. These include Harris, Dallas, Bexar, Tarrant and El Paso counties, which will benefit from the first updating since the mid-1990s of rating factors that reflect differences in accident claim experience among the territories.

This was the final auto benchmark rate case under a system that required hearings before administrative law judges employed by the State Office of Administrative Hearings. Future hearings will be before the Commissioner of Insurance as the result of House Bill 2102, which the Legislature passed this year. TDI recommended the change as a way to speed up rate cases and keep benchmark rates closer in time to the claim experience they are supposed to reflect.

In another action taken today, Montemayor raised rates for personal auto coverages provided through the Texas Automobile Insurance Plan Association (TAIPA), sometimes known as the "assigned risk plan," by 9.2 percent. The plan provides basic liability insurance required by Texas law, plus uninsured/underinsured motorist and personal injury protection (PIP) coverage, for Texans whom insurance companies won't cover voluntarily. Fewer than 0.3 percent of Texas' insured vehicles are covered by policies obtained through TAIPA.

Information about how the benchmark system works, rate changes by type of auto coverage and localized examples of new benchmark rates are available on TDI's Web site, www.tdi.state.tx.us/.

Source: State of Texas

Olympia – The Association of Washington Business, has joined a broad-based coalition of business organizations and employers to file suit in Thurston Superior Court in an effort to overturn Washington's ergonomics regulations. The suit was filed Wednesday, Oct. 17, by Washington Employers Concerned About Regulating Ergonomics (WE CARE), a coalition of more than 230 business organizations, companies and individuals affected by the ergonomic rules adopted by the state Department of Labor and Industries.

The ergonomic rules were adopted in May 2000 and are scheduled to go into effect July 1, 2002.

"Going to court is our last resort," said AWB President Don Brunell. "We have tried to work with L&I on these rules and even attempted to have legislation passed to have them overturned or modified, but we were blocked in every instance."

The suit maintains that the state rules should be overturned on several grounds:

• Under the 1995 Regulatory Reform Act, agencies are prohibited from creating new rules. That can only be done by the Legislature.
• L&I did not conduct a proper benefit/cost analysis on these rules. The agency maintains that the rules will cost businesses collectively $80 million in the first year to implement. However, independent studies have shown that the true cost to business is estimated at $725 million.
• The rules themselves are not based on sound science. Repeated studies and testimony from ergonomics experts showed that these rules would not significantly reduce ergonomic injuries. A study by the Mayo Clinic, for example, contradicted the rules.

"It is our hope that this suit will cause L&I to reconsider implementation of these rules," Brunell said. "An expensive, protracted court action serves no one's interests."

Source: Association of Washington Businesses

The Occupational Safety and Health Administration today announced a special national emphasis program that is aimed at reducing amputations in general industry workplaces.

The National Emphasis Program on Hazardous Machinery Associated With Amputations expands the existing national emphasis program on mechanical power presses. This new initiative targets all types of power presses, including press brakes, saws, shears, slicers, and slitters.

"Operating this type of equipment can be very dangerous. Injuries involving these machines are often fatal or result in permanent disability," said OSHA Administrator John L. Henshaw. "This new program will help us identify and guard against the workplace hazards that are likely to cause amputations."

The program applies to general industry workplaces where these machines are present. Companies with fewer than ten employees are also included, except those industries exempted from programmed inspections.

The method to calculate amputation rates has changed. Rates for each industry are now figured using the number of employees in each SIC code. In the past, industries were targeted by the number of amputations, not taking into consideration the actual size of the industry. This new information will allow greater flexibility for regions and area offices to target and inspect the most hazardous workplaces.

Outreach programs will be carried out by the regional and area offices to identify, reduce and eliminate workplace hazards associated with these machines. Programs may involve employers, professional associations, and local unions, or other activities designed to involve employee and management stakeholders in the identification and elimination of hazards associated with such equipment.

The twenty-four states and two territories which operate their own OSHA programs are encouraged, but not required, to adopt a similar emphasis program. The OSHA directive on this emphasis program is available on OSHA's web site under Regulations and Compliance, subcategory Compliance Directives, No. CPL 2-1.33.

Source: Occupational Safety and Health Administration

This information supplements CDC's recommendations for recognizing and handling suspicious packages or envelopes that were published as a CDC Health Advisory on October 27, 2001, and replaces information about identifying suspicious packages that was published as a Health Advisory on October 12, 2001.

Letters containing Bacillus anthracis (anthrax) have been received by mail in several areas in the United States. In some instances, anthrax exposures have occurred, with several persons becoming infected. To prevent such exposures and subsequent infection, all persons should learn how to recognize a suspicious package or envelope and take appropriate steps to protect themselves and others.

Identifying Suspicious Packages and Envelopes

Some characteristics of suspicious packages and envelopes include the following:

• Inappropriate or unusual labeling
  
• Excessive postage
  
• Handwritten or poorly typed addresses
• Misspellings of common words
  
• Strange return address or no return address
• Incorrect titles or title without a name
• Not addressed to a specific person
  
• Marked with restrictions, such as "Personal," "Confidential," or "Do not x-ray"
• Marked with any threatening language
  
• Postmarked from a city or state that does not match the return address

Appearance

• Powdery substance felt through or appearing on the package or envelope
• Oily stains, discolorations, or odor
• Lopsided or uneven envelope
• Excessive packaging material such as masking tape, string, etc.

• Excessive weight
  
• Ticking sound
  
• Protruding wires or aluminum foil

If a package or envelope appears suspicious, DO NOT OPEN IT.

Handling of Suspicious Packages or Envelopes

• Do not shake or empty the contents of any suspicious package or envelope.
• Do not carry the package or envelope, show it to others or allow others to examine it.
• Put the package or envelope down on a stable surface; do not sniff, touch, taste, or look closely at it or at any contents which may have spilled.
• Alert others in the area about the suspicious package or envelope. Leave the area, close any doors, and take actions to prevent others from entering the area. If possible, shut off the ventilation system.
  
• WASH hands with soap and water to prevent spreading potentially infectious material to face or skin. Seek additional instructions for exposed or potentially exposed persons.
• If at work, notify a supervisor, a security officer, or a law enforcement official. If at home, contact the local law enforcement agency.
• If possible, create a list of persons who were in the room or area when this suspicious letter or package was recognized and a list of persons who also may have handled this package or letter. Give this list to both the local public health authorities and law enforcement officials.

Source: Centers for Disease Control and Prevention

WASHINGTON-The Occupational Safety and Health Administration today announced it is posting a new draft compliance directive for steel erection on its web site. This is the first time OSHA has published a directive on its public web site in draft form. "This is a new way in which we can be more accessible and responsive in order to better inform the public," said OSHA Administrator John L. Henshaw. "We welcome suggestions and look forward to working together with the stakeholders on protecting America's steel workers."

The draft compliance directive includes an overview of the standard, inspection tips for OSHA compliance officers, compliance policy information, and definitions from the text of the standard. The draft directive can be accessed on the OSHA web site at http://www.osha-slc.gov/doc/steelerection/steelerection-memo.html

This is the first time OSHA has posted a draft compliance directive on the web and given the public an opportunity to send in informal suggestions. While suggestions are welcomed and appreciated, this is not part of the rulemaking process; the Agency will not be issuing an analysis on the suggestions received.

Informal suggestions on the draft directive can be sent electronically to OSHA at (messagestodoc@osha.gov). December 10, 2001 is the cut off date for receiving suggestions.

OSHA's new steel erection standard for construction goes into effect on January 18, 2002. The standard addresses the hazards that have been identified as the major causes of injuries and fatalities in the steel erection industry.

Because the directive is in draft form it is not an official Agency policy document

Source: Occupational Safety and Health Administration

The U.S. House Financial Services Committee has approved a terrorism insurance assistance plan based on federal loans that private insurers would have to repay. The legislation, H.R. 3210, which was approved late last Wednesday by voice vote, has received somewhat tepid support from the insurance industry, which argues that it might not be enough to bring capacity to the market. But Committee Chairman Mike Oxley, ROhio, called the legislation a "pro-taxpayer, pro-consumer proposal."

Under the loan program, for aggregate losses up to $20 billion, the federal government would pay 90 percent of losses while insurance companies would pay 10 percent. Insurers would have to repay the government for the claims it pays over time. For a large event, with over $20 billion in losses, loans would be recovered via a surcharge on all commercial policyholders. During consideration of the bill, the committee adopted an amendment capping the surcharge at 3 percent of premium per year.

Source: National Underwriter Company; Nov 12, 2001