Beginning January 1, 2002, the California Department of Insurance (CDI) will require fingerprint impressions from persons applying for a non-resident insurance producer license from the State of California. The fingerprints will be submitted to the California Department of Justice (DOJ) and to the Federal Bureau of Investigations (FBI) to ascertain whether or not the non-resident applicant has a criminal record that could prevent the applicant from holding a non-resident insurance producer’s license in California.

Criminal background checks are an important safeguard to protect the insurance consumers from unscrupulous insurance producers. Fingerprinting is the most effective means to conduct an effective criminal background check.

These fingerprint impressions must be taken by a law enforcement agency (police department, sheriff's office, etc.) on a standard FBI fingerprint card, (Form FD 258). The fingerprint card is available from the law enforcement agency that you contact to do the printing. To ensure that your fingerprint impressions are properly recorded, you must enter the number "A0042" on the fingerprint card in the space designated for the "ORI" number.

Source: State of California

On November 28, 2001, the Georgia Supreme Court issued a ruling in the case of State Farm Mutual Automobile Insurance Company v. Mabry et al. (S01A0982). This ruling states that physical damage resulting from a covered event can reduce the value of a vehicle, even if repairs return it to pre-loss condition in terms of appearance and function. The Court determined that the insurer involved in the case is obligated to assess diminution of value “…along with the elements of physical damage when a policyholder make a general claim of loss.”

Source: State of Georgia

Chicago, Illinois -- Illinois Insurance Director Nat Shapo announced today that the Cook County Circuit Court issued an Order of Liquidation with a finding of insolvency against Delta Casualty Company on December 4, 2001, following a determination by the Department of Insurance that the company was insolvent by more than $1 million

Delta Casualty began business in January 1967, and is licensed in Illinois, Florida, and Iowa. The company wrote primarily commercial automobile liability, physical damage, and workers compensation coverages for cab companies in the Chicago metropolitan area, as well as nonstandard private passenger automobile business in the State of Florida. The company discontinued all of its commercial cab business in December 2000 and its nonstandard Florida automobile business in March 2001. At December 31, 1999, and December 31, 2000, the company reported direct written premiums of $6.8 million and $8.8 million, respectively

Any remaining business currently active in a state in which the company was licensed will be canceled 31 days from the date of the entry of the order of liquidation, the policy's expiration date, or when canceled by the named insured, whichever occurs first

The Illinois Insurance Guaranty Fund will be responsible for the covered claims of Delta Casualty's Illinois policyholders. The order of liquidation contains an injunction prohibiting suits against Delta Casualty outside of the liquidation proceedings

Source: State of Illinois

Dec. 18, 2001

Minnesota’s total rate of workplace injuries and illnesses remained at a historic low in 2000, according to statistics from the annual Survey of Occupational Injuries and Illnesses released by the Minnesota Department of Labor and Industry (DLI).

Minnesota’s total case incidence rate of workplace injuries and illnesses remained at 6.8 per 100 full-time-equivalent (FTE) workers, a decrease from a rate of 7.5 in both 1997 and 1998. The 1999 and 2000 figures are the lowest rates since the number was first surveyed in 1976. The national rate declined to a new all-time low in 2000.

The Survey of Occupational Injuries and Illnesses, administered by DLI and agencies in other states for the U.S. Bureau of Labor Statistics (BLS), is the primary source of workplace injury and illness data nationwide. Approximately 4,900 Minnesota employers participated in the 2000 survey.

There were an estimated 142,500 recordable work-related injury and illness cases in 2000 in Minnesota. Of those cases, the estimated number of cases resulting in time off the job or work restrictions was 70,900 in 2000. The case rate for injuries resulting in time off or work restrictions increased slightly from 3.2 per 100 FTE workers in 1999 to 3.4 in 2000. The 2000 rate is the same as the 1998 rate.

Other information from the Minnesota survey results includes:

• The rate of cases with days away from work was 1.9 per 100 FTE workers in 2000, up from a rate of 1.8 in 1999, and the same as the 1998 rate. The rate of cases with restricted work activity only was 1.5 per 100 FTE workers in 2000, up from a rate of 1.4 in 1999, and the same as the 1998 rate.
• Industry divisions with the highest total injury and illness rates per 100 FTE workers, based on data from 2000, are: construction (11.6); manufacturing (9.5); and agriculture, forestry and fishing (9.4). The total case rates for construction and manufacturing are the lowest rates ever recorded for these industries in Minnesota.
• Industry divisions with decreases in total case rates between 1999 and 2000 are: agriculture, forestry and fishing; mining; construction; manufacturing; wholesale trade; services; and state government. Divisions with increases in total case rates between 1999 and 2000 are: transportation and public utilities; retail trade; and finance, insurance and real estate. The rate for local government remained unchanged.

Source: State of Minnesota

Superintendent Gregory V. Serio, along with Queens District Attorney Richard A. Brown, New York State Insurance Fund Executive Director Kenneth Ross and New York State Workers’ Compensation Fraud Inspector General John H. Burgher Jr., yesterday announced that nine individuals and College Point Laundry have been charged with defrauding the State workers’ compensation system of $249,357 over a nine year period between 1991 and 2000.

"It is clear New York State has zero tolerance for insurance fraud. Only last week we, together with Queens District Attorney Brown, announced the arrests of over 100 individuals for insurance fraud," said Serio. "The continued arrests of these insurance criminals is proof of our unwavering commitment to working together and combining forces to eliminate insurance fraud and protect all honest consumers."

The arrests are the result of a nine-month investigation. Those arrested include both employers who allegedly defrauded the system and their own employees by under reporting the number of persons they employ or by claiming that they have workers’ compensation insurance when they in fact do not, as well as employees who allegedly defrauded the system by claiming disability when in fact they were working.

District Attorney Brown said, "The alleged actions of those charged with defrauding the Workers’ Compensation system leads to cheating honest workers out of benefits to which they are entitled and to cheating employers out of reasonable worker’s insurance rates. In addition, the defendants have ultimately cheated themselves as well. Everyone pays a high price for the few who attempt to take what appears to be the easy road."

New York State Insurance Fund Executive Director Kenneth Ross stated, "Once again, the New York State Insurance Fund has joined with the Insurance Department’s Frauds Bureau and the Queens District Attorney’s Office to crackdown on fraud. Anyone who commits workers’ compensation fraud in New York escalates the cost of doing business here and makes obtaining the coverage necessary for legitimate claims more expensive. That is something we should be acutely aware of now more than ever."

New York State Workers’ Compensation Fraud Inspector General John H. Burgher Jr. said, "Honest ordinary New Yorkers pay a steep price at the grocery store, restaurants or any place of business because of the actions of dishonest people who commit workers’ compensation fraud. Since creating the Office of Fraud Inspector General in 1996, Governor Pataki has made it clear that bilking the system, lying about a claim, or assisting someone who is committing fraud, is like stealing money from law-abiding citizens and will be met with stiff consequences. I commend District Attorney Brown and all of the agencies involved for executing this important sweep against fraud."

District Attorney Brown identified the defendants as:;; Mohammad Kalam, 59, of 32-17 100 Street, East Elmhurst, New York; and William Driscoll, 41, of 35-53 70th Street, , New York. Defendant Christopher Burson, 27, of Rockaway, is charged with Grand Larceny in the Second Degree, Insurance Fraud in the Third Degree and Perjury in the First Degree and faces up to fifteen years in prison if convicted. He is accused of stealing $77,200. Defendant George Bojkov, 43, of Woodside, is charged with Grand Larceny in the Second Degree, Insurance Fraud in the Third Degree, Falsifying Business Records in the First Degree and Section 114 of the Workers’ Compensation Law and also faces up to fifteen years in prison if convicted. He is accused of stealing $44,766.

Defendants Hun Gun Seo, 36, Yoo In Seo, 59, both of Woodside, and College Dry and Laundry, Inc. are all charged with Grand Larceny in the Third Degree, Falsifying Business Records in the First Degree, Offering a False Instrument for Filing in the First Degree and Insurance Fraud in the Third Degree and face seven years in prison if convicted. These three defendants are accused of stealing a total of $39,768.

Defendants Zannie Dincic, 39, of Jamaica Estates, Lydia Melendez, 42, of South Ozone Park, and Rooplal Gocool, 47 of Jamaica, are charged with Grand Larceny in the Third Degree, Falsifying Business Records in the First Degree, Insurance Fraud in the Fourth Degree and Section 114 of the Workers’ Compensation Law, and also face up to seven years in prison if convicted. These three defendants are accused of stealing a total of $83,479.

Defendant Mohommad Kalam, 59, of East Elmhurst, is charged with Grand Larceny in the Fourth Degree, Falsifying Business Records in the First Degree, Insurance Fraud in the Fourth Degree and Section 114 of the Workers’ Compensation Law and faces up to four years in prison if convicted. He is accused of stealing $1,600. Defendant William Driscoll, 41, of Jackson Heights, is charged with Grand Larceny in the Fourth Degree, Falsifying Business Records in the First Degree and Insurance Fraud in the Fourth Degree and also faces up to four years in prison if convicted. He is accused of stealing $2,544.

According to the charges, Hun Gun Seo and Yoo In Seo, the owners of the now defunct laundry, also allegedly defrauded the New York State Insurance Fund by failing to obtain workers compensation for all of their employees. They allegedly claimed that they had only four employees, filing both state and federal quarterly tax returns based upon four employees, when in fact they employed at least fifteen workers.

The charges also allege that Zannie Dincic, Lydia Melendez, Rooplal Gocool, Mohommad Kalam, Christopher Burson and George Bojkov, each of these defendants were receiving Workers’ Compensation benefits as a result of an injury they sustained on the job, while at the same time, they were also collecting income from their new employers, and failed to inform the Worker’s Compensation Board of their employment.

The charges allege that William Driscoll, who was working as a sub-contractor, allegedly claimed to have workers’ compensation insurance, when, in fact, his certificates were forgeries. New York is aggressive in its fight against insurance fraud. To report suspected incidents of insurance fraud call 1-888-FRAUD-NY (1-888-372-8369). It should be noted that an arrest is merely an accusation and that a defendant is presumed innocent until proven guilty.

Source: State of New York

Date: December 19, 2001

I. Background
The Department of Labor and Industries (L&I) has adopted revised requirements for injury and illness recordkeeping by Washington employers. The complete recordkeeping requirements are found in Chapter 296-27 WAC. These changes are based on revisions to federal requirements by the Occupational Safety and Health Administration (OSHA), and are identical to the federal changes in most respects (the exceptions being that some Washington employers in health care and in the public sector will continue to be required to keep records, although they would be exempt from the federal OSHA requirements). Both the federal and state revisions take effect on January 1, 2002.

Federal OSHA has indicated that it will effectively delay enforcement of the new requirements for 120 days. L&I has considered the delays in finalizing the federal requirements, as well as the state version of the rules, and the resulting delays in necessary employer education. L&I also has taken into account the annual recordkeeping cycle used by many employers, as well as the fact that some employers rely on computerized systems that cannot be readily and immediately modified. Therefore, L&I has determined to provide a delay in enforcement of the new requirements until January 1, 2003, as described in this WISHA Regional Directive (WRD).

II. Scope and application

This WISHA Regional Directive (WRD) provides guidance to WISHA enforcement and consultation staff whenever they must consider the application of the WISHA recordkeeping requirements

III. Special Enforcement Protocols

When will employers be subject to citation for recordkeeping violations? For injuries and illnesses occurring in calendar 2002, L&I will not cite employers for violations of the new recordkeeping requirements of Chapter 296-27 WAC (the new recordkeeping requirements) unless they would also have been in violation of the requirements of the previous Chapter 296-27 WAC.

In such cases, WISHA enforcement and consultation staff should advise the employer of the new requirements and note that the employer is in apparent violation but that the department is not citing the violation as a matter of enforcement discretion.

If employers are in violation of both the new and old requirements, after January 1, 2002 they should be cited using the newly adopted language and requirements.

Approved:
Michael Wood
Senior Program Manager, WISHA Policy & Technical Services

Federal Railroad Administrator Reminds Americans To Stay Off, Stay Away, and Stay Alive, Now and In 2002

Federal Railroad Administrator Allan Rutter today urged Americans to exercise caution and common sense when approaching highway-rail grade cr ossings, and to avoid walking on or near rail rights-of-way. There are more than 253,000 highway-rail grade crossings throughout the country.

During the past week, three teenagers were struck and killed by an Amtrak passenger train while walking along railroad tracks near Morrisville, PA, and seven people were killed when the van they were riding in was struck by a train near Wasco, CA.

“These tragic incidents underscore the need for increased attention and vigilance around railroad tracks and highway-rail crossings,” said Administrator Rutter. “No one would think about strolling across a busy 10-lane interstate highway or driving across a crowded runway, yet too many motorists think they can beat trains by speeding across grade crossings, and too many pedestrians needlessly risk their own lives by walking on railroad tracks.”

Trespass and grade crossing incidents account for 96% of all rail-related fatalities in America. For the first nine months of 2001, there were 384 trespass fatalities, and 306 fatalities at highway-rail grade crossings. During 2000, 463 people died while trespassing on railroad property, and 425 were killed in train-vehicle collisions. Nearly half of all grade crossing collisions occur where properly functioning flashing lights or gates are in place.

In light of the recent fatalities in Pennsylvania and California, FRA will conduct public awareness outreach forums in the affected communities to prevent such tragedies from occurring again. Efforts in southeast Pennsylvania will target primary and secondary school students, parents, and educators, as well as local law enforcement agencies. In central California, FRA will initiate a public education campaign to promote railroad safety awareness in the agricultural community, and among the region’s residents.

The Federal Railroad Administration (FRA), part of the U.S. Department of Transportation (DOT), works continuously to reduce the number of crossing collisions and trespass incidents through effective engineering, education and enforcement programs. FRA is the primary sponsor of Operation Lifesaver, Inc. (OLI), an international, non-profit education and awareness program, which has educated millions of people since 1972 about the dangers at highway-rail crossings and of trespassing. Together, FRA and OLI work daily with railroads, rail labor, states, communities and numerous other stakeholders to prevent needless deaths and injuries. While the number of such incidents has declined dramatically over the past thirty years, nearly 1000 deaths and almost 1500 injuries still occur annually.

Rutter added that today’s trains are deceptively quiet and fast and it is difficult to judge their distance and speed. Freight and passenger trains do not necessarily adhere to set schedules, and can approach from any direction, at any time. Whether approaching a grade crossing while driving, or attempting to take a risky shortcut across tracks for the first or thousandth time, you should

Always Expect A Train.

Source: Department of Transportation