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February 2004

State: Washington

Area of Interest: Employers Must Post OSHA Log by February 1st

WASHINGTON -- Beginning February 1, employers must post a summary of the total number of job-related injuries and illnesses that occurred last year, according to the Occupational Safety and Health Administration (OSHA). Employers are required to post only the Summary (OSHA Form 300A)-not the OSHA 300 Log -from Feb.1 to Apr. 30, 2004.

The summary must list the total numbers of job-related injuries and illnesses that occurred in 2003 and were logged on the OSHA 300 form. Employment information about annual average number of employees and total hours worked during the calendar year is also required to assists in calculating incidence rates. Companies with no recordable injuries or illnesses in 2003 must post the form with zeros on the total line. All establishment summaries must be certified by a company executive.

The form is to be displayed in a common area wherever notices to employees are usually posted. Employers must make a copy of the summary available to employees who move from worksite to worksite, such as construction workers, and employees who do not report to any fixed establishment on a regular basis.

Employers with ten or fewer employees and employers in certain industry groups are normally exempt from federal OSHA injury and illness recordkeeping and posting requirements. A complete list of exempt industries in the retail, services, finance and real estate sectors is posted on OSHA's website.

Source: Occupational Safety and Health Administration

State: New York

Area of Interest: Insurance Agent’s License Suspended for Cheating Customers

New York State Insurance Department Superintendent Gregory V. Serio today announced the arrest of Lon T. Horton, who has been charged with 43 counts of issuing fraudulent certificates of insurance, two counts of insurance fraud, four counts of petit larceny and one count of falsifying business records. Mr. Horton is the owner of Horton Insurance Services, located at 3773 Lake Road in Brockport, and his license has been suspended pending a hearing.
The Department encourages any New Yorkers who may have questions or concerns about their dealings with Mr. Horton or Horton Insurance Services to call the Insurance Department’s Buffalo office at 716-847-7176.

An investigation revealed that Mr. Horton issued fraudulent certificates of workers’ compensation insurance to self-employed persons as evidence of coverage for potential employers. As a result, businesses employing these individuals were improperly charged workers' compensation rates based on this fraudulent information. To date, businesses have been assessed additional rate charges in excess of $100,000.

Source: State of New York

State: New York

Area of Interest: OSHA Cites Frankfort, NY Manufacturer For Safety Hazards
Inspection Was Part of Targeted Enforcement Program

A Frankfort, N.Y., manufacturer's alleged failure to address machine guarding, electrical and other safety hazards has resulted in $54,200 in fines from the U.S. Labor Department's Occupational Safety and Health Administration (OSHA).

Union Tools, Inc., of 4167 Acme Rd., has been cited for alleged serious and repeat violations of the Occupational Safety and Health Act (OSHA) following a comprehensive safety inspection conducted from November 18th to December 5th 2003 by OSHA's Syracuse area office. The inspection was conducted under OSHA's Site Specific Targeting Program, which inspects facilities with high injury and illness rates

Five repeat citations, carrying $40,200 in proposed fines, were issued for failure to guard ingoing nip points on conveyors and a power press; inadequate point-of-operation guarding on power presses; failure to guard a belt and a pulley; failure to assure electrical grounding of equipment; and failure to cover or guard an open floor drain. OSHA issues a repeat citation when an employer previously has been cited for a substantially similar hazard and the citations have become final. OSHA cited Union Tools in 2000 for similar hazards at the company's Frankfort plant.

Eight serious citations, with $14,000 in proposed fines, were also issued. They concern the company's failure to provide adequate guarding on a saw, a fan, a rotating shaft coupling, and a portable grinder; exposed live electrical parts; a frayed electrical cord; broken or damaged electrical conduit; failure to use electrical lockout equipment; and a broken ladder. OSHA defines a serious violation as one in which there is a substantial probability that death or serious physical harm could result, and the employer knew, or should have known, of the hazard.

Source: Occupational Safety and Health Administration

State: New Jersey

Area of Interest: Governor Reports to NJ Drivers on Auto Insurance Reform

Governor James E. McGreevey shared with New Jersey consumers a six month status report that shows New Jersey auto insurance reforms are making significant progress in putting consumers in the driver’s seat.

The report, prepared by the Department of Banking and Insurance, highlighted the positive impact the Governor’s reforms are having on the New Jersey auto insurance market. Since the Governor signed the reform act in June, a major new auto insurance carrier is doing business in the state; the critical availability problem has been eased; 37,000 uninsured drivers now have insurance, infusing $54 million into the system; and coverage choices are making auto insurance more affordable for all New Jersey drivers.

As of Jan. 1, companies must notify their policyholders when requesting significant rate increases. DOBI is completing work on other power tools for consumers, including a Consumer Report Card, the Consumer Bill of Rights, the Three Scenarios Program, and a “user friendly” buyer’s guide.

Under the leadership of Attorney General Peter Harvey and the Insurance Fraud Prosecutor, Greta Gooden Brown, the Administration is also making impressive strides in the fight against insurance fraud and punishing the swindlers who steal from all honest policyholders when they commit fraud.

Among the highlights from the report:

The auto insurance availability crisis is easing. A year ago, some good drivers were unable to find insurance at any price. A recent survey shows that all companies eligible to write new business are binding coverage within a week, and some within a shorter time period.

• More than 500 new auto insurance agents have been appointed by auto carriers since the reform legislation was adopted, making auto insurance more accessible.
• $86.6 million was returned to drivers through voluntary rate reductions by State Farm and USAA, and special dividends from NJM.
• Mercury General Insurance Group, a large California-based insurance company, entered the New Jersey auto insurance market and is currently covering more than 6,000 vehicles.
• State Farm Indemnity abandoned its plan to drop 4,000 New Jersey drivers a month.
• The AIG Companies, which were scheduled to leave New Jersey last month, postponed that action for at least another two years.
• The Governor’s “Last Chance” program initiated in 2002 has resulted in 37,000 previously uninsured drivers now contributing more than $54 million to New Jersey’s insurance system.
• The Dollar-a-Day program has enrolled more than 260 drivers since October.

Recognizing the inimical harm fraud has on public safety, the reform legislation made it a crime to file false claims or provide false information on a insurance application

Source: State of New Jersey

State: Texas

Area of Interest: TDI Rejects Medical Malpractice Rate Hike

AUSTIN - Texas Department of Insurance (TDI) Commissioner Jose Montemayor signed an order on Wednesday, November 19, 2003, rejecting a rate hike by the Texas Medical Liability Insurance Underwriting Association, also known as the Joint Underwriting Association (JUA). The JUA had filed for increases of 35.2 percent for physicians, surgeons, and other non-institutional health care providers, and 67.9 percent for hospitals and other institutional health care providers, to take effect Dec. 1, 2003.

In the order disallowing the rate hikes, Commissioner Montemayor noted that the proposed rates did not adequately consider the effects of House Bill 4 (Proposition 12) on the JUA's future anticipated losses. He also stated that the proposed rates were unfairly discriminatory because they lacked actuarial support for territorial relativities.

Montemayor said that TDI will aggressively scrutinize all rate requests and that the Department will take the same approach with medical malpractice rates as it took with homeowners insurance this past year. In September 2003, TDI ordered 29 home insurers to reduce their rates by a combined $510 million.

Source: State of Texas

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