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July 2004

State: New York

Area of Interest: New York Insurance Department to Hold Public Hearings on Proposed Workers Compensation Rate Increase

The New York State Insurance Department has scheduled public hearings to consider the application of the New York Compensation Insurance Rating Board (NYCIRB) for a workers' compensation insurance increase of 29.3 percent.

A New York City hearing is scheduled for June 28, 2004 at 11:00 a.m. at the offices of the Insurance Department, 25 Beaver Street, Room 518. A hearing will also be held in Albany on June 30, 2004 at 11:00 a.m. at the Legislative Office Building, Hearing Room A.

The rate application was submitted by NYCIRB, a non-governmental entity that serves as the advisory rate service organization for workers' compensation in New York State. All workers' compensation insurers must send statistics to the NYCIRB, which compiles and evaluates data and proposes rate changes that are subject to the Insurance Department's prior approval. The application is for an effective date of October 1, 2004.

Source: State of New York

Area of Interest: Local Business Owner Convicted on Federal Charges

A former Pensacola resident and owner of a medical consulting business has been convicted of mail and wire fraud for her role in an insurance fraud scheme.  Lawanda Nall, 39, was convicted on 10 separate counts and awaits sentencing in August.

Investigators with the FBI and the department's Division of Insurance Fraud were alerted by State Farm Insurance Company to a suspicious claim for business and personal losses and business interruption due to a burglary of Caom Enterprises, owned by Nall and located at 7410 N. Palafox St.  Nall filed claims via U.S. Mail totaling more than $370,000.

During the investigation, it was revealed that Nall staged the break-in and stored the missing items in a rental storage unit in Alabama under a relative's name.

The Escambia County Sheriff's Office also assisted in the investigation.

Source: State of Florida

State: Florida

Area of Interest: Construction Contractor Falsified Workers' Compensation Coverage, Investigators Say

The owner of a local construction company has been charged with workers' compensation fraud after jeopardizing the coverage of at least one employee, according to investigators with the Department of Financial Services' Division of Insurance Fraud.

Investigators say Carl T. Nicks, 42, Indian Harbor, submitted falsified workers' compensation insurance certificates to at least two general contractors in order to secure a contract for services.  On at least one job site, an employee of Nicks was injured and did not receive benefits until the general contractor's workers' compensation carrier paid more than $30,000 in medical payments and attorney's fees.

Nicks, owner of A1A Restoration and Construction, Inc., was charged with four counts of workers' compensation fraud.  He was booked into the Brevard County Jail, with bond set at $4,000.  If convicted on all charges, Nicks faces up to 20 years in prison.

Nicks was previously arrested on similar charges in December 2003.  This case is currently pending trial.

Under Florida law, employers in construction-related industries, who have one or more employees, must maintain workers' compensation coverage for their employees.

Source: State of Florida

State: Ohio

Area of Interest: Southeastern Ohio Aluminum Foundry Penalized $104,000 for Serious, Willful Workplace Safety Violations

The U.S. Labor Department's Occupational Safety and Health Administration (OSHA) has issued citations and proposed penalties to Ormet Primary Aluminum Corp. of Hannibal, Ohio, for machine guarding and other workplace safety hazards.

The penalty and OSHA citations are based on an inspection initiated in December 2003 under the agency's targeted inspection program for workplaces with high injury or illness rates and after receiving a complaint involving the adjustment of electric production furnaces in the foundry.

As a result of that inspection, OSHA issued citations for 17 alleged serious violations and one alleged willful violation of federal workplace safety regulations. The willful citation was issued for failure to install guarding to protect workers from a sprocket wheel and chain, resulting in a willful citation. The 17 serious citations involved trip and fall hazards and energy control deficiencies, electrical hazards and protective equipment deficiencies, among others.

The business has had 82 previous OSHA inspections dating back to 1974, resulting in some 315 citations, many of which identified various machine-guarding issues.

State: Wisconsin

Area of Interest: Wisconsin Stone Cutting Company Fined $135,600 For Exposing Workers to Silica

The U.S. Labor Department's Occupational Safety and Health Administration (OSHA) has issued citations and proposed penalties to Quarra Stone Company, LLC, of Madison, Wis., for failing to protect workers from hazards associated with silica.

The penalty and OSHA citations are based on an inspection initiated in December 2003 under the agency's National Emphasis Program directed to reducing worker exposure to silica and the resulting lung diseases, silicosis.

As a result of that inspection, OSHA issued citations for 10 alleged serious violations and three alleged willful violations of federal workplace safety and health regulations including those designed to protect workers from exposure to silica dust and to protect their hearing. OSHA is alleging the firm failed to provide audiograms, medical evaluations and respirator fit testing for employees exposed to silica dust, and failed to protect workers from over-exposure to that dust.

Source: Occupational Safety and Health Administration

Area of Interest: NHTSA Repeats Rollover Warning to Users of 15-Passenger Vans

The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) today re-issued a warning to users of 15-passenger vans because of an increased rollover risk under certain conditions. Similar warnings were issued in 2001 and 2002.

The safety agency also unveiled an updated consumer hangtag for users of 15-passenger vans and released three related research reports. One of the reports is a detailed analysis of 15-passenger van crashes between 1990 and 2002.

The newly released NHTSA research reinforces the fact that 15-passenger vans have a rollover risk that increases dramatically as the number of occupants increases to full capacity. In fact, the likelihood of a rollover when a van is fully loaded is about five times greater than when the vehicle contains only a driver. While an increased likelihood of rollover is present for other types of fully loaded passenger vehicles, it is most pronounced for 15-passenger vans.

The new NHTSA analysis also showed that the risk of rollover increased significantly at speeds over 50 miles per hour and on curved roads.

NHTSA is re-issuing this advisory to specifically alert those who plan to use the vans this summer for group road trips.

Among the safety recommendations are the following:

It is important that 15-passenger vans be operated by trained, experienced drivers.

Insist that all occupants wear safety belts at all times. In fact, 76 percent of those who died in 15-passenger van rollovers nationwide in single vehicle crashes from 1990 to 2002 were not buckled up. An unrestrained 15-passenger van occupant involved in a single vehicle crash is about three times as likely to be killed as a restrained occupant.

If possible, have passengers and cargo forward of the rear axle and avoid placing any loads on the roof.

Check your tires: Excessively worn or improperly inflated tires can lead to a loss-of-control situation and a rollover. At least once a month, check that the vans tires are properly inflated and the tread is not worn down.

According to NHTSA research, between 1990 and 2002, there were 1,576 15-passenger vans involved in fatal crashes. Of these, 349 were single vehicle rollover crashes.

In separate research reports involving 15-passenger vans, NHTSA also examined the effects of tire pressure on rollover resistance and assessed the viability of electronic stability control (ESC) systems. The study, using a 2003 Ford F-350 and a 2004 GMC Savana, found that ESC could have some safety benefits under certain conditions.

While federal law prohibits the sale of 15-passenger vans for the school-related transport of high school age and younger students, no such prohibition exists for vehicles to transport college students or other adult passengers.

Source: National Highway Transportation Association

Area of Interest: U.S. Transportation Secretary Mineta Announces $47.8 Million
In Incentive Grants to 47 States for .08 BAC Laws

U.S. Transportation Secretary Norman Y. Mineta today announced incentive grants totaling $47.8 million to 47 states, the District of Columbia and Puerto Rico for improving highway safety by lowering the legal threshold for impaired driving to .08 blood alcohol concentration (BAC).

The fiscal year 2004 incentive grant recipients from the U.S. Department of Transportation include all the states except Colorado, Delaware and Minnesota. These states had 2 percent of their federal highway construction funds withheld as of Oct. 1, 2003.

Colorado had nearly $5 million withheld, Delaware nearly $1.6 million, and Minnesota nearly $5.7 million. Once a state's law becomes effective, all withheld funds will be restored to the state as quickly as possible.

Colorado and Minnesota have enacted laws that will become effective on July 1, 2004, and Aug. 1, 2005, respectively, and as a result were not eligible for the grants.

New Jersey , Pennsylvania and West Virginia are receiving these incentive grants for the first time. The grant funds may be used for highway safety or highway infrastructure projects.

The increase in the number of states with .08 laws was prompted by an October 2000 law that made .08 BAC the national standard for impaired driving. The penalty for not complying with the law increases in 2 percent increments each year to a maximum of 8 percent in fiscal year 2007 and continues at that rate annually thereafter.

The incentive grants announced today were authorized by the Surface Transportation Extension Act of 2004 to encourage states to enact and enforce laws that make it illegal for drivers with a BAC of .08 or greater to operate a motor vehicle.

Source: National Highway Transportation Association

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