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August 2007 WORKERS’ COMPENSATION RATES TO
DROP BY RECORD 20.5% Governor Eliot Spitzer, Lieutenant Governor David Paterson, Assembly Speaker Sheldon Silver, Senate Majority Leader Joe Bruno, Assembly Minority Leader James Tedisco and Senate Minority Leader Malcolm Smith today announced that rates for workers’ compensation insurance will decline by more than 20.5% and save New York businesses about $1 billion in the 2007-2008 fiscal year. The rate drop stems from the historic reform of the Workers’ Compensation Law earlier this year. Based on a careful analysis of the impact of the reforms and market trends, New York State Insurance Superintendent Eric Dinallo has ordered a 20.5% decline in workers’ compensation insurance rates for the fiscal year beginning July 15. In March, when the Governor and legislative leaders announced the historic agreement designed to lower the cost of workers’ compensation insurance while increasing the weekly benefits for workers, the Governor projected the result would be a rate decline of 10% to 15%. “We promised that we would reduce the cost of workers’ compensation as part of our effort to make New York more business friendly,” said Governor Spitzer. “I’m proud to say that the reforms we instituted have already produced the biggest single year decline in workers’ compensation rates since at least 1975, the first year for which data is currently available. That amounts to even more cost savings for employers than we expected, while increasing the weekly benefits for injured workers. I thank Superintendent Dinallo, the Legislature, the business community and the unions for their continued cooperation that has led to this result.” Lieutenant Governor David Paterson said: “Today's announcement is another monumental step towards increasing the vitality of New York's business environment, while ensuring workers the benefits they have earned. The Governor continues to build a strong coalition of business, governmental, and labor leaders around solving the issue of workers’ compensation. I commend Superintendent Dinallo on spearheading this effort, along with the legislature, labor and business leaders.” Assembly Speaker Sheldon Silver said: “These rates make real the reforms that the Governor and the Legislature negotiated together. This historic announcement is a win for our working men and women, who are the backbone of this state and our greatest asset. It is certainly a win for our all-important business community. I commend our Labor Committee Chair Susan John for her tireless efforts to bring about this necessary and long-awaited reform. Overall, we have taken a significant step forward in our mutual commitment to rebuild and re-energize the economy of Upstate New York.” Senate Majority Leader Joseph Bruno said: “This legislation represents a tremendous victory for workers who will receive increased benefits, and for businesses that will see a significant reduction in premiums. The Senate has worked to reform workers’ compensation for more than a decade and I am pleased to see many of the reforms we initiated included in this legislation. I congratulate Senator Maziarz for his hard work, the representatives of business and labor for their support, and my partners in government for delivering a result that will strengthen New York’s business climate and protect employees.” Senate Minority Leader Malcolm Smith said: “This is quite extraordinary. The results speak for themselves. The cost savings for New York businesses is remarkable -- about $1 billion -- and when you couple that with the stronger protections for workers who are injured on the job, this is a win-win for all New Yorkers.” Assembly Minority Leader James Tedisco said: “High workers' compensation rates have long been a major impediment to creating jobs in Upstate New York. The reforms we passed earlier this year have helped us begin to turn the corner and more needs to be done.” President and CEO of the Business Council Kenneth Adams said: “This is welcome news and the business community remains grateful to Governor Spitzer and the legislative leaders for their continuing efforts to drive down the costs of workers’ compensation. This process was well begun earlier this year with the reform deal, and this news and continuing efforts to achieve administrative reforms show that we are on a good track.” Superintendent of Insurance Eric Dinallo said: “Workers’ compensation reform is working. The Insurance Department was assigned to implement the reforms, and we are succeeding. Last month, we produced an accelerated system for resolving disputed cases by the June 1st deadline. Today, we are announcing substantially lower rates. In the months ahead, we will continue working with the business community, labor and the insurance companies to make New York’s workers compensation system the best in the nation, improving equity while lowering employer costs. We believe that the rate reduction is fair, that the private carriers will remain profitable, and that the market will continue to be competitive.” The lower rate is possible largely because of the passage of the 2007 Workers’ Compensation Reform Act, which included a number of reforms designed to substantially decrease costs, increase workers’ weekly benefits and improve system performance. The reform package:
Source: www.ins.state.ny.us INSURANCE RATES TO DROP FOR DRIVERS IN ASSIGNED RISK PLAN Drivers in New York’s Automobile Insurance Plan (AIP), also known as the assigned risk plan, will see an overall 7% reduction in auto insurance premiums, the New York State Insurance Department announced today. Superintendent Eric R. Dinallo said the new rate schedule will go into effect on Aug. 15 for new policies and Oct. 1 for policies being renewed. An estimated 130,000 policies will be affected. “This rate reduction will result in statewide savings of nearly $20 million for new drivers and others in the assigned risk plan,” Superintendent Dinallo said. He explained that the rate reductions can be largely attributed to the Department’s continuing efforts to combat fraud, along with the willingness of district attorneys to prosecute no-fault auto insurance fraud cases. The AIP is the insurer of last resort for individuals unable to obtain insurance otherwise, generally because they are drivers with little or no prior driving experience or those with poor driving records. Premiums charged in the AIP are determined according to a unified set of rates approved by the Insurance Department, no matter which auto insurance company actually issues the policy. The number of drivers in the AIP peaked a decade ago at 1.7 million. Since then, the growing competitiveness of the state’s auto insurance industry has enabled most drivers to save money by obtaining coverage in the voluntary market. Source: www.ins.state.ny.us INSURANCE COMPACT RECEIVES FIRST
PRODUCT FILINGS COLUMBUS — An interstate system that offers a faster way for insurance companies to gain approval for certain insurance products and consumers quicker access to insurance products has received its first product filings. The Interstate Insurance Product Regulation Commission (IIPRC) - in which the Ohio Department of Insurance is a member - provides insurance companies with a single venue for filing policy forms and rates for life insurance, long-term care insurance, disability income insurance and annuity products. It received its first product filings on Friday, June 22, just one year from the start-up of its operations and on schedule with its mid-year target to be open for business. Insurance companies have the option of filing insurance policies and rates with the Interstate Compact instead of with individual insurance departments. “This is a momentous occasion for Ohio life insurance consumers and state insurance regulation,“ said Mary Jo Hudson, Director of the Ohio Department of Insurance. “It highlights our proactive efforts to modernize our regulatory structures and reduce regulatory burdens while continuing to ensure that consumers are afforded the highest levels of protection.“ In 2006, the Ohio General Assembly passed legislation that made Ohio the 26th state to adopt the Compact. Twenty-six states were needed to trigger the Compact's implementation. In creating a central point of insurance product filing under uniform standards for the Compact's current 30 member states, state insurance regulators have demonstrated a commitment to meeting the challenges of the ever–evolving United States and global financial marketplace. The members who have joined the Interstate Insurance Product Regulation Commission are: Alaska, Colorado, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New Hampshire, North Carolina, Ohio, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia and Wyoming. Source: www.ohioinsurance.gov COMMISSIONER MCCARTY ORDERS WORKERS’ COMPENSATION INSURERS TO REFUND OVER $13 MILLION TO CUSTOMERS TALLAHASSEE (07/19/2007) - Florida Insurance Commissioner Kevin McCarty issued a Consent Order today requiring The Chubb Group of companies to refund over $13 million in excess profits to its customers. The order states that the Office of Insurance Regulation performed an evaluation of the data submitted by the group, and determined that between the years 2002 and 2004, the insurers realized excess profits in the amount of $13,099,891 for workers' compensation business. "Florida law prohibits insurers to earn excess profits and requires that if we determine any were earned, the company must return it to the policyholders," McCarty said. The Chubb Group consists of Federal Insurance Company, Chubb Indemnity Insurance Company, Chubb National Insurance Company, Great Northern Insurance Company, Pacific Indemnity Company, and Vigilant Insurance Company. The insurers must make the refund or offer renewal credits to its policyholders within the next two months. Source: www.floir.com NEW OSHA CASE STUDY HIGHLIGHTS BENEFITS OF COMPREHENSIVE SAFETY AND HEALTH PROGRAM WASHINGTON -- The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has released a new case study that shows how Ritrama, a signatory of the Graphic Arts Coalition alliance, realized lower workers' compensation premiums and higher productivity and quality after implementing a comprehensive safety and health program. "Ritrama's success is a good example of what can happen when management and employees dedicate themselves to workplace safety and health," said Assistant Secretary of Labor for OSHA Edwin G. Foulke, Jr. "While the benefits from Ritrama's new safety and health program have occurred throughout the company, the company has reduced their workers' compensation premiums by $44,000, increased sales by 7.5 percent and have reduced the costs of manufacturing defects and waste by more than $2 million." In a company memorandum thanking Ritrama employees, Safety Director Mike Conklin wrote, "Our safety programs are not given 'lip service.' Safety is part of our culture, and we have had measurable results over the past 5 years." Ritrama, a multi-national corporation, manufactures pressure-sensitive films and labels for the automotive, beverage, health, beauty, and pharmaceutical industries. In an effort to significantly improve its safety and health performance at the company's manufacturing plant in Minneapolis, Minn., Ritrama designed and implemented a program to educate employees, managers and supervisors about safe work practices and procedures. The case study, "Ritrama Invests in Safety and Improves its Bottom Line," details Ritrama's efforts to protect employee safety and health while also benefiting from higher productivity and an improved bottom line. Under the Occupational Safety and Health Act of 1970, employers are responsible for providing a safe and healthful workplace for their employees. OSHA's role is to assure the safety and health of America's working men and women by setting and enforcing standards; providing training, outreach, and education; establishing partnerships; and encouraging continual process improvement in workplace safety and health. For more information, visit www.osha.gov. Source: www.osha.gov U.S. LABOR DEPARTMENT'S OSHA PROPOSES $41,400 IN PENALTIES AGAINST DALTON, GA., MANUFACTURING COMPANY FOR 11 SERIOUS VIOLATIONS Fire at company resulted in a fatality during January 2007 ATLANTA -- The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has proposed penalties totaling $41,400 against a recycling company for 11 serious safety violations at its plant in Dalton, Ga. In January 2007, a fire at this location resulted in the death of one employee and serious injuries to two other employees. The company employs 288 people to manufacture conveyor belt material from recycled textile remnants. "We found that the employer was not enforcing safety rules which could save lives," said the director of OSHA's Atlanta-West Area Office. Inspectors found a number of hazards which contributed to an unsafe working environment, including fall hazards, blocked fire exits, unclean and disorderly passageways, materials blocking the line of sight to emergency exits, materials blocking access to electrical equipment and exposed electrical wiring. No written emergency plan was prepared or available in case of a fire. Other violations included liquid propane gas tanks which could be struck by vehicles, employees operating forklifts without formal training and no written certification of forklift operators' training. Source: www.osha.gov U.S. LABOR DEPARTMENT'S OSHA FORGES PARTNERSHIP TO MAXIMIZE SAFETY AND HEALTH FOR WORKERS BUILDING THE NEW YANKEE STADIUM NEW YORK -- Ensuring that safety is the priority during the construction of the new Yankee Stadium is the goal of a comprehensive safety partnership among labor, business and government that emphasizes employee training and the identification and prompt correction of worksite hazards. The partnership unites the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) with the project's general contractor, Turner Construction Co. (TCCo), the Building and Construction Trades Council (BCTC), the Building Trades Employers Association (BTEA) and the New York Labor Department's On-Site Safety Consultation Program (NYS Consultation). "This partnership is a major league effort to minimize hazardous conditions for the 1,100 employees who will be working on this project," said Edwin G. Foulke Jr., assistant secretary for OSHA. "Maximizing worker safety will be accomplished through the winning teamwork of labor, management and government." Under the partnership, contractors will be required to have site-specific safety and health programs, conduct task-specific hazard analyses, and provide safety and health orientation for new employees as well as ongoing safety and health training to all employees in a language they understand. It also mandates OSHA training for foremen and others with safety and health responsibilities, weekly safety meetings, weekly safety and health audits, documentation of corrected hazards and near-miss incidents, and task-specific weekly toolbox instructions for employees who will integrate safety and health requirements with that week's tasks. "We want the successor to 'The House that Ruth Built' to be 'The House that Safety Built,'" said Patricia K. Clark, OSHA's regional administrator. "Zero fatalities is a top priority. All of us are working together so that every employee on this project can end each workday healthy and whole." The partnership was signed by: OSHA's Clark; Diana Cortez, director of OSHA's Tarrytown Area Office, which covers the Bronx; from TCCo, Pat DiFilippo, executive vice-president, Charlie Murphy, senior vice president and general manager, and John A Turmelle, business unit safety director; from BCTC, Edward J. Malloy, chairman and chief executive officer; from BTEA, Lou Coletti, chairman and chief executive officer; and from NYS Consultation, James Rush, program manager. OSHA's Strategic Partnership Program is part of U.S. Labor Secretary Elaine L. Chao's ongoing efforts to improve the health and safety of employees through cooperative relationships with trade associations, labor organizations, employers and employees. More than 1.2 million employees and more than 33,000 employers across the United States have participated with OSHA in 455 strategic partnerships since the program began in 1998. Source: www.osha.gov INSURANCE COMMISSIONER STEVE POIZNER URGES SACRAMENTO RESIDENTS TO PREPARE FOR POSSIBLE DISASTER Home Inventory and Insurance Policy Updates Should be Done Today Before Calamity Strikes Tomorrow; Consumers Can Contact Dept. of Insurance for Free Inventory Guide SACRAMENTO - California Insurance Commissioner Steve Poizner today visited an Auburn home on five wooded acres to encourage Sacramento homeowners to protect their assets in the event of a disaster. Commissioner Poizner advised local residents to proactively prepare for fires and other disasters by conducting a home inventory and updating their insurance policies. California is in the midst of a dangerous fire season due to a harsh confluence of factors. Increased fuel, abnormally dry weather and greater urban interface are creating a particularly combustible mix for the 2007 fire season. "Waiting for a fire to erupt before conducting a home inventory and reviewing your insurance policy means you could get burned twice - first by the fire then by trying to recover your losses," said Insurance Commissioner Steve Poizner. "These are concrete steps people can take today to protect their home." Using their own personal household digital camera plus a Home Inventory Guide available at no charge from the California Department of Insurance (CDI), Commissioner Poizner demonstrated how the homeowners can catalogue their possessions and document their values. Commissioner Poizner encouraged residents to contact CDI at 800.927.HELP for consumer guides about various insurance policies. "California's recently hot housing market may mean that expensive upgrades would not be a covered loss," said Commissioner Poizner. "Many people who have remodeled their homes over the past few years should take particular care to update their policies." Photographs of household goods are especially helpful when an item is hard to describe on paper, or if a purchase receipt cannot be obtained. Each photograph should be labeled with information about the item. If a video recorder is used, commentary should be added about each item. Date stamps should also be employed. A copy of the inventory and supporting documentation, such as receipts and model numbers, should be stored in a safe place, such as a safe-deposit box, work office, or a relative's house. These records should also include financial documents such as insurance policies and mortgage information. Commissioner Poizner was joined today by CALFIRE Chief Ruben Grijalva to demonstrate how to make homes more fire safe by creating defensible spaces and improving construction materials. Source: www.insurane.ca.gov Older News...
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