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The Past is an Indication of Our Future

Thank you for reviewing company and industry highlights. If you would like additional information on the topics discussed, please feel free to contact us.

Company and Industry Highlights

October 2007

LEADER OF ARSON RING SET TO BEGIN PRISON SENTENCE

The leader of an arson ring that collected more than $400,000 in fraudulent insurance claims for fires in three New York counties is scheduled to surrender Sept. 18 to serve a 10-year federal prison sentence.

The individual, 61, of Binghamton, has been ordered to surrender to the U.S. Bureau of Prisons. A former real estate agent in the Delaware County Town of Sidney, he remains under the supervision of a federal probation officer until he begins his sentence. He has also been ordered to pay restitution of $430,000.

The sentencing in U.S. District Court in Binghamton on Aug. 7 capped a six-year long investigation into arsons in Delaware, Otsego and Chenango counties dating to the early 1990s. The individual earlier pleaded guilty to arson and conspiracy. He is one of six people convicted and sentenced in the cases.

The cases resulted from allegations that the individual and the others profited by filing fraudulent insurance claims following the fires.

According to Sean Ralph of the New York State Insurance Department's Frauds Bureau, the investigation was opened in 2001when the Department was contacted by Karl Vaghts of the Delaware County Sheriff's office.

Ralph said Vaghts had received source information that the individual had solicited an individual to purchase a home, furnish it, place insurance on it and then burn it. The plan was very detailed and included how to set the fire so it would not be suspected, Ralph said.

Investigators then linked the individual to the fires when they discovered his name and the name of his business partner, on mortgages for the properties.

Relying on various surveillance techniques that included covert recordings to gather evidence, authorities eventually implicated and charged the individual, his business partner and four others.

Ralph said it took authorities six years to conclude the investigation because investigators had to re-open long closed cases in which fires originally had been ruled accidental and insurance claims had been settled and paid.

The fires were set in such a way that fire investigators initially had been unable to identify the fact that they were intentionally set, Ralph said.

In addition to the Insurance Department, the Delaware County Sheriff's office, the New York State Police and the Binghamton office of the FBI participated in the investigation, along with fire coordinators and fire departments in Delaware, Otsego and Chenango counties. Assistant U.S. Attorney Kevin P. Dooley of the U.S. Attorney's Office in Binghamton prosecuted the cases.

Source: www.ins.state.ny.us


OSHA ANNOUNCES NEW ALLIANCE WITH THE ASSOCIATION OF EQUIPMENT MANUFACTURERS

WASHINGTON -- The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) and the Association of Equipment Manufacturers (AEM) have formed a new Alliance to provide rough terrain forklift or telehandler owners and operators with information, guidance and access to training resources in multiple languages that will help them protect construction employees' health and safety.

"This cooperative alliance clearly illustrates our commitment to reducing construction safety and health hazards, while promoting best practices and technical knowledge for the construction industry," said Assistant Secretary of Labor for OSHA Edwin G. Foulke Jr. "We are committed to working together to develop and provide safety and health information to help employees and employers reduce workplace injuries, illnesses, and fatalities."

The OSHA and AEM Alliance will focus on hazards related to operating telehandlers in the workplace, such as ground conditions, machine mobility and overloading, as well as hoisting employees improperly. The Alliance will develop information on the recognition and prevention of workplace hazards, and provide expertise in developing ways of communicating such information to employers and employees in the industry. OSHA and AEM will develop and provide training and education programs for telehandler operators and "workers on foot." In addition, Alliance members will promote the national dialogue on workplace safety and health by participating in forums, roundtable discussions and stakeholder meetings to forge innovative solutions to hazards in the construction industry.

"AEM and its member manufacturers are committed to fostering safe equipment operation and we have worked closely with OSHA for many years toward this end. This new Alliance is just the latest example of our industry's proactive education and training efforts," stated AEM President Dennis Slater. AEM is comprised of 750 member companies that manufacture equipment, products and services used worldwide in the agriculture, construction, forestry, mining and utility fields.

Source: www.osha.gov


FLORIDA'S 2007 MEDICAL MALPRACTICE REPORT SHOWS POSITIVE TRENDS FOR THE INDUSTRY

TALLAHASSEE, Fla. (09/28/2007) - The Florida Office of Insurance Regulation (Office) today released its 2007 annual report on the medical malpractice insurance market in Florida. Pursuant to Florida law, the Office is required to annually issue a summary and analysis of the state of the medical malpractice insurance industry.

The report showed a continuing trend of recovery for the medical malpractice industry that experienced double-digit rate increases and lack of availability prior to the 2003 legislative reforms. In fact, the report showed a net decline in medical malpractice rates for the primary market, which includes physicians and surgeons. The net decrease of rates in Florida was 3.06 percent for 2006.

"The Florida Legislature has been vigilant in its oversight efforts to control the costs in the medical malpractice insurance industry," remarked Commissioner Kevin McCarty. "This report shows that the Florida Legislature's efforts to control these costs have been effective."

The annual report compared Florida's medical malpractice industry financial data to data from the five most populous states: California, Illinois, New York, Texas and Pennsylvania. The report showed that Florida's loss experience and defense cost and containment expenses are now competitive with states in this peer group.

The report also showed that seven new medical malpractice carriers entered the market in 2006. An analysis of the closed claims data submitted to the Office's Professional Liability Claims Reporting (PLCR) system reported 900 closed claims in 2006, which paid an estimated $188.8 million; $138.2 million was paid in economic damages and the remainder in non-economic damages.

Following the 2003 reforms, the Office developed a "presumed savings factor" of 7.8 percent. The initial reduction was based on the premise that this factor would be revisited at a future date to determine the full impact of the new legislation. The report indicated that enough historical data has now been accumulated to initiate a further study.

About the Florida Office of Insurance Regulation

The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. Business units within the Office are organized based on regulatory expertise and include the areas of life and health, property and casualty, specialty lines and other regulated insurance entities. It is within the Office that the mission of public protection is implemented through regulatory oversight of insurance company solvency, policy forms and rates, market conduct performance and new company entrants to the Florida market.

For more information about the Office, please visit www.floir.com. If you would like to review and compare homeowners insurance rates in Florida, go to www.shopandcomparerates.com.

Source: www.floir.com


U.S. Department of Labor's OSHA announces Southeast 'Swept Up in Safety Weeks' to occur over next 12 months

ATLANTA -- The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) will conduct no-notice "Swept Up in Safety Weeks" during its fiscal year 2008 campaign to curb construction-related fatalities in the Southeast.

In the past, such unannounced safety weeks have been successful in reducing construction-related fatalities in the Southeast. OSHA compliance officers will continue to focus their enforcement efforts on construction sites in the region, which includes Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee.

OSHA field activities are designed to identify and eliminate safety and health hazards at construction sites, thereby reducing the numbers of injuries and fatalities resulting from the four leading causes of accidents: falls, struck-by/crushing events, electrocutions and caught-in-between events. During the fiscal year 2007 "Swept Up in Safety Weeks" campaign period, agency compliance officers conducted immediate inspections when unsafe working conditions were observed at construction sites. Compliance officers also entered worksites to provide outreach and training and to encourage employers to continue their good work.

"OSHA's goal this year is to continue increasing employers' awareness about eliminating hazards that lead to employee fatalities," said Cindy Coe, OSHA's regional administrator in Atlanta. "The increased presence of our field compliance officers and conducting immediate inspections when they observed unsafe scaffolds, fall risks, trenches and other construction hazards led to a reduction in worksite fatalities."

OSHA's fiscal year 2007 "Swept Up in Safety Weeks" campaign helped reduce fatalities at construction sites overseen by federal OSHA offices by 10.4 percent compared to fiscal year 2006. During the four designated safety weeks in fiscal year 2007, OSHA conducted 2,086 compliance inspections, while conducting 1,294 on-site interventions where no inspection was performed.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces 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.ohioinsurance.gov


OSHA SOLICITS PUBLIC INPUT ON COMPREHENSIVE EMERGENCY RESPONSE STANDARD

WASHINGTON -- The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has published a Request for Information seeking input from the public to determine what action, if any, the Agency should take to further address emergency response and preparedness. The Request for Information was published in today's Federal Register and OSHA is accepting comments from the public until Dec. 10, 2007.

"Elements of the health and safety for emergency responder are currently regulated by OSHA, primarily under six standards," said Assistant Secretary of Labor for OSHA Edwin G. Foulke, Jr. "Some of these standards were promulgated decades ago and none were designed as a comprehensive emergency response standard. Emergency responders often encounter significant hazards while on the job, and this Agency wants to ensure it is doing everything possible to keep these vital employees safe and healthy while at work."

Current OSHA standards do not reflect all of the major improvements in safety and health practices that have already been accepted by the emergency response community and incorporated into industry consensus standards. This Request for Information is intended to gather information about current thinking and practices relative to emergency responders and skilled support employees.

The public may submit comments electronically at http://www.regulations.gov, the Federal eRulemaking Portal; or by sending or hand delivering three copies to the OSHA Docket Office, Room N-2625, U.S. Department of Labor, 200 Constitution Ave., N.W., Washington, DC 20210. Submissions that are less than ten pages may be sent by FAX to (202) 693-1648. Comments must include the Agency name and the docket number for this Request for information, Docket No. S-023B. See the Federal Register notice for more information on submitting comments.

Source: www.ohioinsurance.gov


STATEWIDE TELEPHONE CALL-IN HEARING TO BE HELD ON GOVERNOR'S "PARTNERSHIP FOR COVERAGE" INITIATIVE

Patient Advocates, Physicians, Business, Insurance Industry Representatives Among Participants

ALBANY, N.Y. (Oct. 5, 2007) As part of the "Partnership for Coverage" public hearings on ways to expand health insurance coverage and improve the health care system in New York a statewide telephone call-in session will be held at 3 p.m. Oct. 10.

Individuals interested in partaking in the session may call 888-316-9407. Callers will need to provide the participant pass code: DOH.

All individuals planning to call the phone hearing must pre-register with the New York State Department of Health or the New York State Department of Insurance. To pre-register, please contact:

Ms. Cindy Esterby
Ms. Deborah Greer
Office of Health Insurance Programs
New York State Insurance Department
New York State Department of Health
One Commerce Plaza
Corning Tower Bldg., Room 1483
Albany, NY 12257
Empire State Plaza
(518) 474-4567
Albany, New York 12237
(518) 474-5737

Governor Eliot Spitzer directed that the call-in session and hearings be conducted by the state Health and Insurance departments in connection with the Governor's "Partnership for Coverage" initiative. The call-in and hearings will seek public input to develop proposals for achieving health system reform and affordable universal coverage in New York State.

During the session the general public, patient advocacy agencies, health care providers, insurance industry representatives, business and labor groups will share their input and proposals with New York State Health Commissioner Richard F. Daines, M.D., and Insurance Superintendent Eric R. Dinallo.

This unique call-in session will go a long way toward our building blocks approach to finding ways that we can economically extend coverage to all New Yorkers who lack health insurance and don't qualify for existing state programs, said Commissioner Daines. Improvements in health care quality and affordability must go hand-in-hand with efforts to expand health insurance coverage, because if we don't improve New York's health care delivery system, we won't have the resources to achieve universal coverage.

I expect this call-in session to be extremely informative, said Superintendent Dinallo. "It is essential that we hear from stakeholders, experts and, most of all, the public on making health care affordable and accessible for all. While there is widespread consensus on the goals, we need everyone's wisdom and support for a practical set of building blocks for accessible and affordable health care.

Public hearings have been held in Glens Falls and Buffalo. The remaining hearings will be held on October 30 in New York City; November 13 in Syracuse; November 26 in Rochester; and December 5 on Long Island. All individuals interested in participating in the call-in session or one of the remaining hearings must pre-register with the New York State Department of Health or the New York State Department of Insurance. To pre-register or for more information on the hearings and the Partnership for Coverage initiative, please visit: http://partnership4coverage.ny.gov.

Contact: New York State Department of Health
Claudia Hutton (518) 474-7354
www.nyhealth.gov

Contact: New York State Insurance Department
David Neustadt (212) 480-5265
www.ins.state.ny.us

Source: www.ins.state.ny.us

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