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October 2006 State: Illinois Area of Interest: OSHA Fines Chicago Metal Forger $235,000 for Workplace Safety and Health Violations The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has proposed $235,000 in fines against A. Finkl & Sons Company, Chicago, for alleged willful and serious violations of workplace safety and health standards. OSHA opened an inspection at the specialty metal forgings manufacturer in Chicago in March 2006 after receiving a formal complaint related to an alleged lack of safety inspections and possible oil leaks in forging equipment. The investigation resulted in citations issued to Finkl alleging three willful and seven serious violations of federal workplace safety and health regulations. The alleged willful violations addressed hazards associated with lack of guardrails and/or covers for open pits, vats, tanks and similar hazardous openings, failure to perform necessary maintenance on hydraulic forging presses that leaked hydraulic oil, and for safety issues involving powered industrial trucks. The alleged serious violations included fall protection, personal protective equipment issues, electrical hazards, and guarding of moving belts. Source: Occupational Safety and Health Administration
Area of Interest: State Insurance Commissioner John Garamendi Anticipates Reducing Workers' Compensation Rates for California Employers - “Garamendi Roadmap” leads to more than $10 billion in savings within the system; Commissioner continues to urge changes to fully protect injured workers Insurance Commissioner John Garamendi today announced he will likely recommend a further reduction in workers’ compensation insurance rates of at least an additional 6.3%. Based on pre-reform trends, the Workers’ Compensation Insurance Rating Bureau (WCIRB) estimates that such a reduction would result in cumulative savings to the system of $10 billion to $14 billion since 2003. The Commissioner made the announcement while standing with the owners of the San Francisco Soup Company, where he launched the early stages of the reform effort three and a half years ago. According to the WCIRB, the Commissioner’s approval of a 6.3% drop in the pure premium rate will result in an overall reduction of 58% in the rate since 2003. The Commissioner on Thursday also renewed his recommendation to the legislature and Governor to enact changes addressing problems that still exist. Technical flaws have reduced indemnity payments for seriously injured workers by some 50% from pre-reform levels. These flaws can be corrected through a minor change to the current regulations. Problems with respect to unfair delays in the treatment of legitimately injured workers, and in the updating of medical treatment guidelines must also be addressed. Source: State of California
Area of Interest: New State Commercial Insurance Organization Given the Green Light to Begin Operations Florida Insurance Commissioner Kevin McCarty today approved a servicing carrier for the newly formed Florida Property and Casualty Joint Underwriting Association (PCJUA), along with the contract the carrier has signed with the PCJUA Board of Directors. Having met all the statutory requirements of the Office of Insurance Regulation (Office), the PCJUA can now appoint agents, accept applications for insurance and handle claims for small businesses unable to access coverage in the private market. The new servicing carrier, ICAT Specialty Insurance Company, of Tampa, FL, can write commercial non-residential policies to cover up to $1 million of a business’s structure value and up to $1 million of coverage for contents and business interruption. Gov. Jeb Bush and the Florida Cabinet approved an emergency rule in August establishing a property and casualty joint underwriting association to make commercial property insurance available to Florida businesses that are unable to find coverage in either the admitted or surplus lines insurance markets. The plan made use of a statute that was put into law in 1986 (F.S. 627.351(5)). It created a Joint Underwriting Association (JUA) which eventually was deactivated, but the enabling statute remained on the books along with the triggering mechanisms which allowed it to be reactivated. For the JUA to be launched, a minimum of 100 applications had to be received by the Florida Market Assistance Plan (FMAP) within a 3-month period. Of those seeking insurance through FMAP, 80 percent had to have no offers of coverage. That trigger was reached three days after the Cabinet approved the PCJUA rule Source: State of Florida
Area of Interest: Florida Insurance Commissioner Announces $14 Million Settlement with AIG Insurance Company Florida Insurance Commissioner Kevin McCarty today announced a multi-million dollar settlement with AIG Insurance Company (AIG) to settle charges that the company failed to justify rates or used excessive and unfairly discriminatory rates on coverage required by the federal Terrorism Risk Insurance Act. Under the consent order AIG will be required to refund or credit approximately $13.6 million, in Workers’ Compensation, and approximately $100,000.00 in non-Workers’ Compensation lines, plus interest, to policyholders in the state. AIG will also be required to pay $300,000 to the Florida Office of Insurance Regulation (Office) for costs and fees related to the settlement. The excessive charges were for Workers’ Compensation, Fire and Allied Lines, Commercial Property, Surety, Commercial Automobile and General Liability terrorism insurance coverage. The overwhelming bulk of the settlement came from the Workers’ Compensation terrorism coverage. The refunds and credits will accumulate from the date AIG started charging the rates filed with the Office (a period beginning January 2003 through March 2004) through the date in which a credit or refund is issued plus interest. All refunds must be made within one year from the date of issuance of the order. Source: State of Florida
Area of Interest: Oxendine Tells Safeway to “Shape up or Ship out” Orders Company to Pay $500,000 Fine Insurance Commissioner John W. Oxendine announced today that he has fined Safeway Insurance Company of Georgia half a million dollars, and the company faces the unprecedented action of expulsion if their claims handling practices do not drastically improve. Oxendine said Safeway has been placed on intense supervised probation for two years. If further violations occur during that time, the Commissioner’s order states that he can revoke their license to operate in the state without a hearing. As part of the probation, Oxendine has ordered a reformation of Safeway’s business practices which will require the company:
Source: State of Georgia
Area of Interest: Workers’ Comp Insurance Hearing Announced – Rates Could Decline Florida Insurance Commissioner Kevin McCarty today announced a public hearing regarding the proposed workers’ compensation insurance rate reduction of 13.3% filed by the National Council on Compensation Insurance, Inc. (NCCI). The hearing will be held in the Senate Office Building, Room 401, South Monroe Street, in Tallahassee at 1 pm on October 9th. The proposed overall average rate decrease of 13.3 percent statewide would produce a savings of over $400 million for Florida employers, and constitute the fourth consecutive drop since Gov. Bush and the Legislature passed sweeping reforms to the state’s workers’ compensation system in 2003. The cumulative overall statewide average rate change for the period could total a negative 38.9 percent. The rate change would be effective for new and renewal business as of January 1, 2007. The Office initially received the rate filing on August 29th. Reasons cited by NCCI for the proposed rate reduction include a drop in claims frequency, reduced costs of claims, enhanced fraud compliance, and compensation reform for attorney and physician fees. Source: State of Florida
Agency introduces new guidance document on GHS The Occupational Safety and Health Administration announced today that it will publish an Advance Notice of Proposed Rulemaking in the Federal Register on Sept. 12, 2006, seeking public comment on the implementation of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS). Adoption of the GHS by OSHA will require OSHA to propose changes to the Agency's Hazard Communication Standard (HCS). The GHS is a system for standardizing and harmonizing the classification and labeling of chemicals by providing a comprehensive approach to defining the health and physical hazards of chemicals, creating classification processes, and communicating hazard information through uniform labels and safety data sheets. To help those who are not familiar with the approach in the GHS, OSHA has prepared a guidance document that summarizes the GHS requirements. Source: Occupational Safety and Health Administration
Area of Interest: Firefighters Charged in Rabun County Arson Insurance and Safety Fire Commissioner John W. Oxendine said arrest warrants have been issued for four volunteer firefighters and three junior firefighters in Rabun County for allegedly setting a fire in Clayton, Ga. The suspects were charged for setting fire to an abandoned manufactured home at 155 Pool Creek Road, Clayton, last August. Oxendine said other charges against the firefighters may be forthcoming. Warrants have been issued for four Clayton volunteer firefighters Three juveniles who were part of a junior firefighter program were also charged with first-degree arson. Source: State of Georgia Older News...
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