Landslide Trial Kicks Off; 10 Died, Homes Destroyed

The trial for a January 2005 California landslide that killed 10 people kicked off Monday in Ventura County Superior Court. A number of La Conchita residents, along with relatives of those injured or killed, sued the county and the La Conchita Ranch Co.

One lawyer began the trial on Monday by arguing that an orchard on a bluff located above the homes triggered the landslide. A defense attorney for the orchard owner, however, claimed the area already had a history of deadly landslides dating back more than 100 years ago.

Those behind the lawsuit claim the county and company could have prevented the landslide that not only killed and injured people, but destroyed 13 homes and damaged nearly two dozen more.

The lawsuit claims that the ranch saturated its orchards and did not construct an adequate drainage system, therefore leading to the slide.

Earlier this year, a judge ruled Ventura County could be sued only for property damages and was not liable for the deaths in 2005.

When a 1995 slide destroyed or damaged seven homes, Ventura County declared La Conchita a "geological hazard area," issuing warning signs for the area.

A 1995 homeowner lawsuit against the orchard for that particular slide settled that case out of court.

La. Legislature Adjourns; Passes Some Proposals

The Louisiana Legislature has adjourned after passing several proposals affecting the property/casualty insurance industry, according to the National Association of Mutual Insurance Companies. The adjournment followed a weekend of frenzied activity for lawmakers.

On Sunday, the Legislature sent Gov. Bobby Jindal SB 160, a bill to modernize the insurance marketplace by allowing companies to implement 'named storm’ deductibles that vary by geographic territory. The bill limits the amount of the increase in a total deductible to not more than 4 percent of the value of the property being insured.

“This legislation is a victory for insurance consumers and carriers, alike,” said Liz Reynolds, NAMIC Southeast state affairs manager. “It brings Louisiana in line with every other state by providing flexibility for insurers and, as a result, expanding choices for consumers. It’s a win-win for all.”

Another bill, HB 1312, increases the minimum amounts drivers must pay for auto liability coverage for property damage and injuries or deaths of other persons. The current limits are $10,000 for property damage and the death or injury of one person and $20,000 for multiple deaths or injuries. The new legislation raises those limits to $25,000 for property damage, $15,000 for the death or injury of one person, and $30,000 for the death or injury of more than one person.

Last year, a similar bill but with higher limits was vetoed at NAMIC’s request. “Evidently, the Legislature believes strongly that it is necessary to raise these limits, despite the fact that rates are likely to increase,” Reynolds commented.

Additional bills passed by the Legislature include the following:

* SB 308 provides for a pre-trial hearing regarding the qualifications and admissibility of expert witness testimony, and extends the deadline for filing expert witness disclosures. “Louisiana does not have uniform application of standards for expert testimony and methodologies used in court cases,” Reynolds pointed out. “This often leads to testimony from unqualified ‘experts’ and the use of evidence that is unreliable.” Passage of SB 308 will create a uniform procedure for qualifying and excluding expert witnesses and methodologies in court cases. It is similar to statutes recently passed in Georgia, Mississippi, and Michigan, and follows model legislation by the American Legislative Exchange Council.

* SB 44 provides a new round of matching grants to qualified insurance companies that write new property insurance policies to encourage the depopulation of Louisiana Citizens Property Insurance Corp., the state’s insurer of last resort. “This legislation will foster additional insurance competition, leading to more choices for consumers,” Reynolds noted. “We commend the Legislature for passing legislation that will lead to overall a better insurance market in the state.”

CCA, AON Risk Services, NSO Team on Coverage

The Convenient Care Association (CCA) – an organization dedicated to strengthening and advancing this emerging model of health care – has aligned with Aon Risk Services (ARS) and Nurses Service Organization (NSO), divisions within Aon Corporation, to offer cost-effective access to quality professional liability insurance coverage and risk management resources.

“We’re excited to give our members access to the risk management expertise of ARS and NSO as well as flexible, cost-effective insurance solutions designed specifically for our market.” said Tine Hansen-Turton, executive director of the CCA.

For start-up and smaller organizations, NSO has developed a proprietary pricing program for professional liability coverage exclusively for CCA members. Coverage is provided through an admitted carrier with an A rating. For larger organizations, ARS will deploy its specialized convenient care centers brokerage practice to address the unique professional liability needs and exposures faced by more established CCA members.

"Together, ARS and NSO provide competitive professional liability insurance solutions for convenient care centers of any size – from a single nurse practitioner to the retail giants who employ hundreds,” said Michael Loughran, executive vice president of NSO. “As the largest provider of professional liability insurance to nurse practitioners, with over 25,000 insured, we have the experience as well as the capability to seamlessly transition small accounts as they merge or pursue accelerated growth.”

For organizations, ARS offers risk management consulting services tailored to the industry's unique strategic and operational challenges. For individuals, NSO offers NPs Continuing Education courses online. CEs purchased through NSO also qualify NPs for a 10% discount off their individual premium for the following three years.

OSHA Unveils New Storm Cleanup Web Page

Employers and employees involved in cleanup and recovery activities following the Midwest floods and tornadoes can benefit from a new Web page at www.dol.gov

"We encourage employers and employees to access this vital information targeted to the conditions in which they will be working," said Assistant Secretary of Labor for OSHA Edwin Foulke Jr.

The floods and tornadoes recovery page features links to more than 40 fact sheets and easy-reference QuickCards® in English and Spanish with safety and health tips on hazards such as downed electrical wires, chain saws, general decontamination, and heat and sun, just to name a few. The information is easily accessible for downloading from the Web. Printed copies are available through local OSHA offices in the affected states (http://www.osha.gov/html/RAmap.html).

The site also features links to public service announcements to inform employees about hazards related to cleanup and recovery. Additionally, there is a link to 29 individual task- and operation-specific activity sheets that help employers evaluate hazards and provide guidance on reducing employee exposures during disaster operations such as floodwater removal, utility restoration and building assessment, among others.

Lawmakers Pass IIABNY-Led Late Notice Bill

Passage of legislation that the Independent Insurance Agents & Brokers of New York Inc. helped draft will limit insurers’ ability to deny coverage based on late notice of claim—a benefit to producer and insured alike.

Before passage of the bill (A.11541/S.8610), an insurance company could deny coverage for a claim that it believed to be reported late, even if the late report did not prejudice its ability to investigate, defend, or negotiate a settlement of the claim. This is unfair to insurance buyers and contrary to the laws in most other states, according to IIABNY.

The 2007 version of the late notice bill—opposed by IIABNY and vetoed on Aug. 1 by then Gov. Eliot Spitzer—would have restricted carriers from denying a claim unless the insurer could show prejudice, but may have dramatically increased litigation because of onerous declaratory judgment provisions. Last year’s legislation included a trial lawyer-crafted portion that would allow attorneys to “shop around” for the most lucrative lawsuits by allowing them to sue policyholders to find out what coverages and limits are available before liability against the policyholder was established.

Within three weeks of the veto, IIABNY submitted comments to the New York Insurance Department on draft legislation for a new bill. The submission was based on the department’s request.

In September 2007, the association contacted top executives of property and casualty insurance companies in New York, asking that they “not invoke late notice unless there is material prejudice” while the association worked with the Governor’s office to help craft acceptable bill language.

The 2008 version includes the following highlights:

· Prohibits insurers from denying coverage for claims based on the failure to provide timely notice unless the insurer has suffered “prejudice” as a result of the delay. The insurer’s rights would not be considered prejudiced unless the failure to provide timely notice materially impairs the ability of the insurer to investigate or defend a claim;
· If notice is given within two years of the time required by the policy, the burden of proving prejudice rests on the insurer and if later, the insured. If notice is provided to the insurer after the insured’s liability is determined, then there would be an irrefutable presumption of prejudice;
· Permits a party suing an insured in a personal injury or wrongful death case to commence a simultaneously declaratory judgment action against the defendant’s insurer, in limited circumstances, to challenge the insurer’s denial of coverage based on the insurer’s denial of coverage based on the failure to provide timely notice;
· Establishes a process for a claimant to receive confirmation from an insurer that the insured had an insurance policy in effect on the alleged occurrence date and the limits of the policy.

Commissioner Warns Drivers of Staged Collisions

SAN DIEGO - With summer vacation looming and many Californians traditionally driving more frequently or longer distances, Insurance Commissioner Steve Poizner warned area drivers to be alert for staged auto collisions.

In 2006-2007, 14,565 referrals out of 24,011 insurance fraud referrals received by the California Department of Insurance - 61 percent - were for suspected automobile insurance fraud.

Nearly $164 million could have been lost by insurance companies in 2006-2007 if the auto insurance fraud wasn't discovered. Actual loses, however, are subsequently built into the insurance companies' pricing structures.

In San Diego there were 985 suspected fraudulent claims (SFCs) in 2006-2007. In fact, there were 41 arrests made on one case.

There are primarily three schemes typically used in staged collisions:

• Panic stop
• Start-and-stop
• Swoop-and-squat

People who create these pre-planned accidents, also known as stagers, look for high value targets, such as commercial vehicles, expensive luxury vehicles, and vehicles owned by cities or counties. They are considered "high value" because of the virtual guarantee of insurance coverage.

The following signs may tip-off a driver of fraudulent activity:

• The other car is packed with passengers;
• The other driver has a relatively new insurance policy;
• The other car is in poor condition or has a "salvage" title;
• Traffic was flowing smoothly and the other driver stopped suddenly;
• The other driver and/or the passengers make extra effort to avoid conversation about the other vehicles in the area;
• There is a witness that substantiates everything the other driver says; and
• The other driver and his passengers all claim injury despite relatively minor collision damage to the vehicles.

Arbella Moves Into New Hampshire, Connecticut

The Arbella Insurance Group (www.arbella.com) has received regulatory approval to offer commercial insurance policies to businesses in New Hampshire and Connecticut, doubling the number of New England states where the local Massachusetts-based insurer sells commercial insurance.

Arbella, the third-largest seller of personal auto insurance and the fourth largest carrier in the commercial automobile market in Massachusetts, will begin selling commercial auto, property, liability, workers' compensation and other commercial lines on July 1 through its existing independent agents in Massachusetts, Rhode Island and Connecticut. Arbella intends to eventually build a force of locally based independent agents in those states.

"We're making this move in response to demand from small and mid-sized businesses in those states who appreciate the personal relationship that independent agents can offer their customers," said Douglas Jones, president and CEO of Arbella's commercial insurance companies. "We've built our reputation on being the local company businesses can turn to for competitive and complete insurance coverage and we want to build on that standing as we move into Connecticut and New Hampshire."

Arbella currently sells personal insurance in Connecticut. "We know these states and we know Main Street businesses value the personal, individual service that we offer," continued Jones. "Despite technological advances and modern sales practices used by multinational insurance corporations, the working relationship with local agents is still the best way to go."

Nearly 20 percent of Arbella's overall business comes from commercial insurance products and it is a market that is strong, profitable, and most important, growing. "We're pleased with the strength of our commercial lines and it's clear that there's great opportunity for us to expand those products and reach out to the thriving small and medium-sized businesses in New Hampshire and Connecticut," said John Donohue, chairman, president and CEO of Arbella. "We're looking forward to not only competing in those states, but also to becoming a corporate member of the communities where our agents work and live."

Indiana Insurance Encourages Disaster Preparation

With a potential above-normal hurricane season predicted and a record number of tornadoes across the country this year, Indiana Insurance is urging policyholders in its nine-state Midwest region to take important precautions to prepare for, and recover from, severe weather.

Indiana Insurance offers a free Disaster Planning Guide to consumers at www.indiana-ins.com, under the Insurance Resources tab. The guide helps homeowners develop an action plan for evacuation, details what necessities should go into an emergency kit, and explains the importance of undertaking a household inventory, among other important safety tips.

Being prepared for severe weather also means policyholders’ understanding whether or not they have adequate or enough insurance coverage. A recent survey by the National Association of Insurance Commissioners found that 28 percent of those questioned were not sure whether they purchased replacement cost or actual cash value coverage. Further, a majority responded that they do not have coverage to protect them from losses that aren’t reimbursable under standard homeowner policies, such as earthquakes, floods, or water and sewer line breaks.

“We feel it’s very important that our policyholders check-in annually with their agents to ensure that they have appropriate coverages,” said Thomas Meka, vice president, Personal Lines Underwriting. “We also want to remind our customers that there are basic actions that they should take to prepare for severe weather events. Our Disaster Planning Guide addresses these precautions specific to disasters such as tornadoes and wildfires.”

Customers who experience severe weather property damage should report a claim as soon as possible by calling Indiana Insurance ANYTIME Claims Service at 800-279-7221.

Commercial customers and Indiana Insurance appointed agencies also have free access to Open for BusinessSM, an online tool developed by the Institute for Business and Home Safety (IBHS) that allows businesses to plan for, and recover from natural disasters. According to IBHS, at least one-fourth of all businesses never reopen following a disaster.

“Open for Business is a great resource for small businesses to develop their own business continuity plans,” said Jeffrey Szalacinski, vice president, Field Claims Operations. “This tool guides small businesses throughout the entire process of disaster planning and control, from initially protecting themselves and their assets, to developing a swift recovery plan.”

Commercial Lines policyholders can contact their agent for an access code and then log into the Open for Business program at www.ibhs.org/policyholder/register.asp. Once there, business owners answer questions about human resources, physical resources, and business operations, in order to build individualized property protection and recovery plans.

Property protection plans are matched to the potential catastrophic risks that exist for a particular zip code, including hurricanes, high winds, floods, earthquakes, tornados, and wildfires. Recovery plans are based on each company’s critical business functions and the role that employees, suppliers, and vendors play in daily operations.

The plans also outline how vital records, equipment, vehicles, computers, and voice/data communications can be integrated from a chosen recovery location to help a business stay open following a natural disaster.

Amaxx Unveils Workers' Comp Kit Blog

Workers’ Comp Boot Camp Blog—a unique blog where employers can get answers from experts to questions about injury and compensation management—is now online at http://blog.ReduceYourWorkersComp.com.

The blog features advice from experts like David Dubin, M.D., and attorney Rebecca Shafer, president of Amaxx, the blog’s sponsor. It is a discussion forum for employers with high workers’ comp costs.

“We’ll be doing some online teaching as part of the blog. Better post-injury management is a key to reducing compensation costs by as much as 50 percent,” she said. “This blog focuses on how to create systems to work with injured employees and speed return to work.”

The blog is syndicated so you can sign up for regular updates. The original “boot camp”—a crash course in workers’ comp management for risk managers and HR pros—was created by Shafer about 10 years ago.

For example, employers must distinguish between pre-existing injuries—that aren’t compensable—and work-related injuries. To make the distinction, the employer needs to obtain the employee’s medical history before the seeming workplace injury. Functional capacity testing is another useful tool discussed in the blog.

The blog is part of www.ReduceYourWorkersComp.com, which provides many free workers’ comp cost-control tools and forms, as well Workers Comp Kit®, a comprehensive online cost-control program.

Employer Fined for Denying Woman to Breast Feed

California Labor Commissioner Angela Bradstreet announced the issuance of a citation to a Santa Clara-based International Security Services, Inc. for reportedly failing to provide private accommodations for an employee to express breast milk for her newborn. The citation is the first of its kind since the law took effect in 2002. A fine of $4,000 has been assessed.

“Under the law, employers are obligated to accommodate employees who wish to provide breast milk for their infant children,” Bradstreet said. “This employer failed to provide a reasonable amount of break time and a private room for an employee to express milk for her baby as required.”

The labor commissioner received a complaint -- the first lodged as a result of the 2002 legislation -- from the employee on March 7, which prompted an investigation. The investigation revealed that the employee was not provided an appropriate, designated room. Initially the room that was provided was computer server room with security cameras. This offered an inadequate level of privacy needed to perform the milk expressing process.

Labor Code sections1030-1033 became law in 2001 and mandates every employer, regardless of size, to provide a reasonable amount of time to accommodate expressing of breast milk and to make reasonable efforts to provide the employee with the use of a room or other location, other than a bathroom, in close proximity to the employees work area to express milk in private.

Bradstreet urged women who are not being provided appropriate accommodations for milk expressing to contact her office and file a complaint.

“This is not the type of law that we can address with enforcement sweeps and filing a complaint is important so that we can correct the violation and educate the employer,” added Bradstreet.

New York Man Gets State Prison Term for Arson

A Central Islip, New York man has been sentenced to five to 15 years in prison for setting fire to a multifamily home on Plum Street in Central Islip last year.

Rudis Bonilla admitted setting fire to his mattress in his first floor bedroom on the afternoon of Feb. 27, 2007 because he was angry at his older sister for threatening to evict him because of dispute over the payment of rent.

Bonilla admitted to detectives he stood across the street and watched seven residents climb out windows to escape the flames as they engulfed the home at 69 Plum Street. No serious injuries were reported.

Suffolk arson squad detectives retrieved the pink BIC lighter Bonilla said he used to burn his mattress.

The defendant is an undocumented immigrant from El Salvador and will be subject to an ICE deportation hearing when he is released from prison.

FEMA in Hot Water with One Illinois Town

Residents in one Illinois town are not very happy with the Federal Emergency Management Agency (FEMA).

According to a CNN report, residents in Gulfport were told they did not need flood insurance. Unfortunately, last week's flooding in Illinois and several other states has left many residents high and dry when it comes to recovering their belongings.

Read the report at: www.cnn.com/2008/US/06/24/mattingly.flood.insurance/index.html

AIA Rallies Support for Building Code Legislation

Gov. Marc Racicot, president of the American Insurance Association, today expressed AIA’s support for legislation that would create a competitive national program that provides awards to local governments for building code administration and enforcement, and applauded the House Financial Services Committee for reporting the bill to the full House of Representatives.

Introduced by Rep. Dennis Moore (D-KS), the Community Building Code Administration Grant Act (H.R. 4461), provides needed funding to assist local and state authorities with enacting and enforcing strong building codes.

“There is overwhelming evidence that adoption and enforcement of building codes can greatly reduce the disruption of lives and economic losses caused by a natural catastrophe,” said Racicot. “Every year, the federal government and the private sector pay billions in disaster relief and in the rebuilding of communities following natural disasters. Taking action before the earthquake, or hurricane, or tornado is the wise and prudent thing to do to help mitigate the damages."

The bill establishes a five-year program that authorizes $100 million to go to local governments over that period, caps awards at $1 million per-recipient, requires recipients to match a portion of funds received, and outlines eligible uses of funds and selection criteria, with preference offered to governments in financial distress. The legislation would not interfere with local and state authority to enact and enforce building codes.

“If we are to reduce vulnerability to future hazards, responsible building is an essential first step. AIA supports the development of federal programs that provide economic incentives to encourage the adoption and enforcement of building codes, as called for in this very sound piece of legislation,” Racicot concluded.

NexTier Unveils Construction Services Division

NexTier Insurance Services recently launched a Construction Services Division to serve all classes of contractors throughout western Pennsylvania.

Located in Wexford, PA, the Division specializes in customized insurance products and risk management consulting services. Their expert services address risks associated with specific construction projects and entire annual work programs, depending on need and circumstance.

Services include:

• Dedicated Construction Bonding Department
• General Liability
• Workers’ Compensation
• Contractors’ Equipment
• Property, Commercial Automobile and Umbrella Policies
• Owner’s and Contractor’s Protective Liability
• Professional Liability
• Pollution Liability
• Employment Practices Liability
• Employee Benefits Liability

Contact Jon McCauley at 724-776-6077 or 1-800-727-6077.

Universal Insurance Looks to Add Fla. P/C Sub

Universal Insurance Holdings Inc., a vertically integrated insurance holding company, has applied to the State of Florida's Office of Insurance Regulation to form a second property and casualty subsidiary named Infinity Property & Casualty Insurance Company.

Infinity Property & Casualty, a wholly owned subsidiary of Universal Insurance Holdings Inc., intends to write insurance in the state of Florida in the lines of homeowners' multi-peril and inland marine on homes valued in excess of $1 million, which are limits and coverages currently not offered by its affiliate Universal Property & Casualty Insurance Company (UPCIC). Additionally, Infinity Property & Casualty Insurance Company plans to write excess flood insurance on homes valued in excess of $250,000.

Bradley Meier, president and chief executive officer, commented, "The formation of Infinity Property & Casualty Insurance Company and the application to the state of Florida is consistent with Universal's strategy to capitalize on its expertise and expand its product offerings as it continues to seek additional growth opportunities."