BOSTON DIOCESE FACES MORE CLAIMS:
The Archdiocese of Boston has received at least 140 new reports of sexual abuse by priests, but said it will not negotiate the claims until it resolves disputes with its insurers over payment of last year's $85 million settlement. Archdiocese spokesman, the Rev. Christopher J. Coyne, told the Boston Sunday Globe that the archdiocese cannot afford to settle the new claims, which legal analysts said could come to about $20 million. "We've been letting the lawyers know that we would not be moving forward with negotiations until we have settled with our insurance carriers," he said. The church borrowed $85 million to settle 541 claims in December. Since then, the archdiocese has sold the cardinal's residence and surrounding land for $107 million and designated 82 parishes for closure. But Coyne said none of the money raised or saved would be used to settle sex abuse claims. The archdiocese is suing Lumbermens Mutual Casualty Co., which the church accused of fraud and breach of contract after the company refused to pay for more than $59 million in claims.
RESIDUAL MARKET CHANGES UNCLEAR:
Massachusetts Insurance Commissioner Julianne Bowler has asked Commonwealth Auto Reinsurers (CAR) to revise its proposed residual market plan but CAR governing committee members have questions they need answered before they implement the changes she requested in the new Massachusetts Assigned Insurance Plan (MAIP). At a special meeting on Sept. 9, the CAR governing committee decided to request clarification from Bowler before complying with her request for amendments to its MAIP rules. She gave CAR a Sept. 24 deadline. CAR executives expressed uncertainty over how to amend the transition rules involving high loss ratio agencies and questioned what new claims handling standards and servicing carrier and producer requirements the commissioner had in mind. They also sought clarification of the underwriting guidelines Bowler believes appropriate for the so-called "clean in three" proposal under which experienced drivers with no-fault accidents or moving violations in the most recent three years cannot be placed in the assigned risk plan. Noting the confusion over the MAIP plan, Commerce Insurance, the state's largest auto writer and an outspoken opponent of the manner in which the MAIP is being implemented, offered its own substitute transition scheme. Arthur J. Remillard Jr., Commerce chief executive officer, maintained that his company's alternative plan "will resolve the issue of high risk loss allocation while eliminating the confusion and complexity" of the transition plan that Bowler wants reviewed. Remillard's proposal was put on the agenda for future discussion. Bowler has scheduled a hearing on whatever changes CAR eventually recommends for Oct. 4.
ME. GUN MAKER SETTLES SNIPER SUIT:
A rifle manufacturer's decision to pay $550,000 to settle a lawsuit filed by victims and victims' families in the Washington, D.C.-area sniper shootings is a first, according to a gun control lawyer. Bushmaster Firearms Inc. of Windham, Maine, made the .223-caliber Bushmaster rifle, a civilian version of the military M-16, used in the October 2002 shootings. However, a Bushmaster lawyer said the settlement was an economic decision and involved no admission of liability. Bull's Eye Shooter Supply of Tacoma, where the rifle came from, agreed to pay $2 million to the eight plaintiffs. The settlement with Bushmaster marks the first time a gun manufacturer has agreed to pay damages to settle claims of negligent distribution of weapons, said Jon Lowy, a lawyer with the Brady Center to Prevent Gun Violence who helped argue the case. He said the settlement with Bull's Eye Shooter Supply is the largest against a gun dealer. But Bushmaster lawyer Kelly Corr said the manufacturer and its insurance company, which will pay the $550,000, decided to settle rather than continuing to run up legal bills in court. Corr said the settlement will not change the way Bushmaster conducts business.
N.H. GOVERNOR DEFENDS HEALTH LAW:
Gov. Craig Benson is defending legislation that allows health insurers in New Hampshire to set rates based on such risk factors as age and health as too new a law to be judged properly. Benson said the law has been working only for nine months to attract insurance companies to the state. He said the law has attracted four new companies, but it will take more time for the positive effects of competition to be felt fully. Democrat John Lynch has made repealing the law a key platform in his gubernatorial campaign. Lynch argues the law allows health insurance companies to discriminate against sick and older workers and has driven up health care costs for small businesses across the state. Benson insists competition encouraged by the law will lead to lower costs and more choices for small businesses. The law allows insurers to consider a company's location, type of business and health of its workers in setting premium rates for businesses with 50 or fewer employees. The goal is to attract more insurers to the state, thereby increasing competition and giving businesses more choices and better prices. Republican state Rep. Rogers Johnson—who supports the law—said lawmakers may need to modify the law for very small businesses. He said companies with one to nine employees experienced much higher rate increases than other small businesses.
NO INSOLVENCIES BECAUSE OF 9-11:
While the Sept. 11, 2001, terrorist attacks caused insurance companies to pay an estimated $30 to $35 billion in damages and claims in the past three years, the industry survived and terrorism coverage is now considered an expected expenditure, according to a Ball State University finance and insurance professor, John Fitzgerald. "We knew the terrorist attacks had a major impact on the American commercial insurance industry," Fitzgerald said. "There was this major fear that our insurance industry would be wiped out by these acts simply because of the enormous payouts. However, the only business failures were actually normal exits from the industry. Fitzgerald said some had warned that the cost of insurance against terrorist acts would be so high that some firms would no longer be able to do business. "The study found that while the Sept. 11 attacks initially caused major problems, American businesses have adapted to the changing climate," he said. "Today, terrorism is simply thought of as a natural part of doing business. It has become a simple risk management issue." The preliminary results of the study also found the estimate of insurance cost was much lower than the $70 billion figure touted by top industry executives in the weeks after the attacks. The estimate was lowered as victims or their families chose to participate in the federal government's compensation fund rather than suing for damages.
WORKERS SUFFER BREATHING WOES:
Workers at the World Trade Center site developed respiratory problems that lasted more than a year after the Sept. 11, 2001, terrorist attacks—much longer than health officials had anticipated, according to a government study. Nearly three years later, many of the people who helped with cleanup and recovery efforts at ground zero still have breathing problems associated with their exposure to the site, said Dr. Stephen Levin, associate professor of community and preventive medicine at Mt. Sinai Medical School in New York, which assisted in the study. Those problems include asthma, sinusitis, constant coughing and stuffy nose, facial pains, chest tightness, wheezing and shortness of breath. The study's findings are similar to those found among New York firefighters, nearly 400 of whom had to be permanently placed on medical leave because of respiratory problems developed after the Sept. 11 attacks.
N.Y., N.J. PORT AUTHORITY JOINS SUIT:
The government agency that owns the World Trade Center site said it intends to hold Saudi Arabia and nearly 100 other defendants liable for the Sept. 11, 2001, terrorist attacks that killed nearly 3,000 people and destroyed the complex. The Port Authority of New York and New Jersey announced that it planned to join as a plaintiff in a lawsuit filed by Cantor Fitzgerald Securities, a bond-trading firm that lost two-thirds of its workers in the trade center attack. The Cantor Fitzgerald lawsuit named as defendants Saudi Arabia, al Qaeda, Osama bin Laden and other accused terrorists, with financial institutions and charitable organizations that reportedly raised money for terrorism efforts. The lawsuit sought $7 billion in damages. The case is among a number of Sept. 11-related suits filed recently in Manhattan federal court to meet the three-year statute-of-limitations deadline. Insurers for some World Trade Center buildings sued American Airlines, United Airlines and others, saying their negligence allowed the deadly hijackings. The suit, filed by London's QBE International Insurance and certain underwriters at Lloyd's of London, seeks more than $300 million from each of the two airlines and various amounts from other defendants. In a statement, the Port Authority said it had "an obligation to preserve its legal options" because the three-year statute of limitations was about to expire. "We also have a responsibility to the millions of people who live and work in the region as well as to our bondholders to pursue every legal avenue to recover the losses we sustained on Sept. 11," according to the Port Authority, which lost 84 of its employees in the 2001 attacks.
N.J. POSTS MARKET CONDUCT REPORTS:
New Jersey residents wanting to learn more about an insurance company they do business with can now access market conduct information online. Sixteen insurance company examinations are on the New Jersey Department's Web site and available for public review. The Department's Market Conduct Unit within the Office of Consumer Protection Services conducts on-site reviews of insurance company business practices to determine if they are in accordance with New Jersey laws. The initial posting includes reports on the following companies: JIMCOR E&S, Physicians Health Services, State Farm Indemnity, Colonial Penn, Proformance, Metropolitan Life Insurance Co., Hanover Insurance Co., Horizon Healthcare, Selective Insurance Co., The Turner Group, Allstate New Jersey, Metropolitan Property/Casualty Insurance Co., Prudential Property/Casualty Insurance Co., Liberty Mutual Fire Insurance Co., Chubb Insurance Co., and K. McCoy Agency.
DENN WINS DEL. INSURANCE PRIMARY:
Matt Denn defeated Karen Weldin Stewart on Sept. 11 in the Democratic primary race for Delaware insurance commissioner. Denn, who resigned as counsel to Gov. Ruth Ann Minner to seek the $93,200-a-year job, won 58 percent of the vote to Karen Weldin Stewart's 42 percent, with 99 percent of the votes counted. Denn will now face Rep. David H. Ennis (R-Fox) Point, in the November general election. The incumbent commissioner, Donna Lee Williams, decided months ago not to seek re-election after 12 years in office. Denn, a Wilmington lawyer, had the endorsements of many top Democrats including Minner, U.S. Sen. Tom Carper, state Treasurer Jack Markell and the executive committee of the state party.
PA. LOOKS AT MOTORCYCLE INJURIES:
Nearly a year after Pennsylvania's motorcycle helmet law was repealed, experts say it is too soon to tell definitively whether the repeal has caused a spike in motorcycle injuries and deaths. In the first four months that helmets became optional for riders 21 and older, deaths among helmetless riders more than doubled, from six to 15, compared with the year-ago period. Fatalities among riders wearing helmets dropped 28 percent, from 25 to 18. But state and federal transportation officials say it's still too early to tie repeal of the law to deaths caused by a lack of head protection. "No one here will be able to draw any conclusions," said Ed Myslewicz, a spokesman for the state Department of Transportation. State Sen. John Wozniak, a Cambria County Democrat and motorcyclist who helped shepherd the bill through the Legislature, said he expected a "small spike" in injuries among helmetless riders, but predicts it will be temporary as riders adjust to their new freedom. Studies to collect more data are in the works. Conemaugh Medical Center in western Pennsylvania is planning a statewide study that would track motorcycle injuries through community hospitals, coroner and police reports, and trauma centers. The study would also examine the financial impact on Pennsylvania's taxpayers.
DOCS SUPPLY POLITICAL POST CARDS:
Maryland patients are being encouraged by their doctors to get involved in the political debate over rising medical malpractice premiums. Doctors across Maryland have begun handing out to their patients preprinted postcards with messages such as "I am worried, and I vote!" T. Michael Preston, executive director of the Maryland State Medical Society, said, "This is making it clear that [it] is their constituents who are concerned. We know that elected officials respond to their constituents." Doctors say rapidly rising malpractice insurance rates driven by large lawsuits have made it difficult to practice medicine, especially in high-risk fields like obstetrics. Premiums would rise 41 percent under a request made to state regulators by Medical Mutual Liability Insurance Society of Maryland, the state's largest malpractice insurer. The governor has set up a task force to study rising malpractice rates and proposes setting limits on settlements paid to injured patients. Senate President Thomas V. Mike Miller has called for a special session on the issue this fall, saying a $50 million state fund could help insurers pay for jury awards and settlements. That would allow insurers to keep rates low, according to Miller.
ARSONIST SUSPECTED IN D.C., MD., VA.:
Members of the Arson Task Force are investigating a recent Fairfax County house fire to see if it was the work of the Washington region's serial arsonist. Firefighters were called to a single family home in the county's Huntington section early this month. No one was home and there were no injuries. About an hour after county fire investigators arrived, a decision was made to alert the task force that is investigating dozens of other cases. "It's still at the very initial stages of the investigation. So at this point it's too soon to say anything as far as any type of linkage to the serial arsonist," said Mike Campbell, a spokesman for the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. ATF is among the member agencies of the task force. The Arson Task Force is already investigating thirty-nine cases dating to March 8, 2003. Most are in the District of Columbia and neighboring Prince George's County, Md., but there are two earlier cases in Fairfax County from February and May of this year. There are also cases in Alexandria, Va., and Montgomery County, Md.
MD.'S REDMER TO HOST MEETINGS:
Maryland Insurance Commissioner Alfred W. Redmer Jr., announced that the Maryland Insurance Administration would host an initial round of eight informational meetings at four locations in various regions throughout the state. The meetings will be held in a town hall format where consumers and insurance producers will have the opportunity to discuss their concerns, Redmer promised. Redmer said he would lead the discussion as well as be available to answer questions at each meeting. The meetings are schedule for Baltimore, Largo, Hagerstown and Cambridge between Sept. 20 and Oct. 8.
ISABEL INSPIRED VIRGINIA LOVERS:
Hurricane Isabel wasn't all bad, apparently. Martha Jefferson Hospital is reporting record numbers of births for June and July, and Isabel can take the credit. "The math works," said Ann Nickels, Martha Jefferson's spokeswoman. Isabel slammed Virginia Sept. 18, 2003. There were 168 births in June, and 163 in July—about 20 more than usual for each month. When Isabel struck, Martha Jefferson nurses said they knew they'd be facing a storm of their own nine months later. "Historically, when we have power outages or snowstorms, we'll see a burst of babies," nurse Kim Smith said. "With Isabel, the power was out for a long time." While many of the new mothers acknowledged they were having hurricane babies, nurses said Isabel wasn't a big topic of conversation. "The mothers just want to get the babies out," said nurse manager Mary Ann Lucia. "They don't talk about how they got the babies in." None of the babies born in June or July at Martha Jefferson was named Isabel.
CROP PROGRAM DEADLINE SEPT. 30:
Pennsylvania Agriculture Secretary Dennis Wolff reminded fall-seeded barley, wheat and forage producers that they have until Sept. 30, 2004 to purchase crop insurance or modify existing choices for 2005. "Crop insurance has been a valuable risk-management tool for many producers in 2004, whose forage production quality and expected revenue were severely reduced by excessive rains" Wolff said. "I encourage farmers to enroll in similar or modified crop insurance plans for the 2005 season." For barley and wheat protection, producers can choose a 50 percent to 85 percent level of coverage policy. When production is less than the insurance guarantee, the payment rate is $2.35 or $3.50 per bushel respectively. Crop revenue coverage is also available for wheat. Loss payments can result from low yields, poor quality and/or price fluctuations. Forage production protection can be purchased for yield fluctuations under the production history or group risk plans. Coverage is available for alfalfa and alfalfa/grass mixtures at 50 percent to 75 percent of the producer's yield history. The group risk plan is available for all classes of hay in 29 counties. Losses are paid when the county average for the current year is less than the producer's selected level of coverage. Forage producers can also purchase gross revenue protection based on their previous five-year average. This plan covers all classes of hay as well as the gross sales of almost all other agricultural commodities produced on the farm. Protection is provided against low revenue caused by natural disasters or low prices. . The Commonwealth of Pennsylvania will cost-share the premium for crop insurance protection. Wolff urged farmers to contact a crop insurance agent before the Sept. 30, 2004 deadline.
