N.Y. GOV. SPITZER PUT ON DEFENSIVE BY AIDES
New York Governor Eliot Spitzer made his name as a corruption fighting attorney general who forced reforms on Wall Street and the insurance industry. As governor, he promised to take that campaign to Albany and end the state government's reputation for political dysfunction.
More recently, though, it was Spitzer who was under fire for underhanded tactics.
His successor as state attorney general, fellow Democrat Andrew Cuomo, issued a report saying two of Spitzer's top aides were involved in a plot to smear the governor's political nemesis, Republican Senate Majority Leader Joseph Bruno, by releasing records to the media on Bruno's use of state drivers and state aircraft for trips.
Spitzer said he had been unaware of the operation. In response, he suspended one of the aides and reassigned the other. He apologized to Bruno and voters.
The report found that longtime Spitzer spokesman Darren Dopp and the state's assistant deputy secretary for homeland security, William Howard, with the help of the acting state police superintendent, Preston Felton, conspired to release politically damaging information about Bruno's use of state transportation. They told Felton that records on Bruno's aircraft use were being sought in response to a reporter's state Freedom of Information Law request but no reporter had requested them.
Felton said he didn't realize he was part of a political scheme.
Bruno's use of the state aircraft was appropriate under state policy, the report said.
"Certainly for Spitzer it's politically damaging," said Lee Miringoff of Marist College. "When you come in on the winds of reform, anything that feels like old school politics works against you. If he wanted to be cleaning out Albany, the last thing he wanted to do was to be starting with his own senior staff."
Associated Press writer Sara Kugler in New York City contributed to this report.
MAINE WIDOW SUES OVER ASLEEP-AT-WHEEL CRASH
A floor products company faces a lawsuit by the Maine widow of an employee who was killed in a highway crash after he apparently fell asleep at the wheel while driving home from work.
Another motorist who was injured in the 2006 accident in New Sharon has also sued N.R.F. Distributors of Augusta.
The lawsuits allege that Robert Boisvert, 40, worked excessively long hours over his objections and that exhaustion contributed to the crash.
The police report indicated that Boisvert's pickup truck veered across the center line at 6:45 a.m., hitting an oncoming car operated by Ernest Kempton. Boisvert died at the scene and Kempton was critically injured.
The lawsuits were filed by Dawn Boivert of New Sharon and Ernest and Suzanne Kempton of Strong.
Dawn Boisvert's lawyer, Justin Leary, said Maine law does not spell out whether such claims can be brought against an employer.
"Our theory is that they had him working too many hours and as a result, it affected his driving. (The company's) claim is, a lot of people work long hours and you can't blame an employer for something that happens after you leave your employment," Leary said.
The Kemptons are seeking compensation from N.R.F. and also from Boisvert's estate.
N.R.F. has denied responsibility for Boisvert's death and for Kempton's injuries, contending that other factors contributed to the crash.
COMMERCIAL P/C PRICES STILL DROPPING, RISK MANAGER SURVEY FINDS
Commercial insurance premiums continued to decline during the second quarter of 2007, according to the RIMS Benchmark Survey, a survey of current policy renewal prices as reported by corporate risk managers.
RIMS Benchmark Survey second quarter reports show that directors and officers liability (D&O) continued to drop, falling an average of 7.29 percent since last year. Workers' compensation also continued its steady downward slide, though at a lesser pace, to 1.82 percent as compared to -3.8 percent in the first quarter. The slower pace of premium erosion in workers' comp may be due to reform measures in large states such as California and Florida having now worked their way through the system, according to an Advisen analysis. General liability premiums continued a downward trend with a decrease of 1.16 percent.
Reports from the survey also show that property insurance exhibited no change, despite rate decreases reported by 70 percent of survey respondents during the second quarter.
"The good news for risk managers is that property insurance has turned a corner," says Joseph Restoule, RIMS secretary and member of the board of directors. "Although there was no change on average, more than two-thirds of RIMS Benchmark Survey respondents had premium decreases on their property programs this past quarter, including companies with coastal exposures."
"Premiums have been falling in most lines since the end of 2003, and the soft market shows no signs of letting up," says David Bradford, editor-in-chief of Advisen.
Insurance Journal, listed incorrect dates for the data presented in an exclusive Market Survey report by Insurance Journal's Official Research Partner Demotech Inc. on page N16. The data presented in the chart "Top 25 Property/Casualty Companies in Premium Growth" should have been referenced as carriers with a minimum direct written premium of $25 million at March 31, 2006. In addition, the data presented in the chart should have been noted as "Direct Written Premium for three-months ending March 31, 2007 versus March 31, 2006." Lastly, the columns in the chart should have been "DPW 03/31/2007" and "DPW 03/31/2006," respectively. Insurance Journal sincerely regrets the error. For more information, visit www.demotech.com.
