AIA CALLS FOR STANDARDIZED USE OF EVENT DATA RECORDERS TO IMPROVE VEHICLE SAFETY:
At a recent meeting of the national leadership of the American Automobile Association (AAA), the American Insurance Association (AIA) urged a cooperative effort between motorists and insurers to call for the standardization and use of Event Data Recorders (EDRs) in motor vehicles. EDRs are devices that record information related to an event such as a highway vehicle crash, and research indicates that EDR data would be very useful in improving vehicle safety. Speaking on behalf of AIA, David Snyder, AIA vice president and assistant general counsel, encouraged the groups to work together to urge the National Highway Transportation Safety Administration (NHTSA) to standardize the use of EDRs for cars and the Federal Motor Carrier Safety Administration (FMCSA) to mandate EDRs for trucks. "Auto insurance provides compensation for losses resulting from crashes, as well as financial protection against vehicle theft and other damages," Snyder said. "Therefore, auto insurers' interests—increasing safety and preventing losses with tools such as EDRs—are directly in line with individual drivers, pedestrians, and other roadway users." EDR data could also reportedly be very helpful in improving auto accident investigations by helping to speed fault determination and ferreting out fraud. "EDR data could be used to provide more rapid and fair resolution of auto accident cases that now often rely only on eye witness observations," Snyder said. "With objective EDR data insurers could determine fault more rapidly and resolve claims that should be settled, while contesting those for which their policyholders were not to blame." EDRs have the ability and potential to have a major impact on highway safety, ranging from assisting in real-world data collection to better define the auto safety problem to aiding in law enforcement and emergency medical service response. AIA believes that EDRs will accelerate deployment of driver-assisted technologies, collision avoidance systems, vehicle diagnostic systems and advanced medical response capabilities. AIA also reportedly recognizes the need to address privacy concerns for drivers and would encourage the development of an EDR model that is legally and technologically able to collect, store, protect and ensure a limited disclosure of information stored at remote locations. Snyder explained that the "Drivers Privacy Protection Act for Motor Vehicle Reports (MVRs)" could be used as a possible model.
IBA WEST MEMBERSHIP APPROVES 2004 RESOLUTIONS:
Members of the Independent Brokers and Agents of the West approved eight resolutions at the recent 2004 Installation of Officers and Directors and Annual Meeting in Los Angeles. The first resolution urged the Legislature to complete the job of reforming the state's workers' compensation system by eliminating unnecessary costs and to provide more equitable benefits to injured workers. A second resolution congratulated Governor Arnold Schwarzenegger on his election and his pledge to make California a place for businesses to flourish and provide more jobs. He was further commended for his challenge to lawmakers to eliminate $11 billion in unproductive costs from the workers' comp system. In a third resolution, the membership also commended Insurance Commissioner John Garamendi for his efforts to address the dysfunctional workers' comp system that reduced the market to a handful of insurance companies. In a related resolution, the IBA West membership commended the California Insurance Guaranty Association (CIGA) for diligently fulfilling its purpose of protecting Californians in the event of an insurer's insolvency. The IBA West membership commended IBA West California Advocacy Fund co-chairs, Andrew Valdivia and Stanley Simpson for reaching the first fundraising milestone in just three months. Over $200,000 has been raised to date. The IBA West membership also commended courageous firefighters, police and emergency services personnel who valiantly fought the devastating wildfires that swept across the southern California region beginning Oct. 25, 2003. IBA West also commended the people of the insurance industry who were quickly deployed to the fire areas, paying claims and assisting policyholders to begin to rebuild their lives and their communities. In recognition of service, the IBA West members acknowledged the leadership of outgoing President Neal Nakashima and the service of the board of directors, committees and staff of the association. Finally, the membership expressed gratitude and appreciation to the honorable Jerry W. O'Kane for his leadership. O'Kane has served as CEO since June of 1982 and announced his retirement, effective later this year. This was his final annual meeting as CEO of IBA West.
WASH. PHYSICIANS MEET WITH LEGISLATORS TO DISCUSS MALPRACTICE CRISIS:
Steve Woods, MD, Overlake Hospital OBGYN and partner in a private medical practice, along with several of his Overlake Hospital and Evergreen Hospital colleagues, met in Olympia, Wash., recently to talk to King County Legislators about Washington's medical malpractice crisis and the need for tort reform. "Malpractice insurance rates for physicians are going up drastically in this state and unless something is done about the tort system, more doctors will have to close, move their practice to another state or drop their specialty," Woods said. "Unlike a normal business, we can't increase fees to cover the $60,000 to $80,000 per year malpractice insurance costs because our reimbursement rates are fixed and are not negotiable." According to the Washington State Medical Association, out of control jury awards and settlements are overloading the system and raising physician's insurance premiums to impossible levels. Consequently, doctors in this state are facing some tough choices: limit services, move out of state or close completely. Woods and his colleagues met with the following King County Legislators: District 5 — Senator Cheryl Pflug (R), Representative Glenn Anderson (R), Representative Jay Rodne (R); District 45 — Senator Bill Finkbeiner (R), Representative Toby Nixon (R), Representative Laura Ruderman (D); and District 48 — Senator Luke Esser (R), Representative Ross Hunter (D), Representative Rodney Tom (R). For more information on the Tort Reform, go to www.wsma.org.
