News Digest 10/16/2007

By: Rick Waldinger

Quote of the day

"We pressed them on some issues that needed additional review, and we came to an agreement that a lower number was more appropriate."

Hawaii Insurance Commissioner J.P. Schmidt, about the NCCI's agreement to a 19.3 percent decrease in loss costs.

Go to the full story in the Honolulu Advertiser

Note to our subscribers: An item in yesterday’s digest prompted this response from Laurence A. Hubbard, President/CEO, Montana State Fund: “Your flash report on Montana State Fund needs correction, although the Article in the Billings Gazette was also incorrect. The liability mentioned is from the “Old Fund” which is a state obligation (i.e. general fund), not a Montana State Fund obligation. The Montana State Fund simply administrates the old fund liabilities but has NO financial responsibility for those liabilities for injuries occurring on or before July 1, 1990.”

Enforcement Sweep Targets Southland Garment Manufacturers
More than 70 garment manufacturers in Los Angeles and Orange counties face citations and total fines of more than $600,000 for state labor law violations that include failure to have workers’ compensation insurance, failure to pay minimum wage, and failure to register or renew licenses, after a compliance sweep by the state Division of Labor Standards Enforcement. North County Times
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NCCI Agrees to Cut Hawaii’s Loss Costs
Hawaii’s workers’ compensation insurance premiums may fall more than anticipated because of a recent agreement between the industry and the state Insurance Division. The National Council on Compensation Insurance has agreed to a 19.3 percent decrease in “loss costs,” according to the state insurance commissioner. By Greg Wiles, Honolulu Advertiser
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Will Trial Finally Close Book on BWC Investment Scandals?
With few potential targets left, a federal case unfolding this week in Akron could close out the Bureau of Workers’ Compensation political scandal that has hobbled the agency for two-and-a-half years. The fraud trial of Pittsburgh investment manager Mark Lay involves his firm’s loss of $216 million from the BWC’s $20 billion investment portfolio.
Go to the full story By Mark Rollenhagen, Cleveland Plain Dealer
Go to the full story by AP via Cincinnati Post

Iowa Supremes Send Tyson Worker’s Case Back Down
Reversing two lower courts’ decisions, the Iowa Supreme Court sends an injured worker’s lawsuit against Tyson Foods back to the state’s workers’ compensation commissioner. A judge and the appeals court concluded that Tyson could not reverse its initial acceptance of the workers’ claim after receiving another doctor’s report. By AP via KPTM-TV (Omaha)
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Wrongful Death Suit Blames Alarm Device for Firefighter’s Death
A Missouri family initiates a wrongful death lawsuit, alleging that an alarm device a firefighter was wearing failed and could have contributed to his death in a February 2004 tavern fire. The National Institute of Occupational Safety and Health could not determine whether the device was working. By AP via Belleville (Ill.) News-Democrat
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One South Carolina Commissioner Bucks Executive Order
When Gov. Mark Sanford last month directed state workers’ compensation commissioners to apply specific objective standards in calculating awards, he also required each of the seven commissioners to report to him each quarter to demonstrate their compliance. One commissioner is refusing to go along with the order. Greenville News
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Mountain State Efforts Hit Opposition
Although sponsors of draft legislation that would return authority over West Virginia’s state’s workers’ compensation system back to state lawmakers say it’s needed to alleviate complaints about BrickStreet Mutual’s management of the now-privatized system, not all lawmakers are on board. By Joselyn King, Wheeling News-Register/Intelligencer
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Kenya Mill Blast Draws Attention to Polarizing Issue
An explosion and fire at a Kenya steel mill that killed eight workers last month, and which occurred only two months after another in which 10 workers were burned to death at a Nairobi chemical plant, prompts Kenya lawmakers to attempt to force employers to provide medical cover to workers. By Mwaura Kimani, Business Daily (Nairobi) [With Photo] Go to the Full Story…