Quote of the day
"This settlement eliminates incentives for brokers to act against their clients' interest."
New York Attorney General Eliot Spitzer, on California and New York regulators' settlement with Unum Provident over undisclosed incentive payments to brokers
California, N.Y. Regulators Settle Unum Provident Case
The offices of California Insurance Commissioner John Garamendi and New York Attorney General Eliot Spitzer announce that they have settled an investigation on undisclosed incentive payments to brokers by disability insurer Unum Provident. Although no money is involved in the California settlement, Garamendi says the insurer has agreed to disclose all compensation to corporate clients in the future. By Joseph B. Treaster, New York Times
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Fireman’s Fund Announces $1.43 Million Policyholder Dividend
Fireman’s Fund Insurance Co. announces that it is paying $1.43 million in policyholder dividends to members of the California Pharmacists Association, a workers’ compensation insurance customer. Fireman’s Fund credits cost-cutting and California’s workers’ comp system reforms for the profit-sharing payments. By Chris Rauber, San Francisco Business Times
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Spinal Screws, Cages Can Be Problematic: Study
The use of implanted hardware in spinal fusion surgeries for lower back pain does not improve the results and carries a higher risk of complications, according to University of Washington researchers. They examined records from the state’s workers compensation system on nearly 2000 workers who had spinal fusion surgery for chronic lower back pain from 1994 to 2001. By Denise Gellene, Los Angeles Times
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Sole Mountain State Provider Launches Its PPO
BrickStreet Mutual Insurance Co., the sole provider of workers’ compensation insurance in West Virginia, launches StreetSelect, its preferred provider organization. By George Hohmann, Charleston Daily Mail
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Major Maine Employer Sues State Workers’ Comp Board
Bath Iron Works, one of Maine’s largest employers, is suing the Maine Workers’ Compensation Board to court on grounds that the panel is 14 years late in coming up with a list of allowable fees for medical procedures and hospital stays. The suit could have wide repercussions. By Edward D. Murphy, Portland Press Herald
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Ohio: Unidentified ‘Overrides’ Under Microscope
The special investigations unit of the beleaguered Ohio Bureau of Workers’ Compensation is examining 27 cases in which agency officials performed manual overrides, cutting medical insurance rates paid by Ohio businesses without justification.
Go to the full story by Ted Wendling, Cleveland Plain Dealer
Go to the full story by AP via Coshocton Tribune
Witness Says He Altered Investment Records with Noe’s Help
A former business partner and close friend of convicted GOP fundraiser coin dealer Tom Noe, who is standing trial for allegedly looting millions from Ohio Bureau of Workers’ Compensation coin fund investments that he managed, says he faked financial records with Noe’s help and approval in order to mislead investigators. By John Seewer, AP via Canton Repository
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Twinkie-Maker to Settle SEC Probe Related to Comp Reserves
Interstate Bakeries Corp., the bankrupt maker of Twinkies and Wonder bread, announces its intention to settle a Securities and Exchange Commission investigation into its record-keeping and accounting practices that began after the company’s audit committee in 2004 said it was looking into how the company set aside money for future workers’ compensation claims and other reserves. Courier News (Bridgewater, N.J.)
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