Regarding the MIOSHA felony, the corporation received two years probation and monetary fines of $10,350, which includes a $10,000 statutory fine, $300 in court costs and $50 to the Crime Victim Rights Fund.

“Robert Sorge lost his life through no fault of his own,” said Clark. “We hope this senseless tragedy will be a constant reminder to employers that they must work diligently to prevent accidents and save lives.”

The CIS Bureau of Safety and Regulation (BSR) is responsible for administering the Michigan Occupational Safety and Health Act (MIOSHA).

The corporation must also pay a $50,000 penalty to MIOSHA, and adhere to all the terms of the MIOSHA Settlement Agreement James Morrin, Jr., will serve his time in Monroe County. Probation monitoring remains in Michigan, and jurisdiction will not be transferred to Ohio.

Settlement Agreement

On July 29, 2002, the Company also agreed to a Settlement Agreement with MIOSHA. This agreement will provide MIOSHA with the tools and the ability to closely monitor the company and to help ensure that their employees will be protected. The agreement will compel the company to do business safely, and will hold them accountable for their actions. Key components include:

• The Company will provide notification to MIOSHA not less than 10 calendar days (but under no circumstances less than two hours) prior to commencement of any construction work activity within the State of Michigan for a period of three years.
• The Company will establish and implement an ongoing safety and health program, will provide documentation of training received by employees, and will maintain records of training and refresher training.
• The Company will pay a civil penalty to MIOSHA of $50,000.
• The Company will establish and implement a structured form to serve as a “check-list” for inspecting all future worksites prior to the commencement of work activity.

• The Company will conduct safety and health awareness training for all its employees at quarterly intervals for a period five years.
• The Company will donate $5,000 to the Safety Council of Northwest Ohio in memory of Robert Sorge, which is to be used for training purposes focusing on the hazards of home building. A plaque will be placed with the Safety Council of Northwest Ohio memorializing the donation, and will state that Robert Sorge lost his life through no fault of his own.

Source: State of Michigan

Area of Interest: Seven Men Found Guilty of Mold/Water Damage Fraud

Seven people who were arrested in the Houston-area in connection with the state's largest known scheme to defraud insurance companies by intentionally flooding homes and filing bogus claims pleaded guilty or have been convicted on fraud charges.

The scheme cost insurers - and, through higher rates, their policyholders - more than $5 million.

Ramnath Ramcharan, 39, of Bay City, was found guilty Wednesday on one count of conspiracy, four counts of mail fraud and ten counts of money laundering. Ramcharan was the only defendant to seek a jury trial. Sentencing for Ramcharan and six defendants who had already pleaded guilty has been set for December 12 in U.S. District Judge Sim Lake's courtroom.

The six defendants who plead guilty to various charges of insurance fraud are Johnny Duane Staples, 54, of Baytown; Janell Staples, 60, of Baytown; Billy Bob Staples, 50, of Conroe; Teresa Ann Staples, 45, of Bay City; Don Edward Mitchell, 58, of Tomball; and Daniel E. Terry, 45, of Broussard, La. The defendants face up to 20 years in prison and substantial fines.

The seven were arrested on June 27 by investigators with the Texas Department of Insurance (TDI), the Federal Bureau of Investigation and the U.S. Postal Inspection Service following the return of indictments by a federal grand jury.

"A very thorough investigation by our Fraud unit and assistance from the U.S. Attorney's Office succeeded in quickly bringing these suspects to justice," said Commissioner Jose Montemayor. "We continue to work with the U.S. Attorney's Office in other areas to put a stop to these blatant acts of fraud."

The defendants purchased and insured several two-story homes. Pretending to be away for the weekend, the defendants intentionally flooded the homes with water hoses or by damaging water pipes. The water lines would be repaired before an adjuster arrived. The defendants would file claims to obtain the full policy limits of the insurance coverage for their damaged personal property along with additional living expenses. Some homes were flooded more than once. At least one house was "cooked" to encourage the development of mold. Insurance companies paid claims in excess of $5 million.

The defendants served as homeowners, independent sub-contractors, vendors and service providers in filing claims, repairing the damage and selling the homes to each other to repeat the process. Homes in the greater Houston area, Bay City and Austin were used in the insurance fraud scheme.

Source: State of Texas

Area of Interest: OSHA, AMERICAN INDUSTRIAL HYGIENE ASSOCIATION FORM ALLIANCE

WASHINGTON -- The Occupational Safety and Health Administration and the American Industrial Hygiene Association (AIHA) have established an Alliance to use their collective expertise to help prevent injuries and illnesses in the American workplace while sharing best practices and technical knowledge in many areas, including in the field of ergonomics, announced OSHA Administrator John L. Henshaw today.

"OSHA and the AIHA have always enjoyed a fruitful, close working relationship," said Henshaw. "This Alliance will bring us even closer in an important partnership to help reduce ergonomic hazards in the workplace, as well as to expand our already close cooperation in the field of occupational safety and health."

Under the terms of this Alliance, OSHA and the AIHA will work together to provide AIHA members with information and guidance to help reduce and prevent employee exposure to ergonomic hazards, and to reach out to association members with specifics on developing, implementing and improving ergonomic programs.

The Alliance provides avenues for both organizations to work together on outreach and communication projects, including the development and dissemination of information at conferences, events and through their respective websites. AIHA members' worksites will be encouraged to participate in OSHA's cooperative programs, such as compliance assistance, the Voluntary Protection Program, the Consultation Program, and SHARP. AIHA members will also be afforded opportunities to mentor and assist OSHA personnel as they proceed with professional certifications.

OSHA and AIHA will also promote and share information on best practices with others in the occupational health and safety profession. Both organizations will participate in forums and roundtable discussions on ergonomic issues and also examples of hazard recognition strategies and analytical tools that support solutions to ergonomic hazards. Finally, OSHA and AIHA will assist association members with the development and delivery of training and education programs for reducing and eliminating ergonomic hazards in the workplace.

A team of OSHA and AIHA representatives will meet at least quarterly to develop an action plan, determine working procedures, and identify roles and responsibilities of participants.

Source: Occupational Safety and Health Administration

State: Washington

Area of Interest: Controversy Regarding WISHA’s new Ergonomics Standard

The Building Industry Association of Washington has filed a lawsuit against WISHA’s ergonomics rule. The controversy began when the Director of WISHA sent a letter to Wal Mart indicating that the new WalMart Facility in Grandview would meet the specifications set out in the WISHA Ergonomics rule.

The lawsuit filed by the Building Industry Association of Washington would like the state to provide information on any other communication WISHA may have provided regarding the new Ergonomics Rule.

According to a letter from Gary Moore, Director of Washington Department of Labor and Industry, indicated to Wal Mart that ““The operations we observed . . . do not involve hazardous exposures that would require correction under the rule, and you will not be cited for hazardous exposures."

Moore claims his letter was merely “an assurance that an operation similar to the one in Texas would comply with the ergonomics rule,” said the Post-Intelligencer article. Director Moore did indicate that he contacted WalMart because the company may have moved the distribution center to Oregon or Idaho as a result of the WISHA Ergonomics Standard.

Source: Ergoweb.com/Seattle Post Intelligence, Associated Press

State: Oregon

Area of Interest: Filing Procedures for Exclusions Related to Acts of Terrorism

Background

On December 11, 2001, this Division issued Bulletin INS 2001-10 regarding the Division’s position on terrorism exclusions. That Bulletin indicated that our office would approve limited exclusions for acts of terrorism for commercial lines. Bulletin INS 2001-10 expired on March 1, 2002. The Division recognizes that terrorism exclusions continue to be a major concern and that continued guidance is required. This bulletin confirms the Division’s position.

Commercial Lines

This Division will accept exclusions that are substantially similar to the series of optional endorsements developed by the Insurance Services Office, Inc. (ISO).
The result of significant limitations on the policy exclusions approved by this state is that coverage is provided for acts of terrorism under certain circumstances. For policies providing property insurance coverage, the following standards apply to policy exclusions:

• Exclusions for an act or acts of terrorism apply only if the act or acts of terrorism result in insurance-industry insured losses exceeding $25,000,000 for related incidents that occur within a 72 hour period;

• Exclusions for acts of terrorism are not subject to the preceding limitation on losses if:
• The act involves the use, release or escape of nuclear materials, or that directly or indirectly results in nuclear reaction or radiation or radioactive contamination;
• The act is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or
• Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials.

• Exclusions apply only if the act or acts of terrorism result in insurance-industry insured losses exceeding $25,000,000 for related incidents that occur within a 72 hour period; or
• Exclusions apply when fifty or more persons sustain death or serious physical injury. For purposes of this standard, serious physical injury means:
  
  • Physical injury that involves a substantial risk of death;
  • Protracted and obvious physical disfigurement; or
  • Protracted loss of or impairment of the function of a bodily member or organ.
• Exclusions are not subject to the preceding limitations on losses if:
  
  • The act involves the use, release or escape of nuclear materials, or that directly or indirectly results in nuclear reaction or radiation or radioactive contamination;
  • The act is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or
  • Pathogenic or poisonous biological or chemical materials are released, and it appears that one purpose of the terrorism was to release such materials.

1. That involve the following or preparation for the following:
   1. Use or threat of force or violence; or
   2. Commission or threat of a dangerous act; or
   3. Commission or threat of an act that interferes with or disrupts an electronic, communication, information, or mechanical system; and
2. When one or both of the following applies:
   1. The effect is to intimidate or coerce a government or the civilian population or any segment thereof, or to disrupt any segment of the economy; or
   2. It appears that the intent is to intimidate or coerce a government, or to further political, ideological, religious, social or economic objectives or to express (or to express opposition to) a philosophy or ideology.

1. Transmittal form
2. Cover letter or actuarial memorandum explaining compliance with this bulletin
3. Certificate of Compliance form
4. Terrorism Endorsement

Personal Lines

The National Association of Insurance Commissioners (NAIC) considered whether exclusionary language for acts of terrorism for personal lines property and casualty insurance products is appropriate or necessary. The NAIC stated "that terrorism exclusions are generally not necessary in personal lines property and casualty products to maintain a competitive market." This Division concurs with that statement and will not approve a personal lines terrorism exclusion except in very limited instances involving unique company circumstances.

Any company requesting approval of a personal lines terrorism exclusion will be required to adequately demonstrate that the company is unable to secure necessary reinsurance without the exclusion, with the result that, without the exclusionary language, the company being placed in a hazardous financial condition.

State: Oregon

Area of Interest: Program Directive for Compliance with Fall Protection in General Industry

Background: In several Federal OSHA cases the courts found a lack of consistency in the application of these standards, especially regarding when an elevated
surface is a platform.

Action: Platforms are any elevated surfaces designed or used primarily as walking
or working surfaces, and any other elevated surfaces where employees walk or work on a predictable and regular basis. A predictable and regular basis means at least one instance of exposure every two weeks, or a combined total of four hours or more of exposure during any sequential 4- week period by one or more persons.

Employee exposures to falls from platforms are regulated by 1910.23(c)(1) or 1910.23(c)(3). When employees walk or work on other elevated surfaces that do not fit the above interpretation, then the Oregon Rules for Fall Protection, OAR 437-002-0125, apply.

Source: Oregon OSHA