News Briefs

ILLINOIS

CCC Settles Class Action Suit: Chicago-based claims software-maker CCCInformation Services Inc. and 15 of its customers signed a settlement agreement with the plaintiffs in various class-action suits pending in Madison County, Ill. These consolidated suits, Case Nos. 01 L 157, et al., relate to the valuation of vehicles that have been declared total losses by insurers.

CCC said the settlement includes no admission of liability or wrongdoing by CCC or its customers. The proposed classes represent all customers of the settling carriers who had a total loss claim from Jan. 28, 1989 to the present, for which CCC’s product and service (now called CCC Valuescope) were used to perform the valuation.

Terms of the settlement agreement will require CCC to pay notice and administration fees and other costs associated with the settlement. The company estimates that these costs will total about $8 million, and including available insurance proceeds of $1.8 million, the company is fully reserved for these payments. Other settlement costs, including claims by class members, will be paid by the insurance companies that are participating in the settlement.

In addition to its settlement contribution, CCC will also engage the services of an independent, third party as a court-appointed monitor to periodically review CCC Valuescope’s methodology for five years following settlement and to oversee the performance of various product validation studies.

Progressive Alumni Reunite in Bloomington: The ’80s really are back-at least they will be in Bloomington, Ill., next month, when a group of current and former Progressive employees who were part of the 1980-1985 workforce gather for cocktails. The party will be followed by a tour of the Illinois State University’s Katie School of Insurance and Financial Services’ new facility, a golf outing and banquet.

The reunion is planned for Friday, Sept. 23, 2005 and is being sponsored by the Katie School and Afni Insurance Services. Interested alumni should contact Joe Palumbo at (888) 767-2361, ext. 3553.

OHIO

Comp Bureau Fires Asset Management Firm: The Ohio Bureau of Workers’ Compensation announced it is terminating investment dealings with Allegiant Asset Management, a wholly owned subsidiary of National City. BWC has asked that all remaining holdings in its large-cap growth domestic equity fund be liquidated. Of the fund’s $71 million in losses, about $60 million resulted from management decisions by Allegiant.

As of May 31, BWC’s carry-basis for the Allegiant Asset Management was $51.1 million, and its market value was $53.4 million. Despite writing off losses of approximately $50 million in fiscal year 2002 and approximately $20 million in fiscal year 2003, the bureau was still able to return nearly $2.2 billion in dividends to public and private employers during both those years.

The losses “have no impact on the value of the State Insurance Fund today,” BWC Interim Administrator Tina Kielmeyer said in a statement.

In January 2001, BWC reallocated $250 million from other equity investments to provide initial funding to Allegiant. They received funding in March 2001. BWC drew down Allegiant’s account $75 million in April 2004 and an additional $50 million in May 2005. As of May 31, BWC has a carry-basis of $1.17 billion with 13 large-cap value managers. The market value of these firms was $1.25 billion. BWC said its fund continues to be fully-funded with an approximate value of $14.3 billion. It also possesses a surplus.

WISCONSIN

Med-Mal Cap Ruled Unconstitutional: The Wisconsin Supreme Court has struck down a law capping noneconomic damages in medical malpractice cases at $350,000. The court voted 4-3, saying the cap was “unreasonable and arbitrary” and no “rational” relationship between the cap and lower medical liability insurance premiums existed.

Wisconsin is not one of the 20 states labeled by the American Medical Association as having a “medical liability crisis.” The AMA labels states as either in crisis, showing problem signs, being aided by effective reforms, or currently OK. Wisconsin’s medical liability insurance affordability and rate situation is “OK,” according to the Chicago-based doctors’ group. Justice David Prosser Jr. dissented from the ruling, writing in his opinion that the “court is not meant to function as a ‘super-legislature’ constantly second-guessing the policy choices made by the legislature and governor.”

The ruling comes in the case of Matthew Ferdon v. Wisconsin Patients Compensation Fund, 2003AP988. The $350,000 cap on noneconomic damages in Wisconsin was established in 1995 and is indexed for inflation. It currently stands at $445,775.

OSHA, Agencies Launch Safety Alliance: The U.S. Labor Department’s Occupational Safety and Health Administration and Wisconsin state agencies have launched an alliance aimed at preventing workplace hazards statewide, according to a statement from the federal agency.

Joining OSHA in the three-year pact are the Workers Compensation Division of the Wisconsin Department of Workforce Development, and the Wisconsin Onsite Consultation Programs.

The alliance was signed by OSHA area offices in Eau Claire, Appleton, Madison and Milwaukee. The OSHA Health Consultation Program, Wisconsin State Lab of Hygiene, joined in the initiative. The alliance will provide members and others with information, guidance and access to training resources that will help them protect employees’ health and safety. OSHA and the state of Wisconsin will provide safety and health courses. They will identify the needs of businesses for specific safety and health training, and create and promote instruction to address the needs of non-English speaking employers and workers.

OSHA and the Wisconsin agencies said they will work together to develop and communicate information to help businesses and workers recognize and prevent job-related hazards. At conferences and public forums, alliance members will share information and forge innovative solutions to improve workplace safety and health.

The alliance will promote and encourage participation in OSHA’s cooperative programs. These include compliance assistance, the Voluntary Protection Programs and the Safety and Health Achievement Recognition Program. It will also work to improve state employers’ understanding of the Wisconsin Department of Workforce Development, Workers Compensation Division.

Topics Workers' Compensation Wisconsin