California Personal Injury and Insurance Blog

Football Helmets Under Scrutiny After College Player’s Suicide

Earlier this summer, I reported about new standards for metal bats that will be used for high school baseball teams in California. The latest piece of athletic gear to come under fire is the football helmet, after the suicide of a college star earlier this year.

Last spring, football star Owen Thomas, who played at the University of Pennsylvania, shocked those who knew him by committing suicide. An autopsy later showed that he had chronic traumatic encephalopathy, or CTE, which are brain injuries caused by repetitive trauma to the head. CTE has been linked to impulsive behavior and depression.

CTE has been found in 21 NFL players, including Andre Waters, who also committed suicide. However, Owen Thomas was the youngest (age 21) player and the first college player to have been diagnosed with the disease. He was never diagnosed with a concussion.

New research has shown that even a minor hit to the head can have a long-term health impact. Football helmets have come under fire for being partially to blame for the increasingly serious head injuries endured by football players. Some say the new high-tech football helmets lead players to take more risks, because they have a false sense of security. In fact, one football analyst believes players would be better off using old fashioned leather helmets, because players would be more cautious of head injuries.

Are Underground Gas Lines Safe?

Last week, a huge gas explosion in San Bruno killed four people, injured over 60, and destroyed dozens of homes. The explosion was caused by the rupture of an underground gas pipe. The pipe had been installed in 1956, had a long welded seam, and could have corroded over the years.

 

Pipelines are running underground across the country – approximately 2 ½ million miles of pipeline. Many of the pipelines are old. So how do we know that they are safe?

 

According to experts, most pipelines do not need to be inspected – only those which are near large populations or natural resources. Only about 7 percent of major lines run near neighborhoods. In addition, utility companies are required to clearly mark pipelines and to notify residents about them.

 

If you are worried about a gas leak in your neighborhood, there are some steps you can take. Of course, be alert for a smell. Natural gas does not have an odor, but frequently utility companies will add an odor in order to help detect leaks. It may be a rotten egg smell. Listen for a hissing sound. Also, look for a cloud or fog, grass or other vegetation that’s dying for no apparent reason, or bubbles in standing water, which can all be signs of a leak.

 

If for some reason you do suspect a leak, leave your house immediately. Do not turn any lights or appliances on or off or use a phone, or even start your car – all of those actions can create a spark.

Finding Unclaimed Property

Did you know that you may be owed money and may not even know it?

Unclaimed property, also known as abandoned property, is money held by companies or financial institutions that have not generated any activity or been claimed by their owner for over a year. Some of the most common examples of unclaimed property are uncashed payroll checks, checking or savings account proceeds, insurance payments or refunds, utility deposits, CDs, trust distributions, and contents of safe deposit boxes.

All states have unclaimed property laws and programs that actively search for owners of lost or forgotten assets. State laws usually prevent property from reverting to a financial institution if you lose contact with that institution. Under law, companies have to turn that money over to a state official, who will then attempt to find you or your heirs. States have compiled databases of individuals owed money, as well as joined national databases such as MissingMoney.com and Unclaimed.org. 

Searching either website or a state’s database of abandoned property is free, but some businesses find missing property and contact its owner, promising to tell the individual how to claim the property for a fee. Some of these businesses are legitimate, but if you are contacted by a business offering to tell you how to claim your property, it’s best to contact your state’s unclaimed property office first.

California First State to Begin Health Insurance Exchange

This week, the California legislature passed two bills to set up a health-insurance marketplace. This move comes after the health care reform bill, which was passed in March, directed states to set up their own health care exchanges, or else their residents will receive access to a federal exchange. Governor Schwarzenegger is expected to sign the bills.

 

California is the first state to begin implementation of a health-care exchange. Massachusetts and Utah already had exchanges in place when the bill was passed. California’s exchange will most likely be the largest one established by one state. As many as 8.3 million individuals may be eligible to purchase insurance plans through the exchange. Under federal law, businesses with up to 100 employees can buy coverage through the exchange. The limit may be raised by states in 2017.

 

The exchange will most likely offer insurance through a website that will provide detailed information about plans. The plans will be standardized. Live helpers will be available to explain the plans to consumers. The plans aren’t required to be operating until January 2014. Under the plan, California will sell insurance in five categories, which will vary widely in coverage and price.

 

This legislation comes on the heels of an announcement by California’s Department of Insurance that it will allow premium increases by Anthem Blue Cross (14% increase) and Blue Shield of California (9% increase).

Is Your Home Protected in Case of Fire?

With wildfire season looming in southern California, and an insurance company making news for failing to honor damage claims that resulted from a California fire, now might be the time to review what would happen to your home in the event of a fire.

 

According to California’s Insurance Commissioner, homeowners should prepare themselves today for what might happen if a fire occurred, which includes both reviewing your insurance coverage and conducting a home inventory of belongings.

 

When you are initially purchasing homeowner’s insurance, describe your home in detail and ask your agent what will happen in the event of a fire. Does the policy cover smoke and water damage? Do an assessment of how much insurance is needed to cover both the structure and its contents. What contents are covered? What contents aren’t covered? You may be surprised to discover that fire insurance sometimes doesn’t cover home business office equipment, professional equipment and tools, or some valuable paperwork. If you need extra insurance but can’t afford the premiums, it may be worth raising your deductible to get the coverage you need.

 

To do an inventory, the Commissioner recommends using a Home Inventory Guide (available here) and a digital camera to catalogue your possessions. He recommends labeling photos and, if using a video camera, narrating the video. I recommend a video camera and then save the videotape in two locations, one of which is outside of the home.  The inventory, pictures, and supporting documentation should be stored in a safe place.

 

“Crash Tax” Still Being Considered in Sacramento

The Sacramento City Council was set to vote on a controversial “crash tax” earlier this week, but it was removed from the council’s agenda hours before the vote was to have taken place.

 

The crash tax would have charged individuals who do not live in Sacramento additional fees if they are at fault in an accident. The fees would range from $435 if a fire crew is called, $680 if a fire is put out, $1,875 if the jaws of life are used, to $2,275 if a helicopter is called to transport an injured individual.  The fines would be a way of recovering some costs for fire and police services. The city estimates the crash tax would generate $1 million in revenue per year.

 

However, critics of the plan point out that insurance companies could end up paying the fines, which would result in increased insurance rates for everyone. Critics also point out that the plan would discourage visitors and could hurt small businesses who operate a fleet of vehicles in nearby cities.

 

If the measure passes, Sacramento will be the largest city in the country with a crash tax. Loomis, Roseville and Stockton already have a crash tax in place. Eight states currently have laws against crash taxes. The fees would begin October 1.

                                    

Click here to read more.

New Standards for Metal Bats in California High Schools

Beginning in January, high school baseball teams in California will be required to use new safety-tested metal bats.

 

The new requirements were prompted by a 16 year old California pitcher who suffered a major head injury in the spring when he was hit by a line drive from a metal bat. He was in a coma for several weeks following the accident, and plans to return to baseball this spring. After the accident, Jared Huffman, a member of the California Assembly, proposed a two year moratorium on all non-wooden bats for high school baseball teams. Huffman postponed the bill while he worked on safety changes with the California Interscholastic Federation.

 

This week, the CIF, which sets rules in California for high school sports, announced new rules governing bats. New safety standards will be required for all metal bats. The bats will be tested to limit the speed of balls they hit. The bats may include a decal that will change color if the bat is tampered with, although the technology is not yet available to make the decals. National standards for metal bats will take effect in 2012.

 

The CIF will also encourage high schools to require headgear for its athletes.

 

California Strengthening Laws to Prevent Illegal Health Insurance Cancellations

On August 18, new regulations go into effect in California that are aimed at preventing illegal cancellations of health insurance policies.

 

Rescission, which is the practice of cancelling health insurance policies for mistakes on the health insurance applications, even minor mistakes, is targeted in the new regulations. According to the government, rescission is estimated to add $300 million in profits to the health insurance industry.

 

The new regulations require questions on a health insurance application to be clear, specific and understandable. The applications are not allowed to use double-negatives or some types of compound questions. Insurance companies will be required to take into account the level of knowledge an average individual with no medical training may have when formulating the questionnaires. Questions on the application must be relevant to the underwriting process. In addition, applicants must be allowed to check that they are unsure or cannot remember to questions on the application. Consumers must also have the right to respond during rescission investigations.

 

The California Department of Insurance is going to publish a new approved questionnaire for insurance companies to use in obtaining applicants’ medical history. Insurance companies that decide not to use the pre-approved questionnaire cannot use unapproved questionnaires as the basis of a rescission later.

 

You can read in more detail about the new regulations here and here.  The new regulations are here.

Many Small Businesses Not Aware of Health Insurance Tax Credits

Although virtually all business owners are aware of the recently-enacted health care reform law, many do not know that tax credits for small businesses that provide health insurance to their workers take effect this year. In California alone, over 400,000 small businesses could qualify for the credit.

 

Under the law, companies with no more than 25 workers, and whose average salaries are less than $50,000, are eligible for a tax credit of up to 35 percent of the employer’s contribution for health insurance premiums. The maximum credit for non-profit small businesses is 25 percent. Companies must pay 50 percent of its employees’ health care premiums to qualify for the credit. Almost 80 percent of small businesses are expected to qualify for the credit. There are approximately 4 million small businesses nationwide.

 

The credit was designed as an incentive for more companies to offer health benefits to their employees. Small companies typically pay 18 percent more for insurance than large companies. The credits will last until 2014, when health insurance exchanges will be available to help small businesses provide health insurance to employees.

 

Under the new law, companies with at least 50 employees will have to pay penalties if they do not offer health insurance to workers.

California Could Dump Asbestos-Containing State Rock

Serpentine, the state rock of California, faces a “rocky” future, as its role as state rock may soon come to an end. A California lawmaker is proposing that serpentine lose its official state rock status.

 

California named serpentine the state rock in 1965 because it symbolized California during the Gold Rush. Serpentine is plentiful in the same areas in California in which gold was found. It was also named the state rock because it contains a mineral, asbestos, that was used in construction materials, household appliances and other products.

 

However, since 1965, asbestos, which is no longer mined in the U.S., has been found to cause mesothelioma. Mesothelioma is an incurable cancer that has spawned countless personal injury lawsuits, and can be contracted when asbestos fibers are inhaled. Defendants have paid out more than $70 billion in asbestos litigation since lawsuits began, and the average award to a mesothelioma victim is $4 million. About 2,500 Americans die from mesothelioma each year.

 

Opponents of removing serpentine as the state rock point out that few mesothelioma deaths are from exposure to naturally occurring asbestos, such as that contained in serpentine. They also point out that the EPA says that naturally occurring asbestos that remains underground poses no health risk.

 

The state Senate approved the law removing serpentine as official state rock. The Assembly is expected to vote on the measure, but it then must be voted on by the Senate again because it was amended.