Phoenix Personal Injury Lawyer - Miscellaneous

Jury to Begin Deliberations in Unfair Settlement Practices Lawsuit Against Allstate

Staff Writer — Tue, 09 Oct 2007 21:50:18 GMT

A Kentucky jury will begin deliberations Wednesday deciding whether Allstate Insurance Company violated the Kentucky Unfair Settlement Practices Act by systematically lowering valuation of minor injury claims and bullying claimants into accepting artificially low settlements. The Plaintiffs alleged that Allstate systematically undervalued claims relying upon a consultant who, according to the on-line publication Bloomberg:

developed methods for the company to become more profitable by paying out less in claims, according to videotaped evidence presented in Fayette Circuit Court in Lexington, Kentucky, in a civil case involving a 1997 car accident.

The Plaintiff Geneva Hager, who filed the bad faith suit against Allstate,

[S]uffered neck and back injuries in July 1997 after the vehicle she was riding in was rear-ended by a truck hauling firewood on Man o' War Boulevard. The truck's driver, Thomas LaPointe Jr., was insured by Allstate.
Hager's injury claim did not settle until December 1999, four days after her lawsuit was scheduled for trial.

The jury will now consider whether the insurance company intentionally delayed resolution of the claim relying upon the consultant recommendations to become profitable by getting ""boxing gloves" and describing claims handling as a "zero sum economic game" in which "Allstate gains" and "others must lose.""

Allstate routinely relied upon a computer program known as Colossus to evaluate claims based upon data entered into this computer system. The Plaintiff alleged that Allstate claims representatives regularly manipulated data input into the Colossus program to lower payouts and then delayed and even harassed claimants into accepting artificially low settlements. Allstate argued that it simply used consultant recommendations to root out claimant fraud and identify inflated claims. The jury will now decide whether Allstate's practices were appropriate.

I have previously written about insurance bad faith practices which may raise profits at the expense of policy-holders. Carriers engaging in systematic behavior to maximize profits betray contractual promises made to policy-holders should be held accountable to policy-holders for broken contractual promises. The Kentucky jury will decide whether Allstate's business practices were simple tactics to root out claimant fraud or bad faith conduct by a powerful insurance carrier with unequal bargaining power.

For more information on this subject, please refer to the section on Car and Motorcycle Accidents.

Originally posted at InjuryBoard by Staff Writer

The Number of Uninsured Continues to Rise

Staff Writer — Mon, 17 Sep 2007 15:04:40 GMT

According to a recent article in the physician publication American Medical News, the number of Americans without health insurance has increased to forty-seven million people last year. By comparison, approximately thirty-eight million four hundred thousand Americans had no health insurance insurance in 2000. The American Medical News suggests that one of the reasons for such a large increase in the ranks of the uninsured concern employer benefit cutbacks:

"Overall, the picture is one of continual erosion of employer coverage that is now starting to squeeze the middle class," said Karen Davis, PhD, president of the Commonwealth Fund, a foundation dedicated to improving health care. "It's very troubling to see this dramatic increase."

Several reform suggestions advocated by the American Medical Association to use tax credits and vouchers to faciliate the purchase of health insurance sound promising. However, I cannot understand how uninsured or even insured consumers will benefit by other tort reform aspects of the American Medical Association advocacy agenda. I simply fail to see a coorelation between limitations on accountability for medical errors and access to health insurance and quality medical care.

Originally posted at InjuryBoard by Staff Writer

Presidential Candidate Romney Victim of Laptop Theft

Staff Writer — Tue, 11 Sep 2007 09:00:00 GMT

Those who do not learn the lessons of history are bound to repeat them. Republican presidential candidate Mitt Romney has apparently learned some of the lessons from recent high profile laptop thefts involving government agencies such as the Veterans Administration and private business such as Stevens Hospital in Washington.

Over the weekend, burglars broke into Candidate Romney's campaign headquarters and stole several laptop computers and other electronic equipment. According to a Romney campaign spokesman, the laptop computers were password protected and encrypted and

"The only thing they're good for is parts," campaign spokesman Eric Fehrnstrom told the Associated Press.

Password protection and disk drive encryption provide essential security tools to protect against data and identity theft. The Romney campaign apparently did things correctly. The only possible problem would have been if campaign staff members placed passwords on or nearby the stolen laptop computers. According to the Privacy Rights Clearinghouse, since 2005, over 165,000,000 personal confidential records have been compromised exposing personal information to risks of identity theft. In today's world, laptop password protection and data encryption are no longer an option. Keep that in mind the next time you decide to go to work for a presidential candidate.

Originally posted at InjuryBoard by Staff Writer

Major Data Breach at Monster.com Exposes 1.3 Million Personal Records

Staff Writer — Sun, 02 Sep 2007 12:00:44 GMT

This past week, Monster.com disclosed that thieves hacked into and stole confidential information about several hundred thousand job seekers posted in 1.3 million records.

According to a Fox news report,

The information, which included first and last names, e-mail and home addresses and phone numbers, was then used to send "phishing" e-mails to members, apparently from Monster.com, encouraging them to download a tool known as "Monster Job Seeker."
The tool was in fact a malicious program known as a "Trojan," as in Trojan horse, which encrypted files on the victims' machines, making them inaccessible to the computer owner.

Rather than immediately notifying affected consumers about the data breach, it appears that Monster.com waited almost one week before disclosing the intrusion. Yesterday, Monster.com indicated that it would heighten its security and surveillance measures to minimize the risk of such a major data intrusion.

Internet security vendor Symantec corporation described the data intrusion and risks of further criminal activity. Interestingly, according to Symantec, thieves have attempted to extort victims by locking down and encrypting personal files located on their personal computers demanding money to return accessibility to various personal files.

This data breach should serve as a reminder that because data thieves are increasing the type and sophistication of computer attacks, corporations and individuals should take Internet security seriously. Also, when a person or business discovers a data breach, shouldn't disclosure to potential victims occur promptly? I have not seen any explanation about why Monster.com waited close to a week before publicly explaining what happened. During this time period, hundreds of thousands of consumers could have become unwary victims of identity theft or extortion. The delay may have been appropriate to learn more detail about what happened but I cannot find any company explanation. Do you think the company acted appropriately? Will this recent data intrusion affect your interest in doing business with Monster.com or any other electronic commerce vendor? Will it heighten awareness of data security needs? Do you think electronic commerce and computer security will improve in the days and months ahead? I'd like to hear your thoughts.

Originally posted at InjuryBoard by Staff Writer

Are On-Line Pharmacies Trafficking Narcotic Drugs?

Staff Writer — Wed, 29 Aug 2007 18:22:14 GMT

Perhaps you have seen stories or received spam e-mail messages from on-line pharmacies offering instant access to prescription drugs at low cost. You want a percocet or vicodin but your family doctor did not prescribe it for you? No worries. Just log onto your spam-friendly Internet pharmacy, fill out a brief questionnaire, pay for your medication with a credit card and in no time, you will receive your narcotics. Recently, according to a story on MSNBC, on-line pharmacies are making millions selling controlled substances.

Without Internet pharmacies, you must visit your doctor in order to receive a prescription for medication. Your doctor issues the prescription to be filled at the pharmacy. At the pharmacy, you can verify the authenticity, purity and dosage. Your pharmacist must also counsel you on the use, dosage, side effects and any other important details of the medication before you take it for the first time. You also have the opportunity to ask questions and you, your doctor and your pharmacist act together as a team to administer your medication safely.

If you order medication on-line, you lose the effectiveness of medication counseling, and in-person consultation with your physician and team approach to medication safety. You lose the opportunity to confirm the dosage and purity of the medication. In short, the safety systems in place to prescribe and administer medication safely are for the most part lost with fly-by-night Internet pharmacies. As MSNBC reports,

The Drug Enforcement Administration, which reported the additional parcel delivery trucks in southeastern Kentucky, says about 95 percent of products sold by online pharmacies are controlled substances. By comparison, controlled substances amount to roughly 11 percent of the dosages dispensed by legitimate pharmacies.

These details suggest that fly-by-night Internet pharmacies are dispensing controlled substances at an alarming rate and the alarming implication suggests that some of these apparent business cover up illicit drug trade. So long as on-line pharmacies dispense medication in a safe and effective manner and supplement regular in-person physician and pharmacist counseling requirements, on-line pharmacies serve a useful purpose. However, based on the DEA statistics, it appears that several rogue pharmacies may be using the Internet to traffic and sell narcotics while attempting to use a designation as a pharmacy to justify illegal drug trafficking.

What do you think about on-line pharmacies? Do they provide a useful service? Or are a large number of them simply a tool to sell illegal substances? If you have had a bad experience with an on-line pharmacy, share your story. Also, you may consider filing a consumer complaint with the Arizona State Board of Pharmacy who will conduct an investigation to determine compliance with Arizona law.

Originally posted at InjuryBoard by Staff Writer

Insurers Profits Rising Based on Bad Business Practices?

Staff Writer — Fri, 10 Aug 2007 21:00:00 GMT

A recent article in the on-line publication Bloomberg suggests that anti-consumer insurance industry practices have led to a stark increase in insurance profits in recent years. According to Bloomberg, consumers have been bearing the burden of bad-faith insurance industry practices:

Insurers often pay 30-60 percent of the cost of rebuilding a damaged home -- even when carriers assure homeowners they're fully covered, thousands of complaints with state insurance departments and civil court cases show.
Paying out less to victims of catastrophes has helped produce record profits. In the past 12 years, insurance company net income has soared -- even in the wake of Hurricane Katrina, the worst natural disaster in U.S. history.

According to Bloomberg, some insurance companies have spared no detail in their efforts to increase profitability at the expense of the policyholder. For example, in 1992 Allstate Insurance Company hired business consultants McKinsey & Company for advice on improving its efficiency and profitability. After working with McKinsey, Allstate's loss ratios, the ratio of claims paid to premiums received dropped significantly from approximately seventy-nine percent in the 1990's to fifty-eight percent in 2006. Such a major dip in loss ratios led to major increases in profits and stock value. How did the company increase its profits? The Bloomberg article states that Allstate adopted several McKinsey recommendations to minimize claims payouts and reduce loss ratios:

When a policyholder files a claim, first make a low offer, McKinsey advised Allstate. If a client accepts the low amount, Allstate should treat the person with good hands, McKinsey said. If the customer protests or hires a lawyer, Allstate should fight back.

According to various Powerpoint slides apparently prepared by the McKinsey group, these consultants recommended focusing cost-control efforts on minimizing or delaying coverage payouts throughout the claims process:

The slide says Allstate can discourage claimants by delaying settlements and stalling court proceedings.
By postponing payments, insurance companies can hold money longer and make more on their investments -- and often wear down clients to the point of dropping a challenge.

Bloomberg even documented efforts by Allstate to encourage its claims representatives to lie about covered claims rewarding them with merchandise for representatives who denied coverage for claims without any truthful justification. This agressive approach in the claims process outlined in the news article apparently led to a 140% increase in Allstate profits. Other companies have been identified in the article as having engaged in similar conduct. For example, Farmers Insurance Company apparently awarded some type of financial bonuses to its claims representatives who paid out the smallest amounts to insured claimants. Likewise, according to Bloomberg, after State Farm hired McKinsey and engaged in similar cost-cutting moves, its profits doubled to $4.8 billion dollars last year.

Insurance companies like any other for-profit business have the absolute right to earn a profit. However, like any other business, carriers should do so responsibly. I believe carriers should be held accountable for bad-faith decisions which betray the commitments an insurance company makes to its policyholders in its insurance contract. Do you agree? Have you had a bad experience with your insurance carrier? Have you had a good experience with your carrier? If you have had a bad experience with your insurance company, you may consider filing a complaint with the Arizona Department of Insurance. The Department will not represent you but will investigate possible violations of Arizona law. Let me know about your good or bad experiences. I'd like to hear from you and what you think about the insurance industry.

Originally posted at InjuryBoard by Staff Writer

Medical Plane Crash in New Mexico Kills 5

Jenny Albano — Mon, 06 Aug 2007 13:27:10 GMT

A medical plane crashed on the night of August 5 and all 5 passengers, including a women and her young daughter, were killed in the accident.

Those deceased include 15 month-old Lilly Smith and her mother Tracy Smith, a 56 year-old pilot, a 44 year-old male nurse, and a 40 year-old paramedic. The names of the three staff members have not been released so authorities could contact next of kin.

The toddler was the patient, but it is not known what medical problem she had.

The twin-engine turbo prop left the Ruidoso Regional Airport about 10:40 p.m. Sunday on a flight to University of New Mexico Hospital in Albuquerque. It crashed almost immediately in Devil's Canyon in the Lincoln National Forest, Olson said.

A search for the plane began very early Monday, and the plane was found at approximately 5:15 a.m. The cause of the crash is under investigation.

The King Air plane was owned by Las Cruces-are Southwest Medivic. The company claims to have never had a plane crash since the business started in 1994.

For more information on this subject, please refer to our section on Airlines, Cruises, Buses, and Other Mass Transit Accidents.

Originally posted at InjuryBoard by Jenny Albano

TV News Helicopter Collision Kills All 4 On Board

Jenny Albano — Mon, 30 Jul 2007 07:48:04 GMT

On July 28, two TV news helicopters crashed into each other while trying to follow a police chase in Phoenix, Arizona. The helicopters collided over Steele Indian School Park around 12:40 P.M. and crashed into the lawn in front of a boarded-up church. The choppers were engulfed in flames and all four people in the two helicopters died.

Killed on board the KTVK chopper were pilot Scott Bowerbank and photographer Jim Cox. Reporter Craig Smith and photographer Rick Krolak were aboard the KNXV aircraft, the stations reported.

Television viewers did not see the crash because the cameras were pointed at the ground, but viewers did see footage from one of the cameras where the helicopter started to spin out of control. The station promptly switched to the studio so no one would witness the crash.

The crash occurred when the suspect being followed by police, identified as Christopher Jones, got out of the pickup truck he was driving and hijacked another vehicle.

Now police have stated that the man arrested in the police chase may be held accountable for the deaths in the helicopter crash. Jones was booked in jail on Friday night and is being held on two counts of vehicle theft, four counts of aggravated assault on a police officer, and one count of resisting arrest. His bail was set at $1 million.

Witnesses who saw the crash occur stated that they did not notice any problems with either helicopter before the collision. The National Transportation Safety Board (NTSB) had eight investigators arrive on scene late Friday night to start collecting evidence, and NTSB announced the preliminary report on the crash should be ready in five business days from the day of the accident.

For more information on this subject, please refer to our section on Airlines, Cruises, Buses, and Other Mass Transit Accidents.

Originally posted at InjuryBoard by Jenny Albano

Inside Aquafina Bottles You Will Find Tap Water

Staff Writer — Fri, 27 Jul 2007 21:21:54 GMT

In case you are wondering exactly where the bottled water comes from that makes up Aquafina water, today you have an answer. No, the water does not come from a spring somewhere high in the mountains of some exotic location. Instead, according to an article in today's Arizona Republic, the source for water found inside the Aquafina water bottle is the same source as our regular tap water. Consumers demanding full and complete disclosure of what exists inside water bottles have been led by an organization known as Corporate Accountability International. This organization has received word from Pepsico, the maker of Aquafina water that it will clarify the source of its water in its product labels. In its press release, the organization indicated:

As part of the Think Outside the Bottle campaign, thousands of people across the US have been urging Pepsi to make changes in the Aquafina label, which includes an image of snow-capped mountains and states "pure water, perfect taste". Though the image implies that the source of Aquafina is mountain spring water, it actually uses tap water as its source. In fact, up to 40% of bottled water uses tap water as its source.

Personally, I believe in accurate and truthful disclosure. Consumers should not be misled and should have truthful information available to them. However, as long as the water inside Aquafina bottles has gone through the purification and osmosis process required to make it pure and drinkable, I do not care whether comes from the tap or from the Alps.

The Corporate Accountability International organization has as its goal:

winning campaigns that challenge irresponsible and dangerous corporate actions around the world.

It appears that this organization has successfully achieved its goal in its "Think Outside the Bottle" campaign. Perhaps success with this campaign can lead to other successes changing destructive or harmful behavior by industries or individuals who cause harm. Maybe with these organizations changing destructive behavior before it causes harm, the use of litigation may be properly limited to a tool of last resort to hold wrongdoers accountable. What do you think?

For more information on this subject, please refer to our section on Defective and Dangerous Products.

Originally posted at InjuryBoard by Staff Writer

Automobile Theft Can Lead to Identity Theft

Staff Writer — Sun, 22 Jul 2007 08:00:16 GMT

Arizona leads the nation in reported cases of identity theft. According to the Arizona Republic, metropolitan Phoenix also ranks fourth in the nation in reported cases of automobile theft as well. Considering these statistics together raises some concerns for drivers in Phoenix who leave various personal documents inside their cars. The Republic cautions that based on identity and auto theft risks,

Phoenix police are seeing more crimes in which thieves break into a car to take documents, sometimes snagging a remote garage-door opener to pillage the vehicle owner's home.

Unfortunately, it may no longer be appropriate to leave personal information inside your unattended vehicle. For example, leaving title inside your vehicle allows criminals to attempt to steal your car and obtain a fraudulent title transfer. Also, insurance cards containing your address may lead criminals directly to your doorstep while you are away. You may need to take these identifying documents with you when you leave your vehicle unattended. Other documents containing personal information can expose you to identity theft. In short, according to the Phoenix Police Department,

Cars can be a great place for thieves to get crucial information about you. Phoenix police and the Arizona Automobile Theft Authority offer the following tips:
â€¢ Take your vehicle registration, insurance cards or any other identifying information with you.
â€¢ Remove garage-door openers.
â€¢ Do not leave your purse or wallet in the glove box or under the seat.
â€¢ Routinely clean out your car to remove identifying papers and other items.
â€¢ As a backup, set up a P.O. box to receive mail on vehicles, insurance and other important documents; it safeguards your address.

Following these suggestions will not completely eliminate risks of identity or auto theft. However, these steps may reduce risks and make identity theft more difficult for criminals looking for crimes of opportunity.

Originally posted at InjuryBoard by Staff Writer