Popcorn Lung?

US man awarded $7.2 million after developing lung condition

If you’re planning to sit down and watch a movie tonight, you might want to think twice about eating a bag of microwave popcorn–or at least, inhaling that delicious buttery popcorn smell.

A man in Colorado has been awarded $7.2 million in damages for developing a chronic, irreversible disease known as “popcorn lung.”

The condition, which causes breathing difficulties, is caused by diacetyl, a chemical used in the flavouring of microwave popcorn.

Wayne Watson was diagnosed with the disease in 2007 after years of breathing in the smell of the microwave popcorn that he said he ate daily.  He is the first known consumer of microwave popcorn to be diagnosed with the condition, according to his attorney, Kenneth McClain.

Jurors found that Glister-Mary Lee Corp, the private labeling manufacturer of the microwave popcorn, and King Soopers, the supermarket chain that sold the popcorn, were negligent for failing to properly label popcorn packages and inform consumers that diacetyl was hazardous.

Glister-Mary Lee Corp was found liable for 80% of the $7.2 million award, while King Soopers and it’s parent company, Kroger, were found liable for 20%.  King Soopers and Kroger intend to appeal the decision.

With files from Reuters

Honda recalls 30,000 Accords in Canada

Honda is recalling nearly 30,000 vehicles in Canada as part of a broader recall in North America to fix a faulty power steering hose that can leak fluid and cause a fire.

The recall affects 600,000 Accord midsize cars in the U.S. and Canada with V-6 engines from the 2003 through 2007 model years.

Honda has a report of one fire but no injuries or crashes. Honda Canada adds that no related fires, crashes or injuries have been reported in Canada.

According to the Transport Canada road safety recall database, roughly 30,000 cars in Canada are affected by the safety notice.

The U.S. National Highway Traffic Safety Administration says the Accord’s power steering hose can deteriorate with prolonged exposure to engine heat.

The agency says the hoses can crack and leak, possibly causing a fire or loss of power-assisted steering.

Honda will replace the hoses for free, but it won’t have the parts available until early next year. Any owner who suspects a leak should take their car to a dealer for inspection, Honda spokesman Ed Miller said Monday.

The company that makes the Accord’s power-steering hoses had to ramp up manufacturing to make them since the affected cars are more than five model years old and the hoses were out of production, Miller said.

“We’re going to start making them and getting them out there as soon as we can,” he said.

The Accords are being added to a May recall of 53,000 Acura TL midsize luxury cars in the U.S. from the 2007 and 2008 model years. Acura is Honda’s luxury brand.

The replacement hoses for the Accords are different from the hoses in the original Acura recall, Honda said.

What Does My Insurance Company Do With My Premium?

There are some common and persistent misconceptions about what insurance companies do with the money they collect from you and every other policyholder. Some people think it sits in the bank until someone makes a claim. Not true. Others believe that premiums go to pay for claims that have already happened. Not true either.

Your premium dollar travels a long and winding road, but, in the end, most of it goes to assist consumers in one way or another. For example, if you suffer a loss, a portion of your premium dollar and those of several other policyholders finds its way back to you, to help you recover.

For the record, this is what happens to your premiums:

In the insurance system, money is always moving. On a daily basis, there are claims to be settled, taxes to be paid and other costs related to running a business (paying salaries, buying equipment, paying rent, etc.). Some money is always set aside so that the company can respond quickly to catastrophes, when a large number of claims will have to be paid in a short period of time. This is called a reserve.

Any money that is not needed for day-to-day expenses or reserves is usually invested by insurers.

Here are a few things you should know about insurers’ investments:

1. Contrary to what some people think, insurers have never had a year when they lost money on investments. Some years are better than others, but the industry has always generated positive investment returns. 
2. Insurers are among the most careful investors in the country. On average, approximately three quarters of their investments are in government bonds.
3. In order to make sure that insurers are able to pay claims, the federal government monitors the industry’s investments to make certain that they are low-risk.
4. Insurers strive to maintain a portfolio that allows for quick liquidation of investments to pay claims.

Why do insurance companies invest the money? 

The nature of insurance is such that your insurance company holds your premium until it is needed to pay claims. By investing the money in the interim and making a return, your insurance company is able to offset the cost of claims and charge you less than you would otherwise pay.

In fact, there have been years when returns on investments were so good (10% or higher) that insurers only had to collect enough premium to pay for claims and expenses, and made all of their profit from investments. Even when investment returns are much more modest, this is an excellent way to keep premiums as low as possible for consumers. 

I had a friend email me last week about tenants insurance for his son who is just starting university this week for the first time. Like him, most people who have a homeowners policy don't realize that there is some type of coverage for students living away from home that are attending a full time post secondary program. Shortly after receiving the inquiry I stumbled on this article from money sense magazine. It explains it well!

Full-time post secondary students are often covered under their parent’s home insurance plan.

By Stefania Moretti | Online only, 29/08/12

Students moving away from home for the first time need renter’s insurance, experts say, but in many cases it doesn’t have to cost them a thing.

Full-time post secondary students are often covered under their parent’s home insurance plan, according to John McClelland of Toronto-based McClelland Insurance brokerage. The key is double-checking with your provider and notifying them of the new address.

A simple phone call can protect students from all kinds of mishaps in and around campus.
“There’s the obvious— fire, water damage and theft—concerns but there are also liability concerns,” McClelland said.

If someone is injured on the premises or a toilet floods over and causes water damage to a few floors below, it can hugely expensive and time consuming without insurance.

Not every rental unit problem is the landlord’s responsibility either.

“There can be a lot of misconceptions out there,” McClelland said. “It depends who was found to be negligent. Tenants can be held responsible.” Without proper insurance, tenants who are found to be at-fault are on the hook for damages.

“Everyone who is on their own should have a tenant’s package and a lot of people don’t realize the importance of this,” McClelland said. A recent poll commissioned by TD Insurance found 47% of Canadian tenants under 35 do not have renter’s insurance and 32% incorrectly believe they are covered under their landlord’s insurance policy.

Tenant insurance is especially important for students because student housing can be more risky than single-family homes thanks to high turnover rates—not to mention the parties.

Protecting possessions from theft is reason enough to seek out coverage. Students may not have accumulated many material possessions but the stuff they do have is usually pretty valuable like laptops, TVs, textbooks and musical instruments.

Students who are covered under a parent’s plan should read the policy carefully to ensure there are no gaps in coverage.

“All companies have different wording on their habitational policies,” McClelland said.

For example, some companies only cover students staying in residence as opposed to just off-campus.

Others will limit student coverage to $10,000 in valuable regardless of the contents limit their parents enjoy.

“For a lot of students who are moving into residences that’s probably sufficient,” McClelland said. But tenants buying their own furniture to live in non-student housing might want to consider additional coverage.

Luckily, the average renter’s insurance plan is pretty reasonable, costing roughly $500 a year. Plus, tenant insurance can be bundled with car insurance for additional savings.

Tenant insurance can also help 20-somethings establish an insurance history that should help lower their insurance costs in the long run. A clean record can earn you free claims, loyalty discounts and lower deductibles on all types of insurance in the future.

There’s more for young scholars and their parents to consider when it comes to insurance. Living with a roommate that has insurance doesn’t mean you’re covered as well.

Students covered under their parent’s policy are typically subject to their parents’ deductible if and when a claim is made.

“In a lot of cases that’s going to be higher than a student might be comfortable with,” McClelland said.
And parents should keep in mind that any claims made by their child will affect their own claims history and could result in higher premiums.

“We’ve had some parents say, we know that they can be covered under our plan but we think it would be a good stepping stone toward responsibility but also protect our insurance if they had their own policy,” McClelland said.

It’s really about what you’re comfortable with and practicing preventative maintenance such as locking windows and doors while you’re out and even turning off the water if you’re away over the holidays to ensure the pipes don’t burst.

“Moving out of your parents’ home for the first time can be very liberating, but it also comes with a lot of financial responsibilities,” said Dave Minor, Vice President, TD Insurance.

“For those trying to make ends meet, tenants may be tempted to forgo renter’s insurance to try to cut costs. But consider the cost of replacing your laptop or smartphone if you were robbed. Before moving out, it’s important to understand the basics of renter’s insurance and ensure you have the right coverage in place to protect yourself.”

Fake auto insurance appears to be on the rise: police

DAILY NEWS Aug 29, 2012 11:44 AM - 

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Routine traffic stops by members of the Southern Georgian Bay auxiliary unit of the Ontario Provincial Police (OPP) are revealing an increase in fraudulent insurance documents.

“Unsuspecting consumers are being targeted by fake insurance companies selling auto insurance in Ontario,” says a press release from the OPP. Citizens are reminded to exercise caution when buying insurance and to ensure they are purchasing products from reputable brokers and insurance companies.

A recent KPMG study indicates auto insurance fraud is conservatively estimated to cost Ontario drivers $770 million to $1.6 billion per year, the police report.

Richard Dubin, vice president of investigative services for Insurance Bureau of Canada (IBC), advises checking the person selling insurance through the Registered Insurance Brokers of Ontario (RIBO). “If it sounds too good to be true, stay clear,” Dubin says.

A person convicted of producing fraudulent insurance faces a fine of $5,000 to $25,000 on a first conviction, and $10,000 to $50,000 on a subsequent conviction, as well as suspension of his or her driver’s licence for as long as year.

Drinking and driving sentences from around the world!

I have an application on my Iphone that I have found very useful called beat the traffic. It helps navigate our road systems and identify accidents ahead and other slow downs. Might be worth checking out if you have an Iphone or Android. I received this interesting article from their weekly newsletter that I thought was very interested. Enjoy! 

Drinking and driving is one of the world's most dangerous combinations. As a result, various countries have adopted different measures and laws, being affected by various issues such as culture, religion and the level of intoxication. Note that some of the laws seem to be unbelievable.

Australia: 

The names of the drivers are sent to the local newspapers and are printed under the heading "He's Drunk and in Jail".

Malaysia: 

The Driver is jailed and if married, his wife is jailed too. (If this was in the US, it could explain the high divorce rate :)

South Africa: 

A 10 year prison sentence and the equivalent of a $10,000 fine.

Turkey: 

Drunk drivers are taken 20 miles outside of town by police and are forced to walk back under escort

Finland & Sweden: 

Automatic jail for one year of hard labor.

Costa Rica: 

Police remove plates from car.

Russia:

Not many may be surprised that they have tough laws based on Russians long love affair with alcohol. If caught driving under the influence of alcohol, you lose your driving license for life. Even upon the first offense.

Mexico and Canada:

Give their border patrol agents the right to deny a person entry into the country if he has been convicted of DUI.    

Fun Facts

Can you get a DUI on a horse? Yes you can! You can get a ticket for DUI while on anything that is considered transportation. This includes cars, horses, bikes, mopeds, water crafts (read more about Alaskan man arrested for floating down the river drunk) or even wheelchairs (watch the video).     

York Regional Police lay 142 charges in alleged auto fraud scheme called "Project Sideswipe"

2012-08-10

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Forty-six suspects have been charged in connection with an alleged auto fraud scheme called Project Sideswipe involving staged collisions and suspected false medical billings in Ontario.

One hundred and forty-two charges have been laid to date, including conspiracy to commit an indictable offence, fraud under $5,000, fraud over $5,000 and obstruction of a police officer, notes a statement from the York Regional Police (YRP).

Project Sideswipe involved nine alleged staged collisions that occurred in York Region, as well as suspected associated false medical billings from several medical rehab and assessment centres in Brampton, Toronto and Mississauga, notes a statement from the Insurance Bureau of Canada (IBC). The allegations have not been proven in court.

Police believe a ring of recruited drivers and passengers staged collisions to support accident benefit insurance claims. Medical rehab and assessment centres would then use the names, signatures and college registration numbers of medical practitioners, without their proper authorization, and invoice insurance companies for services that were not rendered, the IBC reports.

Rick Dubin, vice president of investigation services for the IBC, characterized the efforts as yet, "another step at driving a wedge into one of the alleged sophisticated fraud networks, operating throughout the Greater Toronto Area.”

“The potential loss to nine insurers is still being calculated, but it is estimated to be somewhere in the neighbourhood of $5 million,” Dubin notes in the statement.

“Insurance premiums are driven by claims costs and right now costs have been driven through the roof in Ontario as a result of fraud and abuse in the system.” Results from a KPMG study estimate the annual cost of auto insurance fraud in Ontario to be in the range of between $770 million and $1.6 billion per year.