State Farm recently requested a rate increase for its homeowner policies of nearly 50%. The request from State Farm came at the heels of a recent court showdown between another homeowner insurance company, Allstate, and the state of Florida over disclosure of documents used by Allstate to set its insurance rates. The dispute with Allstate ended in May of this year when Allstate after losing in court, finally turned over the documents.

It appears that State Farm is not having any more success with Florida regulators than Allstate. On August 25, 2008, the State Insurance Commission rejected State Farm's rate hike request. Deputy Insurance Commissioner Belinda Miller said, "State Farm did not provide appropriate support for the rate increase it requested. State Farm spokesman Chris Neal disagreed stating, "We did provide strong support for this rate request."

In a news release, state regulators said that State Farm overstated its hurricane risk by adjusting hurricane loss models to show losses four times greater than what they would have been.

Another area of concern for the State may be how State Farm is accounting for reinsurance costs. Reinsurance occurs when an insurance company purchases insurance from another insurance company to spread the risk of covering catastrophic losses. State Farm, like most insurance companies has created a separate subsidiary to do business in Florida. Instead of purchasing reinsurance on the open market, State Farm Florida purchases approximately 550 million dollars per year of reinsurance from its parent company State Farm Mutual. Because State Farm is allowed to present itself as separate companies, State Farm Mutual charges State Farm Florida the retail cost of purchasing reinsurance. The fiction allows State Farm Florida to present itself as losing money when in fact, the transaction really just transfers profits from the Florida company to the parent company. If this fiction was not allowed, the transaction would be presented on State Farm Florida's books at actual cost instead of the inflated retail charge that includes a profit for the parent company.

Scott Distasio
Tampa personal injury lawyer

DISTASIO LAW FIRM
HELPING INJURED PEOPLE
888-595-0022

According to an article written by Diane Chun and published by the Gainesville Sun, 3 year old Sebastian Ferreros died in October of 2007 of a drug overdose. On Wednesday, August 13, 2008, Edna Irizarry, the pharmacist that filled the prescription, agreed to pay a fine of $1000.00 and investigation costs of approximately $2460 for her role in the boy's death. The payments were part of a plea agreement with the Florida Board of Pharmacy that also requires Irizarry to attend an eight hour course.

The overdose occurred while Sebastian's physicians were trying to determine if he was growing properly. As part of a routine test, he was supposed to receive 5.75 grams of the amino acid arginine. Irizarry was the pharmacist that filled the prescription while working at the Shands Medical Plaza Pharmacy in Gainesville Florida. Unfortunately, the filled prescription contained more than 60 grams of the amino acid. Sebastian died two days after receiving the medication.

When a health care related professional makes a mistake, the State Board charged with regulating that particular professional investigates the event. The Board has the power to sanction the professional with penalties including fines, re-education, limiting practice areas, suspension, and even revocation of license. Irizarry's rather small penalty for her mistake is not unusual. Practitioners involved in mistakes that cause or contribute to death are often allowed to continue practicing. In this case, according to Gainesville Sun writer Diane Chun, the Board of Pharmacy agreed to Irizarry's monetary penalty because the blame did not lie with her alone. Instead it involved a "system breakdown" that involved multiple personnel.

Often the personal injury tort system works in conjuction with the states regulatory system. In this case, Sebastian's parents, Horst and Luisa Ferrero, brought a wrongful death lawsuit against the Shands Health Care System. The case was settled for $850,000.00. The Ferrero's have reportedly used the funds to campaign for a full-service children's hospital in Gainesville, start the Sebastian Ferrero Foundation, and work with The University of Florida College of Medicine to develop protocols to prevent similar accidents at Shands.

Scott Distasio
Florida Pharmacy Malpractice Lawyer

DISTASIO LAW FIRM
HELPING INJURED PEOPLE
OFFICES: TAMPA
888-595-0022

Florida Medication Error Lawyer

Most people that consider themselves conservatives believe that personal injury lawsuits are a drain on society because they drive up the cost of health insurance. In fact, this common misperception is often repeated by politicians looking for campaign contributions and or votes. As a Tampa personal injury attorney, my experience has been exactly the opposite. For example, in a previous post, I wrote in detail about how personal injury plaintiffs are required to pay back their private health insurance carriers for treatment incurred as a result of their injury when a favorable settlement or verdict is achieved. Personal injury plaintiffs also have to pay back Workers compensation insurance, Medicare and Medicaid. The net effect is to reduce the cost of health care and not increase it.

However, the most under reported positive effect personal injury lawyers in Tampa and throughout the country have on society involves claims made by uninsured plaintiffs. When an uninsured person is injured as a result of another person's negligence they often cannot get the health care they need. If the personal injury claim has merit, a good personal injury lawyer can arrange for such a client to get health care without paying for the services up front. The health care provider, lawyer, and client sign a document called a letter of protection. The health care provider agrees to provide the health care immediately and wait for payment until the personal injury lawsuit is resolved. The lawyer and the client agree that the health care provider will receive payment from the settlement.

The positive effect on society that is created when a personal injury attorney can arrange for an uninsured client to obtain healthcare on a letter of protection is often much greater than helping just one person. For example, when the uninsured injured person is unable to work because of their injuries they cannot provide for their family and they can become a drain on society. When they are able to obtain the medical care they need they can often go back to work. All of society benefits because they are no longer a drain on society.

Scott Distasio
Tampa personal injury lawyer

DISTASIO LAW FIRM
HELPING INJURED PEOPLE
OFFICES: TAMPA
888-595-0022

Mandatory arbitration in personal injury cases usually favors corporate wrongdoers. Of course that is why corporations push so hard to include arbitration provisions in contracts when consumers purchase their products and services. For a detailed discussion on why and how arbitration favors corporations in personal injury cases see my previous post.

The Nursing Home industy's attempts to sneak arbitration provisions into their contracts with nursing home residents is a particularly egregious example of corporations taking advantage of people in their time of need. The overwhelming majority of residents and their families entering into a nursing home do not know what arbitration is and are not in the state of mind to fully comprehend its implications.

Furthermore, the idea that most residents and their families can shop around for a facility that does not have an arbitration clause or negotiate the terms of such a clause is simply ludicrous. The resident and their families are focused on the medical crises that has forced the resident into entering a nursing home. It is a very emotionally draining process for everyone involved. They are not focussed on whether quality care will be provided or whether they may have to sue the nursing home if bad care is provided. Preserving their right to sue the nursing home never enters their mind.

Even if it did enter their mind, it is usually not physically possible to take the time neccessary to find the few nursing homes in the geographic area where the resident lives that do not not require signing mandatory arbitration clauses. In most situations the resident is transfered emergently to a nursing home from a hospital or home environment after a sudden medical emergency.

As a Tampa Nursing Home Abuse Attorney, I see it all the time. The nursing home does not present the contract that includes the arbitration clause until after the person is already residing in the facility. It is usually stuffed in the middle of other required paperwork. The resident or family is asked to sign without an offered explanation. Most people simply sign all the paperwork without question.

Some members of congress have recognized the inherant problems with mandatory arbitration clauses in Nursing Home cases and have proposed the "Fairness in Nursing Home Arbitration Act of 2008" to remedy the problem. The bill, HR 6126, would make any arbitration clause entered between a nursing home and a resident unenforceable if entered before a dispute between them occured. It just recently passed the House Judiciary committee and is working its way toward the possiblity of a full vote on the floor of the House of Representives. Anyone that has a loved one in a nursing home or believes a loved one may enter a nursing home at sometime in the future should contact their local members of the U.S. House of Representatives or U.S. Senate and urge them to support HR 6126.

Scott Distasio
Tampa Personal Injury Lawyer

DISTASIO LAW FIRM
HELPING INJURED PEOPLE
OFFICES: TAMPA
888-595-0022

Tampa Nursing Home Negligence Lawyer