AAA Says Bad Driving Worsened Last Year
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Drivers increasingly engaged in dangerous behaviors last year. According to new survey data from the AAA Foundation for Traffic Safety, this put the brakes on a three-year decline in speeding, driving under the influence, and texting while driving.
The foundation found widespread increases in bad driving habits in 2021, but “most alarming” was a nearly 24% year-over-year uptick in the number of people who admitted to getting behind the wheel after drinking too much. A total of 7.3% of those surveyed admitted to driving under the influence of alcohol.
Those admitting to excessively speeding increased by 12.4% to nearly 51%, and those who said they drove within an hour of consuming cannabis rose by 13.6% to 5% of all people surveyed.
“The reversal in the frequency of U.S. drivers engaging in risky driving behavior is disturbing,” David Yang, the foundation’s executive director, said in a statement. “While drivers acknowledge that certain activities behind the wheel – like speeding and driving impaired, are not safe, many still engage in these activities anyway. We must be aware of the serious consequences of dangerous driving behaviors and change course.”
More than a quarter of those surveyed admitted to texting while driving in the past 30 days, even though 92% acknowledged doing so is dangerous. And while 88% of people agreed that aggressive driving behaviors, such as quickly changing lanes, is hazardous, nearly 23% admitted to driving aggressively within the past 30 days.
Insurance industry observers have noted the especially poor performance of personal auto lines of late is partly due to unsafe driving. Driving behavior worsened with the onset of the pandemic, coinciding with a decrease in overall miles traveled, and has not improved as traffic volumes normalized. Other factors cutting into personal auto profitability include supply chain disruptions, increasing costs of vehicles and replacement parts, and a shortage of skilled mechanics.
- Published in Blog
The RISQ RECAP:
December 5th – December 9th, 2022
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Professional Service Firms Facing Increased Cyber Risks
“The professional services sector has seen significant growth over the past few years, spurred by globalization. However, this growth is also accompanied by increased exposure to risks, especially those of a technological nature. Beazley’s latest Cyber Services Snapshot report revealed that professional service firms are increasingly being targeted by cyberattacks.” Full Article
– Business Insurance America
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Significant Parity Cases For Benefits Lawyers to Watch “Many expect the outcomes of these lawsuits to clarify the standards for a successful parity claim and what remedies plaintiffs can seek under the Parity Act.” Full Article – Hall Benefits Law
Plan Administrators May Not Adopt Rationales for Benefit Denials Not Raised During the Claims Review Process “The Ninth Circuit confirmed that a district court must decide whether the plan administrator’s decision to deny LTD benefits is supported by the record and cannot engage in a new determination of whether the claimant is disabled.” Full Article – The Wagner Law Group
HIPAA Compliance and Tracking Technologies for Apps and Webpages “The guidance generally provides that HIPAA covered entities and business associates: May not impermissibly disclose protected health information (PHI) to tracking technology vendors (TTV). Must ensure that they disclose PHI only as expressly permitted or required by the HIPAA Privacy Rule.” Full Article – Thomson Reuters Practical Law
SCOTUS Denies Review and Leaves Seattle’s ‘Play-or Play’ Ordinance Intact “The Supreme Court declined to review whether federal law preempts a Seattle Ordinance mandating that large hotels offer their employees health insurance coverage or increased pay. This left the Ninth Circuit’s ruling, which found that the particular ordinance was not preempted, as the last word on the issue (at least for now).” Full Article – Proskauer
Health Plans and Marijuana: What to Know Now “On November 16, the U.S. Senate passed Medical Marijuana and Cannabidiol Research Act [HR 8454], which was passed by the House of Representatives in July. News reports have predicted that Biden will sign the bill. The bill doesn’t specifically address health plan coverage of medical marijuana, but the processes it sets in motion could lead to greater clarity on the issue.” Full Article – International Foundation of Employee Benefits
I Want A New Drug… Prescription Drug Data Collection Reporting is Due December 27th “The Departments will not take enforcement action against the plan sponsor if the average monthly premium paid by employers and employees (Columns E and F) is not included on the D1 for the 2020 and 2021 reporting period, as long as the information is provided for 2022 and beyond. However, no such relief exists for reporting the premium equivalent (Column I).” Full Article – Holland & Hart LLP
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
WASHINGTON D.C.
D.C. Voters Pass Initiative 82– Phasing Out Tipped Minimum Wage by 2027
“On November 8, 2022, Washington D.C. voters overwhelmingly passed Initiative 82 or the “District of Columbia Tip Credit Elimination Act.” As a result, the tip credit for D.C. tipped wage workers will be gradually phased out by 2027, at which time employers must pay their tipped employees the applicable D.C. minimum wage rate and eliminate the use of any tip credit.” Full Article
– Littler Mendelson
CALIFORNIA
2023 California Minimum Wage Update
“The start of the new year will bring many changes to California’s state and local minimum wage laws. California employers would be wise to take note of the following changes—set to take effect on January 1, 2023—that will impact both non-exempt and exempt employees.” Full Article
– Davis Wright Tremaine
MISSOURI
Missouri Voters Approve Legalization of Recreational Marijuana- What Employers Need to Know
“On November 8, 2022, citizens of Missouri voted to amend the Missouri Constitution, making the cultivation, sale and use of recreational marijuana legal under certain circumstances. The approval of Amendment 3 follows the passage of Amendment 2 in 2018, legalizing the production and sale of medical marijuana throughout Missouri.” Full Article
– Worklaw Network
MASSACHUSETTS
Massachusetts Department of Family and Medical Leave Publishes 2023 Workplace Poster, Workforce Notifications and Rate Sheets
“On November 15, 2022 the Massachusetts Department of Family and Medical Leave (the “Department”) published its 2023 Paid Family and Medical Leave (“PFML”) workforce notifications, including the poster, notices, and rate sheets, all available here.” Full Article
– Morgan, Brown and Joy
ILLINOIS
Labor–Friendly “Workers’ Rights Amendment’ Passes in Illinois
“The Illinois Constitution Amendment 1 (commonly referred to as the “Workers’ Rights Amendment”) has received enough votes to secure its passage. Citizens of Illinois voted on the Amendment on November 8, 2022, but delays in tabulating the votes resulted in a formal announcement on November 16, 2022 of the Amendment’s passage.” Full Article
– Benesch, Friedlander, Coplan & Aronoff
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Electric Vehicles Present New Insurance Challenges
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Electric vehicles (EVs) continue to gain traction in the U.S. auto market. Last year, Americans bought nearly 450,000 EVs—an 83% jump over 2020. With many federal and state governments pushing for lower CO2 roadway emissions, EV demand is expected to soar during the next decade.
This has commercial fleet owners wondering what a world without gas- and diesel-powered vehicles might look like, particularly when it comes to the potential exposures EVs could create. This article discusses the risks that could impact insurance costs for EV fleets.
Unique EV Risks
Because EVs tend to cost more than standard automobiles, their insurance rates are usually higher. However, other factors unique to EVs could also make insuring them costlier. Such factors include:
- Cyberthreats—Like most new cars and trucks, EVs offer connected car technologies such as Wi-Fi, data sharing and semi-autonomous systems that leave them vulnerable to cyberthreats. However, the public charging stations EVs rely on to recharge their batteries add another layer of risk. Charging stations may serve as an entry point for malware attacks, data theft, system outages, bugs and glitches. What’s more, once a data breach occurs in a single vehicle, it may be easier for a malicious party to access the rest of the fleet.
- Battery problems—There are several risks associated with EV batteries that can potentially impact commercial fleets. For example, battery manufacturing defects can lead to large-scale vehicle recalls, putting fleet owners at an increased risk of business delays. Additionally, under certain conditions, lithium-ion batteries that power EVs can ignite or explode. Notably, battery fires burn longer and hotter, release more toxic fumes and liquids, and spread faster over a larger area than traditional fires. Such an incident would create a whole new set of insurance challenges.
- Pedestrian accidents—One selling point of EVs is they run quieter than gasoline-powered vehicles. Unfortunately, this lack of audible engine noise may also put pedestrians at greater risk of being hit if they fail to hear an approaching EV.
Other Considerations
While uncertainty about new EV technologies will likely drive up insurance premiums initially, expectations are that prices will stabilize over the long term. Meanwhile, several other concerns will need to be addressed before EVs become scalable. These include the following:
- Scarcity of repair shops and parts—Very few auto shops can handle EV repairs, so it may be difficult to find timely service. Further, shops that do fix EVs often have trouble locating parts. This is partly because four key elements essential to battery technology—cobalt, graphite, nickel and lithium—are currently in short supply. Even if supplies can eventually catch up with surging demand, EV auto shops will remain at risk for supply-chain delays, as these rare elements are sourced from distant regions all over the globe.
- Costlier repairs—Most EV parts cost significantly more than parts for gas-powered vehicles. Batteries are especially high-priced and vulnerable to harm. An accident that might be a fender-bender on a standard car could result in an EV’s total loss if the battery takes serious damage. Adding to costs, EV repairs usually require more labor hours. This is in part due to EV technology’s increased complexity as well as auto mechanics dealing with the learning curve of working on unfamiliar machinery. As a new generation of technicians gains experience, repair times should shorten.
- Extreme weather concerns—It’s unclear how much of a role extreme weather will play in EV battery performance. Under severely hot temperatures, batteries, on rare occasions, have been known to ignite or explode. Under cold temperatures, batteries hold their charges for a shorter period of time. However, it’s unknown whether these drawbacks are significant enough to make EVs impractical in certain weather conditions or climates.
- High voltage hazard—A number of high-voltage electric cables run throughout the body of EVs. When an accident occurs, exposed cables could cause serious injury to passengers or first responders trying to free crash victims from damaged vehicles.
Conclusion
Although it probably won’t happen overnight, EVs seem positioned to dominate roadways sometime in the near future. Commercial fleet owners who start thinking about EV insurance challenges today will be better positioned to thrive in a post-fossil-fuel landscape.
Contact us today to learn more about insurance for EVs.
- Published in Blog
Quick Tips: Save Money on Energy in Your Household
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
According to the National Energy Assistance Directors Association, energy costs will reach a decade-long high this winter. Heating costs are predicted to rise 28% for U.S. households relying on natural gas and 27% for those using heating oil. Electricity costs are also anticipated to increase 10% per the U.S. Energy Department. Read on for tips on how you can lower the energy bills for your home.
Why Are Heating Costs Rising?
Many factors have contributed to the rapidly increasing energy costs this year including the following:
- A predicted colder-than-average winter
- Rising wholesale gas prices
- Depleted energy stores from increased demand during the 2020 and 2021 lockdowns
- Lowered supply stemming from financial sanctions put on Russian oil after the invasion of Ukraine
How Can I Reduce Energy Costs in My Household?
With skyrocketing prices, you may be wondering how you can reduce or control your winter utility bills. Many may be tempted to simply turn down the thermostat. Fortunately, there are ways you can lower your energy bills while staying warm this winter.
Here are some tips to help you lower your energy bills:
- Use a programmable thermostat to automatically lower your temperature when you’re not home.
- Seal areas where heat could escape from your windows and doors.
- Ensure radiators and vents are unobstructed.
- Open curtains and windows during the day and close them at night.
- Replace your furnace filter if it’s dirty.
- Have a professional inspect your HVAC systems for leaks.
- Close the vents and shut the doors to rooms you’re not using.
- Consider other sources of energy waste (e.g., leaky faucets, inefficient light bulbs).
Cold weather may make some increased energy costs inevitable. By using the above tips, and consulting the Department of Energy’s Energy Saver Guide, you can be well on your way to managing your winter utility bill.
For additional winter home safety tips, contact us today.
- Published in Blog
The RISQ RECAP:
November 28th – December 2th, 2022
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Hawaii Volcano Eruption Has Some on Alert, Draws Onlookers
“The first eruption in 38 years of the world’s largest active volcano is attracting onlookers to a national park for “spectacular” views of the event, and it’s also dredging up bad memories among some Hawaii residents who have been through harrowing volcanic experiences in the past. It was just four years ago that Nicole Skilling fled her home near a community where more than 700 residences were destroyed by lava. She relocated to the South Kona area, only to find herself packing her car with food and supplies this week after Mauna Loa erupted late Sunday.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Employer’s Should Note Post-Midterms State Law Changes “As the final tally of ballots comes in for many electoral races across the country, the outcomes of the various state ballot measures that were also part of the Nov. 8 midterm elections could require changes to employers’ policies and procedures.” Full Article – Jackson Lewis
The Speak Out Act–New Law Implements Limits on Confidentiality and Non-disparagement Provisions “On Nov. 16, 2022, the House passed the “Speak Out Act,” which President Biden is expected to sign into law. The Act limits the enforceability of pre-dispute nondisclosure and non-disparagement provisions relating to disputes involving sexual assault and sexual harassment.” Full Article – Kramer, Levin, Naftails & Frankel
Bankruptcy Doesn’t Shield Employees From WARN Act Layoff Notice Requirements – Unless An Exception Applies “Layoffs often accompany corporate bankruptcy, and employers should be aware of the legal obligations that impact mass layoffs and plant closures. Most notably, the federal WARN Act requires employers to notify the workforce of a mass layoff, a temporary shutdown, or a closure of all or part of a business.” Full Article – Levenfeld Pearlstein
Keeping Up Your Guard: Employee Fraud Warning Signs and Steps to Protect the Business “While hybrid working offers many recognized benefits, it has also given rise to significant ongoing challenges for businesses. One of those, which we discussed at our Hybrid Working Confidential breakfast session earlier this week, is the enhanced risk of employee fraud and data security breaches as a result of a large number of staff working from home, pursuant to their employer’s hybrid working policy.” Full Article – Fox Williams
Quiet Quitting and Today’s Workforce Challenges “The American workforce is in crisis, buffeted by one challenge after another – some recent, and some, like demographic changes, that have been building for decades. At a recent employment law seminar – our first in-person employment program since 2019 – Pierce Atwood brought together clients from health care, higher education, accounting, the nonprofit sector, and other industries to discuss both short- and long-term solutions to these challenges.” Full Article – Pierce Atwood
An Employer’s Guide to the World Cup “Although professional soccer does not drive quite the same amount of interest among the U.S. populace as, say, football (Go Ravens!) or basketball, the World Cup is still one of the major sporting events in the world – and there are likely many employees who are following it rather closely. And unlike last time in 2018, the U.S. team has qualified for the tournament, so there may be some patriotism at play here. So we thought we might offer employers some guidance on World Cup issues in the workplace.” Full Article – Shawe Rosenthal
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
WASHINGTON D.C.
D.C. Voters Pass Initiative 82– Phasing Out Tipped Minimum Wage by 2027
“On November 8, 2022, Washington D.C. voters overwhelmingly passed Initiative 82 or the “District of Columbia Tip Credit Elimination Act.” As a result, the tip credit for D.C. tipped wage workers will be gradually phased out by 2027, at which time employers must pay their tipped employees the applicable D.C. minimum wage rate and eliminate the use of any tip credit.” Full Article
– Littler Mendelson
CALIFORNIA
2023 California Minimum Wage Update
“The start of the new year will bring many changes to California’s state and local minimum wage laws. California employers would be wise to take note of the following changes—set to take effect on January 1, 2023—that will impact both non-exempt and exempt employees.” Full Article
– Davis Wright Tremaine
MISSOURI
Missouri Voters Approve Legalization of Recreational Marijuana- What Employers Need to Know
“On November 8, 2022, citizens of Missouri voted to amend the Missouri Constitution, making the cultivation, sale and use of recreational marijuana legal under certain circumstances. The approval of Amendment 3 follows the passage of Amendment 2 in 2018, legalizing the production and sale of medical marijuana throughout Missouri.” Full Article
– Worklaw Network
MASSACHUSETTS
Massachusetts Department of Family and Medical Leave Publishes 2023 Workplace Poster, Workforce Notifications and Rate Sheets
“On November 15, 2022 the Massachusetts Department of Family and Medical Leave (the “Department”) published its 2023 Paid Family and Medical Leave (“PFML”) workforce notifications, including the poster, notices, and rate sheets, all available here.” Full Article
– Morgan, Brown and Joy
ILLINOIS
Labor–Friendly “Workers’ Rights Amendment’ Passes in Illinois
“The Illinois Constitution Amendment 1 (commonly referred to as the “Workers’ Rights Amendment”) has received enough votes to secure its passage. Citizens of Illinois voted on the Amendment on November 8, 2022, but delays in tabulating the votes resulted in a formal announcement on November 16, 2022 of the Amendment’s passage.” Full Article
– Benesch, Friedlander, Coplan & Aronoff
- Published in Blog
Employer Takeaways From the Speak Out Act
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
On Nov. 16, 2022, the U.S. House of Representatives passed the Speak Out Act, prohibiting courts from enforcing nondisclosure and nondisparagement clauses between employers and their employees and independent contractors that were in place before sexual harassment and assault disputes. The U.S. Senate signed the bill on Sept. 29, 2022. President Joe Biden has indicated his support for the law, so it’s likely he will soon sign the bill into law. As the law will take immediate effect once signed, employers need to understand how the Speak Out Act may impact them in order to adequately prepare their organizations.
This article explains the Speak Out Act and outlines steps employers can take to prepare and protect their organizations.
What Is the Speak Out Act?
The Speak Out Act is part of a recent bipartisan effort to curb unprofessional and illegal workplace behavior. The U.S. Congress found that 81% of women and 43% of men have experienced some form of sexual harassment or assault throughout their lifetime. Additionally, 1 in 3 women have faced harassment in the workplace, and approximately 87% to 94% of those who experience sexual harassment never file a formal complaint.
Congress also found the following when drafting the bill:
- Sexual harassment and assault remain pervasive in the workplace and throughout society, affecting millions of individuals.
- Sexual harassment in the workplace forces many victims to leave their occupations or industry or pass up opportunities for advancement.
- Victims and survivors of sexual harassment and assault must be able to report and publicly disclose the incidents to combat this abuse.
- Nondisclosure and nondisparagement provisions in agreements between employers and their current, former and prospective employees and independent contractors can perpetuate illegal conduct. They silence victims and survivors of sexual harassment and assault, enabling perpetrators to continue their abuse.
- The prohibition of nondisclosure and nondisparagement clauses will empower survivors to come forward, hold perpetrators accountable for their abuse, improve transparency around illegal conduct, enable the pursuit of justice and make workplaces safer and more productive for all workers.
The bill follows the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, which was enacted in February 2022 and invalidated mandatory pre-dispute arbitration agreements in cases of sexual harassment and assault.
The Speak Out Act would render void any pre-dispute nondisclosure and nondisparagement provisions between employers and employees involving sexual harassment and assault. It only prohibits the enforcement of agreements entered into before a dispute arises, such as agreements made at the start of employment. This bill would apply to current, former and prospective employees as well as independent contractors.
The bill does not define “disputes,” so it’s unclear whether the prohibition of nondisclosure and nondisparagement contract clauses would apply only to formal litigation or to informal complaints as well. Additionally, it defines nondisclosure agreements broadly to include any contractual provision requiring a party not to disclose or discuss conduct or information covered by the terms and conditions of a contract or agreement, including the existence of a settlement.
The act would not prevent employers from entering into standard confidentiality agreements—which prevent one or both parties from revealing information about resolved claims or settlements—with employees when settling claims or demands of sexual harassment or assault. However, some states and localities have enacted laws restricting confidentiality agreements involving sexual harassment and assault claims. The Speak Out Act would not interfere with those existing laws, and it would allow other states and localities to create more restrictive laws regarding nondisclosure and nondisparagement agreements. It may also affect arbitration and grievance procedures established in collective bargaining agreements.
Considerations for Employers
As the Speak Out Act will take immediate effect once signed into law by the president, employers should consider taking action now to make certain they comply with the new law’s requirements. Employers should consider taking the following actions to prepare and protect themselves:
- Review existing employment agreements. Employers should review their preemployment and standard employment agreements to ensure they meet the act’s requirements. If employers rely on independent contractors, they should do the same for their independent contractor agreements.
- Protect business interests. If employers use nondisclosure agreements to protect trade secrets, proprietary information and confidential data, they should consider working with local legal counsel to confirm their agreements are drafted in a way that complies with the bill while protecting their organization’s legitimate business interests.
Additionally, employers can avoid issues related to the new bill by preventing sexual harassment and assault from happening in the workplace. Employers can implement the following strategies to combat sexual harassment and assault at work:
- Verify workplace policies comply with current employment laws and regulations.
- Provide employees with copies of the employee handbook or workplace policies.
- Train managers to recognize and address issues involving sexual harassment and assault.
- Educate employees on proper workplace behavior.
- Investigate any complaints or issues of sexual harassment and assault promptly.
- Enforce workplace policies consistently.
Evaluating employment agreements and workplace policies will enable employers to protect and strengthen their organizations by complying with current employment laws and providing employees with a safe work environment.
Summary
Support for ending mandatory arbitration and nondisclosure agreements in the workplace has been on the rise. The Speak Out Act is intended to allow victims of sexual harassment and assault to speak publicly in order to prevent perpetrators from continuing to harm people. Understanding the bill can aid employers in preparing for the law’s enactment as well as establishing policies to protect employees from sexual harassment and assault.
For more HR-related resources, contact RISQ Consulting today.
- Published in Blog
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