This yr’s high Insurance coverage Journal Midwest headlines function a variety of misconduct, from fraud and embezzlement to high-profile lawsuits.
Prime tales tales additionally spotlight rising frequency of extreme climate occasion and the evolving authorized panorama of office security.
Right here is the highest 10 listing of the most-read Insurance coverage Journal tales within the Midwest area in 2024.
1. Former Iowa Insurance Agent Sentenced to 19 Years for Defrauding the Elderly
A former Iowa insurance coverage agent, Zach Flaherty, was sentenced to 19 years in jail for defrauding aged shoppers out of their retirement financial savings. Flaherty pleaded responsible to wire fraud prices after admitting to deceiving shoppers by making false guarantees about investments and misusing their funds for private achieve. He used the stolen cash to buy private belongings like boats and vehicles. Flaherty additionally defrauded insurance coverage corporations out of over $650,000.
2. State Farm Sues Norfolk Southern Over Ohio Train Derailment Damages
State Farm filed a lawsuit towards Norfolk Southern in Ohio, searching for over $85,000 in reimbursement for payouts made to 2 owners whose properties have been broken within the East Palestine practice derailment. The lawsuit alleges that Norfolk Southern’s negligence, which led to the discharge of hazardous chemical compounds and subsequent fires, instantly triggered the property injury. State Farm paid out claims to Justin Daubenmire for each private and actual property injury, and to Barbara Georgescu for private property injury. This lawsuit comes as Norfolk Southern faces quite a few different authorized challenges and mounting prices associated to the derailment, together with a $1.1 billion estimated whole value and varied settlements with companies impacted by the incident.
3. Missouri Farmer Who Stars in Reality TV Series Pleads Guilty to Crop Insurance Fraud
Steve McBee, a Missouri farmer and star of the fact TV present “The McBee Dynasty,” pleaded responsible to a multi-million greenback crop insurance coverage fraud scheme. McBee underreported his crop yields and submitted false data to acquire federal crop insurance coverage advantages he was not entitled to. He faces as much as 30 years in jail and is required to pay restitution and forfeit a good portion of the fraudulently obtained funds. This plea comes regardless of the latest renewal of his actuality present for a second season.
4. Michigan Jury Awards $12M to Woman Fired for Refusing to Get COVID Vaccine
A Michigan jury awarded a girl over $12 million, together with $10 million in punitive damages, after she was fired from Blue Cross Blue Protect of Michigan for refusing to get a COVID-19 vaccine as a result of non secular beliefs. Lisa Domski, a long-time worker who labored remotely, argued that the corporate’s vaccine mandate violated her non secular rights. Blue Cross denied discrimination and argued that Domski lacked a sincerely held non secular perception. The corporate is reviewing its authorized choices and should enchantment the decision.
5. Owner of Michigan Insurance Agency Charged With Embezzlement
The proprietor of a Michigan insurance coverage company has been charged with embezzlement and wage and profit violations after allegedly misappropriating worker payroll deductions meant for his or her retirement accounts. Company proprietor Nancy Caviston allegedly used these funds for private and enterprise bills and didn’t contribute the required employer matching funds. The investigation was carried out by the U.S. Division of Labor, and Caviston faces felony and misdemeanor prices. Legal professional Basic Dana Nessel emphasised the seriousness of payroll fraud and the significance of defending workers’ retirement financial savings.
6. Illinois Insurance Agent Sentenced to 7 Years in Prison for Swindling Premiums
The proprietor of an Illinois insurance coverage company, Daniel M. Rosenbaum, was sentenced to seven years in federal jail for defrauding shoppers out of over $1 million by accumulating annuity premiums for insurance policies he by no means bought. Rosenbaum used the stolen funds for private bills, together with spousal and youngster help, bank card funds, and luxurious purchases. He additional defrauded the federal government by means of fraudulent PPP mortgage purposes and unemployment insurance coverage claims. Rosenbaum pleaded responsible to wire fraud and was sentenced in February 2024.
7. Minnesota Homeowners Report Surge in Insurance Complaints
Householders insurance coverage complaints in Minnesota have surged 108% since 2020, with many grievances stemming from denied claims or excessive out-of-pocket prices associated to wind and hail injury. This improve coincides with rising insurance coverage premiums pushed by extra frequent excessive climate occasions and inflation. The Minnesota Division of Commerce warns owners to rigorously evaluation their insurance policies for potential adjustments, comparable to greater deductibles particularly for wind and hail injury, to keep away from surprising prices after a declare.
8. Cracks in O’Hare Columns Aren’t Insured Property, Just Bad Product – Court
The seventh Circuit Court docket of Appeals dominated that cracked metal columns in a Chicago airport building mission don’t represent “property injury” underneath the contractor’s normal legal responsibility insurance coverage insurance policies. The courtroom discovered that the insurance policies solely coated injury to property owned by “others,” and the cracked columns have been the subcontractor’s personal faulty merchandise. The courtroom rejected the contractor’s arguments that the cracked columns posed a threat to the complete construction and required pricey repairs, stating that these constituted financial losses not coated by the insurance coverage. This ruling emphasizes that normal legal responsibility insurance coverage doesn’t usually cowl injury to an organization’s personal merchandise, even when these merchandise trigger broader points inside a building mission.
9. Lawsuit Filed Against Lighting Company Over Ohio Cannabis Facility Explosion
An Ohio hashish producer, Treatment Ohio, and its insurer, Dorchester Insurance coverage, filed a lawsuit towards Eye Lighting Worldwide for negligence and strict legal responsibility following an explosion at a Treatment facility. In February 2022, an Eye Lighting lamp exploded on the Columbus facility, inflicting important injury to the develop facility and leading to losses exceeding $884,000. The lawsuit alleges that Eye Lighting didn’t warn of the hazards of utilizing the lamp and fixture collectively, and that the explosion was a direct results of negligence and design/manufacturing defects of their merchandise. Dorchester Insurance coverage, having paid Treatment’s declare, can also be searching for reimbursement for his or her losses.
10. Oscar Mayer Wienermobile Rolls Over in Chicago Highway Crash
The long-lasting Oscar Mayer Wienermobile was concerned in an accident on a Chicago freeway in July. The new dog-shaped car collided with one other automobile, inflicting the Wienermobile to roll onto its facet. Whereas the precise lane of the freeway was briefly closed, no accidents have been reported. The Oscar Mayer model expressed aid that everybody concerned was protected, and the broken Wienermobile was later transported away on a flatbed truck.
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