Top 10 Safe Driving Tips for Teens
Driving is an exciting milestone for many teenagers, but it also comes with significant responsibilities and preparation. According to the Governors Highway Safety Association (GHSA), young drivers are almost four times more likely to be involved in a fatal car crash. January is Teen Driver Awareness Month and to ensure your child stays safe on the road, here are some essential driving tips to teach them:
1. Always Buckle Up
Make it a habit to wear your seatbelt, regardless of how short the trip is. Seatbelts are one of the simplest and most effective ways to protect yourself in an accident.
2. Stay Focused
Distractions can come from your cell phone, passengers, or even the radio. Avoiding distractions can be challenging, so it’s crucial to keep your attention on the road. If you need to make a call or send a text, pull over safely first.
3. Follow the Speed Limit
Speed limits are designed for your safety as well as everyone else on the road. Following them not only keeps you safe, but also gives you more time to react to unexpected situations.
4. Avoid Driving Under the Influence
Never get behind the wheel if you’ve been drinking alcohol or using drugs. Plan for a designated driver or use a rideshare service if you do not plan on staying sober. Your safety—and the safety of others—depends on it.
5. Get Enough Sleep
Driving while sleep-deprived can be just as dangerous as driving under the influence of alcohol or drugs. Poor sleeping habits can lead to fatigue, which can cause a driver to fall asleep or lose focus behind the wheel. It’s important to pull over to a safe place and take a break if you feel drowsy.
6. Keep a Safe Distance
Maintain a safe following distance from the vehicle in front of you. Tailgating is never a good idea. This gives you enough time to react in case the car suddenly stops or brakes.
7. Use Turn Signals
Always signal your intentions when changing lanes, merging, or turning. This communicates your plans to other drivers and helps prevent accidents.
8. Be Cautious in Poor Conditions
Rain, snow, and fog can substantially impact visibility and traction. Slow down and drive with extra caution in these conditions, especially when there may be ice on the roads.
9. Know Your Vehicle
Familiarize yourself with your car’s features, including hazard lights, brakes, headlights, and windshield wipers. Understanding how your vehicle works can help you react better in emergencies and feel more comfortable while driving.
10. Be a Defensive Driver
Always be aware of your surroundings. Anticipate the actions of other drivers and be prepared to react appropriately. Stay alert and keep your eyes moving to scan the road.
Conclusion
By following these safe driving tips and teaching them to your teen, they can help ensure a safer driving experience for everyone on the road. Remember, responsible driving not only protects you but also those around you. Drive safe!
Will New York’s New Flood Insurance Law Create a Coinsurance Problem for Lenders and Policyholders?
A law recently passed by the New York State Assembly and signed by Gov. Kathy Hochul puts significant limits on the flood insurance that lenders can require borrowers to purchase on loans secured by residential real property. Commentary in the weeks since the law went into effect has focused on potential conflicts between the law and the federal Flood Disaster Protection Act or the potential for loans and properties to be underinsured for flood. Another hidden problem may occur, however, if policyholders opt to purchase coverage for significantly less than the building replacement cost on a policy that includes a coinsurance penalty.
Signed by Gov. Hochul on December 13, 2024, and effective immediately, Assembly Bill A5073A prohibits mortgage lenders from requiring borrowers to obtain flood insurance on improved residential real property at a coverage amount exceeding the outstanding principal mortgage balance as of the beginning of the year for which the policy shall be in effect, or that includes contents coverage. The bill additionally requires lenders to provide clear and conspicuous notice to borrowers that the required flood insurance will only protect the lender’s interest and may not be sufficient to pay for repairs or other loss after a flood.
Of course, purchasing coverage for less than full replacement cost of the insured building carries the risk that coverage will be insufficient to rebuild or repair in the event of a loss. But policyholders who consider taking this chance should also consider whether their flood policy has a coinsurance penalty. These provisions can limit payouts to insureds who purchase coverage for substantially less than the building replacement cost by paying only a fraction of the full loss. For example, both the FEMA and ISO personal flood policies have the potential to pay only a specified portion of the loss or the actual (depreciated) cash value, whichever is greater, when insurance limits are less than 80% of full replacement cost. Even if the policy pays the actual cash value, however, the policyholder and their lender may come in for a nasty shock if the depreciated cash value of the building is many thousands of dollars less than what is needed to complete repairs.
If a coinsurance penalty applies, purchasing coverage at the amount of the outstanding mortgage principal balance under New York’s law thus does not necessarily translate into an insurance payout in that amount. Notably, the notice required to be given to mortgagors by New York does not include a specific warning to the property owner of this possibility.
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Maryland’s FAMLI Program, Part II: The Proposed Regulations
Maryland’s Family and Medical Leave Insurance (FAMLI) law will provide up to twelve weeks of paid family and medical leave, with the possibility of an additional twelve weeks of paid parental leave, through a state-run program. Contributions from employers and employees to fund the program will begin July 1, 2025. In part two of our series on the Maryland FAMLI law, we discuss the Maryland Department of Labor’s proposed regulations to implement this law.
Quick Hits
Maryland’s Family and Medical Leave Insurance (FAMLI) law will provide up to twelve weeks of paid leave, with some eligible for an additional twelve weeks, and contributions from employers and employees will start July 1, 2025.
The Maryland Department of Labor has issued multiple iterations of draft regulations for public comment, including general provisions, contributions, and equivalent private insurance plans (EPIPs).
Employers can opt for an EPIP instead of the state program but must meet stringent requirements and deadlines for approval.
Generally, an agency releases proposed regulations and, following a period of public comment, final regulations. The MDOL, however, has taken a far more extensive and inclusive approach to the traditional rulemaking process. After a series of public engagement sessions, the MDOL issued “draft” regulations at the beginning of 2024. Subsequently, the General Assembly amended the FAMLI law during its 2024 legislative session. The MDOL then released a second iteration of “draft” regulations. This was followed by a set of official proposed regulations, for which the comment period closed in November 2024 and, in January 2025, by another section of proposed regulations, which are open for public comment.
The proposed regulations are divided into five sections: General Provisions, Contributions, Equivalent Private Insurance Plans (EPIPs), Claims, and—just issued—Dispute Resolution. In the second part of this series, we summarize the first three sections of the proposed regulations.
General Provisions
This section of the proposed regulations contains definitions (although other definitions are scattered throughout the rest of the proposed regulations) and identifies forms and templates that the MDOL, through its newly-created FAMLI Division, will provide. Certain definitions closely follow—but are not identical—to relevant definitions under the federal Family and Medical Leave Act (FMLA). These include:
“Continuing treatment” covers incapacity and treatment, pregnancy and prenatal care (although the proposed regulations specifically add childbirth, miscarriage, or stillbirth), chronic conditions, permanent or long-term conditions, and conditions requiring multiple treatments.
“Incapacity and treatment” is defined as involving treatment two or more times within thirty days of the first day of incapacity or treatment by a health care provider with a regimen of continuing treatment. (The proposed regulations specifically include “home care administered by a competent individual under the direction of a licensed health care provider.”) Like the FMLA, an individual is required to visit the health care provider within seven days of the first day of incapacity, but the proposed regulations specifically permit the visit to be by telehealth. (The FMLA regulations state that the visit must be in person, but during the pandemic, the U.S. Department of Labor (DOL) began permitting telehealth visits as well).
“Licensed health care provider” generally follows the FMLA definition of “health care provider,” but unlike the FMLA, it does not include Christian Science practitioners.
“Serious health condition” means an illness, injury, impairment or physical or mental condition that requires either (1) inpatient care or (2) continuing treatment by a health care provider. The proposed regulations also add donation of a body part, organ, or tissue.
“Service member’s next of kin” means the nearest blood relative other than a spouse, parent or child, in a specific order set out in the regulations.
Other important definitions include the following:
“Application year” means the twelve-month period beginning on the Sunday of the calendar week in which FAMLI leave begins.
“Carrier” means an insurer authorized by the Maryland Insurance Administration to sell insurance.
“Equivalent private insurance plan” (EPIP) means a commercially insured or self-insured plan, approved by the FAMLI Division, that meets or exceeds the state plan.
“Commercially insured EPIP” means an equivalent private insurance plan provided by an insurance company that has been approved to sell FAMLI products.
“Domestic partnership” means a relationship between two individuals who are at least eighteen years old, not related within four degrees of consanguinity, not married or in a civil relationship with someone else, and agree to be in a relationship of mutual interdependence involving contributions to the maintenance and support of the other.
“Kinship care” refers to existing definitions in Maryland law (meaning both a relative providing for the care and custody of a child due to a serious family hardship, and continuous twenty-four-hour care and supportive services for a child placed by a child placement agency in the home of a relative related within five degrees of consanguinity).
This section of the regulations also provides that the FAMLI Division may mandate the use of approved templates and forms, including the following:
Employer notice to employee templates
Claim application forms, certification of qualifying event forms, proof of relationship templates, good cause exemption forms, and intermittent leave use templates
Request forms, reconsideration scheduling templates, decision templates, and good cause exemption forms
Contributions
This section of the proposed regulations establishes the following important points:
Online account
Employers must create an online account to make required information reports, remit contribution payments, and communicate with the state.
Qualified employment
All wages paid for qualified employment are subject to contributions up to the Social Security wage base. Employment is qualified if: (1) the employer pays unemployment insurance (UI) contributions to Maryland for that employee, or (2) the employer does not pay UI anywhere else and the employment is performed either wholly or partly in Maryland where (a) employment performed outside Maryland is “incidental” to the employee’s Maryland employment, (b) employment performed in Maryland is not incidental to out-of-state work and the base of operations or the place from which the employment is controlled or directed is in Maryland, or (c) the employment is performed by a resident of Maryland and not in a state in which employment is controlled or directed or where the base of operations is located.
Small employer
In determining whether the employer has fewer than fifteen employees, all employees in the company are counted—not just those in Maryland.
Failure to deduct contributions
If an employer fails to deduct an employee’s portion of the contribution from the employee’s pay, the employer is deemed to have elected to pay the employee’s share and may not recoup the payment from the employee. But if there were insufficient funds in the employee’s paycheck because of other required federal, state, and local withholdings, the employer may recoup the contribution within the next six pay cycles.
Wage reporting and payment schedule
On a quarterly basis, employers must make contribution payments and informational wage and hour reports covering each employee. To be considered for small employer status, employers must also report the number of nonqualified employees outside the state. Amendments to the quarterly reports may be made within a year.
Contribution delinquencies
Employers are given thirty days to address any delinquencies. If they fail to do so, the FAMLI Division can assess the amount of the contribution, interest, and a penalty in the amount of two times the contribution and order an audit of the employer.
Contribution overpayments
Employers may request reimbursement up to one year following any overpayment and must return the employee’s share to the employee. If the employee cannot be found within ninety days, the money goes back to the state.
Equivalent Private Insurance Plans
Many employers are interested in the option of an EPIP, rather than participating in the state program. An employer may purchase an EPIP from an approved insurance carrier or create a self-insured plan, and those employers will not be required to make the contribution payments to the state plan. However, it appears that establishing an approved self-insured EPIP may be quite challenging, if not virtually impossible, for most employers. Some of the more significant points in these proposed regulations with regard to EPIPs are as follows.
EPIP requirements
An EPIP must meet or exceed the benefits and requirements under the state plan, including: employee eligibility (and if the employee worked for the employer for less than 680 hours in the prior four quarters, the employer must contact the FAMLI Division for eligibility information); use of state-provided forms and notices; reasons, amount, and use of leave; benefit amounts; limits on the timing and amount of employee contributions; claims processing, appeals and reconsideration procedures; confidentiality of employee information; job protection; and provisions prohibiting retaliation for requesting or using FAMLI leave. Employers may not impose any additional conditions, restrictions, or barriers on the use of FAMLI leave beyond those imposed by the state plan.
Appeal to the state
Employees may appeal the denial of benefits to the state, and if the state determines that benefits are due and would not be paid by the employer, it may pay the benefits and require reimbursement from the employer and/or EPIP administrator. There may be additional consequences for repeated failure to pay benefits, including termination of the EPIP by the state.
EPIP application
Employers must submit a FAMLI application form (to be prepared by the FAMLI Division), which will be reviewed by the FAMLI Division. Employers must address any deficiencies of which they are notified within ninety days, or the application will be denied.
Application fees
For a commercially insured EPIP, the application fee ranges from $100 for an employer with fewer than fifteen employees in Maryland to up to $1,000 for an employer with 1,000 or more employees in the state. The application fee for a self-insured EPIP is $1,000. EPIP approval expires after one year, and the employer must reapply for approval at least ninety days before expiration.
Special requirements for self-insured EPIPs
Only employers with fifty or more employees are eligible for self-insured EPIPs. The employer must obtain a surety bond in the amount of one year of expected future benefits as calculated using a state-provided formula, and there are additional conditions and requirements as to the bond. An employer may apply for a waiver of the surety bond requirement based on its capitalization and existing bondedness. The EPIP funds must be maintained in a separate account from all other employer funds and used only for benefit payments.
Oversight by the FAMLI Division
The division may initiate a review of an EPIP at any time, and employers must provide any requested documentation and information within thirty days. Failure to cooperate with the review may result in termination of the EPIP approval.
Recordkeeping
The following documentation must be retained for at least five years: applications; benefits paid; adverse determinations; internal reconsideration requests and outcomes; underlying documentation for benefits determinations and reconsiderations; and employee contributions.
Reporting
Employers are ultimately responsible for all reporting, even if they use a third-party administrator. Failure to submit timely and complete quarterly reports on claims and wage and hour data may result in termination of the EPIP.
Voluntary termination
Employers may voluntary terminate an EPIP after one year, and must give thirty days’ notice to the FAMLI Division and employees if they do so. Upon termination, they must either join the state plan or have an approved application for a different EPIP.
Involuntary termination
The FAMLI Division may terminate an employer’s EPIP if it determines that the terms or conditions of the plan have been “repeatedly or egregiously violated in a manner that necessitates termination.” This could include failure to pay benefits at all or in a timely manner, failure to make timely determinations, failure to maintain an adequate surety bond, misuses of EPIP money, and failure to submit required reports. Employers will be given fourteen days’ notice and may request review within that period. Employers will be required to pay the amount that would have been owed to the state plan for the year prior to the termination.
Continuation of benefits upon termination
The EPIP must pay benefits for valid claims filed before the termination until the earliest of the following: the total amount of the claim is paid, the duration of the leave ends, or the application year ends. The employer must also provide a report on claims paid and contributions collected or owing, and the FAMLI Division will determine if there are any contribution amounts due to the state plan.
Declaration of Intent (DOI) to obtain EPIP approval
From May 1, 2025, through August 29, 2025, employers may submit a DOI (that meets certain requirements) to enroll in an EPIP, and they must submit an EPIP application by April 1, 2026, for a self-insured EPIP and by June 1, 2026, for a commercially insured EPIP. The FAMLI Division will approve or deny a DOI within fifteen days of submission. If approved, the DOI will allow the employer to collect and hold the employer/employee contributions that would have been paid to the state until EPIP approval, at which point the monies are either released, with the employee portions returned to the employee or used to fund a self-insured EPIP. The DOI may be terminated for numerous reasons, including misuse of funds, failure to comply with FAMLI program requirements, excessive withholding of employee contributions, failure to submit reports, failure to respond timely to FAMLI Division requests, and failure to submit or denial of an EPIP application.
Deadlines for EPIP applications
Initial self-insured EPIP applications must be submitted between January 1, 2026, and April 1, 2026, while initial commercially insured EPIP applications must be submitted between March 1, 2026, and June 1, 2026, with the effective date for both on July 1, 2026.
Please stay tuned for part three of this series, which will cover the claims section of the proposed regulations and the newly issued section on dispute resolution, as well as some significant employer concerns that have not been addressed by the proposed regulations. Part one of this series, “Maryland’s FAMLI Program, Part I: An Overview of The Law,” covered the details of Maryland’s Family and Medical Leave Insurance (FAMLI) program.
Handling Insurance Claims in the Wake of the Los Angeles Wildfires
Los Angeles continues to be devastated by wildfires, and our thoughts are with those who have been affected. Tragically, lives have been lost. Homeowners and businesses ordered to evacuate have left behind properties that suffered enormous property damage and loss. At this time, more than 15,000 structures have been burned and counting. Landmarks, places of worship, schools and notable business are among the structures that have been damaged or destroyed. Recent estimates have pegged insured losses in the $20 billion to $30 billion range with some estimates coming in even higher.
Safety is the number one priority. At some point, though, the focus will shift as the fires seize and those affected rebuild and replace their property. There has already been much talk of insurance availability and maximizing insurance recoveries will be a key component of the recovery process. For those who will go through the insurance claims process, we have prepared critical action items to help policyholders navigate the claim process.
Navigating the Insurance Claims Process: Action Items
Obtain a Copy of Your Insurance Policy: Having a complete copy of your insurance policy, including all forms and endorsements (or riders), is critical. If you do not have a copy, request one immediately from the insurer.
Identify Applicable Insurance: Many policies, including homeowners and commercial property policies, cover physical loss or damage. These policies can contain many types of coverages (e.g., business interruption, dwelling, etc.) and it is important to know what coverages may apply and what limits are available as you begin the claim process.
Give Prompt Notice: Notice should be provided to the insurer consistent with the policy’s notice requirements and is crucial to preserving rights under the policy.
Detail Your Claim: When submitting the claim, it generally helps to be as detailed as reasonably possible. If necessary, the claim can always be supplemented with additional information. At the same time, avoid “padding” the claim and be as accurate as possible.
Be Wary of Public Adjusters: Following any significant disaster, unscrupulous individuals prey on vulnerable policyholders by charging exorbitant rates or making promises they can’t keep. Be careful should you decide to retain a public adjuster.
Maintain Documentation: Documentation plays a vital role in ensuring the maximum recovery under the policy. Businesses should keep records of losses suffered. Policyholders should document the property damaged, whether it be through photos, video, receipts, or other record. It is also vital to keep records of communications with the insurance adjuster, including sending follow-up written confirmation following verbal conversations, to help ensure they don’t sidestep their commitments.
Be Friendly, but Assert Your Rights: Policyholders generally have a duty to cooperate and it typically inures to one’s benefit to maintain a cordial relationship with the adjuster. Do not give an overwhelmed adjuster a reason to try to deny the claim or limit the benefits paid out. That being said, be assertive and remain steadfast in your position if you believe you are not getting what you are entitled to—adjusters are prone to making mistakes like anyone else, especially when handling an abundance of claims.
California Wildfires—Insurance Tips for Policyholders
The recent wildfires in California have clearly had a catastrophic impact, destroying a vast number of homes and business premises across the region. Homeowners and businesses may have limited means to protect against nature’s forces, but, in this alert, we provide tips on steps that can be taken to protect against denials of coverage by insurers. Careful and proactive attention to insurance coverage considerations could be the key to restoring homes and business operations and weathering the financial storms that follow from such disastrous events.
Potentially Relevant Insurance Policies
It is vital for affected homeowners and businesses to review all relevant or potentially relevant insurance policies promptly, including excess-layer policies, and to comply with loss notification procedures. The most common source of coverage for most individuals and businesses is likely to be first-party property coverage insuring the damaged premises and other assets, including against the risk of fire, smoke, and related damage. In many cases, this insurance will be supplemented by specialty coverages that apply to specific situations.
For businesses, the coverage will typically include the following:
Property damage where losses are caused to the business premises and assets, including computers and machinery.
Business interruption (BI) where the business experiences loss of earnings or revenue due to property damage or loss of use caused by an insured peril, for a specified period of time after the insured event or until normal business operations have been resumed.
Contingent BI which generally covers loss of revenue arising from damage to the property of a supplier, customer, or other business partner.
Denial of access, where use or access to the insured property is prevented or restricted for a specific period of time, for example, if roads or bridges leading to the property have been blocked or destroyed.
Civil authority coverage, which covers losses arising from an order made by a civil or government authority that interferes with normal business operations.
Service interruption coverage, which typically covers the insured for losses related to electricity or interruption of other utilities or supplies.
Extra expense incurred to enable business operations to be resumed or to mitigate other losses.
When presenting an insurance claim, it is important that policy provisions are considered against the backdrop of potentially applicable insurance coverage law to ensure that the policyholder is taking the steps necessary to maximize coverage. Many property policies are written on an “all risks” basis, but there will typically be exclusions, sublimits, or restrictions applicable to certain perils or circumstances. Some coverages may be subject to different policy limits and policy deductibles that impact the amount of coverage available. A proper analysis of the policy wording is vital to enable the insured to take full advantage of the coverage provided.
Practical Tips to Maximize Coverage
There are several steps policyholders should consider when making an insurance claim arising from natural disasters like the California fires:
Be Proactive in Notifying Insurers
Most policies identify specific procedures to be followed in presenting a claim, and there are likely to be timing deadlines associated with them. Failure to comply may result in insurers seeking to restrict or deny coverage for a claim otherwise covered by the policy. Policyholders should carefully consider any notice requirements, including any clause allowing for notice of a loss or an event that may or is likely to give rise to a claim. Prompt notification may assist policyholders in securing early access to loss mitigation resources and related coverages.
Early Assessment of Coverage
There are significant benefits in evaluating coverage at an early stage to understand any issues that may impact the way in which the claim is presented. Consultation with experienced coverage lawyers will assist in identifying and analyzing responsive policies as well as anticipating coverage issues or exclusions insurers might seek to rely upon.
Collate and Preserve Relevant Documents
Insurers typically require proof of loss and damage along with extensive supporting documentation. It is critical to take steps early on to ensure that potentially relevant documents and electronic records are located and preserved. In particular, insurers may argue that some part of the revenue loss is attributable to other causes, such as poor business decisions or economic downturn, such that historical records often must be examined and relied upon.
Preparation of Proof of Loss
The preparation of a detailed inventory and proof of loss is a time-consuming and challenging process but can prove invaluable in seeking to challenge any settlement offers made by the insurers or any loss adjustors appointed on their behalf. Many commercial policies include claim preparation coverage, which covers costs associated with compiling a detailed claim submission. The appointment of independent loss assessors or forensic accountants can prove particularly beneficial for collating BI losses, which are often challenged by insurers. For example, insurers may adopt a narrow view of what constitutes “interruption” to the business, particularly where certain business activities are ongoing.
Advance Payments
Any delays by insurers in making appropriate and periodic payments will delay the rebuilding of premises and the resumption of business operations. Insureds should consider requests for interim or advance payments, prior to completion of the loss adjustment process, particularly if the policy expressly provides for this.
Evaluating and Challenging Insurer Positions
The validity of any coverage defenses or limitations raised by insurers will be impacted by the precise wording of the insurance contract and by the applicable governing law. Experienced coverage counsel will be able to assist an insured in assessing the merit and viability of any coverage issues raised by insurers, or by their appointed loss adjusters, and in maximizing the insured’s potential recovery.
PBGC Technical Update on Accelerated Premium Filing Due Dates for 2025
As described in further detail below, absent Congressional action, plan sponsors should take note that PBGC premium filings will generally be due one month earlier than usual for plan years beginning in 2025. This modification only applies for 2025.
Under ERISA Section 4007, the PBGC determines when premium filings—the submission of required data and payment of any required premiums for PBGC-insured plans—are due. Accordingly, PBGC Regulation Section 4007.11 provides that, in most cases, the premium filings for a plan year are due the “fifteenth day of the tenth calendar month that begins on or after the first day of the premium payment year.”
However, Section 502 of the Bipartisan Budget Act of 2015 (“BBA of 2015”) provides that, notwithstanding ERISA Section 4007 and the corresponding PBGC regulation, for plan years beginning in 2025 only, premium due dates are accelerated by one month to the “fifteenth day of the ninth calendar month that begins on or after the first day of the premium payment year.”
Technical Update Number 25-1 released by the PBGC on January 6th provides further information on the timing of premium payments under the BBA of 2015 for plan years beginning in 2025, including clarification that this accelerated nine-month timeline applies to all premium due date rules in 2025 (including the special due date rules under the PBGC regulation for new plans and short plan years). The Technical Update also indicates that information regarding these special filing due dates for 2025 will be incorporated into the PBGC’s forthcoming 2025 Comprehensive Premium Filing Instructions.
It is important to note, however, that this special acceleration period for 2025 does not supersede PBGC’s disaster relief policy—which, for plans affected by a disaster, generally extends premium filing due dates to correspond with any disaster-related extensions of Form 5500 due dates by the IRS—nor does it supersede any of the PBGC’s general filing rules for due dates that fall on weekends or Federal Holidays.
For illustrative purposes, a calendar year plan beginning January 1, 2024, had a premium filing due date of October 15, 2024, under ERISA Section 4007 and the corresponding PBGC regulation. However, pursuant to the special acceleration provision under the BBA of 2015, for 2025, the same plan will instead have an accelerated premium filing due date of September 15, 2025. The Technical Update includes a full chart for plan years beginning in 2025, which is reproduced below.
Date Plan Year Begins
Due Date
1/1/2025
9/15/2025
1/2/2025 – 2/1/2025
10/15/2025
2/2/2025 – 3/1/2025
11/17/2025*
3/2/2025 – 4/1/2025
12/15/2025
4/2/2025 – 5/1/2025
1/15/2026
5/2/2025 – 6/1/2025
2/16/2026*
6/2/2025 – 7/1/2025
3/16/2026*
7/2/2025 – 8/1/2025
4/15/2026
8/2/2025 – 9/1/2025
5/15/2026
9/2/2025 – 10/1/2025
6/15/2026
10/2/2025 – 11/1/2025
7/15/2026
11/2/2025 – 12/1/2025
8/17/2026
12/2/2025 – 12/31/2025
9/15/2026
* The 15th day of the ninth month on or after the first day of the plan year falls on a weekend or federal holiday.
Finally, Technical Update Number 25-1 comes with a warning: because of anticipated increased costs and burdens on plan sponsors, a repeal of Section 502 of the BBA of 2015 has been on the legislative agenda for the past eight years. So, a mid-year repeal of the accelerated premium filing schedule by Congress is possible. The PBGC pledges to “revise the premium filing instructions and notify practitioners as quickly as possible” if such a repeal occurs.
Alex Scharr also contributed to this article.
HHS OCR Settlements: Last Week in Review
During the week of January 6, 2025, the U.S. Department of Health and Human Services’ Office for Civil Rights (“OCR”) entered into resolution agreements and corrective action plans with Elgon Information Systems (“Elgon”), Virtual Private Network Solutions, LLC (“VPN Solutions”) and USR Holdings, LLC (“USR”) for violations of the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) Security Rule.
The proposed resolutions with Elgon and VPN Solutions are the eighth and ninth ransomware investigation settlements announced by OCR. Elgon is required to pay $80,000 to OCR and will be subject to its monitoring for three years to ensure compliance with HIPAA. VPN Solutions is required to pay $90,000 and will be subject to one year of monitoring. The corrective action plans also lay out certain steps each entity is required to take to resolve potential violations of the HIPAA Privacy and Security Rules.
The proposed resolution with USR, announced on January 8, 2025, stems from a data breach, during which an unauthorized third party/parties were able to access a database containing the electronic protected health information (“ePHI”) of over 2,900 individuals and able to delete ePHI in the database. The resolution agreement requires USR to pay $337,750 to OCR and take steps to resolve potential violations of the HIPAA Privacy and Security Rules. USR will be subject to OCR monitoring for two years to ensure compliance with HIPAA.
Last week’s flurry of settlements is in keeping with a broader trend of OCR Security Rule enforcement activity in the past year. These agreements underscore how it is critical that organizations of all sizes that handle ePHI ensure their compliance with the HIPAA Security Rule, which requires administrative, physical and technical safeguards to ensure the confidentiality, integrity and availability of ePHI.
Ohio Streamlines Unemployment Insurance Reporting for Commonly Controlled, Concurrent Employers
New for January 1, 2025, Ohio has streamlined its unemployment insurance reporting process to allow employers that control multiple corporate entities to report unemployment insurance for their concurrent employees in a single account.
Quick Hits
Ohio now allows commonly controlled, managed, or owned companies—or companies reorganized in such a way—to apply for a single unemployment insurance account for reporting purposes.
Companies must file a “transfer of business form,” which began to be accepted on January 1, 2025.
On December 11, 2024, the Ohio Department of Job and Family Services (ODJFS) adopted revisions to Ohio Administrative Code Rule 4141-11-13 that rescinded the prior prohibition on common paymaster reporting, where one entity reports unemployment insurance for a group of related entities with concurrent employment. This change allows Ohio unemployment insurance reporting to be more closely aligned with the Internal Revenue Service’s “common paymaster” employment tax reporting.
Under the new Ohio rule, commonly controlled, managed, or owned companies, or companies reorganized in such a way, may apply for a single unemployment insurance account to report all employees. The rule is currently being interpreted to include registered professional employer organizations in which shared employees are coemployed. Companies meeting the rule’s definition must file a “transfer of business form … identifying the concurrent employers, and whether the employees will be reported on the primary account due to concurrent employment or transfer.”
The rule defines “concurrent employment” as the employment of an individual with at least two substantially commonly owned, managed, or controlled employers during the same time period.” According to ODJFS, commonly owned companies may further reorganize their structure to “create a new commonly owned entity” or may “use one of their existing commonly owned businesses as the primary-wage-reporting entity.”
The changes significantly streamline the unemployment insurance reporting process for commonly owned companies. Under the prior Rule 4141-11-13, each corporate entity was required to report payments for employees regardless of whether it was controlled by another entity under a “common paymaster arrangement” or similar.
The rule also makes clear that common paymaster reporting is an exception to the rule that one legal entity may not report another legal entity’s employees for Ohio unemployment insurance purposes without transferring the direction and control of the employees to the legal entity that will report the employees for Ohio unemployment insurance. Thus, common paymaster reporting is more than just an administrative election to report unemployment insurance under a particular entity.
Next Steps
The ODJFS began accepting applications for a single unemployment insurance reporting account on January 1, 2025. Employers must file a “Transfer of Business” form (JFS 20101), which can be found on the ODJFS website here.
If the primary account does not have an employer ID, ODJFS requires the employer to open a new account online or file “Report to Determine Liability” form (JFS 20100), which can be found on the ODJFS website here.
Supporting Employees Impacted by Wildfires
The ongoing Los Angeles, California, wildfires have caused widespread devastation, forcing residents to evacuate, and have destroyed homes and communities. President Joe Biden approved a Major Disaster Declaration in response to the wildfires in Los Angeles County on January 8.
There are several ways employers can support employees impacted by the wildfires, including by making qualified disaster relief payments to employees and creating paid leave sharing programs. Employers can also set up employee assistance funds through existing public charities that administer disaster relief programs, create an employer-sponsored charitable organization that provides disaster relief payments to employees, or set up a donor-advised fund with a sponsoring public charity. In addition, employers can allow employees greater access to distributions and loans from accounts under employer-sponsored retirement plans.
This alert provides a high-level overview of qualified disaster relief payments, leave sharing programs, disaster relief options using charitable organizations, and expanded opportunities to receive distributions and loans from employer-sponsored retirement plans. The following is intended to provide a brief introduction to the options available to employers and does not address the specific requirements for each option. Qualified disaster relief payments, leave bank programs, charitable organizations, and expansion of distributions and loans from employer-sponsored retirement plans must be carefully structured to ensure compliance under the federal tax laws. It is recommended to consult with legal or tax professionals to ensure full compliance and avoid potential liabilities.
Qualified Disaster Relief Payments
Section 139 of the Internal Revenue Code permits employers to make “qualified disaster relief payments” to employees in areas with an emergency disaster or major disaster declaration. Qualified disaster relief payments are not included in the employee’s gross income or subject to employment tax. Employers can also deduct qualified disaster relief payments to the same extent as payments treated as income to the employee.
A payment qualifies as a “qualified disaster relief payment” if the following requirements are satisfied:
There has been a “qualified disaster” (e.g., a federally declared disaster issued by the President of the United States).
The payment is intended to cover reasonable and necessary personal, family, living, or funeral expenses, or reasonable and necessary expenses incurred for repairing or replacing a personal residence or its contents, provided the expenses were incurred as a result of the qualified disaster and not covered by insurance or other resources.
The payment is not income replacement (e.g., severance, furlough pay, or lost wages from missed work).
Since President Biden approved the Major Disaster Declaration, employers can therefore provide financial assistance to employees impacted by the wildfires, provided that the payments meet the additional requirements described above. Employers who provide qualified disaster assistance payments should maintain adequate records for the program and request that recipients retain receipts and other documentation.
Leave Sharing Programs
Under Internal Revenue Service (IRS) Notice 2006-59, the IRS allows employers, responding to a “major disaster” (as declared by the president), to establish “leave banks” that enable employees to contribute accrued leave (up to the maximum amount the employee normally accrues during the year) to a collective pool for use by employees who have been adversely affected by a “major disaster” necessitating absence from work. Because President Biden approved a Major Disaster Declaration in response to the wildfires in Los Angeles County, employers can use employer-sponsored leave banks to support employees adversely impacted by the wildfires with additional paid leave. The leave is treated as wages with respect to the leave recipient and subject to federal income tax withholding and employment tax (e.g., FICA and FUTA). Leave donors are not entitled to a charitable contribution deduction on their individual income tax returns for the donated leave, but the portion of leave donated is not treated as income or wages to the leave donor. For employer-sponsored leave banks to qualify for the US federal tax treatment addressed herein, leave bank programs must meet certain additional requirements set forth in IRS Notice 2006-59.
Charitable Organizations
Employers can also support employees and other individuals impacted by the wildfires through disaster relief options using charitable organizations. Employers can set up employee assistance funds through existing public charities that administer disaster relief programs, create an employer-sponsored charitable organization that provides disaster relief payments to employees, or set up a donor-advised fund with a sponsoring public charity.
Employee Assistance Fund Administered by Existing Public Charity
Employers can create and fund an employee assistance fund administered by an existing public charity. This allows an employer to provide critical financial assistance to employees affected by the disaster while leveraging the charity’s established infrastructure and expertise.
Employer-Sponsored Public Charity
Employers can establish an employee-sponsored public charity to provide disaster relief payments to employees and other individuals impacted by current and future disasters. Employee-sponsored public charities are typically funded not only by the employer but also by employees or other donors. An employer-sponsored public charity can generally provide disaster relief to employees affected by current and future disasters, including qualified and non-qualified disasters or emergency hardship situations.
Employee-Sponsored Private Foundation
Employers can also establish an employee-sponsored private foundation to provide disaster relief payments to employees and other individuals impacted by current and future disasters. Employee-sponsored private foundations are generally funded by the employer and subject to additional requirements and restrictions that do not apply to public charities. An employer-sponsored private foundation can provide disaster relief to employees affected by current and future qualified disasters (but not non-qualified disasters or emergency hardship situations).
Employer-Sponsored Donor-Advised Fund
Employers can set up a donor-advised fund with a sponsoring public charity to support employees and their family members who are victims of qualified disasters. The sponsoring organization manages the fund, and a selection committee has advisory privileges over the fund. An employer-sponsored donor-advised fund can provide disaster relief to employees affected by current and future qualified disasters (but not non-qualified disasters or emergency hardship situations).
Disaster relief options involving charitable organizations are subject to complex tax requirements and must be carefully structured to ensure compliance.
Distributions and Loans From Employer-Sponsored Retirement Plans
Employers can allow their retirement plans to offer relief to “qualified individuals” impacted by a qualified disaster through expanded distribution options, increased access to plan loans, and loan repayment relief. A “qualified individual” is an individual whose principal residence during the incident period of any qualified disaster is in the qualified disaster area and the individual has sustained an economic loss by reason of that qualified disaster.
To the extent the plans do not already have provisions related to expansions of distributions and loans in the context of federally declared disasters, employers will need to amend their plans and would have until the end of this year to adopt the amendments.
Qualified Disaster Recovery Distributions
Employers can permit qualified individuals to receive distributions from the employee’s plan account in an amount up to $22,000 per disaster, with no early withdrawal penalty, and the option to repay all or a portion of the distribution within three years.
Increase to Plan Loan Limit
Employers can increase the maximum loan amount available to qualified individuals for plan loans made during a specified period following a qualified disaster. The plan loan limit may be increased to the full amount of the individual’s vested account under the plan, but not more than $100,000 (minus outstanding plan loans of the individual).
Relief for Plan Loan Repayments
Employers can also provide qualified individuals additional time (up to one year) to repay plan loans outstanding on the date of the declaration of the qualified disaster.
Wisconsin Appellate Court Interprets Construction Defect Exclusion and Fungi Exclusion
Cincinnati Insurance Company v. James Ropicky, et al., No. 2023AP588, 2024 WL 5220615 (Wis. Ct. App. Dec. 26, 2024)
On December 26, 2024, the Court of Appeals of Wisconsin issued is decision in Cincinnati Insurance Company v. James Ropicky, et al., No. 2023AP588, 2024 WL 5220615 (Wis. Ct. App. Dec. 26, 2024), addressing whether an ensuing cause of loss exception to a Construction Defect Exclusion, Fungi Exclusion, and Fungi Additional Coverage endorsement contained in a homeowner’s insurance policy issued by Cincinnati to its insureds precluded coverage for damage sustained by the insureds’ home following a May 2018 rainstorm. A final publication decision is currently pending for this case.
Background Information
James Ropicky and Rebecca Leichtfuss (collectively “the insureds”) submitted a claim to their homeowner’s insurer, Cincinnati Insurance Company (“Cincinnati”), for alleged water and fungal damage that their home sustained as a result of a rainstorm that occurred on May 11, 2018. Based on Cincinnati’s investigation and the opinions rendered by its expert following his inspections of the insureds’ home, Cincinnati provided limited coverage for the insureds’ claim based on the contention that a majority of the damage was the result of “design or installation deficiencies” that had allowed storm water to enter the interior wall structure. Therefore, Cincinnati concluded the subject damage was either excluded under the policy’s Construction Defect Exclusion and Fungi Exclusion, or subject to the policy’s Fungi Additional Coverage endorsement. As a result, Cincinnati paid $10,000 under the policy’s fungi-related coverage (Fungi Additional Coverage endorsement) and $2,138.53 for other damages falling within the ensuing cause of loss exception to the Construction Defect Exclusion. Cincinnati denied coverage for costs associated with remedying and repairing the purported construction defects.
Eventually, Cincinnati filed a lawsuit against its insureds seeking declaratory judgement as to its coverage position. In response, Cincinnati’s insureds disputed Cincinnati’s coverage position and filed counterclaims against Cincinnati for breach of contract, declaratory judgment, and bad faith related to Cincinnati’s handling of their claim. The circuit court ultimately granted Cincinnati’s summary judgment motion as to coverage, agreeing that the Construction Defect and Fungi Exclusions contained in the applicable homeowner’s policy barred any additional coverage under the policy’s terms beyond that which Cincinnati had already paid with respect to the alleged May 2018 rainstorm damage. Further, because the circuit court ruled in Cincinnati’s favor and held that Cincinnati had not breached its contract with the insureds, the court dismissed, sua sponte, the insured’s bad faith claim as a matter of law. The insureds appealed the circuit court’s decision.
Decision and Analysis
On appeal, the Court of Appeals of Wisconsin concluded the ensuing cause of loss exception to the policy’s Construction Defect Exclusion reinstates coverage, and the policy’s Fungi Additional Coverage endorsement renders the Fungi Exclusion inapplicable. Thus, the appellate court reversed the circuit court’s decision, finding the circuit court erred in granting summary judgment in Cincinnati’s favor, and remanded the case for further proceedings.
First, the appellate court held that even assuming the Construction Defect Exclusion applies, the damage to the insureds’ home nevertheless constitutes an ensuing cause of loss under the policy’s ensuing cause of loss exception and the authority of Arnold v. Cincinnati Insurance Co., 2004 WI App 195, 276 Wis. 2d 762, 688 N.W.2d 707. Relying on Arnold as binding authority, the appellate court explained that an “ensuing loss” “is a loss that follows the excluded loss ‘as a chance, likely, or necessary consequence’ of that excluded loss[,]” and “in addition to being a loss that follows as a chance, likely, or necessary consequence of the excluded loss, an ensuing loss must result from a cause in addition to the excluded cause.” Id. at ¶¶27, 29 (emphasis added). The appellate court then proceeded to apply the following three-step framework adopted in Arnold to determine whether the ensuing cause of loss exception applies: (1) first identify the loss caused by the faulty workmanship that is excluded; (2) identify each ensuing loss, if any – that is, each loss that follows as a chance, likely, or necessary consequence from that excluded loss; and (3) for each ensuing loss determine whether it is an excepted or excluded loss under the policy. See id. at ¶34. Based on the appellate court’s application of this three-step framework, it concluded the rainwater at issue, i.e., the May 2018 rainstorm, was an ensuing cause of loss within the meaning of the applicable policy’s ensuing cause of loss exception to a Construction Defect Exclusion.
Second, the appellate court held that the policy’s Fungi Exclusion and its anti-concurrent cause of loss clause did not exclude coverage for the damage to the insureds’ home. Most significantly, in reaching this conclusion, the appellate court determined that the phrase “[t]his exclusion does not apply” in the Fungi Exclusion does not introduce an exception to the exclusion, but rather introduces two scenarios in which the Fungi Exclusion is never triggered in the first instance because its conditions for application are never satisfied. According to the appellate court, one of the circumstances enumerated in the Fungi Exclusion, wherein it states the exclusion “does not apply” “[t]o the extent coverage is provided for in Section I, A.5. Section I – Additional Coverage m. Fungi, Wet or Dry Rot, or Bacteria with respect to ‘physical loss’ caused by a Covered Cause of Loss other than fire or lightning,” rendered the exclusion inoperative with respect to the subject loss. Notably, the concurring opinion explains how the majority’s interpretation of the Fungi Exclusion’s “this exclusion does not apply” language appears to depart from prior case law, wherein Wisconsin courts have repeatedly concluded that this language creates an exception to an exclusion that reinstates coverage. See Neubauer, J. (concurring).
Third, the appellate court held the policy’s $10,000 limit of Fungi Additional Coverage applies to the portion of subject home’s damages that was at least partially caused by “fungi, wet or dry, or bacteria.” However, the $10,000 limit does not decrease or limit the coverage that was otherwise available for the home’s damages caused solely by rainwater.
Based on its interpretation of the policy provisions set forth above, the appellate court additionally held: (1) genuine questions of material fact exist at least as to whether “fungi, wet or dry rot, or bacteria” caused any of the damage to the insureds’ home, and if so, what portion of the damage is attributable to “fungi, wet or dry rot, or bacteria”; (2) only after properly apportioning any damage caused by “fungi, wet or dry rot, or bacteria” can Cincinnati determine the extent of coverage it is obligated to provide under the terms of the homeowner’s insurance policy; and (3) because issues of material fact remain as to the cost to repair the construction defects (not the ensuing loss), this issue remains to be addressed on remand. The appellate court also reinstated the insureds’ bad faith claim asserted against Cincinnati in the underlying action, which had been dismissed by the circuit court when granting summary judgment in Cincinnati’s favor.
What to Expect After a Car Accident in Philadelphia
If you’ve been injured in a car accident caused by another person’s carelessness, your life might feel uncertain and overwhelming. The physical injuries, emotional distress, and financial burden from the crash can seem like a lot to handle. In these difficult moments, it’s important to know that you’re not alone. A compassionate car accident attorney can help you understand your options and fight for the compensation you deserve.
Read on to explore what to expect after a car accident, from handling the immediate aftermath to understanding the insurance and legal processes. We’ll also highlight the importance of having a legal team on your side to protect your rights and guide you through each phase of your claim.
Immediate Aftermath
The moments immediately following a car accident can be disorienting, but you need to try and stay calm and focused to ensure your safety and protect your future claim. Here are the crucial steps to take:
Safety First: Moving Vehicles, Checking Injuries
Your first priority should always be safety. If you’re able, move your vehicle out of traffic to avoid additional collisions. Turn on your hazard lights to alert other drivers. If anyone is seriously injured, call 911 right away.
If possible, check for injuries—yours and others’—before doing anything else. Even if you don’t feel hurt immediately, some injuries might not show up until later. It’s a good idea to seek medical attention right away, just to be sure.
Documenting the Scene: Photos, Witness Information, Police Reports
Documenting the accident is essential for your claim. Take clear, detailed photos of the accident scene, vehicle damage, tire marks, road conditions, and any other relevant details. These photos can provide important evidence for your case.
If there are any witnesses to the accident, ask for their contact information. Their statements could support your version of the events.
When the police arrive, file a report. The report will serve as an official record and can be vital in proving your case. Be sure to get a copy of the police report once it’s available.
Medical Evaluation Timeline
Even if you don’t feel any pain right away, it’s important to seek a medical evaluation within 24 hours. Some injuries, like whiplash, may take time to show symptoms. A timely medical evaluation helps establish the connection between the accident and your injuries, which will be important if you pursue a claim later on.
Insurance Process
The insurance process can feel like a maze, but knowing what to expect can help you move through it with confidence. Here are the steps involved:
Filing the Claim
After the accident, you’ll need to file a claim with your insurance company. Be prepared to provide all the necessary documentation, including accident details, medical reports, and photos.
Speaking with Adjusters
Insurance adjusters will review your claim, assess damages, and determine compensation. Be cautious when talking to them. Insurance companies may try to minimize your compensation offer. It’s helpful to have a personal injury lawyer on your side to ensure that you’re treated fairly and that you don’t settle for less than you deserve.
Common Coverage Issues
Insurance coverage can be complicated. In some cases, the at-fault party may not have sufficient coverage or may be uninsured. This can lead to delays or complications in getting the compensation you need. Your own insurance policy may offer additional coverage in such situations, such as underinsured or uninsured motorist coverage.
Timeline for Settlements
The timeline for settling a claim can vary. Some claims are resolved within a few months, while others may take longer, especially if negotiations are required or the case goes to court. Keep in mind that each case is unique, and an experienced attorney can help you understand the process and manage your expectations.
Medical Treatment
After a car accident, receiving the proper medical treatment is not only crucial for your recovery but also essential for building a strong case if you decide to pursue a claim. Injuries from car accidents can vary greatly, ranging from minor cuts and bruises to severe, life-changing conditions.
Types of Common Accident Injuries
Car accidents can lead to a wide range of injuries, some of which may not be immediately noticeable. Common injuries include:
Whiplash and Neck Injuries: Often caused by sudden stops or collisions, whiplash can lead to neck pain, stiffness, and headaches.
Back and Spinal Injuries: These can vary from mild strains to serious injuries, such as herniated discs or spinal cord damage.
Head and Brain Injuries: Concussions, traumatic brain injuries (TBI), and other head injuries can have lasting effects.
Fractures: Broken bones in the arms, legs, ribs, or other parts of the body are common in severe accidents.
Soft Tissue Damage: Injuries to muscles, tendons, or ligaments can cause significant pain and swelling.
Internal Injuries: Damage to organs, including the lungs, liver, or kidneys, may not be immediately visible but can be life-threatening.
Documentation Requirements
To support your claim, it’s important to keep accurate and detailed documentation of your medical treatment. This includes:
Medical Records: Keep a record of all your doctor visits, diagnoses, treatment plans, and prescriptions.
Bills and Receipts: Save all medical bills, receipts for medications, physical therapy, and any other out-of-pocket expenses.
Test Results: Document the results of any tests or imaging (such as X-rays or MRIs) that are necessary for diagnosing your injuries.
Treatment Plans: Keep track of the treatments prescribed, including physical therapy or follow-up appointments, and any changes in your condition.
Following Treatment Plans
Adhering to the treatment plan recommended by your healthcare providers is critical to your recovery. This not only ensures that you have the best chance at healing but also shows the insurance company that you are taking the necessary steps to recover. If you miss appointments or fail to follow medical advice, it could be used to argue that your injuries are less severe or not related to the accident.
Long-Term Care Considerations
Some injuries may require long-term care, especially if they involve the spine, brain, or other critical areas. Long-term care could include ongoing medical treatments, surgeries, rehabilitation, or lifestyle changes. When pursuing compensation, it’s essential to consider these future medical needs. The costs associated with long-term care—whether physical therapy, assisted living, or home care—should be factored into the claim to ensure you’re fully compensated for the lasting impact of your injuries.
Legal Considerations
As you deal with insurance companies and medical providers, legal considerations will also come into play. Here’s what to keep in mind:
Statute of Limitations
In Pennsylvania, you typically have two years from the date of the accident to file a personal injury lawsuit. While this may seem like a long time, it’s essential to act quickly, as evidence and witness testimonies can fade over time. Consulting with an attorney early on will ensure you don’t miss important deadlines.
When to Hire an Attorney
You must hire an attorney if you suffer severe injuries or experience complications with the insurance claim. If the at-fault party disputes liability, an attorney can help protect your rights and push back against any attempts to unjustly blame you for the crash and your injuries. Even if you only suffer minor injuries, an attorney can still help ensure you obtain the compensation you need to cover your medical bills and other related expenses.
Evidence Preservation
You must have strong evidence to support your claim. An attorney can help preserve key pieces of evidence, such as photos, witness statements, and medical records. They can even obtain surveillance video footage, if applicable. A lawyer knows how to use the evidence effectively in your case.
Dealing with the Other Party’s Insurance
Insurance companies are often focused on minimizing payouts. Having a lawyer who understands how to interact with the at-fault party’s insurance company can protect your rights and ensure you don’t get pressured into accepting an unfair settlement.
Settlement Process
Reaching a settlement is often the preferred outcome, as it saves time and avoids the stress of going to trial. Here’s how the settlement process typically works:
Calculating Damages
To determine how much compensation you may be entitled to, your attorney will calculate your damages. This includes medical expenses, lost wages, pain and suffering, property damage, and any future costs related to your injuries.
Negotiation Phases
Once the damages are calculated, your attorney will enter negotiations with the insurance company. The goal is to reach a fair settlement. The insurance company may offer a lower amount initially, but your attorney will advocate on your behalf in an effort to secure you full compensation.
Settlement vs. Litigation
Most car accident cases are settled out of court. However, if a fair settlement can’t be reached, your attorney may recommend filing a lawsuit. If your case does go to court, you’ll have someone who understands the process and can guide you through each step.
Timeline Expectations
The timeline for reaching a settlement or resolving a lawsuit can vary. While some cases may be settled in a few months, others could take much longer, especially if they go to trial. Your attorney will provide you with a more specific timeline based on the specifics of your case.
Common Mistakes to Avoid
Making certain mistakes can hurt your chances of getting the compensation you deserve. Here are some things to avoid:
Social Media Activity
Avoid posting about the accident or your injuries on social media. Insurance adjusters may use your posts against you, claiming that your injuries aren’t as severe as you’ve reported.
Early Settlement Acceptance
Insurance companies often offer settlements quickly, but these offers are usually much lower than what you deserve. Always consult with an attorney before accepting any offer.
Missing Documentation
Keep all documents related to the accident, including medical bills, repair estimates, and any correspondence with insurance companies. Missing or incomplete documentation can hurt your claim.
Gaps in Medical Treatment
If you miss medical appointments or delay treatment, the insurance company might argue that your injuries aren’t as serious as you say. Stay consistent with your treatment plan to avoid this issue.
Steps to Protect Your Rights
To protect your rights and maximize your compensation, consider the following steps:
Medical Record Collection
Gather all medical records related to your injuries, including doctor’s notes, test results, and receipts for treatments. These documents will support your claim.
Communication Documentation
Keep records of all communication with insurance companies and other parties involved in the case. This ensures that there is a clear record of what was discussed and agreed upon.
Expert Consultations
Consulting with a medical expert or accident reconstruction specialist can strengthen your case by providing additional evidence of the extent of your injuries and the cause of the accident.
Settlement Evaluation
Before accepting any settlement, your attorney will carefully evaluate the offer to ensure it reflects the full extent of your damages, both current and future.
Know Your State’s Insurance Laws
Understanding your state’s insurance laws is important when filing a claim. Pennsylvania follows a no-fault system. This means your own insurance covers your medical expenses, regardless of who caused the accident. If your injuries are severe, you may still pursue a claim against the at-fault driver.
Consult a Philadelphia Personal Injury Attorney
Hiring an experienced Philadelphia personal injury attorney can make a significant difference in the outcome of your claim. A skilled attorney will handle the legal complexities, negotiate with insurance companies, and advocate for your rights to ensure that you receive the compensation you deserve.
FDIC Enforcement Spotlights Deficiencies in Kansas Bank’s Anti-Money Laundering Program
On December 27, 2024, the Federal Deposit Insurance Corporation (FDIC) announced a notice of assessment of a civil money penalty against a Kansas-based bank. The action, originally brought in November, imposed a $20.4 million civil money penalty against the bank and alleged violations of the Bank Secrecy Act (BSA), 31 U.S.C. § 5311 et seq., for its failure to implement an adequate anti-money laundering and counter-terrorism program.
The FDIC asserts that between December 2018 and August 2020, the Bank’s AML/CFT compliance program failed to address risks associated with its high-volume international banking operations. These operations included processing $27 billion in wire transfers for foreign banks in 2018 alone and facilitating bulk cash shipments from Mexico. Specific deficiencies cited by the FDIC include:
Inadequate Internal Controls. The bank’s reliance on flawed AML monitoring software and manual reviews failed to detect red flags, such as large, suspicious transactions and activity linked to high-risk jurisdictions. Although the banks employed external auditors to analyze its BSA compliance, the complaint claims the testing was too limited and lacked sufficient data.
Customer Due Diligence Failures. The bank failed to establish and maintain an effective customer due diligence program, as the BSA Officer’s ongoing due diligence for the bulk cash business was limited to comparing actual to expected cash deposits without conducting denomination analysis or monitoring outgoing wire activity, resulting in missed data indicative of money laundering and terrorist financing risk.
Deficient Reporting. The bank failed to file hundreds of suspicious activity reports (SARs) required by federal law, and did not implement sufficient customer due diligence or foreign correspondent account monitoring. The FDIC also found that the bank’s BSA Officer was not properly empowered to make SAR filings, SAR filing decisions were instead made collectively by a committee consisting of various C-suite executives of the bank.
Unqualified Oversight. The appointed BSA officer during the relevant period lacked necessary experience and authority to manage the bank’s AML compliance program effectively, pointing to deficiencies in the bank’s BSA/AML training program.
The FDIC described the alleged violations as part of a “pattern of misconduct” and noted that the bank benefited financially from these failures, generating significant fee income.
Putting It Into Practice: The FDIC’s action was swiftly challenged by the bank. On November 19, it filed a complaint in the U.S. District Court for the District of Kansas challenging the FDIC’s findings, emphasizing that the bank ceased the operations in question in 2020 and took swift corrective actions. In its complaint, the bank also argues that the fine penalizes “years-old conduct” and disregards the bank’s current compliance improvements.
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