June 16, 2009
April 26, 2009
Insurance Fraud- Does it Matter?
Great Video put together by some high school kids. Bravo!
March 18, 2009
Clearance Procedures For E&O
The Clearance Procedures that follow should not be construed as exhaustive and they do not cover all situations that may arise in any particular circumstance or any particular production.
Applicant’s attorney must assure him/herself of the following before first exhibition of the insured work(s):
1. Applicant and its counsel should monitor the Production(s) at all stages, from inception through final
cut, with a view to eliminating all material that could give rise to a claim.
2. The Producer and his/her attorney should read the script prior to commencement of Production in order
to eliminate matter that is defamatory, invades privacy, or is otherwise potentially actionable.
3. A copyright report must be obtained, covering foreign and domestic copyright, as well as all extensions
and renewals thereof, for all literary material contained in the Production(s). If the Applicant is acquiring the
work(s) as completed work (such as a pick-up of a motion picture for distribution), a copyright report must
also be obtained covering the completed work(s).
4. The origins of the work should be ascertained, including the basic idea, sequence of events, and
characters. Have submissions of any similar properties been received by the Applicant or someone closely
involved with the Production(s)? If so, the circumstances as to why the submitting party may not claim theft
or infringement should be described in detail.
5. If the work(s) is in any way based on actual facts, it must be ascertained if the source material is
primary(ie direct interview, court records) and not secondary (ie another copyrighted work). Use of
secondary sources may be permissable, but full details must be provided to Company in an attachment
to the application.
6. Written agreements must exist between the Applicant and the creators, authors, writers, and owners
of all material, including quotations from copyrighted works, used in the insured work(s), authorizing the
Applicant to use the material in the insured work(s).
7. Prior to the title selection, a title report must be obtained. Title Coverage will not be offered unless a
recent title research report has been submitted to and approved by the insurer.
8. Whether the Production is fictional or factual, the names, faces, and likenesses of any recognizable
living persons should not be used unless written releases have been obtained. A release is unnecessary
if person is part of a crowd scene or shown in a fleeting background. Releases can only be dispensed
with if the Applicant provides the insurer with specific reasons, in writing, as to why such releases are
unnecessary and such reasons are accepted by the insurer. The term “living persons” includes thinly
disguised living persons or living persons who are readily identifiable because of identity of other characters
or because of the factual, historical, or geographic setting.
9. All release must give Applicant the rights to edit, modify, add to and/or delete material, juxtapose any
part of the film with any other film, change the sequence of events or of any questions posed and/or
answers given, fictionalize persons or events, and make any other changes in the film that the
Applicant deems appropriate. If a minor, consent has to be legally binding.
February 12, 2009
Experience Modifications in Workers Compensation
This is an adjustment that is made to the Workers’
Compensation insurance premium of companies that meet or exceed a
certain thresholds. Typically, a company that has been paying $5,000 in
premium for the past few years or has paid $10,000 or more in a single recent
year qualifies to be experience rated. This means that an adjustment factor
will be calculated for such a company based on prior years’ payroll and loss
data, essentially comparing the loss data of that particular company to
average loss data for all other employers in that state who share the same
classification codes.
One common misconception is that these factors are calculated by the state.
In most states, this is not the case. Experience modifications are calculated
by rating bureaus. Most states use the NCCI for this work, but a few states,
such as California, have their own rating bureau. California utilizes the
WCIRB.
Another common misunderstanding is that the experience modification
factor compares a company’s past premiums with past losses. It does not.
Instead, the formula compares actual reported loss information for that
particular employer with average loss data for all employers in that state who
are also in the same classification codes.
In general, experience modification factor calculations use data from three
prior policy years, but sometimes they can also be calculated using fewer
policy periods. The usual window used for the payroll and loss data goes
back four years for the first policy year, and also includes the next two policy
years. The most recently-completed policy year is excluded from the window.
For example, a mod effective July 1, 2008 would use policy data from the
policies effective in 2004, 2005, and 2006.
