Companies Sue over Michigan Fireworks Insurance Requirement

Several fireworks companies are suing over what they call Michigan’s excessive insurance requirements under a new state law.

The companies filed suit on Feb. 1 in Detroit federal court seeking to overturn a requirement to obtain $10 million in liability insurance in order to sell an expanded line of fireworks.

A state law that took effect this year allows the sale of more powerful fireworks such as firecrackers and other devices such as bottle rockets and Roman candles

The companies suing the state say the insurance provision is unconstitutional and favors larger companies that can afford the coverage, giving them an unfair advantage in the market.

A spokeswoman for Gov. Rick Snyder says the insurance level was appropriate given safety priorities with the expanded fireworks availability.

Source: Insurance Journal

Impact Of Changes To Work Comp Law In Michigan

As you may be aware, on Dec. 19, 2011, Michigan Gov. Rick Snyder signed legislation to reform Michigan’s Workers’ Disability Compensation Act. The goal of the revisions was to help clarify and modernize the act, as well as ensure stability when it comes to application.

Accident Fund Insurance Company has reviewed the legislation and has identified three areas that we believe will have the most impact moving forward:

· Employer-Directed Medical Care ― The new law allows employers to direct care for the first 28 days from the inception of care; previously, it had been 10 days.

· Disability ― This law basically codifies the decision made in the 2008 case of Stokes v. Chrysler. A disability is “total” if the employee is unable to perform any work suitable to the employee’s qualifications and training. A disability is “partial” if the employee retains the ability to earn some wages for suitable work.

· Wage-Earning Capacity ― In determining wage-earning capacity, the employer is able to look at not only work performed, but also jobs that are reasonably available that the injured worker could perform. Police and firefighters are exempt from this provision.

 

Source: Accident Fund Insurance Company