Oil Washing Up on Louisiana Coast; National Guard Mobilized
April 30, 2010 – Small amounts of oil have begun washing up on coastal shorelines in Louisiana, prompting Governor Bobby Jindal to mobilize the National Guard to assist in what has been called the largest oil spill relief effort in history.
An estimated 210,000 gallons of oil has been leaking into the Gulf of Mexico every day since an offshore oil-drilling vessel exploded on April 20 and sank two days later, apparently killing 11 crew members in the process. Oil has been leaking from the underwater well, located nearly a mile beneath the surface of the Gulf of Mexico and about 40 miles south of the Mississippi Delta, creating a 100 mile-long oil slick.
A large body of oil was located about 5 miles off shore as of this morning, although small amounts were sighted at the mouth of the Mississippi River. The U.S. Coast Guard is heading containment efforts, described as the largest in history.
Although the 11 workers likely are dead from last week’s mishap, containing the massive oil slick has become the primary objective for emergency responders. At least three oil leaks have been identified as deep as 5,000 feet beneath the surface of the Gulf of Mexico, according to BP officials. The Coast Guard and BP officials are trying to contain the oil slick, which the Associated Press reported being about 130 miles long by 70 miles wide yesterday.
In addition to threatening pristine beaches, estuaries, swamps and wildlife habitat, the Gulf Coast fishery is threatened by the advancing oil plume. Louisiana officials declared an emergency season for harvesting shrimp from the Gulf of Mexico before the oil slick reaches shore, and attorneys representing shrimp fishermen already have begun preparing lawsuits against BP for lost revenues and anticipated lost revenues from what might become a prolonged disruption of commercial fishing. In the meantime, many fishing vessels and their crews are being paid to participate in local efforts to protect miles of threatened shoreline by placing floating booms and other barriers, according to Bloomberg News.
Strong winds yesterday aborted an attempt by BP workers and the Coast Guard to ignite and burn off some of the oil slick after deep-sea robots failed to shut off the oil flow. Emergency responders have been using dozens of surface vessels and aircraft to deploy miles of floating booms along the Gulf Coast to help prevent the wind from pushing the oil slick up along the coastline.
Although described as the largest containment effort in history, the current spill does not match the devastation caused by the Exxon Valdez disaster, which spilled some 11 million gallons of oil into Alaska’s Prince William Sound in 1989. But if the oil continues to leak into the Gulf of Mexico for several weeks, it could eclipse the amount spilled by the Exxon Valdez. In terms of lives lost, the disaster is the worst for an offshore oil operation since 11 people were killed when an oil rig exploded off the coast of Brazil in 2001.
Massive Oil Slick Threatens Gulf Coast; Historic Effort Underway
April 29, 2010 – An oil slick created when an offshore drilling rig exploded and sank last week in the Gulf of Mexico is pumping out thousands of barrels of oil each day and threatening four coastal states.
Federal officials estimated the equivalent of about 210,000 gallons of oil per day are leaking into the Gulf of Mexico, threatening the Mississippi, Louisiana, Alabama and Florida coastlines. Eleven workers are missing and presumed dead after the drilling rig, Deepwater Horizon, owned by Switzerland’s Transocean company, exploded on April 20 and sank two days later. The rig was drilling a well for the BP Corporation some 40 miles southeast of the Mississippi Delta.
Although the 11 workers likely are dead, containing a massive oil slick now located nearly 20 miles from the Louisiana coast has become the primary objective for emergency responders. At least three oil leaks have been identified as deep as 5,000 feet beneath the surface of the Gulf of Mexico, according to BP officials. The U.S. Coast Guard is leading cleanup effort, which might be the largest in U.S. history. The Coast Guard and BP officials are trying to contain the oil slick, which is larger than the size of West Virginia, and President Barack Obama might authorize the U.S. military to assist.
Federal officials are concerned shifting winds could force the oil slick toward shore, threatening hundreds of miles of coastline as well as beaches, estuaries and wildlife refuges from the Florida Panhandle to Louisiana. BP workers and the Coast Guard are attempting to ignite and burn off some of the oil slick after unsuccessfully attempting to cutoff the oil flow using deep-sea robots on the ocean floor.
BP and Coast Guard officials say the containment effort is the largest in history, utilizing dozens of surface vessels and aircraft. Miles of floating booms are being deployed along the Gulf Coast to help prevent the wind from pushing the oil slick up along the coastline.
Although described as the largest containment effort in history, the current spill does not match the devastation caused by the Exxon Valdez disaster, which spilled some 11 million gallons of oil into Alaska’s Prince William Sound in 1989. In terms of lives lost, the disaster is the worst for an offshore oil operation since 11 people were killed when an oil rig exploded off the coast of Brazil in 2001.
Five-Year Flood Insurance Program Extension Weighed
April 28, 2010 – Federal lawmakers might not have to resort to yet another temporary extension of the National Flood Insurance Program. Instead, they are working on a 5-year extension of the financially troubled insurance pool for properties located in federally designated flood zones.
The House Financial Services Committee this week approved House Resolution 5114, which now goes before the entire chamber for consideration. If approved, the measure essentially would extend the National Flood Insurance Program in its current form for the next five years. The only changes would be an end to a federal subsidy to help pay for flood insurance on vacation homes and other secondary properties as well as changes to actuarial rates. The resolution also would delay for five years implementation of newly designated flood zones.
The current National Flood Insurance Program extension ends on May 31 as the traditional hurricane season begins anew. Federal lawmakers repeatedly have extended the program’s expiration date by weeks and months at a time in lieu of enacting long-lasting changes while debating the hotly contested overhaul of the nation’s national health care system during the past year.
While the National Flood Insurance Program was suspended, no new flood insurance policies could be written, nor could existing policies be renewed. But policyholders could continue to file claims and receive compensation. The National Flood Insurance Program provides up to $250,000 in flood insurance coverage for homes and other properties located in federally designated flood plains. The federal program insures about 5.6 million homes in the United States.
While the program was lapsed, current policyholders could continue to file and be reimbursed for claims, but people purchasing homes in designated flood plains weren’t able to close on their new homes until the program was reinstated and flood insurance purchased.
Federal officials have extended the debt-riddled program’s deadline several times in lieu of enacting permanent changes. Lawmakers are divided on how to sufficiently fund the program and don’t agree on proposals to add coverage for wind damages to the National Flood Insurance Program.
Toyota Recalls 50,000 SUVs for Slowing Problem
April 28, 2010 – Officials for the Toyota Motor Corporation today announced they are recalling some 50,000 Toyota Sequoia SUVs manufactured in 2003.
Unlike an earlier massive recall of several popular Toyota models for problems with sudden acceleration and gas pedals becoming stuck on floor mats, Toyota is recalling the 2003 Sequoias for unexpected slowing of some vehicles. Company officials said a problem with the vehicle’s traction-control system might cause it to accelerate too slowly. About half of the recalled vehicles already have been repaired through manufacturer warranties, according to Toyota officials.
Toyota changed its manufacturing process regarding the Sequoia SUV in 2003 and issued a repair bulletin to dealerships to replace potentially faulty “skid control” units if owners complain of problems. About half of all affected vehicles already have been repaired via warranty service, and Sequoia owners will be reimbursed for any out-of-pocket costs associated with the repair, according to Toyota officials.
Federal officials with the National Highway Traffic Safety Administration were looking into the matter, and Toyota officials decided to issue an official recall, although company officials say no injuries or accidents are known to have been caused by the possible defect. Toyota recently agreed to pay a $16.38 million fine levied for delays in recalling prior vehicles with known safety issues.
The recall is just one of many recently issued by the Toyota Motor Corporation as company officials work to restore the automaker’s prior reputation for building safe, reliable vehicles. Several of the largest auto insurance companies in the United States are looking over prior auto insurance claims involving Toyota Motor Corporation vehicles accelerating out of control, including Allstate, Geico and State Farm, according to the Associated Press report. Toyota officials recently recalled more than 9 million vehicles for various problems, including sudden acceleration, braking problems and problems with traction control systems on various vehicles.
The subrogation clause of insurance contracts give insurance companies the right to pursue legal remedies after paying insurance claims. The auto insurers can recoup damages arising from claims paid due to faulty Toyota vehicles, but policyholders would be entitled to at least a partial reimbursement of deductible amounts paid, the Associated Press reported.
The potential disbursements to auto insurance companies is just one of many financial troubles Toyota faces over its recent vehicle recall efforts. Toyota officials recently agreed to pay a $16.38 million federal fine regarding its handling of vehicle defects. And dozens of class action lawsuits have been filed regarding the recently falling values of used Toyota vehicles totaling a potential $3 billion in liabilities for the world’s largest automaker. The class action suits are in addition to existing lawsuits for legal liability in the dozens of accidents and deaths attributed to faulty Toyota vehicles in recent years.
Officials for the National Highway Traffic and Safety Administration recently said they have received complaints of at least 52 deaths caused by sudden acceleration in Toyota vehicles since 2000. Toyota Motor Corporation officials recently recalled nearly 10 million vehicles worldwide to correct problems with vehicles suddenly accelerating and other problems.
The first vehicle recall issued last year was to fix floor mat problems blamed for causing some vehicles to accelerate suddenly. When that fix failed to fully address safety issues, Toyota issued another recall of several popular models, including the Camry and Corolla, to replace gas pedals in millions more vehicles in China, Europe and North America. And Toyota officials last week issued yet another recall, this time for the automaker’s popular Prius hybrid and other hybrid vehicles for braking problems blamed on faulty software programming.
The latest recall comes in addition to the about 9 million vehicles across eight model lines Toyota officials have recalled already worldwide – including about 2.3 million vehicles in the United States. The Japanese automaker has recalled all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe.
Toyota officials say the combined recall efforts could cost the company about $2 billion. Toyota is the world’s largest manufacturer of automobiles and recently overtook bankrupted General Motors as the auto industry’s top seller.
Louisiana Senate Initiates Chinese Drywall Protection
April 27, 2010 – The Louisiana Senate yesterday unanimously approved a measure preventing insurance companies from acting against homes or businesses with Chinese drywall installed.
The measure, Senate Bill 595, was introduced by Sen. Julie Quinn (R – Metairie) and met with rapid approval after having been contested during a committee hearing last week. The bill seeks to prevent insurance companies from increasing homeowners or commercial property insurance premiums, canceling insurance policies or refusing to renew insurance policies based on whether or not homes or commercial properties contain drywall manufactured in China.
The measure defines Chinese drywall as drywall manufactured in China before Jan. 1, 2010. Senate Bill 595 now goes to the Louisiana House of Representatives for consideration in the House Insurance Committee. More than any other state, Louisiana has had thousands of homes equipped with defective drywall manufactured in China, much of which was installed during massive rebuilding efforts after Hurricane Katrina devastated New Orleans and others Gulf Coast cities in 2005.
Officials for the U.S. Department of Housing and Urban Development and the U.S. Consumer Product Safety Commission recently issued an official report recommending homeowners remove all traces of Chinese drywall and replace all electrical wiring and components, gas piping, fire-suppression systems and any smoke alarms or carbon monoxide detectors. The preventive, yet very costly, maintenance is designed to protect homes against potentially corrosive compounds found in thousands of U.S. homes equipped with Chinese drywall.
A recent federal study of 51 U.S. homes equipped with drywall manufactured in China indicates a “strong” link between in-home corrosion and drywall contents. Investigators from the U.S. Consumer Product Safety Commission with the help of Chinese officials recently conducted an indoor air study of dozens of homes recently equipped with drywall manufactured in China. Researchers concluded there is merit to the thousands of complaints the federal agency has received from U.S. homeowners.
Studies indicate hydrogen sulfide gas emitted by contaminated drywall is the primary culprit in corroding copper and silver in homes equipped with Chinese drywall. Researchers also discovered elevated levels of formaldehyde in newer homes – whether or not they had Chinese drywall. Modern cabinetry and carpeting emit low levels of formaldehyde, according to researchers. Although formaldehyde and hydrogen sulfide gas amounts detected were too low to pose safety risks, federal investigators suspect a combination of them and other compounds commonly found in homes potentially might be harmful to structures and public health.
A more recent federal study showed various drywall samples manufactured in China emitted the most reactive hydrogen sulfide with some producing 100 times more of the potentially corrosive substance than drywall from other nations. Although the study discovered several acceptable samples of drywall manufactured in China, samples produced in China during 2005 and 2006 generally fared the worst against non-Chinese products. Samples of drywall manufactured in China in 2009 generally tested much better than earlier batches.
But even among samples of Chinese drywall judged unacceptable, the likelihood of damage is relatively remote. About 80 percent of samples of all kinds of drywall produced no potentially dangerous bacterial growth, even among samples with elevated levels of hydrogen sulfide.
A recent report by the Associated Press indicates some 500 million pounds of Chinese gypsum board was imported to meet domestic construction demands – particularly between 2004 and 2008 when thousands of homes along the Gulf of Mexico were being rebuilt in the wake of four hurricanes slamming into Florida during a month-long stretch in 2004 and Hurricane Katrina and Hurricane Rita destroying large areas of New Orleans and other Gulf Coast communities in 2005.
Federal officials estimate about 100,000 homes in the United States contain Chinese drywall. The total cost of replacing the faulty drywall could reach $25 billion, according to the Towers Perrin consulting firm. Some Chinese drywall manufacturers have said their products are safe and suggested bad gypsum tainted only some of the materials shipped to the United States in recent years. Many homeowners have blamed the Chinese drywall for corroding their homes’ copper pipes, causing other property damage and making family members ill.
Weekend Tornadoes, Storms Kill 12 in Mississippi, Alabama
April 26, 2010 – A massive storm system moving through the Southeastern United States Saturday killed at least 12 people in two states and inflicted a great deal of damage across several states with Mississippi taking the brunt of the damage.
At least 10 people were reported killed and dozens more injured across 13 counties in central Mississippi Saturday, including an infant and two other children killed. State officials said five people were killed in Choctaw County, four in Yazoo County and another in Holmes County. The storm’s death toll might rise as rescue workers sift through rubble and damaged homes today. Another two deaths were reported in Alabama.
The tornado cut a swath of destruction up to a mile wide and some 50 miles in length as it tore through the central section of Mississippi and into neighboring Alabama. The tornado had sustained wind speeds of 160 mph and rated an F3 on the Fujita Scale, according to the National Weather Service.
The tornado was part of a larger storm system that spun off several twisters and destroyed hundreds of homes across the Southeast United States Saturday. Tornadoes also were reported in Arkansas, Louisiana and Tennessee, and the storm system damaged properties in Georgia and South Carolina as it followed a northwesterly course Saturday evening and into Sunday.
The deadly storms were the first to strike the Southeast this year and occurred during the nation’s peak tornado season. Tornadoes generally strike most often during the spring months and particularly in the tornado-prone states of Arkansas, Iowa, Kansas, Louisiana, Missouri, Nebraska and Texas, according to the National Weather Service.
On average, about 1,270 tornadoes touch down in the United States each year. A slightly below-normal 1,156 tornadoes were reported last year with 21 deaths attributed to the violent twisters. A tornado is a violently rotating column of air that extends from storm clouds to the ground ranked along the “Fujita Scale.”
An F0 tornado with wind speeds of between 40 mph and 72 mph is categorized as a “gale” tornado on the Fujita Scale capable of causing light damage to chimneys, snapping tree branches and causing minor damage to signs. An F1 tornado is a “moderate” storm as ranked by the Fujita Scale and would have wind speeds of up to 112 mph and is capable of damaging roofs, pushing vehicles off roadways and destroying small out buildings. An F2 tornado is considered “significant” with wind speeds of up to 157 mph and capable of toppling trees, destroying rooftops and mobile homes and creating deadly missiles from small objects.
An F3 tornado reaching wind speeds of up to 206 mph and is capable of downing wide swaths of trees and destroying multiple homes is considered a “severe” tornado on the Fujita Scale. An F4 tornado with wind speeds of up to 260 mph is considered to be “devastating” and is capable of completely leveling well-built homes, lifting other homes off their foundations and. An F5 tornado is considered an “incredible” tornado with wind speeds of up to 318 mph capable of sending car-sized missiles flying more than 100 yards. An F6 tornado with wind speeds of up to 379 mph is considered “inconceivable” and exists only on the Fujita Scale and cannot be discerned from an F5 tornado.
About 74 percent of all tornadoes reported between 1950 and 1994 were F0 or F1 twisters causing minimal amounts of damage, according to The Tornado Project. About 25 percent of tornadoes were F2 or F3 twisters, and only about 1 percent of tornadoes are the violently destructive and often deadly F4 and F5 twisters. Although F4 and F5 storms accounted for only 1 percent of reported tornadoes between 1950 and 1994, they inflicted about 67 percent of all deaths caused by tornadoes during the same time frame.
Ford Issues Safety Recall for More Than 33,000 Vehicles
April 23, 2010 – Officials for the Ford Motor Company have filed a recall notice to fix a possible safety defect in 33,256 automobiles and SUVs built this year.
The recall is for the 2010 Ford Fusion and Mercury Milan four-door sedans built at Ford’s Hermosillo, Mexico, factory between Dec. 11, 2009, through Feb. 3 of this year. Also recalled are some of the Ford Explorer and Mercury Mountaineer sport utility vehicles manufactured at Ford’s Louisville, Kentucky, factory from Dec. 15, 2009, through Feb. 3.
In an April 16 letter, Ford officials notified U.S. Highway Traffic Safety Administration officials that a potential safety defect with the reclining mechanisms on front seats might result in an injury to passengers during an accident. No known injuries have occurred as of April 14, and vehicle owners will begin receiving recall notices on April 30, according to Ford officials.
Ford’s quick notification to federal official might have arisen from recent troubles plaguing the auto industries top manufacturer, the Toyota Motor Corporation. Officials for the Toyota Motor Corporation on April 19 agreed to pay a $16.38 million federal fine without admitting fault regarding the automaker’s recent handling of safety issues that eventually spurred a massive, ongoing global vehicle recall.
Officials for the National Highway Traffic Safety Administration last month announced they are seeking a $16.38 million penalty to be paid by Toyota for allegedly delaying by at least four months any effort to notify the federal highway safety administration of known safety issues with several popular vehicle models. Officials for Toyota eventually recalled some 2.3 million vehicles in the United States in January to replace their gas pedals and ensure they cannot become “stuck” and cause a vehicle to accelerate out of control. The $16.38 million fine is the single largest ever levied on an automaker by the National Highway Traffic Safety Administration.
Although Toyota officials agreed to pay the fine, they did not admit any fault in the matter and this week announced yet another vehicle recall – this time for some 9,400 Lexus GX 460 SUVs manufactured this year and 600,000 of the company’s two-wheel-drive Sienna minivans manufactured from 1998 to 2010. The Lexus GX 460 recall was issued in the wake of a recent Consumer Reports’ assessment placing a “do not buy” recommendation after independent tests revealed potential problems with the vehicle’s stability-control system.
Toyota officials likely acted quickly on the stability-control problem with the Lexus GX460 after being accused of delaying recalls of known problems with other vehicles, which resulted in the $16.38 million fine after federal officials found evidence Toyota officials knew of the potential safety problem months before notifying federal law officials, per U.S. law.
“We now have proof that Toyota failed to live up to its legal obligations. Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families. U.S. Transportation Secretary Ray LaHood said when announcing the record $16.38 million fine last month.
Federal law requires automakers to notify federal safety regulators within five business days of identifying a potential safety defect in vehicles. Federal officials allege Toyota officials were aware of the potential problem with gas pedals no later than Sept. 29, 2009, when company officials sent documents detailing the problem and how to fix it to dealerships in Europe and Canada, according to the National Highway Traffic Safety Administration. Federal officials say the documents indicate Toyota officials were aware the problem existed in the United States, as well.
Although the $16.38 million fine for the faulty gas pedal problem is the maximum amount federal officials can levy for a single violation, other fines might be levied for other Toyota’s handling of other vehicle safety issues that were part of the automaker’s recent, massive recall efforts.
Officials for the National Highway Traffic and Safety Administration recently said they have received complaints of at least 52 deaths caused by sudden acceleration in Toyota vehicles since 2000. Toyota Motor Corporation officials recently recalled nearly 10 million vehicles worldwide to correct problems with vehicles suddenly accelerating and other problems.
Could the Right to Refuse Care Defeat Health Care Overhaul?
April 22, 2010 – With several states already challenging the recent health care overhaul package signed into law but not slated to take effect for several years – aside from several tax increases, the affirmed right of individuals to choose and refuse health care ultimately might defeat the legislative efforts, according to a recent Op-Ed published in the Washington Times on April 19.
Several states are challenging the legality of the federal government mandating individuals purchase health insurance or be penalized. And several others have enacted laws preventing the federal government from requiring residents to purchase health insurance. Federal regulative authority is limited to interstate commerce and not intrastate commerce, which is the process through which individuals obtain health insurance.
But, federal officials plan to create health insurance exchanges that cross state lines, which might enhance the federal government’s authority to force residents of various states to engage in interstate commerce through the purchase of health insurance. And the Supremacy Clause in the U.S. Constitution generally means state laws only can be more restrictive than federal laws, as is the case in states in which marijuana has been decriminalized or legalized for medicinal purposes.
Given the various Constitutional measures giving the federal government authority over states, individuals likely stand a greater chance of defeating the federal heath care law requiring individuals to purchase health insurance, according to Douglas G. Smith, who is an “adjunct scholar” at the American Enterprise Institute and a “scholar in residence” at the Loyola University Chicago School of Law.
Several precedent-setting judgments by the U.S. Supreme Court have affirmed the right of individuals to refuse health care or to refuse participation in the U.S. health care system, Smith argues. Citing the Cruzan v. Director, Missouri Department of Health, Smith says the Supreme Court ruled individuals have a “constitutional protected liberty interest” to refuse medical treatment. He also cited the Washington v. Harper ruling by the Supreme Court, which upheld the rights of prison inmates to refuse anti-psychotic medication, and the Parham v. J.R. case, in which the Supreme Court ruled children have the individual right to refuse medical treatment – even if their parents want them to have it.
Given the many rulings supporting an individual’s right to refuse a medical procedure, Smith contends individuals have a fundamental right to choose their course of health care – or none at all – without interference from the federal government. The mandate to purchase health insurance essentially violates individual liberty and freedom as affirmed by the Supreme Court, according to Smith.
Smith also debunked arguments made by proponents of the national health insurance mandate. Many proponents say the health insurance mandate is no different than the mandates to purchase auto insurance in almost every state. But Smith notes driving is a court-affirmed privilege and not a right, nor do all citizens need to drive. Many can use public transportation or other means to get around, and many people in large metropolitan centers, such as New York City, do not own cars or drive.
Another argument made by health insurance-mandate proponents is the fact Congress has the authority to levy taxes, which they claim gives Congress the authority to mandate individuals purchase health insurance. But Smith counters their argument, saying a mandate is an “unprecedented provision” that ultimately forces individuals to purchase a product from a private company, which receives the funds and not the government, as is the case with an actual tax.
And, if the federal government is allowed to force individuals to purchase health insurance, Smith argues Congress would have the authority to demand individuals purchase other products, such as a particular auto-manufacturer’s vehicle. But Smith says there is a strong likelihood of a successful Supreme Court challenge to the health insurance mandate for individuals.
Supreme Court Justice John Paul Stevens is retiring, and Smith suggests the Senate confirmation hearings for his successor likely will include a great deal of discussion regarding the constitutionality of the individual health insurance mandate. Smith also anticipates a “wave of litigation” filed by individuals following the current legal challenges offered by states. Because individuals have a long-affirmed right to choose whether or not they will participate in the nation’s health care system, Smith concludes a legal challenge from an individual likely would stand a much better chance of having the Supreme Court rule against the health insurance mandate and strike down the primary provision of the recent national health care overhaul.
GEICO Drops Voice Actor for Attack on Tea Party
April 21, 2010 – Taking exception to unfounded reports of Tea Party members allegedly hurling racist and homophobic remarks at members of Congress during the recent health care overhaul vote, a voice-over actor was fired by the GEICO insurance company for leaving a politically incorrect voice message after recently calling Tea Party headquarters.
Actor Lance Baxter, also known as “D.C. Douglas,” admits he phoned Tea Party headquarters, known as “FreedomWorks,” last month and left a message asking how many “mentally retarded” people work for the Tea Party and suggested a Tea Party member committing murder is inevitable. Baxter’s message asked how the Tea Party would respond when – not “if “ – a Tea Party member murders someone. FreedomWorks officials made the message available to anyone via the Internet on April 14.
“I just need to know what the percentages of people [working for FreedomWorks] who are mentally retarded,” Baxter said in the voicemail message. He also demanded to know: “… what your plans are for when one of your members actually kills somebody.”
Baxter admitted leaving the offensive message and said he did so after news reports alleged Tea Party members shouted homophobic slurs to openly gay Congressman Barney Frank and made racist remarks aimed at Congressman John Lewis, who is a member of the Congressional Black Caucus, as they made their way to the House of Representatives to vote on the massive health care overhaul bill on March 20.
Although accused of hurling racial and homophobic epithets and even allegedly spitting on a member of Congress, no actual proof of any such antics have been provided by any media outlets. Congressman Heath Shuler had been quoted as saying he overheard the offensive remarks while walking with members of the Congressional Black Caucus but later recanted when pressed by a reporter. The Associated Press later ran a correction, which states: “Rep. Heath Shuler is denying a report that he heard racial slurs yelled from a crowd of angry health care protesters outside the U.S. Capitol.”
Tea Party organizers and supporters have suggested any racial slurs or other offensive remarks more likely were made by political activists opposed to the Tea Party movement and planted among Tea Party protestors in order to make the Tea Party appear racist and homophobic.
Supporting the contention of Tea Party organizers is the case of Jason Levin, an Oregon teacher opposed to the Tea Party movement. Levin recently created a Website entitled “CrashtheTeaParty.org” and encouraged others to infiltrate local Tea Party protests scheduled on April 15 and act “outlandishly” in order to make the Tea Party appear to be comprised of unruly societal element. Levin since has been placed on a paid leave by the school for which he is employed while school officials investigate whether or not Levin was on the job or otherwise illegally used school resources when he created the subversive Website targeting political opponents.
Also corroborating Tea Party organizers’ claims of innocence is the case of a Colorado liberal extremist who last year admitted guilt in vandalizing a Colorado Democratic Party office in Denver. Liberal propaganda site ThinkProgress.org on Aug. 25, 2009, blamed the vandalism on opponents of the recently enacted national health care overhaul and quoted Colorado Democratic Party Chairwoman Pat Waak saying: “Clearly there’s been an effort on the other side to stir up hate.”
A day later, on Aug. 26, 2009, the Denver Post published a story indicating former Colorado Democratic Party campaign worker Maurice Schwenkler – a transgendered anarchist also known as “Ariel Attack” – was being held on a criminal mischief charge and was one of two people suspected of vandalizing the Democratic Party headquarters. Schwenkler eventually admitted his guilt in causing about $11,000 in damages to the Democratic Party office in an ill-fated attempt to deflect blame onto Republicans and others opposing the health care overhaul.
With Schwenkler’s extremism a matter of court record and in light of Levin’s more recent efforts to falsely demonize a movement opposed to his political views, conservative commentator Andrew Breitbart, owner of the “BigGovernment” Website, recently offered to donate $10,000 to the United Negro College Fund if anyone can provide tangible proof of Tea Party protestors making racial remarks during the March 20 protest or if Congressman Lewis can pass a lie-detector test regarding his claims of racial slurs leveled at him.
Thus far, Breitbart has had no takers – not even Lance Baxter.
Feds: 40,000 Americans Stranded in the U.K.
April 20, 2010 – Federal officials yesterday announced an estimated 40,000 U.S. citizens are stranded in the United Kingdom after several international flights were cancelled due to the fallout from the massive ash cloud arising from an Icelandic volcano.
U.S. Ambassador to Britain, Louis Susman, yesterday informed White House officials some 40,000 U.S. citizens are trying to return to the United States but have been thwarted by cancelled flights due to the massive ash cloud. Some displaced U.S. citizens are running out of prescription medications and don’t have anywhere to stay, Susman told White House staffers. Even President Barack Obama had to cancel plans to fly to Poland Sunday to attend the state funeral of Poland President Lech Kaczynski, who died in a plane crash on April 10 along with his wife, Maria, and several others.
With so many people stranded in foreign nations while the massive ash cloud makes it way over Europe and other areas of the globe, the benefits of purchasing travel insurance are becoming more apparent.
“Anyone considering an expensive, pre-paid vacation should seriously consider travel insurance,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the Insurance Information Institute. “It provides important financial protection in the event you need to cancel your trip, the tour operator goes bankrupt, you get seriously injured or you suffer an emergency while traveling.”
A comprehensive travel insurance policy will reimburse for nonrefundable airline tickets and other expenses if forced to cancel a trip due to an unexpected family illness, injury, severe weather or other perils listed in the policy.
“Most travel insurance plans sold in the United States provides24-hour emergency travel services that come in handy when travelers are faced with unexpected situations such as severe weather,” said Dan McGinnity, a member of the U.S. Travel Insurance Association. “Some travel insurance providers even help their clients rebook cancelled flights, make new travel arrangements and coordinate ground transportation and lodging.”
Specific travel-related coverage can be purchased individually or bundled together as a package. There are five types of travel insurance coverage.
Trip cancellation insurance covers pre-paid nonrefundable expenses up to policy limits if forced to cancel a trip due to sickness, a death in the family or other types of disasters listed in the policy, a hurricane, or even an accident on the way to the airport. Trip cancellation coverage insurance reimburses policyholders if their cruise lines or tour operators go out of business.
Trip interruption insurance reimburses policyholders if they or an immediate family member become ill or die or if any misfortune listed in the policy forces an early return home. Bad weather, airline strikes and terrorist attacks are among the many potential “misfortunes” typically covered by trip interruption insurance. Most policies also reimburse for the unused portion of a vacation.
Baggage loss insurance reimburses for lost, stolen or damaged personal items. Insurance Information Institute officials advise policyholders review their policies to know which property isn’t covered and if any personal property could exceed the coverage limits allowed. Homeowners insurance also might cover many of those items, making additional insurance needless.
Emergency medical assistance and evacuation insurance provides medical coverage for travelers. It would cover costs for being airlifted to a hospital or to stay in a foreign hospital for a prolonged period of time. It also provides coverage if policyholders become seriously ill or injured and need to be flown to a better medical facility than is available where they are vacationing.
Report: Auto Insurers to Seek Reimbursement from Toyota
April 20, 2010 – Auto insurance providers who have paid out claims caused by recalled Toyota vehicles likely will be reimbursed by the automaker, and some vehicle owners might get a refund on deductibles, the Associated Press reported today.
Several of the largest auto insurance companies in the United States are looking over prior auto insurance claims involving Toyota Motor Corporation vehicles accelerating out of control, including Allstate, Geico and State Farm, according to the Associated Press report. Toyota officials recently recalled more than 9 million vehicles for various problems, including sudden acceleration, braking problems and problems with traction control systems on various vehicles.
The subrogation clause of insurance contracts give insurance companies the right to pursue legal remedies after paying insurance claims. The auto insurers can recoup damages arising from claims paid due to faulty Toyota vehicles, but policyholders would be entitled to at least a partial reimbursement of deductible amounts paid, the Associated Press reported.
The potential disbursements to auto insurance companies is just one of many financial troubles Toyota faces over its recent vehicle recall efforts.
Toyota officials yesterday agreed to pay a $16.38 million federal fine regarding its handling of vehicle defects. And dozens of class action lawsuits have been filed regarding the recently falling values of used Toyota vehicles totaling a potential $3 billion in liabilities for the world’s largest automaker. The class action suits are in addition to existing lawsuits for legal liability in the dozens of accidents and deaths attributed to faulty Toyota vehicles in recent years.
Attorneys representing disgruntled Toyota owners are accusing company officials of deliberately ignoring reports of safety and mechanical issues with various models. The plaintiffs contend delays in correcting known problems have accelerated the loss of value for recalled Toyota models, according to the litigants. Attorneys cited recent devaluations of popular Toyota Corolla and Sequoia models, which Kelley Blue Book officials recently depreciated by up to $750 in light of the recall efforts, the Associated Press reported.
Officials for the National Highway Traffic and Safety Administration recently said they have received complaints of at least 52 deaths caused by sudden acceleration in Toyota vehicles since 2000. Toyota Motor Corporation officials recently recalled nearly 10 million vehicles worldwide to correct problems with vehicles suddenly accelerating and other problems.
The first vehicle recall issued last year was to fix floor mat problems blamed for causing some vehicles to accelerate suddenly. When that fix failed to fully address safety issues, Toyota issued another recall of several popular models, including the Camry and Corolla, to replace gas pedals in millions more vehicles in China, Europe and North America. And Toyota officials last week issued yet another recall, this time for the automaker’s popular Prius hybrid and other hybrid vehicles for braking problems blamed on faulty software programming.
The latest recall comes in addition to the about 9 million vehicles across eight model lines Toyota officials have recalled already worldwide – including about 2.3 million vehicles in the United States. The Japanese automaker has recalled all Camry models manufactured from 2007 to 2010 as well as 2009 through current-year models Corolla, Matrix and the RAV4. Also recalled are the 2005 through 2010 Avalon, the 2008 through 2010 Sequoia and the 2010 Highlander. The recall covers about 9 million vehicles sold in North America, China and Europe.
Toyota officials say the combined recall efforts could cost the company about $2 billion. Toyota is the world’s largest manufacturer of automobiles and recently overtook bankrupted General Motors as the auto industry’s top seller.
Toyota Agrees to $16.38 Million Fine; Recalls More Vehicles
April 19, 2010 – Officials for the Toyota Motor Corporation today agreed to pay a $16.38 million federal fine without admitting fault regarding the automaker’s recent handling of safety issues that eventually spurred a massive, ongoing global vehicle recall.
Officials for the National Highway Traffic Safety Administration last month announced they are seeking a $16.38 million penalty to be paid by Toyota for allegedly delaying by at least four months any effort to notify the federal highway safety administration of known safety issues with several popular vehicle models. Officials for Toyota eventually recalled some 2.3 million vehicles in the United States in January to replace their gas pedals and ensure they cannot become “stuck” and cause a vehicle to accelerate out of control. The $16.38 million fine is the single largest ever levied on an automaker by the National Highway Traffic Safety Administration.
Although Toyota officials agreed to pay the fine, they did not admit any fault in the matter and today announced yet another vehicle recall – this time for some 9,400 Lexus GX 460 SUVs manufactured this year and 600,000 of the company’s two-wheel-drive Sienna minivans manufactured from 1998 to 2010. The Lexus GX 460 recall was issued in the wake of a recent Consumer Reports’ assessment placing a “do not buy” recommendation after independent tests revealed potential problems with the vehicle’s stability-control system.
Toyota officials likely acted quickly on the stability-control problem with the Lexus GX460 after being accused of delaying recalls of known problems with other vehicles, which resulted in the $16.38 million fine after federal officials found evidence Toyota officials knew of the potential safety problem months before notifying federal law officials, per U.S. law.
“We now have proof that Toyota failed to live up to its legal obligations. Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families. U.S. Transportation Secretary Ray LaHood said when announcing the record $16.38 million fine last month.
Federal law requires automakers to notify federal safety regulators within five business days of identifying a potential safety defect in vehicles. Federal officials allege Toyota officials were aware of the potential problem with gas pedals no later than Sept. 29, 2009, when company officials sent documents detailing the problem and how to fix it to dealerships in Europe and Canada, according to the National Highway Traffic Safety Administration. Federal officials say the documents indicate Toyota officials were aware the problem existed in the United States, as well.
Although the $16.38 million fine for the faulty gas pedal problem is the maximum amount federal officials can levy for a single violation, other fines might be levied for other Toyota’s handling of other vehicle safety issues that were part of the automaker’s recent, massive recall efforts.
Officials for the National Highway Traffic and Safety Administration recently said they have received complaints of at least 52 deaths caused by sudden acceleration in Toyota vehicles since 2000. Toyota Motor Corporation officials recently recalled nearly 10 million vehicles worldwide to correct problems with vehicles suddenly accelerating and other problems.
National Flood Insurance Program, COBRA Subsidy Temporarily Extended
April 19, 2010 – Federal programs providing flood insurance for homes in flood zones, health insurance for the unemployed and unemployment benefits were given yet another temporary extension set to begin expiring at the end of May.
President Barack Obama last week signed into law a bill providing funding for temporary extensions of the National Flood Insurance Program, COBRA health insurance subsidy for unemployed Americans and unemployment benefits, all of which expired earlier this month while members of Congress chose to recess for several weeks. The Congressional Budget Office estimated the program extensions will cost U.S. taxpayers $18.2 billion. The National Flood Insurance Program extension ends on May 31 as the traditional hurricane season begins anew. The unemployment benefits and COBRA health subsidies were extended until June 2.
While the National Flood Insurance Program was suspended, no new flood insurance policies could be written, nor could existing policies be renewed. But policyholders could continue to file claims and receive compensation. Many Americans also will lose their unemployment benefits and health insurance after Senate Democrats chose to recess recently instead of taking up the measures.
The U.S. Senate recessed on March 26 without approving a measure extending the federal COBRA health insurance subsidy for the unemployed, which expired on March 31. Funding for the federal unemployment benefits extension for unemployed Americans using up their initial six months of unemployment expired on April 3, affecting an estimated 1.2 million Americans. The $787 billion federal stimulus package approved last year allocated funds to help unemployed Americans continue their health insurance benefits through the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA), which pays about 65 percent of health insurance premiums to help Americans who lost their jobs due to the recent economic downturn maintain the group health insurance coverage they had while employed.
American families who recently lost their primary incomes due to unemployment have seen their average monthly health insurance benefits payments rise from about $389 per month while employed to $1,111 per month if choosing to continue them through COBRA, according to the non-profit Families USA organization. A monthly health insurance premium of $1,111 uses up about 83 percent of the average monthly unemployment take-home benefits of about $1,332, according to Families USA.
The National Flood Insurance Program officially expired at midnight on March 28. The National Flood Insurance Program provides up to $250,000 in flood insurance coverage for homes and other properties located in federally designated flood plains. The federal program insures about 5.6 million homes in the United States. While the program was lapsed, current policyholders could continue to file and be reimbursed for claims, but people purchasing homes in designated flood plains weren’t able to close on their new homes until the program was reinstated and flood insurance purchased.
The National Flood Insurance Program initially expired a year ago, but instead of enacting permanent changes, Congressional leaders several times have chosen to simply temporarily extend the program in its current form while debating controversial changes to the nation’s health care system. Federal officials have extended the debt-riddled program’s deadline several times in lieu of enacting permanent changes. Lawmakers are divided on how to sufficiently fund the program and don’t agree on proposals to add coverage for wind damages to the National Flood Insurance Program.
More States Challenge Federal Health Care Law
April 15, 2010 – A Georgia state official this week declared the Peach State won’t participate in a proposed federal “high-risk” health insurance exchange after officials for 5 more states last week joined 13 states mounting a formal legal challenge to the recently enacted federal health care overhaul.
Georgia Insurance Commissioner John Oxendine on April 12 told television interviewer Neil Cavuto he has sent a letter to U.S. Health and Human Services Secretary Kathleen Sebelius informing her Georgia will not participate in proposed health insurance exchanges through which U.S. citizens with existing health and medical problems would be forced to purchase health insurance coverage per the provisions of the recently enacted federal health care overhaul of the nation’s $2.5 trillion-a-year heath care industry. Forcing an estimated 31 million American citizens currently lacking health insurance coverage was a cornerstone of the health care legislation recently approved by Senate and House Democrats and signed into law by President Barack Obama despite bipartisan opposition in Congress.
Oxendine says forcing Georgia to participate in the planned high-risk health insurance pools likely would prove overly burdensome on Georgia taxpayers and the state government.
“The bottom line is, this is a federal law. It’s a federal program, and they’re wanting the state to implement it,” Oxendine told Cavuto. “It’s supposed to be in place by July 1 of this year. And I’m not going to create a high-risk pool that might burden taxpayers.”
Oxendine said the federal law does not provide adequate program funding at a time when states are struggling to fund existing programs.
“We’re laying off schoolteachers, laying off police officers in Georgia, just like a lot of states. We can’t take another unfunded mandate from Washington. And I’m not going to subject our treasury to it. We’re not going to help them put this bill in place,” Oxendine explained. “Georgia is a sovereign state. There is nothing that forces us to do it. We don’t have to do it. They’re asking us to implement this, and we’re simply saying, ‘no.’”
Officials in a majority of states would seem to agree. Local lawmakers in up to 38 states have enacted or are working on legislation preventing the federal government from requiring state residents to purchase health insurance. Officials in Virginia recently voted to exempt state residents from being forced to purchase health insurance coverage or pay fines. And another five states recently joined a formal legal challenge to federal authority over health care regulation.
Attorneys general representing Arizona, Indiana, Mississippi, Nevada and North Dakota last week joined the lawsuit initiated in the state of Florida by Florida Attorney General Bill McCollum. The suit seeks to have a court declare it illegal for the federal government to dictate health policy to sovereign states and to order federal agencies to not enforce provisions of the recently enacted federal health care law, which would create “high-risk” health insurance pools and force most U.S. citizens to purchase health insurance. Attorneys general for Alabama, Colorado, Idaho, Louisiana, Michigan, Nebraska, Pennsylvania, South Dakota, South Carolina, Texas, Utah, and Washington already are party to the Florida lawsuit.
National Flood Insurance Program Extension Fails in Senate
April 14, 2010 – Senate Democrats failed to muster the votes necessary to advance a $9.2 billion federal spending measure providing temporary funding for the expired National Flood Insurance Program as well as extensions for unemployment benefits and health insurance subsidies.
Democrats had only 58 of the 60- votes necessary to advance the legislation, which they failed to enact before taking a weeks-long recess at the end of March, allowing the National Flood Insurance Program, federal COBRA health insurance subsidy and unemployment benefits extensions to expire while the Senate took a vacation. Senate Republicans want the $9 billion to come from existing federal stimulus funds that have not been allocated, but Senate and House Democrats favor adding the $9 billion to the nation’s growing record deficit rather than tapping stimulus funds. Senate Democrats intend to retroactively fund the programs and will attempt another vote soon, Reuters reported today.
While the National Flood Insurance Program is suspended, no new flood insurance policies can be written, nor can existing policies be renewed unless the federal program is reinstated with funding. But policyholders can continue to file claims and receive compensation. Many Americans also will lose their unemployment benefits and health insurance after Senate Democrats chose to recess recently instead of taking up the measures.
The U.S. Senate recessed on March 26 without approving a measure extending the federal COBRA health insurance subsidy for the unemployed, which expired on March 31. The Senate resumed session yesterday and is expected to approve extending the federal health insurance subsidy through the end of the year sometime during the coming weeks. Funding for the federal unemployment benefits extension for unemployed Americans using up their initial six months of unemployment expired on April 3, affecting an estimated 1.2 million Americans.
The federal COBRA health insurance subsidy program helps workers who lost their jobs due to the recent economic downturn maintain their prior group health insurance coverage by paying about 65 percent of the premiums. The COBRA subsidy initially lasted 9 months, but with the United States facing its worst job market in decades, an estimated 7 million unemployed Americans would have begun losing their subsidy on Feb. 28.
The $787 billion federal stimulus package approved last year allocated funds to help unemployed Americans continue their health insurance benefits through the Consolidated Omnibus Budget Reconciliation Act of 1986 – popularly known as COBRA.
American families who recently lost their primary incomes due to unemployment have seen their average monthly health insurance benefits payments rise from about $389 per month while employed to $1,111 per month if choosing to continue them through COBRA, according to the non-profit Families USA organization. A monthly health insurance premium of $1,111 uses up about 83 percent of the average monthly unemployment take-home benefits of about $1,332, according to Families USA.
The National Flood Insurance Program officially expired at midnight on March 28. The National Flood Insurance Program provides up to $250,000 in flood insurance coverage for homes and other properties located in federally designated flood plains. The National Flood Insurance Program provides coverage for about 5.6 million homes in the United States, none of which lose their coverage due to the lapse in the federal program. The lapse in the National Flood Insurance Program means no new policies can be written nor can any existing policies be renewed until federal lawmakers either extend it in its current form or approve long-lasting changes after Congress reconvenes in April.
The National Flood Insurance Program provides flood insurance protection for homes located in designated flood plains across the country. While the program is lapsed, current policyholders can continue to file and be reimbursed for claims, but people purchasing homes in designated flood plains won’t be able to close on their new homes until the program is reinstated and flood insurance is purchased.
The National Flood Insurance Program initially expired a year ago, but instead of enacting permanent changes, Congressional leaders several times have chosen to simply temporarily extend the program in its current form while debating controversial changes to the nation’s health care system. Federal officials have extended the debt-riddled program’s deadline several times in lieu of enacting permanent changes. Lawmakers are divided on how to sufficiently fund the program and don’t agree on proposals to add coverage for wind damages to the National Flood Insurance Program.