Allstate's Earnings Surge

As reported by TheStreet.com on July 20, 2005, Allstate Insurance's second-quarter earnings surged a much-better-than-expected 11.1% from a year ago, boosted by strong results in auto and homeowner insurance and a smaller catastrophe loss. The stock added $2 to $64.

Allstate reported earnings of $1.15 billion in the quarter, compared with $1.03 billion a year ago. The company said property-liability underwriting income was $994 million in the second quarter, up 11.9% from a year ago, reflecting higher premiums, fewer losses in the auto and homeowner lines, and favorable prior-year reserve re-estimates.

Thus, Allstate Insurance made over a billion dollars in 3 months.  Yet Allstate spent a lot of money running commercials on popular television shows like “24" warning people about fraud.  I agree that any fraud is bad and should be pursued.  But is it really such an issue that Allstate would spend millions of dollars to warn people about it?  Or, might Allstate have ulterior motives such as planting the seeds of doubt among people who may serve on a jury one day?  Would Allstate benefit if jurors sitting on personal injury cases wonder from the time they walk into a courtroom whether the personal injury victim was a fraud?  Is this a good business practices or manipulating juries?

These issues are real and must be addressed by anyone that is seeking to pursue recovery for damages in a personal injury lawsuit.  If you have any questions about these issues, please contact me.

Sincerely,

Michael L. Neff
The Law Offices of Michael L. Neff, P.C.
Two Ravinia Drive
Suite 1570
Atlanta, Georgia 30346
404-531-9700
MNEFF@MLNLAW.COM
WWW.MLNLAW.COM - A law firm whose mission is to provide aggressive, competent and caring representation to personal injury victims.

Watch out for cell phone drivers

Most Atlanta drivers have seen people driving on 285 who are clearly distracted by their cell phone conversations. In fact a USA Today article notes a study that concluded that drivers on cell phone are four times more likely to have crashes that result in personal injury than people who pull over to have their conversations.

The study, released by the Insurance Institute for Highway Safety, also suggests that even using a hands-free device will not necessarily improve driving safety.  It studied 456 drivers in Perth, Western Australia, who owned or  used mobile phones and had been in a crash that put them in a hospital emergency room between April 2002 and July 2004.

Weather was not an issue in the crashes, with nearly 75% occurring in clear conditions. About nine out of 10 crashes involved other vehicles and more than half of the injured drivers said their crashes happened within 10 minutes of the start of the trip.

With more motorists using cell phones on the road than ever, some lawmakers are searching for ways to reducing driver distraction. Talking on handheld cell phones while driving is against the law in New York, New Jersey and the District of Columbia. Starting October 1, 2005, Connecticut drivers will have to use hands-free devices.  Also some cities, such as Chicago, Santa Fe, and Brookline, Mass., require hands-free devices in automobiles.  It is rumored that Atlanta is looking into passing a similar law. The Governors Highway Safety Association urges state lawmakers to refrain from enacting handheld cell phone bans because it feels it sends the wrong message to drivers that as long as they are hands-free, they are safe.

Some employers looking to avoid liability for car wreck have started policies requiring employees not drive and talk. This is a smart move because if an employee is driving and conducting business on a cell phone, the liability for a car wreck can be imputed to the employer.

A survey released earlier this year by the National Highway Traffic Safety Administration found that 8% of drivers, or 1.2 million people, were using cell phones during daylight hours last year. It represented a 50% increase since 2002. Thus, while it may be tempting to try to be more productive by making a few business calls when driving, doing so can put people’s health at risk.

Michael L. Neff
The Law Offices of Michael L. Neff, P.C.
Two Ravinia Drive Suite 1570
Atlanta, Georgia 30346
404-531-9700
MNEFF@MLNLAW.COM
WWW.MLNLAW.COM - A law firm whose mission is to provide aggressive, competent and caring representation to personal injury victims.

Georgia Family Cases Clog Courts

    Georgia Supreme Court Chief Justice Leah Ward Sears wrote an article in the April 13, 2005 Fulton County Daily Report, a legal newspaper.  Her articles was entitled: Look at the Numbers: Families Are in Crisis.  In her article, Justice Sears notes that divorce rates have skyrocketed over the past 40 years.

    Justice Sears notes that in 2003, there were 355,000 cases filed in Georgia's Superior Courts.  Of those 132,000 were criminal cases leaving 233,000 civil cases.  Of the 233,000 civil cases, 65% of them are family cases.  The remaining 81,500 cases consist primarily of business disputes, property disputes, and personal injury lawsuits. 

    This explosion of divorce and family cases affects personal injury victims because cases take longer be reached.  Judge Sears points this out first to advocate that people make a greater commitment to marriage and raising their children.  Secondarily, she notes that additional Superior Court Judges would help handle this backlog.

    Consider this family law issue the next time someone at a cocktail party is blaming slow courts on "too many personal injury lawsuits".
Sincerely,
Michael L. Neff
The Law Offices of Michael L. Neff, P.C.
Two Ravinia Drive
Suite 1570
Atlanta, Georgia 30346
404-531-9700
MNEFF@MLNLAW.COM
 WWW.MLNLAW.COM - A law firm whose mission is to provide aggressive, competent and caring representation to personal injury victims.