The mutual fund industry has staked its claim to the confidence of investors by establishing a tradition of plain dealing, honest accounting and overall trustworthiness. If there were sharks on Wall Street, they didn’t swim in the mutual fund sea.
The mutual fund industry has staked its claim to the confidence of investors by establishing a tradition of plain dealing, honest accounting and overall trustworthiness. If there were sharks on Wall Street, they didn’t swim in the mutual fund sea.
That image changed early September, 2003 when the attorney general of New York State announced a $40 million settlement on insider trading charges involving a hedge fund and several mutual funds. Further revelations brought the impact of Wall Street's recent reforms into question and cast the fund industry in a distinctly negative light.
The initial charges centered around the hedge fund Canary Capital Partners and Bank of America’s Nation Funds and Bank One’s Banc One Funds. Among the alleged improper activities is the charge of “back-dating†the Net Asset Value, or NAV, of shares for select customers at the expense of others.
The pricing of NAV is supposed to take place at the close of every session. An investor who can back-date his shares can take advantage of a news event after the close that will impact the NAV the next day. Buying a technology mutual fund after a big announcement by Intel or Microsoft at 4:15 p.m. means that the customer will benefit from the likely upward move the next morning.
There were other shenanigans, all of which is letting air out of the balloon of trust in the fund companies. Right now the New York AG is still investigating Bank of America and Bank One along with Strong Capital Management and Janus Capital Group, the Vanguard Group and Invesco funds. Illinois regulators are looking into the practices of Samaritan Asset Management Services. The financial regulator in Massachusetts is probing Prudential Securities and associated fund companies. The SEC has sent out letters requesting information to Merrill Lynch, Goldman Sachs and Fidelity Investments.
That covers a big chunk of the mutual fund industry. If you have money in a fund from one of those companies, this is not necessarily the time to bail out. But you should invest with your eyes open.
For ages we’ve questioned the priorities of mutual fund managers, and the whole brokerage business for that matter. Our question: Are they in it for you, the investor, or for themselves and the string-pullers in the boardroom?
Last year we ran a piece on a fund manager who was eased out of his position because he failed to put all of his cash to work in stocks and warned of the pitfalls of the industry’s standard “buy and hold†strategy during a bear market.
We drew three lessons from the story:
First, with a few exceptions mutual funds and the entire brokerage industry are devoted first and foremost to making money for the company. If the customer makes money, too, that’s fine. The buy and hold strategy is the prime reason why millions of investors have lost much of their retirement savings from 2000-2002.
Next, if you invest in mutual funds, you’re usually better off using index-tracking funds that simply follow the S&P 500, NASDAQ or DOW and are less likely to be manipulated by management.
Finally, take control of your financial destiny by setting up a model portfolio. Closely monitor it, and jump in and out of the market as the trends come and go.
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Article Source: http://EzineArticles.com/?expert=Larry_Potter
Thursday 17 February 2011
How Worker's Compensation Works in Chicago
The Worker's Compensation System is a sort of compromise between employers, employees, and the government. Its goals are to provide employees with a stable and consistent pool of funds from which they can get money if they are injured on the job. It has done well in this regard.
The Worker's Compensation System is a sort of compromise between employers, employees, and the government. Its goals are to provide employees with a stable and consistent pool of funds from which they can get money if they are injured on the job. It has done well in this regard. Unlike the common tort system, where payouts are often unpredictable, almost everyone who is injured on the job while in the state of Illinois, hired in the state of Illinois, or are working for a company based in Illinois can get their health and employment loss related costs covered. In this respect, Worker's Compensation, or Workman's Comp. as it is often referred to, is a great benefit to employees.
But like all compromises, there must be a payoff for the other side as well, in this case employers. In return for agreeing to not fight most on the job injury claims, employers get the benefit of limiting the payouts for injured workers to health expenses and economic losses such as not being able to work as a result of the injury. Ostensibly, the compromise cuts out any emotional damage payments as well as most punitive damages. These two damages often varied quite wildly, depending in large part upon how sympathetic the injured person appeared to the jury at trial, and were less dependent upon the actual costs or negligent harms that were committed. So, as you can imagine, these damages were hard to predict for an employer going into the trial.
Additionally, and maybe most importantly, employers got to opt out of the trial system, and now all on the job injury claims are handled through arbitration. Arbitration is less formal way of deciding a case in which the parties just sit down in front of a person, often a former judge, who decides the case more quickly and thus more cost-efficiently. This means that employers now get relatively predictable and, on average, smaller payouts for injuries on the job, so they can factor these costs into their annual budget.
In Chicago, the way in which the system typically plays, is that an injured employee first files a claim. If there is no problem from the employer's point of view, the money is simply paid out quickly and easily. But, if there is a dispute with their employer about their right to receive benefits under Workers Comp. then the case goes to arbitration. Next, the parties will typically both bring an attorney to their arbitration hearing, the location of which is determined by a number of fact specific factors. There the arbitrator will listen to each side and make a determination on the case. If the employee wins, he gets his or her costs covered, and if the employer wins, then there is no payout.
Articles Source - Free Articles
The Worker's Compensation System is a sort of compromise between employers, employees, and the government. Its goals are to provide employees with a stable and consistent pool of funds from which they can get money if they are injured on the job. It has done well in this regard. Unlike the common tort system, where payouts are often unpredictable, almost everyone who is injured on the job while in the state of Illinois, hired in the state of Illinois, or are working for a company based in Illinois can get their health and employment loss related costs covered. In this respect, Worker's Compensation, or Workman's Comp. as it is often referred to, is a great benefit to employees.
But like all compromises, there must be a payoff for the other side as well, in this case employers. In return for agreeing to not fight most on the job injury claims, employers get the benefit of limiting the payouts for injured workers to health expenses and economic losses such as not being able to work as a result of the injury. Ostensibly, the compromise cuts out any emotional damage payments as well as most punitive damages. These two damages often varied quite wildly, depending in large part upon how sympathetic the injured person appeared to the jury at trial, and were less dependent upon the actual costs or negligent harms that were committed. So, as you can imagine, these damages were hard to predict for an employer going into the trial.
Additionally, and maybe most importantly, employers got to opt out of the trial system, and now all on the job injury claims are handled through arbitration. Arbitration is less formal way of deciding a case in which the parties just sit down in front of a person, often a former judge, who decides the case more quickly and thus more cost-efficiently. This means that employers now get relatively predictable and, on average, smaller payouts for injuries on the job, so they can factor these costs into their annual budget.
In Chicago, the way in which the system typically plays, is that an injured employee first files a claim. If there is no problem from the employer's point of view, the money is simply paid out quickly and easily. But, if there is a dispute with their employer about their right to receive benefits under Workers Comp. then the case goes to arbitration. Next, the parties will typically both bring an attorney to their arbitration hearing, the location of which is determined by a number of fact specific factors. There the arbitrator will listen to each side and make a determination on the case. If the employee wins, he gets his or her costs covered, and if the employer wins, then there is no payout.
Articles Source - Free Articles
New rules affecting Illinois Workers' Compensation Lawyers
What is your hand worth? According to the Illinois Workers' Compensation Commission, the maximum value of a hand lost at work (for a worker who makes the average Illinois annual salary of $42,754.40) is $168,551, whereas that same hand would be worth $156,218 in Iowa and $143,885 in Nebraska.
In Illinois workers' compensation law, the value of human body parts is determined by an actuarial analysis of probabilities and future values of injuries. The values are continually adjusted to keep up with inflation and changes in the economy. The Illinois Workers' Compensation Commission uses the fixed values of body parts in order to strike a fair balance between compensating workers without driving insurance companies into financial ruin.
Workers' Compensation Overview
Workers' compensation is one of the first examples of tort reform enacted in the United States. Before workers' compensation law, people hurt at work were faced with two unpleasant alternatives: (1) they could either file lawsuits against their employers or (2) they could suck it up and pay for their own injuries.
Now, employers in every state but Texas are required to hold workers' compensation insurance. When people are injured at work, it is almost as easy to file claims within their states' workers' compensation systems, as it is to file insurance claims after car accidents.
In order to ensure that injured workers, employers and insurance companies are all treated fairly, the Illinois Workers' Compensation Commission continually makes changes to the Illinois Workers' Compensation Act.
Below is an overview of the most recent set of changes to the Illinois Workers' Compensation Act, which took place in July of 2005.
Fraud Statute Established
Any party involved in committing fraud relating to a workers' compensation dispute is guilty of a Class 4 felony and must pay complete restitution in addition to a fine. In addition, those who knowingly receive benefits by making false workers' compensation claims can be liable for either three times the value of benefits wrongfully obtained or twice the value of coverage attempted, plus attorney fees required to bring the claim.
Penalties Increased for Uninsured Employers
Employers who fail to purchase workers' compensation insurance are guilty of creating an immediate and serious danger to public health. As a consequence, a work stop order can be imposed, requiring the cessation of all business operations until the employer obtains proof of workers' compensation insurance.
Furthermore, a knowing failure of an employer to provide workers' compensation insurance coverage is considered a Class 4 felony, and each day's violation constitutes a separate offense.
Medical Fee Schedule Established The Commission has established a medical fee schedule, setting maximum medical fees that employers are liable for. The maximum fees are 90% of the 80th percentile of charges in a certain geographic area. If a worker's medical bills are less than what is established by the fee schedule, then the employee will receive full workers' compensation coverage for those bills.
Benefits Increased and Changed
The Illinois Workers' Compensation Commission sets maximum compensation for specific work injuries. As of February of 2006, the maximum compensation that a worker can receive as the result of a death injury is the greater of $500,000 or 25 years worth of salary. This is higher than the previous maximum (the greater of $250,000 or 20 years).
Fixed maximum benefits for specific injuries can be found at: http://findgreatlawyers.com/HotTopics/WorkersComp/15ChangestoAct.htm.
Expedited Hearings When an injured worker is not receiving any compensation for an injury from his or her employer, that worker can request an expedited hearing. An employer can also request an expedited hearing if a worker continues receiving compensation until a judgment is rendered and the employee has been released back to work.
Utilization Review Established
If an employer has reason to believe that an inured workers' medical treatment was unnecessary or unreasonable, the employer can have the case evaluated at a utilization review. In order to qualify for a utilization review, employers must register with the Department of Financial and Professional Regulation once every two years.
Happy Employees, Employers and Insurance Companies
The Illinois Workers' Compensation Commission strives to reach fair results for all parties involved in work injuries. Illinois workers compensation laws benefit employees by providing fast compensation for injuries without the stress of filing lawsuits. Employers benefit from workers' compensation insurance coverage, because it eliminates the risk of lawsuits brought by injured employees. Even insurance companies benefit from workers' compensation law, because it sets maximum rates, which reduces the chances of unreasonable payouts. Furthermore, when insurance premiums paid by employers are invested at favorable rates, insurance companies can actually stand to gain the most from the Illinois Workers' Compensation system.
By continually adjusting the Illinois Workers' Compensation Act, the Illinois Workers' Compensation Commission is reaching fair results for all those involved in work injuries.
Articles Source - Free Articles
In Illinois workers' compensation law, the value of human body parts is determined by an actuarial analysis of probabilities and future values of injuries. The values are continually adjusted to keep up with inflation and changes in the economy. The Illinois Workers' Compensation Commission uses the fixed values of body parts in order to strike a fair balance between compensating workers without driving insurance companies into financial ruin.
Workers' Compensation Overview
Workers' compensation is one of the first examples of tort reform enacted in the United States. Before workers' compensation law, people hurt at work were faced with two unpleasant alternatives: (1) they could either file lawsuits against their employers or (2) they could suck it up and pay for their own injuries.
Now, employers in every state but Texas are required to hold workers' compensation insurance. When people are injured at work, it is almost as easy to file claims within their states' workers' compensation systems, as it is to file insurance claims after car accidents.
In order to ensure that injured workers, employers and insurance companies are all treated fairly, the Illinois Workers' Compensation Commission continually makes changes to the Illinois Workers' Compensation Act.
Below is an overview of the most recent set of changes to the Illinois Workers' Compensation Act, which took place in July of 2005.
Fraud Statute Established
Any party involved in committing fraud relating to a workers' compensation dispute is guilty of a Class 4 felony and must pay complete restitution in addition to a fine. In addition, those who knowingly receive benefits by making false workers' compensation claims can be liable for either three times the value of benefits wrongfully obtained or twice the value of coverage attempted, plus attorney fees required to bring the claim.
Penalties Increased for Uninsured Employers
Employers who fail to purchase workers' compensation insurance are guilty of creating an immediate and serious danger to public health. As a consequence, a work stop order can be imposed, requiring the cessation of all business operations until the employer obtains proof of workers' compensation insurance.
Furthermore, a knowing failure of an employer to provide workers' compensation insurance coverage is considered a Class 4 felony, and each day's violation constitutes a separate offense.
Medical Fee Schedule Established The Commission has established a medical fee schedule, setting maximum medical fees that employers are liable for. The maximum fees are 90% of the 80th percentile of charges in a certain geographic area. If a worker's medical bills are less than what is established by the fee schedule, then the employee will receive full workers' compensation coverage for those bills.
Benefits Increased and Changed
The Illinois Workers' Compensation Commission sets maximum compensation for specific work injuries. As of February of 2006, the maximum compensation that a worker can receive as the result of a death injury is the greater of $500,000 or 25 years worth of salary. This is higher than the previous maximum (the greater of $250,000 or 20 years).
Fixed maximum benefits for specific injuries can be found at: http://findgreatlawyers.com/HotTopics/WorkersComp/15ChangestoAct.htm.
Expedited Hearings When an injured worker is not receiving any compensation for an injury from his or her employer, that worker can request an expedited hearing. An employer can also request an expedited hearing if a worker continues receiving compensation until a judgment is rendered and the employee has been released back to work.
Utilization Review Established
If an employer has reason to believe that an inured workers' medical treatment was unnecessary or unreasonable, the employer can have the case evaluated at a utilization review. In order to qualify for a utilization review, employers must register with the Department of Financial and Professional Regulation once every two years.
Happy Employees, Employers and Insurance Companies
The Illinois Workers' Compensation Commission strives to reach fair results for all parties involved in work injuries. Illinois workers compensation laws benefit employees by providing fast compensation for injuries without the stress of filing lawsuits. Employers benefit from workers' compensation insurance coverage, because it eliminates the risk of lawsuits brought by injured employees. Even insurance companies benefit from workers' compensation law, because it sets maximum rates, which reduces the chances of unreasonable payouts. Furthermore, when insurance premiums paid by employers are invested at favorable rates, insurance companies can actually stand to gain the most from the Illinois Workers' Compensation system.
By continually adjusting the Illinois Workers' Compensation Act, the Illinois Workers' Compensation Commission is reaching fair results for all those involved in work injuries.
Articles Source - Free Articles
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