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Friday, 11 May 2012

Rain forces revision in Talladega schedule

Rain on Thursday at Talladega Superspeedway forced the cancelation of two scheduled practices for the Nationwide Series and a revision of the Friday schedule in preparation for the Aaron's 312.

The 45- and 50-minute sessions erased Thursday will be combined into one 1-hour, 35-minute practice beginning at 12:10 p.m. ET Friday. Nationwide qualifying, originally scheduled for 12:10 p.m. ET Friday, has been canceled, with the lineup being set per the rule book. This is only the second time in 21 races at Talladega that qualifying has been canceled.

With no practice prior to the cancelation of time trials, the lineup will be set starting with 2012 owners' points, putting Elliott Sadler (pole position) and Ricky Stenhouse Jr. on the front row. Blake Koch is the only driver who will not make the 43-car field.

* Talladega: Race Lineup | * Nationwide Series: Owner Standings | Driver Standings

The Aaron's 312 is scheduled for 3:15 p.m. ET Saturday.

Friday's Sprint Cup Series events will not be affected by the Nationwide revision. Cup cars are scheduled to be on the track for a 45-minute opening practice at 2 p.m. ET, with a 60-minute Happy Hour session set for 3:30 p.m. ET.

Cup qualifying is scheduled for 12:10 p.m. ET Saturday with race coverage of the Aaron's 499 beginning at 1 p.m. ET Sunday.

?Racing Resources and Services -- Statistics ?Racing Recall? contributed to this report.


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Thursday, 10 May 2012

No. 01 hauler catches fire at race shop

GAFFNEY, S.C. -- JD Motorsports, owner of the No. 01 Chevrolet in the Nationwide Series, suffered a total loss to its hauler on Sunday evening when it caught fire at their race shop.

There were no injuries and the tractor was detached and pulled away before suffering any damages. However, their hauler loaded with equipment, some uniforms, back-up parts, engines, shocks and springs for its operation was a total loss.

The only good part was the primary and backup No. 01 Chevrolets for this weekend's race at Talladega Superspeedway were not on the hauler. The race shop itself didn't suffer any damage, as well.

"The fire department told me the fire started near the refrigerator on the hauler," team owner Johnny Davis said. "That's powered by propane, like everyone else's is on these haulers. It started around 7 p.m. ET and we were able to detach the tractor before anything happened to it and get that out of the way.

"The hauler itself is a total loss; almost everything on there is burnt beyond use. Luckily, the fine folks at Robby Benton Racing stepped up and will let us use their hauler for this weekend's race. We were also fortunate enough to have Black's Tire help us out to get to race this weekend, too. On behalf of everyone on my team, we'd all like to thank them for their help.

"Our spirits are down here a little bit at JD Motorsports, we just didn't need something like this right now with all we're trying to do to go racing. Our spirits might be down, but not broken -- we're going to be racing at Talladega."


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Victory Lane: Kurt Busch

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In the Draft: Allgaier has two-wheeled adventure

Justin Allgaier and his team were frustrated by a tight-handlind car at Richmond, where he finished 15th. (Autostock) Justin Allgaier and his team were frustrated by a tight-handlind car at Richmond, where he finished 15th. (Autostock) By Justin Allgaier, Special to NASCAR.COM
May 01, 2012 11:33 AM, EDT

Hey there! How's everyone doing? It has been a busy couple of weeks for me since I last checked in. Even with the off-weekend, I still have managed to stay occupied. Last weekend I had an absolute blast going to Road Atlanta with Arai, the folks who make my helmets, to check out the Big Kahuna AMA SuperBike Nationals. While I was there, I even got to hop on the back of one of the bikes with Jason Pridmore for a lap around the track. What an awesome experience! I think we got up close to 170 mph while we were going down that back straightaway. It makes you put a lot of trust in the guy doing the steering. Jason is a great rider and a good guy, so it was a lot of fun. I really appreciate him showing me the ropes. It kind of gave me the itch to start shopping for a motorcycle. Not too sure how Ashley feels about that though ...

* All Access: Allgaier rides motorcycles in Atlanta

Justin Allgaier (Autostock)

Because Richmond is one of the closer race tracks we go to, I decided to drive our motor home to the track instead of flying with the team. I called Blake Koch and his wife, Shannon, and we decided to caravan north to Richmond. It really isn't a bad drive, and we were in no real hurry to get there, which was nice. Thursday morning, I had the awesome opportunity to visit Hanover High School to award one of its students with a night at the race track as a guest of Brandt. The kids participated in a contest on behalf of Nutrients for Life, an organization that joined Brandt on the car for the race, to design a car around the theme "Racing to Feed the World." A few hundred students submitted entries from all around the Richmond area, and I got to pick the winner, which was really cool. It's awesome to see the creativity these kids put into their submissions. The winner, a student named Hunter, was so excited when I announced his name in class that morning. He got to bring his entire family to hang out with the Brandt folks in their suite. He is a great kid, and his family was wonderful. Congratulations again, Hunter. It was great to meet you.

Unfortunately, our race did not turn out as we had hoped it would on Friday night. After qualifying, I felt very confident about our chances to get to get the team into Victory Lane. We just struggled with a tight-handling car all night. I was frustrated, I know [crew chief] Jimmy [Elledge] was frustrated, and the guys were frustrated. Jimmy kept making adjustments every time we came in, trying to get me turning better in the corners. It just seemed like everything we did helped for a few laps, but then the car would just get tight again. The good thing about a race like that though is they are the ones you usually learn the most from. Hopefully, we can do that, and it will help all of our Turner Motorsports teammates as well. The other good news is that we moved up two spots in the points standings, which was definitely encouraging. I want to keep that trend going for sure.

After Ashley and I got back from Richmond on Saturday afternoon, we decided to take it easy the rest of the weekend. I'm actually in Nashville with my team right now doing some testing before we head to Talladega for this weekend's race. I'm excited to get there and do some more superspeedway racing. I'm one of those guys who doesn't mind the two-car tandem, and I think it's something you will see, especially at the end. I certainly will be looking for my teammates out there in the draft and hope we can work together. You just never know what is going to happen at a track like Talladega, especially in the closing laps of the race. James Buescher proved that at Daytona in February.

I hope to see some of you guys at the race track this weekend. I will be taking part in the autograph session on Friday afternoon, so come on out and say hello. Until next time, take care everyone!

In the Draft with Justin Allgaier is a twice-monthly blog and the opinions expressed are solely those of the writer. Follow him and the No. 31 Brandt Racing team on Twitter: @J_Allgaier, @BrandtRacing or @No31TurnerNNS.


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All Access with Justin Allgaier: Richmond

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Hamlin misses pit stall under caution

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Hard hit ends Yeley's night

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Wednesday, 9 May 2012

Hamlin misses pit stall under caution

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Nationwide Insurance announces new Dash4Cash program

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Sound Off: Travis Pastrana

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Inside Track: Race Day

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Final Laps: Kurt Busch wins in dramatic fashion

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Notes: Brother act puts Busch careers back on track

Kurt the driver and Kyle the owner celebrate in Victory Lane. (Getty Images) Kurt the driver and Kyle the owner celebrate in Victory Lane. (Getty Images) By NASCAR Wire Service
April 28, 2012 8:43 PM, EDT

RICHMOND, Va. -- At the end of the 2011 season, brothers Kurt and Kyle Busch both had mountains to climb, and doubtless they drew strength from each other as they began the ascent together.

Driving relentlessly for two heart-stopping laps at the end of Friday night's Virginia 529 College Savings 250 at Richmond International Raceway, Kurt Busch held off charging Denny Hamlin in a milestone victory for the driver and his car owner, Kyle Busch.

Kurt Busch drives the KBM No. 54 to victory at Richmond. (Getty Images)

The win was the first for Kyle Busch Motorsports, which made its entry into the Nationwide Series this season with one car, the No. 54 Toyota, shared by the two brothers.

The collaboration has brought Kurt and Kyle closer together. In previous years, with Kyle running extensive schedules in all three of NASCAR's top series, their lives had less chance to intersect, even at the race track.

As Kurt and Kyle recover from missteps that waylaid their careers last season, they have begun the journey together.

This past November, in a fit of pique, Kyle wrecked Camping World Truck Series title contender Ron Hornaday under caution at Texas. Kyle was parked for the rest of the weekend, but the consequences were more far-reaching than that.

At the behest of his sponsor, M&M's, and Sprint Cup employer, Joe Gibbs Racing, Kyle is embargoed from racing Trucks, even though he owns his own NCWTS team, and even though his cash flow would be demonstrably better if he were behind the wheel.

Kyle no longer drives the No. 18 Gibbs Toyota in the Nationwide Series -- the car in which he won 38 of his series-record 51 races. To maintain his Nationwide presence, Kyle expanded his own team to that series and hired his brother as co-driver.

Kurt's career needed a boost, too. After one of the seemingly omnipresent amateur cameras caught his rant against TV pit reporter Jerry Punch in the garage during the season finale at Homestead, Kurt parted with Penske Racing by mutual agreement at the end of the 2011 season, giving up a Chase-worthy ride in the No. 22 Dodge.

But there was an upside to the adversity. The brothers had a chance to work together for the first time in their respective careers, and on Friday night, their collaboration bore fruit.

After the race, Kyle leaned into the car and spoke emotionally to his brother. They hugged -- more than once.

"He just couldn't believe that we got this car to Victory Lane," Kurt said. "You could just feel his hand trembling [thinking], 'I'm an owner -- I don't know what to think,' but he knows he could have drove this car [Friday] as well.

"It's an interesting family feeling right now, because I've raced for guys like [Roger] Penske, guys like [Jack] Roush. A guy named Busch owns this race car, and it's a little bit different feel."

Pastrana shows promise in Nationwide debut

X Games superstar Travis Pastrana made his belated Nationwide debut in Friday night's race, and the driver of the No. 99 Toyota showed fans at Richmond that he was a quick study when it came to driving stock cars at the national level.

For much of the night Pastrana stayed on the lead lap, running in the top 20, until a pit-road speeding penalty on a green-flag stop late in the race dropped him to 22nd at the finish, two laps down.

"The result wasn't what we wanted, but to be perfectly honest, I felt pretty good out there," Pastrana said after the race. "We weren't a top-10 car, but for a while we were closing in on what could have been a top-15 before I messed up the pits.

"I felt really good. We passed [Brad] Keselowski at one point and I was like, 'That's awesome.' To go around and keep moving forward there was really cool."

* Caraviello: For Pastrana, right now it's about the effort | Reactions: Pastrana comments post-race

Allmendinger, Cup sponsor pay it forward

When AJ Allmendinger was a 16-year-old go-kart driver, IndyCar star Paul Tracy gave his career a boost. Now Allmendinger is doing the same thing for another young driver.

Allmendinger has inaugurated a karting scholarship that got a boost of its own when his Sprint Cup sponsor at Penske Racing, Shell/Pennzoil, opted to support the program. On Friday at Richmond, Allmendinger introduced 13-year-old Florida driver Kyle Kirkwood as the first recipient of the scholarship.

"Paul Tracy had a karting team when I was 16 or 17 years old, trying to figure out what I was going to do," Allmendinger said. "At that point, it was amazing to me to have such a superstar in the CART Series wanting me to be a part of his race team.

"That was something that I took to heart and knew that it was something that, once I got to the right time in my life, I wanted to do the same thing. To me, karting is the most pure form of racing there is, whether you're 6, 7 years old or on up through the ranks or somebody like me that's still trying to relive my old glory days and still race go-karts.

"That's something that was always important to me. That's why I wanted to start the karting scholarship. I wanted to do this the last couple of years, and I felt like this was the right time."


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Tuesday, 8 May 2012

Final Laps: Kurt Busch wins in dramatic fashion

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Nationwide GarageCam Replay: Richmond

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Hard hit ends Yeley's night

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All Access with Justin Allgaier

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Wallace matures while getting back on track

It took two months, but Steve Wallace did it his way and it landed him an 11th-place finish at Richmond. (Autostock) It took two months, but Steve Wallace did it his way and it landed him an 11th-place finish at Richmond. (Autostock) By David Caraviello, NASCAR.COM
May 02, 2012 9:48 AM, EDT

Steve Wallace's return to the Nationwide Series last weekend was roughly two months in the making. Shortly after the Daytona 500, his shutdown Rusty Wallace Racing team bought a car from Roush Fenway Racing. The shorthanded crew that remained at RWR -- essentially Steve Wallace, crew chief Blake Bainbridge and a few others -- took possession of the vehicle about the time the rest of the industry headed to Las Vegas. They spent the next seven weeks double-checking every part and retightening every bolt.

The effort paid off Friday night in a clean, 11th-place run at Richmond International Raceway. It was Wallace's first event since his team was put into mothballs prior to the season because of sponsorship losses. It was a big night for more reasons than one -- not only was it a first step back for an organization that had placed two cars in the top 10 in the final Nationwide points last season but also it brought a great deal of personal satisfaction for Wallace, whose famous father let his son quarterback the effort.

Steve Wallace (Autostock)

"I'll tell you what, Friday night was, as weird as this sounds, the smoothest race weekend we've had since we've been open," said Wallace, who with help from JTG/Daugherty Racing's crew chief and pit crew recorded his best finish since placing fourth at Montreal last summer. "It was just me working on the car, and my crew chief Blake Bainbridge. We had about two months to look over everything twice, all the nuts and bolts, and make sure everything was prepared. When we got to Richmond, we didn't finish where we wanted, but we ran good all night. ... It was a really smooth weekend for us, for sure."

RWR had been on hiatus since January, when the team shut down its racing operations after sponsor 5-hour Energy left to back a Sprint Cup program at Michael Waltrip Racing. The organization's other driver, Michael Annett, was released and eventually latched on at Richard Petty Motorsports. It was all a jarring wake-up call for Wallace, 24, who had driven cars fielded by his father's team for his entire Nationwide career. Suddenly, that career appeared in jeopardy.

"It was wild," he said. "You hear the talk of, hey, our finances aren't right, we need to have a sponsor, 5-Hour Energy's leaving, the Michael Annett deal blew up. That was really a tough pill to swallow for sure when they told all the employees we're shutting down. Then you've got guys coming in and out of the gates buying parts and pieces. It's just like vultures. When we made that announcement, there were literally vultures here at the shop buying parts and pieces. That was the part that was the big eye-opener to me -- holy moly, this is really happening."

Wallace raced his late model a few times during the winter, but in February he felt the itch to get back on the track for real. Although Rusty Wallace was supportive of and enthusiastic about the effort, he left it up to Steve Wallace and Bainbridge to make it happen. Rusty Wallace helped by providing some contacts and assistance that eventually led to the LoanMax sponsorship for the Richmond race. But preparing the vehicle, finding a crew, handling the logistics -- all of that was left to his son, who did it shoulder-to-shoulder with Bainbridge and gained a dose of perspective in the process.

"When I mean it's the two of us, I mean it's the two of us," Steve Wallace said. "It's me, my sister, my brother and about two other people who work at the shop now. When it comes to putting the car together and building it and setting it up and stuff, it's just me and Blake doing it and another one of my friends. It's definitely a small effort, but in all honesty, I feel like we've all learned from it. Especially me. I really feel like it's helped me mature a ton. It was just definitely such a big upset having to shut the team down and having to let everyone go and the whole nine yards. And then when you've got to restart your rebuilding process and do it single-handedly by yourself, with a couple of friends, it's very humbling, that's for sure. It makes you want it so much more."

And it makes you learn what you can do without. As devastating as the process of shutting down was, Wallace said, those who stayed to manage the remains of the operation realized they had too much. "Our overhead was huge," he said. There were too many parts they didn't need, too much money spent in the wrong areas.

"I feel like everybody learned a lot from it, especially me, that's for sure," he added. "But just being able to sit back, to reorganize the race shop, reorganize the offices, clean stuff out, get rid of stuff -- we needed to do that really bad. But we kind of never did, because we were all working hard and trying to go racing and the whole nine yards. But just literally to stop and hit the timeout button was really good for us. It was just a bummer having to do what we did."

The comeback is taking place at a much smaller scale, with Wallace and Bainbridge working late into the night. Monday afternoon, Wallace was cleaning the car and going down checklists in the hope of racing May 20 at Iowa Speedway. He learned how to paint the car during the hiatus. The return to Nationwide on Friday night was meaningful not just because they were back at the race track but because he and Bainbridge had invested so much effort to get there. The Steve Wallace who climbed into the car at Richmond seems different from the one who climbed out of the vehicle after his last event, at Homestead-Miami in November.

"You talk about the best feeling of your life, it was last Friday night," he said. "We literally worked and worked and worked for two months now, like crazy. Just an insane amount of work. Staying here 'til 10 o'clock every single night. And it felt awesome to get to the race track and see everybody. People were happy we were back. For me and Blake Bainbridge, it just felt good. At the end of the day, we did everything we needed to do. We ran good, people saw me race, we didn't tear anything up, everything went smooth. That's all we could ask for."

Now the task is to get to the next one. Wallace hopes to run between 10 and 15 Nationwide races this season, but he's essentially doing this on his own, and he's one of many searching for funding. The team has circled Iowa, Richmond, Bristol and the inaugural Nationwide event at Indianapolis Motor Speedway as potential targets, but everything hinges on finding sponsorship.

"We're working real hard on trying to find a sponsor, just like everybody is," Wallace said. "We're working really hard here at the shop, getting this car turned around. We're going to try and race Iowa, which is in three weeks, but we obviously don't have a sponsor for that yet. When it's just the two of us here, we have to act like we are going to race it, so if we do get something, we'll be prepared and have enough time to get the car finished up. We're planning on going to Iowa. We might go, we might not. I'm not sure. But that's what we're shooting for."

In the immediate aftermath of his team shutting down in January, Wallace fretted about his career path, especially since he didn't have sponsorship to bring to another organization. RWR might have made its first few steps back, but the concern is clearly still there, and the future is still uncertain. One surprising run at Richmond, as personally satisfying as it may have been, doesn't wash all the worry away.

"It still is a big eye-opener for me," Wallace said. "I don't know where my career goes from here. The team's shut down, really, and we're working really hard at making a comeback. That's why we ran Richmond. But that was definitely a very scary part, for sure, because if you don't have a sponsor, you don't race. ... I didn't have anything to bring to anybody. So yeah, it was really, really scary. And it still is scary. I just have to hope and pray we find a little sponsorship here and there to get this going."


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Sound Off: Danica Patrick and Elliott Sadler

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Monday, 7 May 2012

Post-Race Reactions: Virginia 529 College Savings 250

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Post-Race Reactions: Virginia 529 College Savings 250

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Video: Revealing nest egg fees

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What buyers and sellers need to know about comps

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5 dumb ways to spend money on your kids

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Who's hot, who's not? Wildest weather locales

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Sunday, 6 May 2012

Muni bonds: Pros, cons of investing options

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Good to take Social Security and still work?

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What if your tax refund is wrong?

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Nationwide Insurance announces new Dash4Cash program


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Post-Race Reactions: Virginia 529 College Savings 250

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All Access with Justin Allgaier: Richmond

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Hamlin misses pit stall under caution

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Saturday, 5 May 2012

Post-Race Reactions: Virginia 529 College Savings 250

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Sound Off: Travis Pastrana

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Inside Track: Race Day

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Sound Off: Danica Patrick and Elliott Sadler

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In the Draft: Allgaier has two-wheeled adventure

Justin Allgaier and his team were frustrated by a tight-handlind car at Richmond, where he finished 15th. (Autostock) Justin Allgaier and his team were frustrated by a tight-handlind car at Richmond, where he finished 15th. (Autostock) By Justin Allgaier, Special to NASCAR.COM
May 01, 2012 11:33 AM, EDT

Hey there! How's everyone doing? It has been a busy couple of weeks for me since I last checked in. Even with the off-weekend, I still have managed to stay occupied. Last weekend I had an absolute blast going to Road Atlanta with Arai, the folks who make my helmets, to check out the Big Kahuna AMA SuperBike Nationals. While I was there, I even got to hop on the back of one of the bikes with Jason Pridmore for a lap around the track. What an awesome experience! I think we got up close to 170 mph while we were going down that back straightaway. It makes you put a lot of trust in the guy doing the steering. Jason is a great rider and a good guy, so it was a lot of fun. I really appreciate him showing me the ropes. It kind of gave me the itch to start shopping for a motorcycle. Not too sure how Ashley feels about that though ...

* All Access: Allgaier rides motorcycles in Atlanta

Justin Allgaier (Autostock)

Because Richmond is one of the closer race tracks we go to, I decided to drive our motor home to the track instead of flying with the team. I called Blake Koch and his wife, Shannon, and we decided to caravan north to Richmond. It really isn't a bad drive, and we were in no real hurry to get there, which was nice. Thursday morning, I had the awesome opportunity to visit Hanover High School to award one of its students with a night at the race track as a guest of Brandt. The kids participated in a contest on behalf of Nutrients for Life, an organization that joined Brandt on the car for the race, to design a car around the theme "Racing to Feed the World." A few hundred students submitted entries from all around the Richmond area, and I got to pick the winner, which was really cool. It's awesome to see the creativity these kids put into their submissions. The winner, a student named Hunter, was so excited when I announced his name in class that morning. He got to bring his entire family to hang out with the Brandt folks in their suite. He is a great kid, and his family was wonderful. Congratulations again, Hunter. It was great to meet you.

Unfortunately, our race did not turn out as we had hoped it would on Friday night. After qualifying, I felt very confident about our chances to get to get the team into Victory Lane. We just struggled with a tight-handling car all night. I was frustrated, I know [crew chief] Jimmy [Elledge] was frustrated, and the guys were frustrated. Jimmy kept making adjustments every time we came in, trying to get me turning better in the corners. It just seemed like everything we did helped for a few laps, but then the car would just get tight again. The good thing about a race like that though is they are the ones you usually learn the most from. Hopefully, we can do that, and it will help all of our Turner Motorsports teammates as well. The other good news is that we moved up two spots in the points standings, which was definitely encouraging. I want to keep that trend going for sure.

After Ashley and I got back from Richmond on Saturday afternoon, we decided to take it easy the rest of the weekend. I'm actually in Nashville with my team right now doing some testing before we head to Talladega for this weekend's race. I'm excited to get there and do some more superspeedway racing. I'm one of those guys who doesn't mind the two-car tandem, and I think it's something you will see, especially at the end. I certainly will be looking for my teammates out there in the draft and hope we can work together. You just never know what is going to happen at a track like Talladega, especially in the closing laps of the race. James Buescher proved that at Daytona in February.

I hope to see some of you guys at the race track this weekend. I will be taking part in the autograph session on Friday afternoon, so come on out and say hello. Until next time, take care everyone!

In the Draft with Justin Allgaier is a twice-monthly blog and the opinions expressed are solely those of the writer. Follow him and the No. 31 Brandt Racing team on Twitter: @J_Allgaier, @BrandtRacing or @No31TurnerNNS.


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Hard hit ends Yeley's night

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Friday, 4 May 2012

Wallace matures while getting back on track

It took two months, but Steve Wallace did it his way and it landed him an 11th-place finish at Richmond. (Autostock) It took two months, but Steve Wallace did it his way and it landed him an 11th-place finish at Richmond. (Autostock) By David Caraviello, NASCAR.COM
May 02, 2012 9:48 AM, EDT

Steve Wallace's return to the Nationwide Series last weekend was roughly two months in the making. Shortly after the Daytona 500, his shutdown Rusty Wallace Racing team bought a car from Roush Fenway Racing. The shorthanded crew that remained at RWR -- essentially Steve Wallace, crew chief Blake Bainbridge and a few others -- took possession of the vehicle about the time the rest of the industry headed to Las Vegas. They spent the next seven weeks double-checking every part and retightening every bolt.

The effort paid off Friday night in a clean, 11th-place run at Richmond International Raceway. It was Wallace's first event since his team was put into mothballs prior to the season because of sponsorship losses. It was a big night for more reasons than one -- not only was it a first step back for an organization that had placed two cars in the top 10 in the final Nationwide points last season but also it brought a great deal of personal satisfaction for Wallace, whose famous father let his son quarterback the effort.

Steve Wallace (Autostock)

"I'll tell you what, Friday night was, as weird as this sounds, the smoothest race weekend we've had since we've been open," said Wallace, who with help from JTG/Daugherty Racing's crew chief and pit crew recorded his best finish since placing fourth at Montreal last summer. "It was just me working on the car, and my crew chief Blake Bainbridge. We had about two months to look over everything twice, all the nuts and bolts, and make sure everything was prepared. When we got to Richmond, we didn't finish where we wanted, but we ran good all night. ... It was a really smooth weekend for us, for sure."

RWR had been on hiatus since January, when the team shut down its racing operations after sponsor 5-hour Energy left to back a Sprint Cup program at Michael Waltrip Racing. The organization's other driver, Michael Annett, was released and eventually latched on at Richard Petty Motorsports. It was all a jarring wake-up call for Wallace, 24, who had driven cars fielded by his father's team for his entire Nationwide career. Suddenly, that career appeared in jeopardy.

"It was wild," he said. "You hear the talk of, hey, our finances aren't right, we need to have a sponsor, 5-Hour Energy's leaving, the Michael Annett deal blew up. That was really a tough pill to swallow for sure when they told all the employees we're shutting down. Then you've got guys coming in and out of the gates buying parts and pieces. It's just like vultures. When we made that announcement, there were literally vultures here at the shop buying parts and pieces. That was the part that was the big eye-opener to me -- holy moly, this is really happening."

Wallace raced his late model a few times during the winter, but in February he felt the itch to get back on the track for real. Although Rusty Wallace was supportive of and enthusiastic about the effort, he left it up to Steve Wallace and Bainbridge to make it happen. Rusty Wallace helped by providing some contacts and assistance that eventually led to the LoanMax sponsorship for the Richmond race. But preparing the vehicle, finding a crew, handling the logistics -- all of that was left to his son, who did it shoulder-to-shoulder with Bainbridge and gained a dose of perspective in the process.

"When I mean it's the two of us, I mean it's the two of us," Steve Wallace said. "It's me, my sister, my brother and about two other people who work at the shop now. When it comes to putting the car together and building it and setting it up and stuff, it's just me and Blake doing it and another one of my friends. It's definitely a small effort, but in all honesty, I feel like we've all learned from it. Especially me. I really feel like it's helped me mature a ton. It was just definitely such a big upset having to shut the team down and having to let everyone go and the whole nine yards. And then when you've got to restart your rebuilding process and do it single-handedly by yourself, with a couple of friends, it's very humbling, that's for sure. It makes you want it so much more."

And it makes you learn what you can do without. As devastating as the process of shutting down was, Wallace said, those who stayed to manage the remains of the operation realized they had too much. "Our overhead was huge," he said. There were too many parts they didn't need, too much money spent in the wrong areas.

"I feel like everybody learned a lot from it, especially me, that's for sure," he added. "But just being able to sit back, to reorganize the race shop, reorganize the offices, clean stuff out, get rid of stuff -- we needed to do that really bad. But we kind of never did, because we were all working hard and trying to go racing and the whole nine yards. But just literally to stop and hit the timeout button was really good for us. It was just a bummer having to do what we did."

The comeback is taking place at a much smaller scale, with Wallace and Bainbridge working late into the night. Monday afternoon, Wallace was cleaning the car and going down checklists in the hope of racing May 20 at Iowa Speedway. He learned how to paint the car during the hiatus. The return to Nationwide on Friday night was meaningful not just because they were back at the race track but because he and Bainbridge had invested so much effort to get there. The Steve Wallace who climbed into the car at Richmond seems different from the one who climbed out of the vehicle after his last event, at Homestead-Miami in November.

"You talk about the best feeling of your life, it was last Friday night," he said. "We literally worked and worked and worked for two months now, like crazy. Just an insane amount of work. Staying here 'til 10 o'clock every single night. And it felt awesome to get to the race track and see everybody. People were happy we were back. For me and Blake Bainbridge, it just felt good. At the end of the day, we did everything we needed to do. We ran good, people saw me race, we didn't tear anything up, everything went smooth. That's all we could ask for."

Now the task is to get to the next one. Wallace hopes to run between 10 and 15 Nationwide races this season, but he's essentially doing this on his own, and he's one of many searching for funding. The team has circled Iowa, Richmond, Bristol and the inaugural Nationwide event at Indianapolis Motor Speedway as potential targets, but everything hinges on finding sponsorship.

"We're working real hard on trying to find a sponsor, just like everybody is," Wallace said. "We're working really hard here at the shop, getting this car turned around. We're going to try and race Iowa, which is in three weeks, but we obviously don't have a sponsor for that yet. When it's just the two of us here, we have to act like we are going to race it, so if we do get something, we'll be prepared and have enough time to get the car finished up. We're planning on going to Iowa. We might go, we might not. I'm not sure. But that's what we're shooting for."

In the immediate aftermath of his team shutting down in January, Wallace fretted about his career path, especially since he didn't have sponsorship to bring to another organization. RWR might have made its first few steps back, but the concern is clearly still there, and the future is still uncertain. One surprising run at Richmond, as personally satisfying as it may have been, doesn't wash all the worry away.

"It still is a big eye-opener for me," Wallace said. "I don't know where my career goes from here. The team's shut down, really, and we're working really hard at making a comeback. That's why we ran Richmond. But that was definitely a very scary part, for sure, because if you don't have a sponsor, you don't race. ... I didn't have anything to bring to anybody. So yeah, it was really, really scary. And it still is scary. I just have to hope and pray we find a little sponsorship here and there to get this going."


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Busch edges charging Hamlin for KBM's first win

Kurt Busch captured the first victory for his brother's team, holding on after contact from Denny Hamlin at Richmond. (Getty) Kurt Busch captured the first victory for his brother's team, holding on after contact from Denny Hamlin at Richmond. (Getty) By NASCAR Wire Service
April 30, 2012 10:13 AM, EDT

RICHMOND, Va. -- By the thinnest of margins, in a breathtaking finish that featured two cars sideways and side-by-side at the finish line, Kurt Busch beat Denny Hamlin to the checkered flag by .062 seconds to win Friday night's Virginia 529 College Savings 250 at Richmond International Raceway.

Busch delivered the first-ever Nationwide Series victory to the team owned by his brother, Kyle Busch. The win was Busch's fourth in the series and his first on a short track. Hamlin came up 2 feet short after a phenomenal drive from the rear of the field after a pit-road mistake.

Kurt Busch (Getty Images)

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Pole-sitter Kevin Harvick ran third, followed by defending series champion Ricky Stenhouse Jr. and Sam Hornish Jr. Elliott Sadler finished sixth to cling to the series points lead by two points over Stenhouse.

"To get KBM [Kyle Busch Motorsports] its first win -- this is unbelievable," Kurt Busch said in Victory Lane. "It's harder than you think, putting a program together. You think you can come in here and muscle your way to the top, but you have to think your way to the top."

Busch parted ways with Penske Racing at the end of last season and took a Sprint Cup job with James Finch's Phoenix Racing this year. He and Kyle are sharing driving duties in the No. 54 Monster Energy Toyota in the start-up Nationwide program.

"It was unbelievable racing with him," Busch said of Hamlin. "I was pacing myself and pacing myself, and -- boom! -- he came out of nowhere at the end."

For Kyle Busch, it was difficult to contain the excitement of the first victory with his own equipment.

"This is the most emotional I've ever been for a win," said Kyle, himself a prolific past winner in the No. 18 Toyota that Hamlin drove Saturday night. "Man, this is cool. When you're behind the wheel, it's a lot easier to do. When you're standing here watching the guy behind you close in on you ... Kurt ran him really tough, and then Denny ran us clean."

In a race dominated by Sprint Cup drivers Busch, Hamlin and Harvick -- and featuring the relentlessly promoted Nationwide debut of X Games gold medalist Travis Pastrana -- the most noteworthy story was the spectacular maiden voyage of 18-year-old Ryan Blaney, who finished seventh in his series debut.

Hurt by three slow pit stops, the last under green, Blaney otherwise would have been a likely contender for the victory in his first Nationwide race.

Hamlin likewise was a victim of a pit road mistake, but one of his own making.

Hamlin missed his pit stall under caution on Lap 117, restarted 24th on Lap 125 and drove up to the third position before pitting under the green flag on Lap 208.

Second soon after the cycle of pit stops, Hamlin harried Busch until the end of the race but ran out of time. Hamlin said he could have moved Busch on the final lap but preferred to have the race decided fairly.

"I could have moved him up and gotten him out of the groove, and it would have been over with," Hamlin said. "But Kyle's a teammate [at Joe Gibbs Racing] and [KBM general manager] Rick Ren and those guys have built a great program, so I wanted it to be fair.

"He won fair and square, and [I was] just one lap too late."

Despite a pit-road speeding penalty, Pastrana ran 22nd in his ballyhooed Nationwide debut. Danica Patrick came home 21st.

• Kurt Busch earned his fourth Nationwide Series victory in his 15th career start. • It was the first victory for Kyle Busch Motorsports in its seventh start. It became the fifth different team to win in 2012. • It was Kurt Busch's first win at Richmond in his first start there; three of his four Nationwide wins have come in his first start at a track. • Kurt Busch led three times for 68 laps, including the final 29. • It was the second victory of 2012 for Toyota. • Denny Hamlin (second) earned his fourth top-five finish at Richmond in his 12th start; he has top-10 finishes in his past three Nationwide starts. • Kevin Harvick (third) tied Mark Martin for the most top-five finishes at RIR with his 14th. • Kevin Harvick led 158 laps, the fourth time he led the most laps at RIR and the first time he failed to win after leading the most. • Ricky Stenhouse Jr. (fourth) has finished sixth or better in the past six races; it was his third top-five finish in the past four Richmond races. • Sam Hornish Jr. (fifth) picked up his best finish of 2012 and only his third career top-five finish. • Elliott Sadler (sixth) has top-10 finishes in all but one of the seven races this season. • Ryan Blaney (seventh) had the best finish by a driver making his or her debut on an oval since Joey Logano finished sixth at Dover in May 2008. • Michael Annett (eighth) had his best finish of the season and his sixth consecutive finish of 13th or better. • Travis Pastrana (22nd) was penalized for exiting the pits too fast on Lap 200 under green-flag pit stops.

?Racing Resources and Services -- Statistics ?Racing Recall?

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Victory Lane: Kurt Busch
Post-Race Reactions: Virginia 529 College Savings 250
Final Laps: Kurt Busch wins in dramatic fashion


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No. 01 hauler catches fire at race shop

GAFFNEY, S.C. -- JD Motorsports, owner of the No. 01 Chevrolet in the Nationwide Series, suffered a total loss to its hauler on Sunday evening when it caught fire at their race shop.

There were no injuries and the tractor was detached and pulled away before suffering any damages. However, their hauler loaded with equipment, some uniforms, back-up parts, engines, shocks and springs for its operation was a total loss.

The only good part was the primary and backup No. 01 Chevrolets for this weekend's race at Talladega Superspeedway were not on the hauler. The race shop itself didn't suffer any damage, as well.

"The fire department told me the fire started near the refrigerator on the hauler," team owner Johnny Davis said. "That's powered by propane, like everyone else's is on these haulers. It started around 7 p.m. ET and we were able to detach the tractor before anything happened to it and get that out of the way.

"The hauler itself is a total loss; almost everything on there is burnt beyond use. Luckily, the fine folks at Robby Benton Racing stepped up and will let us use their hauler for this weekend's race. We were also fortunate enough to have Black's Tire help us out to get to race this weekend, too. On behalf of everyone on my team, we'd all like to thank them for their help.

"Our spirits are down here a little bit at JD Motorsports, we just didn't need something like this right now with all we're trying to do to go racing. Our spirits might be down, but not broken -- we're going to be racing at Talladega."


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Notes: Brother act puts Busch careers back on track

Kurt the driver and Kyle the owner celebrate in Victory Lane. (Getty Images) Kurt the driver and Kyle the owner celebrate in Victory Lane. (Getty Images) By NASCAR Wire Service
April 28, 2012 8:43 PM, EDT

RICHMOND, Va. -- At the end of the 2011 season, brothers Kurt and Kyle Busch both had mountains to climb, and doubtless they drew strength from each other as they began the ascent together.

Driving relentlessly for two heart-stopping laps at the end of Friday night's Virginia 529 College Savings 250 at Richmond International Raceway, Kurt Busch held off charging Denny Hamlin in a milestone victory for the driver and his car owner, Kyle Busch.

Kurt Busch drives the KBM No. 54 to victory at Richmond. (Getty Images)

The win was the first for Kyle Busch Motorsports, which made its entry into the Nationwide Series this season with one car, the No. 54 Toyota, shared by the two brothers.

The collaboration has brought Kurt and Kyle closer together. In previous years, with Kyle running extensive schedules in all three of NASCAR's top series, their lives had less chance to intersect, even at the race track.

As Kurt and Kyle recover from missteps that waylaid their careers last season, they have begun the journey together.

This past November, in a fit of pique, Kyle wrecked Camping World Truck Series title contender Ron Hornaday under caution at Texas. Kyle was parked for the rest of the weekend, but the consequences were more far-reaching than that.

At the behest of his sponsor, M&M's, and Sprint Cup employer, Joe Gibbs Racing, Kyle is embargoed from racing Trucks, even though he owns his own NCWTS team, and even though his cash flow would be demonstrably better if he were behind the wheel.

Kyle no longer drives the No. 18 Gibbs Toyota in the Nationwide Series -- the car in which he won 38 of his series-record 51 races. To maintain his Nationwide presence, Kyle expanded his own team to that series and hired his brother as co-driver.

Kurt's career needed a boost, too. After one of the seemingly omnipresent amateur cameras caught his rant against TV pit reporter Jerry Punch in the garage during the season finale at Homestead, Kurt parted with Penske Racing by mutual agreement at the end of the 2011 season, giving up a Chase-worthy ride in the No. 22 Dodge.

But there was an upside to the adversity. The brothers had a chance to work together for the first time in their respective careers, and on Friday night, their collaboration bore fruit.

After the race, Kyle leaned into the car and spoke emotionally to his brother. They hugged -- more than once.

"He just couldn't believe that we got this car to Victory Lane," Kurt said. "You could just feel his hand trembling [thinking], 'I'm an owner -- I don't know what to think,' but he knows he could have drove this car [Friday] as well.

"It's an interesting family feeling right now, because I've raced for guys like [Roger] Penske, guys like [Jack] Roush. A guy named Busch owns this race car, and it's a little bit different feel."

Pastrana shows promise in Nationwide debut

X Games superstar Travis Pastrana made his belated Nationwide debut in Friday night's race, and the driver of the No. 99 Toyota showed fans at Richmond that he was a quick study when it came to driving stock cars at the national level.

For much of the night Pastrana stayed on the lead lap, running in the top 20, until a pit-road speeding penalty on a green-flag stop late in the race dropped him to 22nd at the finish, two laps down.

"The result wasn't what we wanted, but to be perfectly honest, I felt pretty good out there," Pastrana said after the race. "We weren't a top-10 car, but for a while we were closing in on what could have been a top-15 before I messed up the pits.

"I felt really good. We passed [Brad] Keselowski at one point and I was like, 'That's awesome.' To go around and keep moving forward there was really cool."

* Caraviello: For Pastrana, right now it's about the effort | Reactions: Pastrana comments post-race

Allmendinger, Cup sponsor pay it forward

When AJ Allmendinger was a 16-year-old go-kart driver, IndyCar star Paul Tracy gave his career a boost. Now Allmendinger is doing the same thing for another young driver.

Allmendinger has inaugurated a karting scholarship that got a boost of its own when his Sprint Cup sponsor at Penske Racing, Shell/Pennzoil, opted to support the program. On Friday at Richmond, Allmendinger introduced 13-year-old Florida driver Kyle Kirkwood as the first recipient of the scholarship.

"Paul Tracy had a karting team when I was 16 or 17 years old, trying to figure out what I was going to do," Allmendinger said. "At that point, it was amazing to me to have such a superstar in the CART Series wanting me to be a part of his race team.

"That was something that I took to heart and knew that it was something that, once I got to the right time in my life, I wanted to do the same thing. To me, karting is the most pure form of racing there is, whether you're 6, 7 years old or on up through the ranks or somebody like me that's still trying to relive my old glory days and still race go-karts.

"That's something that was always important to me. That's why I wanted to start the karting scholarship. I wanted to do this the last couple of years, and I felt like this was the right time."


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Final Laps: Kurt Busch wins in dramatic fashion

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Thursday, 3 May 2012

Hamlin misses pit stall under caution

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Hard hit ends Yeley's night

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Final Laps: Kurt Busch wins in dramatic fashion

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All Access with Justin Allgaier

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Victory Lane: Kurt Busch

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Nationwide GarageCam Replay: Richmond

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Wednesday, 2 May 2012

Victory Lane: Kurt Busch

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Thursday, 16 February 2012

Nationwide Adds Software Protection to Identity Theft Insurance

Nationwide Insurance has extended its ID theft insurance coverage by providing help with protecting personal information on home computers.

The carrier’s newest product includes free access to software that helps thwart criminals from stealing information, even if they have virtual access to a customer’s personal computer.

“At Nationwide, we work diligently to keep our customers’ information secure, but it’s only half the equation – most identity theft occurs because customers aren’t adequately protecting their home computers,” said Kirk Herath, vice president and chief privacy officer at Nationwide. “With the increase in criminal activity, it makes sense to help equip our customers with strong tools to help them keep their personal computers secure.”

American households experienced about $13.3 billion in direct financial losses due to identity theft in 2010, according to the Bureau of Justice Statistics in the U.S. Department of Justice.

Nationwide’s identity theft coverage and protection is provided by Europ Assistance (EA) USA. Part of the new coverage includes software for browsers called Online Data Protection. This software is designed to protect against key logging and phishing attacks.

“Key logging, spyware and phishing attacks are becoming more prevalent as thieves find ways to tap into confidential information,” said Glenn Maykish, vice president of EA USA. “Combating these risks is a perfect complement to our identity theft protection and resolution services offered to Nationwide customers.”

The Columbus, Ohio-based carrier’s coverage offers up to $25,000 in recovery for expense reimbursement with no deductible, immediate fraud assessment, notification to major credit bureaus, assistance with contacting creditors, banks, and agencies, assistance replacing important documents, and emergency cash advance if theft occurs while away from home (restrictions and limits apply). The coverage also includes credit monitoring and identity tracking – and now online data protection.


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Wednesday, 15 February 2012

Torus Appoints Rousseau to Develop General Property in France

Global specialty insurer Torus has appointed Gilles Rousseau as Senior Underwriter, General Property. He is based in Paris and has more than 30 years of underwriting experience, as well as “extensive knowledge of the French industrial property market.”

Rousseau is responsible for “developing Torus’ General Property platform in France, working in conjunction with Torus’ wider European General Property practice under Head of General Property for Europe, Franco Masciovecchio,” said the bulletin. His appointment follows the recent hiring of Senior Underwriters Brian Byrnes for General Property and Marco Sonntag for Casualty for the German, Swiss and Austrian markets.
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Rousseau joins Torus from XL Insurance where he was a Property Underwriting Manager responsible for leading and writing large industrial and commercial risks for clients based in France. He was previously a Division Manager at SCOR Business Solutions and oversaw writing large treaty, facultative and direct industrial risk in property, casualty and construction with an international remit. Prior to that role he held management and underwriting positions at SCOR Reinsurance. He began his career as a Property and Engineering Underwriter with UAP Reassurance before it merged with SCOR in 1990. 

Torus also noted that it has recently acquired the renewal rights to CV Star Syndicate 1919’s Continental European Marine, Casualty and General Property business from January 1, 2012. As part of the agreement CV Starr’s Continental European based team has joined Torus, including Didier Bayle, Senior Underwriter, who will work alongside Mr. Rousseau to develop Torus’ General Property platform in France.

Dermot O’Donohoe, Chief Executive of Torus International, commented: “Since launching Torus’ European operation in September 2009 we have established local underwriting teams across the Continent, with underwriting centres now in Paris, Amsterdam, Cologne, Milan, Rotterdam and Zurich.

“France is a key market and Gilles’ appointment, along with the addition of Didier to the team from CV Starr, gives Torus an important physical presence in the French property market.”

Masciovecchio added: “The European general property market continues to be very competitive but Torus is building an effective platform to produce a credible and sustainable offering. We are developing into a serious alternative and market player for sophisticated insureds.”

Source: Torus Insurance


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Minor Earthquake Shakes North-Central Utah

Scientists say a minor earthquake has shaken the Utah Valley, but apparently causing no injuries or property damage.

The University of Utah Seismograph Stations report the magnitude 3.7 quake occurred around 4:27 a.m. Saturday. The epicenter of the shock was north-central Utah, about nine miles southeast of Salem beneath the Wasatch Range.

Seismologists say residents in Salem, Spanish Fork, Provo and other cities in the Utah Valley reported feeling it.

They say at least three smaller seismic events followed the quake.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Long-time California Lobbyist Looks to 2012 Legislation That May Impact Insurance

John Norwood is one of California’s best known legislative advocates for the insurance and financial services sectors.

Norwood, principal of Norwood & Associates, has garnered recognition for his political work dating back to the early 1980s, including political battles to amend the state’s insurance rate regulations, and reforming insurance agents and brokers licensing laws.

His client list is lengthy. Among his long list of clients, Norwood represents IBA West, California Wholesalers Association, Liberty Mutual Group, Pacific Life Insurance Co., The Surplus Line Association of California and Zenith Insurance Co.

Norwood spoke to the Insurance Journal about legislation and regulation, including a proposal by a consumer advocacy group that would establish prior approval for healthcare insurance and would make major changes to auto insurance and homeowners insurance in California, Norwood said. (Listen to the full podcast of Norwood’s interview).

Consumer Watchdog

It looks like there could be two competing initiatives on California’s November ballot that will impact Proposition 103. One offers portable persistency. And the other is backed by a consumer group and addresses health care, but it also addresses auto insurance.

The consumer group working to put an initiative on the ballot is Santa Monica, Calif.-based Consumer Watchdog.

The group filed the Insurance Rate Public Justification and Accountability Act in November, and must get 500,000 signatures to qualify it for the Nov. 6, 2012 ballot. If the group gets the signatures, the health insurance rate initiative could be placed on the same ballot as the 2012 Auto Insurance Discount Act, which has qualified for the ballot.

The stated purpose of the Consumer Watchdog health insurance initiative is to “ensure fair and transparent rates for health, home and auto insurance.”

If it gets enough signatures, it would compete with the 2012 Auto Insurance Discount Act, which is being sponsored by the American Agents Alliance, which says the initiative’s new law “will allow consumers to receive a discount for their years of continuous automobile coverage regardless of the company where they seek insurance.”

“The Consumer Watchdog’s health rate regulation initiative is out there and being circulated, but it hasn’t qualified yet, and it’s not clear that it will qualify, but if it does, I think it’s going to be a very tough fight for the industry,” Norwood said. “This reminds me of Proposition 103 in 1988, when consumers were pretty much fed up with the high cost of auto insurance. Health care costs a lot of money, and whether you’re paying for it personally or businesses are paying for it, it is a real concern. It’s also a top item in national debates, and there seems to be a common sense that the health-care system in the nation is broken.”

But only one initiative can be successful.

Norwood said he believes “it was a very good trick of Consumer Watchdog to take advantage of the situation, where if two initiatives are on the same ballot, on the same topic, the one with the most votes wins. So they’ve attached the provisions that would cancel out the persistency initiative, by prohibiting the use of persistency as a rating factor.”

He added, “So this is going to be a real dogfight, I think, if both initiatives qualify, in terms of the advertising campaigns and that type of thing.”

Wokers’ Comp

Norwood offered a focused looking at the all-important workers’ compensation issue, and he gave his thoughts on health insurance exchanges. In fact, Norwood forecast that 2012 will rank as an important one when it comes to workers’ comp reform, and the year will bring even more dramatic change, or at least debates, on health insurance.

“Coming into this new year, certainly, workers’ compensation is an issue everybody expects to be a top-tier issue for the 2012 legislative session,” Norwood said. “(California Insurance Commissioner Dave Jones) has already been involved somewhat in workers’ compensation, with the change of the way that Workers’ Compensation Rating Bureau does its annual filing, so I think he’s getting comfortable with that issue. So we’re certainly going to see his interest in that area, I think.”

Jones has several pieces of workers’ comp legislation he backed get to the governor and get signed, on issues ranging from suitability for annuities to retained asset accounts to collateral agreements in workers’ compensation.

In fact, California Gov. Jerry Brown signed nine bills sponsored by Insurance Commissioner Dave Jones this legislative year, giving Jones a perfect record on bills that reached Brown’s desk.

Norwood also expects workers’ compensation will be a major issue in the 2012 legislature.

“Ever since the 2002-2003 workers’ compensation reforms,  labor has been concerned that they really got the short end of the stick,” Norwood said. “There have been some recent studies that (permanent disability) benefits, as a result of that legislation, were cut over 50 percent, maybe as high as 70 percent. And that’s been a top priority for labor, was to change the PD rates.”

He added, “I think we’re going to see a number of individual bills on workers’ comp, and ultimately there’ll be one or two major reform bills that will trade reforms for benefits. So we expect that.”

Health Insurance

Health insurance, of course, is another top item on Norwood’s radar screen.

“Health insurance is one we really have our eye on this year,” Norwood said. “More and more property-casualty agents, a significant portion of their income is coming from employee benefits, including health insurance. Most of our members are telling us now, 25 to 40 percent of their income is coming from employee benefits.”

Chief among health insurance issues on the horizon in California is the Health Benefits Exchange Board, which has monthly meetings, and that’s something of which Norwood his colleagues are a regular part.

“We’re looking at how they’re trying to set up and establish that exchange,” he said. “And some of what the exchange is doing will affect legislation, because there’s certain current statutes and things that have to be changed to comply or to parallel what’s going on with the exchange in federal law. So we’re paying close attention to that, because it has the potential of affecting what role agents and brokers play in health-care delivery from now on and what their compensation could be.”


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Accident Fund Holdings Launches Narcotics Program for Injured Workers

Accident Fund Holdings has created a comprehensive narcotics program to help reduce the health risk of drugs on injured workers and provide a mechanism for them to get back to work sooner.

The primary components of the program include early detection software, activity driven workflows, and peer-to-peer intervention strategies.

Accident Fund Holdings has been monitoring the use of opioids to manage chronic pain for years and the results of a recent study completed in 2011 with the Division of Environmental and Occupational Medicine at Johns Hopkins School of Medicine has validated the scope of this problem.

“The extent of the issue was not fully realized until we linked our pharmacy data to our claims data,” Jeffrey Austin White, director of Medical Management Practices and Strategy for Accident Fund Holdings and the individual running point on the development of the over-arching strategy, said. “In hindsight, it appears we were focused primarily on monitoring drug cost, along with the rest of the industry, rather than the impact of the drug on the injured worker.”

The narcotics program has been under development over the past six months at the Lansing, Mich.-based Accident Fund Insurance Company of America, a subsidiary of Accident Fund Holdings. It will be expanded to all of Accident Fund Holdings’ companies including United Heartland, Third Coast Underwriters, and CompWest.

The company has developed this program as a recent shift in prescribing patterns to more patients consuming Schedule II narcotics is more prevalent today than ever before. Opioid medications are now being prescribed at higher dosages in pure form and are routinely making their way into the hands of injured workers without the proper controls, regardless of the health risks.

Overdoses, addiction, and even death have reached epidemic proportions, according to the Centers for Disease Control (CDC). These problems are commonly reported in association with workers’ compensation claims as 55 to 85 percent of injured workers across the country receive narcotics for chronic pain relief.

The failure to return to work due to opioid addiction is a major problem that the workers compensation industry faces in 2012 as state regulations lack controls and new drugs are being introduced to the market. Accident Fund Holdings hopes this program will help reduce the health risks of these drugs on our injured workers and ultimately provide a mechanism for them to get back to work sooner.

“There is no simple solution to this problem,” Patrick Walsh, vice president and chief claims officer for Accident Fund Holdings, said. “It requires a multidisciplinary approach that relies heavily on state of the art technology and a commitment to communication and learning which will drive continued improvement in our efforts.”


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Mercury General Corp.’s 4Q Net Premiums Up Slightly; Declares Quarterly Dividend

Mercury General Corp. announced on Monday that net premiums written were $618.6 million in the fourth quarter of 2011, a 0.2 percent increase compared from the fourth quarter of 2010, and net premiums were $2.6 billion for the year, a 0.8 percent increase from 2010.

Net realized investment gains, net of tax, of $47.4 million and $38.0 million for the fourth quarter and for the year, respectively, include gains, net of tax, of $35.2 million and $20.3 million, respectively, from the application of the fair value option. Gains, net of tax, from the sale of securities were $12.2 million and $17.1 million during the fourth quarter and the year, respectively.

The company’s board of directors declared a quarterly dividend of 61 cents per share to be paid on March 29 to shareholders of record on March 15.

Net income in the fourth quarter was $79.5 million, or $1.45 per diluted share, compared with a net loss of $23.6 million, 43 cents per diluted share, for the same period in 2010. For the year, net income was $191.2 million, $3.49 per diluted share, compared with net income of $152.2 million, $2.78 per diluted share, for 2010.

Mercury General Corp. and its subsidiaries are a multiple line insurance organization offering predominantly personal automobile and homeowners insurance through a network of independent producers in many states.

Shares of Mercury (NYSE: MCY) were down $1.62 to $43.39 in early trading on the New York Stock Exchange.


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Alleghany, Transatlantic Shareholders Approve Merger Proposal

Alleghany Corp. said its stockholders voted on Monday to approve the previously announced merger proposal with Transatlantic Holdings. Under the deal, as described in the merger agreement between Alleghany and Transatlantic last November, Transatlantic will be acquired and become an independent stand-alone subsidiary of Alleghany. Also on Monday, Transatlantic said that its stockholders have voted to approve and adopt the merger agreement.

At Monday’s special meeting of Alleghany stockholders, roughly 7.3 million of Alleghany’s 8.6 million shares of common stock outstanding were voted, with 99.75 percent of the votes cast in favor of the proposal to issue shares of Alleghany common stock to Transatlantic stockholders in connection with the merger.

Transatlantic announced that based on the preliminary tabulation of the stockholder vote, 99.85 percent of the total votes cast, representing 92.53 percent of the total outstanding shares of Transatlantic, adopted the merger agreement.

Alleghany and Transatlantic say they expect the merger to be completed in the first quarter.

“We are pleased with the outcome of today’s vote,” said Richard Press, chairman of the Transatlantic board of directors. “On behalf of the board and management team, I want to thank our stockholders for their support throughout this process. We look forward to closing the transaction in this calendar quarter.”

The cash-and-stock deal, which was announced on Nov. 20, 2011, is valued at around $3.4 billion. The merger would put to an end months-long takeover talks involving Transatlantic. Last September, Transatlantic and Switzerland-based Allied World Assurance called off their previously announced merger deal. Several other companies had also expressed their interest in acquiring Transatlantic. They included Validus Holdings and National Indemnity Corp., part of Berkshire Hathaway.


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Tuesday, 14 February 2012

Former Cal-OSHA Chief Defends Workplace Safety Program

The former chief of the California Occupational Safety and Health Division defended its Injury’s Illness Prevention Program following a study by think tank RAND Corp. showing the occupational safety program that requires California businesses to eliminate workplace hazards only works when it’s adequately enforced.

The study by Santa Monica, Calif-based RAND, which says this is the first study to be conducted on the program, shows the program reduces workplace injuries, but only at businesses that had been cited for not addressing the regulation’s more-specific safety mandates.

The program is designed to save countless dollars in workplace injury payouts.

The California Injury and Illness Prevention Program, or CIIPP, which began in 1991, mandates certain procedures for employers, including communicating to employees about risks, carrying out workplace surveys, abating hazards, safety training and investigating causes of injuries. It also requires employers to have a written document concerning the program.

The program has been the most frequently violated Cal-OSHA standard in every year since its inception, being cited in about 25 percent of all inspections, according to RAND.

“We found the safety effects to be real, but not very large,” John Mendeloff, lead author of the study and a senior public policy researcher for RAND, said following the release of the study. “We think that the most important reason for the limited impact of this program is that inspectors often did not go beyond a review of the employer’s written document.”

Len Welsh, acting chief counsel for California Department of Industrial Relations’ litigations unit, and a former chief of Cal-OSHA from 2003 to 2011, said he views the study as a positive endorsement of CIIPP and he defended Cal-OSHA’s inspections. DIR oversees Cal-OSHA.

“You can’t draw from a study like that the inspector wasn’t inspecting enough,” Welsh told the Insurance Journal.

He added that to determine the quality and thoroughness of individual inspections would require looking at each inspection file.

By DIR estimates Cal-OSHA has roughly 240 inspectors, but California has 1.3 million businesses, according to the Employment Development Department

“People have this idea that OSHA can go inspect every workplace in the world and it’s never going to happen,” Welsh said.

Welsh said a more “holistic approach” is being undertaken by OSHA in the battle to promote safety in the workplace, including inspections, education, consultation services, and Internet and media campaigns.

“We do a lot of triage when we go to workplaces,” he said. “We have to ask ourselves, ‘Should we be spending half-a-day there to issue one or two tickets, or should be moving in on and trying to nail somebody who is in the underground economy?’”

By targeting the worst actors, or “the underground economy,” the ones who “in many cases may wind up in jail when we catch them,” Cal-OSHA can best use its resources, he said, adding, “government can’t be everywhere.”

Aside from defending Cal-OSHA on CIIPP, Welsh called for more studies like the RAND study that seemed to raise questions about CIIPP’s effectiveness.

“It’s a really good thing that studies like this are starting to be done now,” he said. “One could ask why these studies weren’t being done a decade ago.”

What he took away from the RAND study is that “if you really implement an IIPP, you will see a benefit, but if you get it and stick it on a shelf, it’s not going to do anything for you. To me the news is pretty much all good.”

But, he added, “If the proposition is that the inspectors should dig deeper when they see no paper… I would say that’s a resource question that needs to be studied.”

The RAND study shows that when Cal-OSHA inspectors did investigate further and found failures to comply with provisions that specific businesses must train workers, identify and abate hazards, and investigate injury causes, the average injury rates at targeted businesses declined more than 20 percent in the following two years.

However, these provisions were cited in only about 5 percent of Cal-OSHA inspections, the study shows. In the other 20 percent of inspections where a violation of the rule was cited, it was only for the section requiring the employer have a written program, which carries a fine of $150.

The 20 percent reduction in injuries following citations for the specific CIIPP requirements translates to about one injury per year at a workplace with 100 employees, and most estimates of the value of preventing a work injury are in the range of $15,000 to $50,000, according to RAND.

The study was sponsored by the California Commission for Health, Safety and Workers’ Compensation, a public body with management, labor and public representatives located in the state’s Department of Industrial Relations.


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