https://completemarkets.com/Article/article-post/916/PREPARING-FOR-AN-OSHA-INSPECTION/
Preparing For An Osha Inspection
PREPARING FOR AN OSHA INSPECTION by Bill Grieb This issue is on inspections: What is the Occupational Safety and Health Administration (OSHA) looking for, how to prepare, and an inspection checklist. If you will use this checklist to look for safety hazards in your workplace you might be able to prevent an accident. It is important to document improvements and cost savings that your safety and inspection program provide. While inspecting your site for safety hazards, don't forget to look at each operation and consider engineering changes that can improve workplace safety and reduce the risk of injury. Evaluate any use of hazardous materials for the possibility of substituting less hazardous materials. OSHA Inspections Federal OSHA reports only 24,000 inspections in 1996. This is almost 20% less than in 1995 and over 40% less than in 1994. Many union officials feel that this is a major threat to improved workplace safety and health. The Wall Street Journal quotes Peg Seminario, the AFL-CIO director of safety and health: 'The threat is quite troubling and problematic. Without more enforcement, OSHA is no longer a credible threat.' OSHA claims that there are multiple reasons for this decline. They cite a hiring freeze and the government shutdown. They claim that a great deal of the decline is due to 'reinventing OSHA.' They cite the agency's move to cooperate with business rather than penalize them. My opinion is that irrespective of the level of surveillance by OSHA, accidents cost big money, and an effective Workplace Safety and Hazard Communication Program is the best insurance you can have. It will also reduce your insurance costs, which are based on your previous safety claims. HazCom Violations In 1994, more than 15,000 businesses were fined a total of $2,400,000.00 for HazCom violations. These fines were levied in both general industries and construction firms. The most frequent citations were: No written HazCom plan Missing MSDS (Material Safety Data Sheets) Lack of proper employee training Labeling errors or not labeling containers Inspections One of the best ways to prevent workplace injuries and illnesses is a comprehensive inspection program. Regular inspections should be an integral part of your Workplace Safety and Hazard Communication Program. After a discussion on how OSHA goes about an inspection, there is an extensive checklist that you can use to inspect your workplace. This list cannot be complete since each worksite is unique. Additional pages of miscellaneous items should be prepared with items added as needed to adapt this inspection program to your workplace. Participation A common characteristic of effective safety programs is participation by both management and workers. Management must participate by providing safety resources, pledging a strong commitment to safety, and setting an example through following and enforcing safety rules. All workers need to participate in the safety program by maintaining awareness and focus on safety and making suggestions to improve workplace safety. Safety improvement suggestions should be solicited, acted upon, and rewarded. Remove dangers when noted prevents injuries. OSHA Inspections What do those folks from OSHA look for in inspections? Well, we've X-rayed their brains, and they know about that oily rag you threw in the trash in 1989. Pretty scary. No, really, we didn't X-ray their brains. But we did read their book so we know what they may be looking for and what's on their minds in general. In this issue, we thought we'd share some of this government intelligence with our readers. The inspector looks at your overall safety program; within this scope, management commitment to safety, hazard identification and abatement, and safety enforcement. The inspectors will also talk to your employees. They will ask carefully designed questions to figure out if your safety program is really working or if it's sleeping on the job. Questions might include: What do you do? What equipment and tools do you use? How were you trained? How do you learn safety rules? Are rules enforced for everybody? What do you do in the event of an accident? How do you report problems and suggestions? Is your job safe? Is your equipment safe? There are no surprises here, so all you have to do is maintain reasonable, common sense safety standards and make sure everybody is playing by the rules. Inspectors & You Treat yourself to another cup of coffee and be aware that some of the inspectors are citing employers for use of disinfectants. Some inspectors say that hazard communication training is not adequate for employees exposed to pesticides, germicides, and insecticides. Some inspectors feel that the general training of employees on the safety and health hazards of their job is not as effective as establishing specific employee training requirements. OSHA Inspection Format To prepare for an inspection, compliance officers become familiar with the history of the establishment, the operations and processes in use, and the standards most likely to apply. They gather all equipment necessary to test for health and safety hazards. When OSHA inspectors arrive, they display official credentials and ask to see the employer. Employers should always insist upon seeing the compliance officer's credentials, which can be verified by the nearest OSHA office. Opening Conference: The compliance officer will explain the nature of the visit, the inspection's scope, and the applicable standards. Information on how to obtain copies of the OSHA regulations will be furnished. An authorized representative of the employees, if any, has the right to accompany the compliance officer. The compliance officer will consult with a reasonable number of employees. Walk-Around Inspection: After the opening conference, the compliance officer and the representatives go through the workplace inspecting for workplace hazards. When talking with workers, compliance officers will try to minimize work interruptions. The compliance officer will discuss any apparent violations noted during the walk-around and will offer technical advice on how to eliminate hazards. Closing Conference: The compliance officer reviews any apparent violations with the employer and discusses possible methods and time periods necessary for their correction. The compliance officer explains that these violations may result in a citation and a proposed financial penalty, describes the employer's rights and responsibilities, and answers all questions. Safety and Hazard Inspection Summary Date: Date of Next Inspection: 1. Employer Postings and Recordkeeping 2. Workplace Safety and Hazard Communication Program 3. Fire Protection and Emergency Response 4. General Environment, Walkways, and Stairways 5. Medical Service and First Aid 6. Equipment and Protective Equipment 7. Flammable Materials 8. Hazardous Material Exposure 9. Hazardous Material Handling 10. Miscellaneous Items Remarks Accepted by Safety Manager Signature Date Employer Postings and Recordkeeping (cross out any items that are not applicable): Federal Minimum Wage Federal Job Safety Protection Federal Polygraph Federal Equal Employment Opportunity Federal Americans With Disability Act State Minimum Wage State Discrimination in Employment State Payday Notice Access to Medical Exposure Records Drug-Free Workplace Hazard Communication Workplace Safety Workers' Compensation and Fraudulent Claims Unemployment and Disability Insurance Code of Safe Practices and General Safety Rules Emergency Action Material Safety Data Sheets Exit Signs and 'Not an Exit' Signs Room Capacities Floor Loading Operating Permits and Variances Suggestion Box Recordkeeping: Exposure and Medical Records Carcinogen Use Reports Exposure to Radiation and/or Biohazards Bloodborne Pathogen Program Exposure to Hazardous Substances Summary of Injuries and Illnesses LOG 200 Safety and Health Training Safety Inspections and Corrective Actions Safety Committee Meetings Workplace Safety and Hazard Communication Program (cross out any items that are not applicable): Workplace Safety Written Safety Program: Is the program effective? Is the responsible person identified? Is the program enforced? Hazard Identification System Corrective Action Program Safety Training System Supervisor Training Employee Motivation System Emergency Response Plans Hazard Communication: Is there a written hazard communication program? Are there hazardous material handling procedures? Is there a list of all hazardous substances used in the workplace? Are all required Material Safety Data Sheets (MSDS) checked and available? Is there a policy for labeling? Is there employee training including: 1. MSDS explanation-What it is, how to use it, and how to obtain one 2. MSDS contents for each hazardous substance or class of substances 3. Explanation of right to know 4. Identification of where written hazard communication program is available 5. Physical and health hazards and specific protective measures to be used 6. Details of hazardous communication program, including how to use labeling system and MSDS Is each container for a hazardous substance (i.e. vats, bottles, storage tanks) labeled with product identity and a hazard warning (communication of the specific health hazards and physical hazards)? Employee hazardous material exposure documentation Flammable and combustible materials procedures Ventilation procedures Fire Protection and Emergency Response (cross out any items that are not applicable): Fire protection Fire prevention plan Control of hazards and ignition sources Employee training Fire department communication Alarm system appropriate and tested regularly Fire doors operating Automatic sprinkler system maintained Fire extinguishers accessible Extinguishers serviced Emergency Response: Earthquake plan Flood plan Other natural disasters Evacuation plan Bomb threat Civil unrest Criminal activities Hazardous material leak or spill Environmental hazard Employee Training: Initial response participation follow-up Environment (cross out any items that are not applicable): General environment Clean worksites, general housekeeping Proper removal and storage of scrap, debris and waste Combustible, metallic, and/or corrosive dust removal Burners with prevent flow if pilots fail Adequate sanitary toilets and washing facilities Adequate illumination Other Walkways: Aisles and passageways clear, free of obstructions Appropriately marked 'Exit' and 'No Exit' Non-slip materials as needed Holes and defects repaired promptly and properly Clearance when motorized equipment is operating Immediate clean up of spills No sharp projections in walkways Changes of direction and elevation marked Adequate headroom Standard guardrails, covers, grates, etc. Bridges over conveyers and hazards Glass and skylights appropriate Openings provided with appropriate fire resistant doors or covers and self-closing features as needed Stairways: Standard stair ra...ls 30 - 34' high, 1.5' from wall, capable of withstanding 200 lbs. Stairways 22' or more wide, 6'6' overhead clearance, 30 to 50-degree angle Noise reduction as needed Uniform risers Adequate barriers and warnings where traffic areas impinge. Medical Service/First Aid (cross out any items not applicable): Medical/first aid Local medical facilities Employee qualified to render first aid Health consultation available Emergency phone numbers posted First aid kits First aid kit inspection and approval Special measures such as emergency showers Other Equipment Safety: Lockout /tagout system and training Process safety management Confined space program - Protective Equipment (cross out any items not applicable): Goggles or face shields Gloves, aprons, and shields Hard hats Foot protection Emergency respirators, and fit testing Eye wash facilities and showers Noise protection Protective clothing and equipment Training in PPE use PPE maintenance in good order Other Flammable and Combustible Materials Handling (cross out any items not applicable): Are combustible scrap, debris and waste materials stored in covered metal receptacles and removed from the worksite promptly? Is proper storage practiced to minimize risks of fire and spontaneous combustion? Are approved containers used for the storage/handling of flammable and combustible liquids? Are all connections on drums and combustible liquid piping, vapor and liquid tight? Are all flammable liquids kept in closed containers when not in use? Are bulk drums of flammable liquids grounded and bonded to containers during dispensing? Do storage rooms for flammable and combustible liquids have explosion-proof lights and mechanical or gravity ventilation? Is liquefied petroleum gas stored, handled and used in accordance with safe practices and standards? Are liquefied petroleum gas storage tanks guarded to prevent damage from vehicles? Are all solvent wastes and flammable liquids kept in fire-resistant, covered containers until they are removed? Is vacuuming used whenever possible, rather than blowing or sweeping combustible dust?
https://completemarkets.com/Article/article-post/1530/LEGAL-OUTLINE-FOR-CALIFORNIA-AGENCIES-CHAPTER-1/
Legal Outline For California Agencies - Chapter 1
LEGAL OUTLINE FOR CALIFORNIA INSURANCE AGENCIES CHAPTER ONE FORM OF ORGANIZATION CHOICE OF A LEGAL FORM OF AGENCY OPERATION - PROPRIETORSHIP, CLUSTER OF INDIVIDUALS, PARTNERSHIP, OR CORPORATION. 1.1. Some possible objectives of owners in choosing the form of agency organization and perpetuation. The forms of agency organization, such as incorporation vs. partnership, may be elementary for most agents. However, the questions of how the stock and/or expirations are to be held, whether individually, by a partnership, or (for expirations) at the corporate level, are complex questions. The answers depend in large measure on how the agency interest is to be held and ultimately disposed of, and on how much control the individual agency owners want to retain. These questions will now be touched on. There are several legal forms of organization for an insurance production agency. In choosing, the broker-agent should consider how he will ultimately dispose of the agency, as well as current operations. I will cover the most usual forms for property and casualty production agencies. The agency business may be owned by an individual, either operating alone or in a cluster with other individuals. One or more agents may operate in a general partnership. The agency may also be operated by a corporation, owned by one or more shareholders. The corporation may be a 'C' corporation, which is taxable on its earnings. Some corporations may elect 'S' corporation status, under which a corporation is treated much like a partnership, with the income taxed primarily to the stockholders. Some of the questions an agent should pose in choosing a form of ownership are: Incorporation creates additional legal protection against litigation, but at a cost ...poration. Passthrough taxation of income to shareholders is the major feature of an S Corporation. An S corporation for the most part passes income and deductions through to the owners free of most income tax at the corporate level, much like a partnership. Complications arise, however, when a corporation is not an S corporation for its entire life. Also, California (unlike the federal government) has a minimum franchise tax of $800 on any corporation, and in addition imposes a 1.5% tax on subchapter S income. In other respects, an S Corp. has most of the same advantages and drawbacks as a C corporation, discussed previously. 1.2.6 How to hold stock or expirations. The question of how to hold the stock and/or expirations of an incorporated agency is a complex one. It is determined by what is important in the agents' plans for the future; (a) freedom to leave the agency with one's expirations, (b) facilitating an internal buy-out, or (c) facilitating a merger with an outside party. Ownership of corporate stock. Normally corporate stock is held by individual owners. This permits a subchapter S election, which enables a later sale of expirations at the corporate level without a double tax. The purchased expirations can then be amortized over 15 years by the buyer. However, better deductibility of payments for the agency can be generated in other ways, such as a partnership liquidation plan. Also, if the expirations are owned by the corporation, and an individual owner wants to leave with his expirations, it is difficult to spin off expirations and avoid triggering a capital gains tax. The stock could also be owned by a partnership. This permits essentially fully deductible liquidation payments to a retiring partner by the remaining partners. It allows easier ownership interest revisions according to production, if the partners want this. However, it prevents a subchapter S election. This organizational structure should be formalized by an agreement between the corporation and the partnership or partners, under which the corporation as an independent contractor administers the insurance business in exchange for a share of the commissions. This provides cash to the partnership to permit a partnership liquidation program for retiring partners. Ownership of expirations. Normally, expirations are transferred to the corporation. This helps insure that the corporation is adequately capitalized, and helps prevent 'piercing the corporate veil'. Ownership of expirations and good will could also be retained by individual stockholders or a partnership of them. It facilitates sale of expirations and good will below the corporate level, without generating a double tax. This may also facilitate leaving the agency and taking one's expirations if the individual retains ownership; if they are transferred to a partnership or a corporation, taking them out again without triggering a tax is tricky. The expirations and good will can be contributed to the corporation by the shareholder later on without tax if a merger is on the horizon and they want the corporation to own the expirations. Various forms of organization utilizing these possibilities will now be considered. 1.2.7 Combining corporation with individual ownership of expirations. One combined form of organization would be for the individual agents (rather than a partnership) to own stock in the operating corporation, but retain individual ownership of their expirations. The corporation would employ them, and would handle both the solicitation and the office administration of the agency. The individuals could, however, retain substantial control over their individual accounts. This form of organization can be used by a cluster. The cluster corporation can undertake certain functions, such as placing insurance with the companies, handing profit sharing and contingencies, and obtaining errors & omissions insurance, while the individual agencies still retain their identities. This form of ownership might also permit the corporation to elect Subchapter S status if the statutory requirements are met, passing through the earnings to the individuals. The income could also be passed through in salaries, or in a commission split payment because of the agent's retention of ownership in his expirations. However, Subchapter S is useful in passing through capital gains on the sale of corporate assets, and in reducing employment taxes. This form also might make it possible for the remaining agents to purchase and amortize a departing agent's book of business and good will, while giving the departing agent capital gains treatment. This is a somewhat risky proposition in light of the 'anti churning' rules applying to amortization; it would be necessary to show that there was no common control of the two businesses. Before this is attempted, it would be wise to make a calculation on what the tax effects actually might be. If the true difference is between a 28% capital gains rate and a 32% ordinary income rate, the capital gains advantage probably is not worth taking an additional risk. In such a case, use of a partnership liquidation to retire an agent probably would make more sense. 1.2.8 Combining corporation and partnership. Combining a corporation and a partnership can gain certain advantages of both forms of organization. Frequently a C corporation will handle the actual agency operations, but its stock (and often the ownership of its expirations and good will) will be held by an underlying general partnership. Flexibility of a partnership agreement in defining relations among partners is preserved. Partnership interests can be more easily adjusted to reflect production than stock interests can be. It is also easier to bring new producers into a partnership than into a corporation. Better tax results may be one result of the combination. Ownership of expirations at the partnership level may avoid double taxation, by eliminating difficulty of getting the expirations and good will of the agency (or the proceeds of their sale) out of a corporation without incurring a double tax at the corporate and individual level. If the partnership (or the corporation) owns the expirations, however, it is still a tricky problem to allow a partner/shareholder to take expirations and leave without triggering a tax on them. Ownership of stock by a partnership will preclude a subchapter S election, since a subchapter S corporation cannot have a partnership as a stockholder. A double tax can be avoided by passing through income in the form of reasonable salaries or bonuses. Buyers can purchase expirations and good will from the partnership and depreciate them over 15 years, and the sellers should get capital gains treatment and avoid a double tax at the corporate and individual levels. Liquidation payments for retiring partners is also possible, which increase the ease of making the payments deductible, though at a cost of ordinary income treatment to the recipient. This may permit deduction of the payments in less than 15 years, which may be a major reason for using this approach. Getting cash from the corporation to the partnership to make liquidation payments in a deductible manner to the corporation can be tricky. There should be an agreement between the corporation and the expirations owners/partners under which the corporation manages the business and expirations for a reasonable share of the commissions. The combination gives the partners corporate protection from individual liability, provided that the corporation is adequately capitalized, though the protection is probably not as great as when the stock is individually owned. 1.2.9 Combining corporation and ESOP. It is also possible to have part or all of the stock of a corporation owned by an Employee Stock Ownership Plan and Trust. There are a number of advantages to an ESOP: Fully deductible payments by the corporation to the ESOP are available within the limits of the tax law on qualified plans. Tax deferred rollovers are available for shareholders selling 30% or more of the stock of an agency to an ESOP. They may roll over their payment into securities of domestic operating companies and defer the income tax. If these new securities are held until death, their income tax basis is stepped up to the date of death value, and the income tax on the increase is entirely avoided. Interest deductions are available for interest paid to banks and insurance companies for loans to funded ESOPs owning over 50% of the agency stock. This should lead banks and insurers to give more favorable treatment for ESOP loans, though they often do not do so. To qualify, however, the plan participants must be able to vote their stock on all matters. The ESOP stock is usually voted by management, except on extraordinary decisions such as mergers. The owners may not want to give up some control in order to obtain the 50% deduction for the lender. The ESOPs also create potential problems. Formation and operating costs for ESOPS are often substantial, though they don't have to be. The cost of complying with requirements of a lender for leveraged ESOPS can be particularly high. Formation costs may be in the neighborhood of $15,000, and lender expenses could be an additional $15,000 or more. Caveat emptor. Repurchase costs for buying back the stock of retiring plan members can also be substantial. Particularly for leveraged ESOPs which borrowed the money to buy out the first generation of owners, the ESOP and agency can wind up paying for the retirement of the original owners and the second generation of retiring employees at the same time. Vesting schedules and provisions for payment over time can reduce repayment problems, so that most second generation payments are deferred until the original loan is repaid. Early establishment of an ESOP can also eliminate many of the bunching problems. Too often, an ESOP is set up only when the first generation is ready to retire, requiring a loan for funding. If the ESOP were set up earlier, and could gradually build up funds to buy out stockholders, financial problems could be substantially reduced. CHECKLIST FOR CHOOSING A FORM OF ORGANIZATION. Is the corporate shield against personal liability important? Does the agent have substantial personal assets aside from the agency? Is there more than one agency producer? (An agent may be person
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... consultation available Emergency phone numbers posted First aid kits First aid kit inspection and approval Special measures such as emergency showers Other Equipment Safety: Lockout /tagout system and training Process safety management Confined space program - Protective Equipment (cross out any items not applicable): Goggles or face shields Gloves, aprons, and shields Hard hats Foot protection Emergency respirators, and fit testing Eye wash facilities and showers Noise protection Protective clothing and equipment Training in PPE use PPE maintenance in good order Other Flammable and Combustible Materials Handling (cross out any items not applicable): Are combustible scrap, debris and waste materials stored in covered metal receptacles and removed from the worksite promptly? Is proper storage practiced to minimize risks of fire and spontaneous combustion? Are approved containers used for the storage/handling of flammable and combustible liquids? Are all connections on drums and combustible liquid piping, vapor and liquid tight? Are all flammable liquids kept in closed containers when not in use? Are bulk drums of flammable liquids grounded and bonded to containers during dispensing? Do storage rooms for flammable and combustible liquids have explosion-proof lights and mechanical or gravity ventilation? Is liquefied petroleum gas stored, handled and used in accordance with safe practices and standards? Are liquefied petroleum gas storage tanks guarded to prevent damage from vehicles? Are all solvent wastes and flammable liquids kept in fire-resistant, covered containers until they are removed? Is vacuuming used whenever possible, rather than blowing or sweeping combustible dust? Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join? Need insurance for you ...
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... Required) Please consider the following: 1. Would you recommend this company? 2. What about this company do you like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews IMMS Library Immerse yourself in our stacks. Take some time and browse through our library. We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All liquidity Articles tagged with liquidity Back Agency Brochure Enclosed This content has not been rated yet. CompleteMarkets Editor 4/30/2013 10:37:10 PM AGENCY BROCHURE ENCLOSED Dear (Customer Name): Thank you for letting us take the opportunity to review your insurance program. Before we meet, I thought I would share a little of our firm's backgro.. All Articles by CompleteMarkets Editor Comments (0 ) x No Thanks Loading.. Loading.. x No Thanks Loading.. ...
https://completemarkets.com/company/CompleteMarkets/Articles/content-package/IMMS-Library/TabCategory/article-post/1655/Single-Premium-Whole-Life-Insurance-Module-V-C/
... a single premium. The lump-sum contribution ranges from a minimum of $5 ,000 on up. The average payment is $20,000 to $25,000, but recent studies show that the averages are increasing. Standard agency commission, which is premium-driven, ranges from 3% to 6% . The Life insurance part of the policy works like a regular policy. The insured pays a one-time premium and earns interest on that premium, or investment. The policy's interest rate depends largely on the marketplace, but generally is guaranteed to be at least 4% . If the policy is left untouched, at death it will pay out, tax-free, the full face amount, which includes the premium plus accrued interest. And, like all Life insurance, Single-Premium Whole Life provides estate liquidity. Death benefits go directly to the beneficiary without any income tax liability and without going through probate. However, the real benefit of Single-Premium Whole Life insurance is as a cash accumulation vehicle. There are few vehicles available today that allow an investor to put money in and draw money out without having to pay immediate taxes on it. Single-Premium Whole Life provides that advantage. The insured pays the lump sum, earning interest on that amount. The amount of interest earned each year may be borrowed, tax-deferred, usually with a zero interest spread. Because the interest rate charged on the loan is usually the same as the interest rate credited on that loan, it is interest-free. The insured can continue to borrow the interest each year and, as long as he or she does not lapse the ...