Thursday, December 29, 2011

Hospital Officials See Spike In Accidents Over Just The Past Few Days

by Jen KastnerNewsWest 9
ODESSA- The doctors and nurses at Medical Center Hospital are taking a deep breath after a stressful weekend in the emergency room. They say several patients were taken to them after being in car accidents. They saw far more than they usually treat.
Last weekend brought with it the excitement of Christmas, but a sudden snowstorm coupled with jam-packed roads full of holiday shoppers, led to disaster for some.
"We saw an increase in motor vehicle crashes both the days before Christmas and the days right after," Divisional Director for Emergency Services, Dena Mikkonen, said.
The emergency room at MCH says they've seen a sharp spike in the number of crashes over just the past few days.
The Department of Public Safety said they responded to 24 motor vehicle accidents on Saturday alone. On Sunday, they went to another 13 accidents.
The snow was partly to blame, but that wasn't all.
"I think holiday travel and drinking [are the blame]. Both of those things would probably contribute and then also some of the snowy and icey conditions that we had," Mikkonen said.
The holiday came with some heavy partying and the ER definitely treated some of those folks.

"I've seen a lot of patients that were probably drinking before here and were involved in crashes," Mikkonen said.
With New Year's Eve around the corner, the holiday season isn't behind just yet. These nurses urge you to think things through before hitting the road.
"Safety never takes a holiday and you never know when a crash is going to happen. So, you want to think through your plans and make your decisions ahead of time. And, don't let things impair your judgement like alcohol, stress and fatigue. Or, distractions like texting," ER Nurse, Lisa Earp, said.

Thursday, December 22, 2011

Insurance Claim Delays Deliver Massive Profits To Industry By Shorting Customers

WASHINGTON -- Unlike many other businesses, the insurance industry is bound by law to act in good faith with its customers. Because of their protective role in the lives of ordinary citizens, insurers have long operated as semi-public trusts. But since the mid-1990s, a new profit-hungry model, combined with weak regulation, has upended that ancient social contract.
"Claims has been converted into a money-making process," said Russ Roberts, a New Mexico-based management consultant and former business professor at Northwestern University who has studied the insurance industry's evolution from a service business to a profit-driven machine.
The change started when consulting giant McKinsey & Company sold Allstate and other leading insurance companies on a new system to boost the bottom line: Rather than adjusting claims the traditional way, which gave claims managers wide latitude to serve customers, insurers embraced a computer-driven method that produced purposefully low offers to claimants.
Those who took the low-ball offers received prompt service, while those who didn't had their claims delayed and potentially were reduced to bringing expensive lawsuits to fight for their benefits. As former Allstate agent Shannon Kmatz told the American Association for Justice, the trial lawyers' lobby, the strategy was to make claims "so expensive and so time-consuming that lawyers would start refusing to help clients." The strategy was dubbed "Good Hands or Boxing Gloves" by the consultants, riffing on Allstate's advertising slogan.
McKinsey, which was reportedly hired by Allstate in 1992, prepared about 12,500 PowerPoint slides to present its plan. The slides were introduced in litigation in 2005, when the insurer turned them over under a temporary protective order. David Berardinelli, a New Mexico-based trial lawyer who was working on the case, detailed the slides in his 2008 book, "From Good Hands to Boxing Gloves: The Dark Side of Insurance."
McKinsey's strategy put profits above all. One slide in the McKinsey presentation illustrated this philosophy by painting the insurance business as a zero-sum game: "Improving Allstate's casualty economics will have a negative economic impact on some medical providers, plaintiff attorneys, and claimants. ... Allstate gains -- others must lose."
Allstate has certainly gained: It made $4.6 billion in profits in 2007, double its earnings in the 1990s. The stunning increase, said Russ Roberts, came through "driving down loss values to an average of 30 percent below the actual market cost" -- that is, paying dramatically less on claims.
"An insurance company can make a lot of money on the small claims," said Jay Feinman, a professor at Rutgers University School of Law, "because if you save a few dollars on a huge number of claims, it's worth more than saving a lot of dollars on a very small number of claims."
Allstate is the best-known user of the McKinsey model, topping the list of the "Ten Worst Insurance Companies in America" published by the American Association for Justice. But Allstate's rise in profits has led most of the industry to adopt the same approach. McKinsey has worked with State Farm, another insurance giant, and other companies in redesigning their claims systems. Feinman cautioned in his book "Delay, Deny, Defend" that the two major names "are just the largest players in the industry .[the ones] whose involvement with McKinsey & Company in the transformation of claims is the best documented."
Roberts told HuffPost that, by his estimate, the companies that take in 70 percent of total insurance profits in the United States now abuse their obligations to their policyholders. When Allstate CEO Tom Wilson earned $9.3 million last year, he was not even on the top 10 list of best-paid insurance executives, compiled by New York Law School's Center for Justice and Democracy. (The top 10 list was led by William R. Berkley of W.R. Berkley, who made $24.6 million in 2010.)
Yolande Daeninck, spokeswoman for McKinsey & Company, said, "In line with our firm's longstanding policy to not discuss our client work, we decline to comment."
A HOUSE BURNS DOWN
According to an unpublished Harris Interactive Poll conducted in September, 16 percent of surveyed adults have experienced financial hardship while waiting for an insurance claim to be settled or know someone who has. The same poll found that 59 percent of adults believe that most insurers intentionally delay claims -- and those with an income of $35,000 or less were more likely to agree.
With 15.3 percent of Americans -- about 46.2 million people -- living in poverty, close to 10 percent unemployment, and roughly 2 million people who've been looking for work for more than two years, Allstate's business model is profiting off many consumers at their most vulnerable. A claim delayed by even a month can spell financial disaster for a family. As a National Bureau of Economic Research study found, about 25 percent of Americans could not come up with $2,000 in a 30-day period.
Madeleine Burdette, a retiree, is an Allstate customer who reported her experience on the popular website AllstateInsuranceSucks.com. When her Georgia home burned in November 2010, Burdette was in Ohio, where she lives most of the year. She said the fire marshal in Georgia told her that her house would have to be torn down. "The entire middle of the house was gone," Burdette said. "It took out everything. Just the outside walls were left untouched."
The next day, she said, Burdette's Allstate adjuster told her the house could be repaired. Allstate also said it would have to do a thorough investigation to determine if the fire was caused by arson. If it was arson, the adjuster told Burdette, Allstate would not pay for any damages. According to former employees, such investigations are a common practice at Allstate and are encouraged by supervisors as a way to avoid paying claims quickly.
Burdette, who lives on her Social Security checks, flew from Ohio to survey the damage herself. While in Georgia, she contacted public adjuster Anita Taff. Public adjusters serve as advocates for individuals who feel they need another set of eyes on a claim. Taff met with Burdette at the house, Burdette said, and discussed the damage with the contractor Burdette had hired. Upon returning to Ohio, Burdette spoke with Taff over the phone to find out what her impression was. Burdette said Taff warned her that the contractor might go along with Allstate's insistence that the house could be repaired.
"I believe [delaying claims] is an effort to put the squeeze on policyholders," Taff told HuffPost. She explained that while a claim is being held up, the insurance company may stop paying the policyholder's additional living expenses, forcing the policyholder to cover mortgage and rent entirely out of pocket. "That's something that many people cannot afford to do, so they're forced to take a lower settlement," Taff said.
Burdette said she immediately called the contractor and told him not to go near her house. According to Burdette, she received a phone call within 10 minutes from her Allstate adjuster asking her not to hire Taff or any other public adjuster. "He said, 'If you hire a public adjuster, I'm going to deny and delay this claim for as long as possible,'" Burdette told HuffPost. Taken aback, she then asked if it wasn't in his best interest to settle the claim. "Not really," he replied, according to Burdette.
Although the Allstate adjuster eventually agreed to work with Taff on Burdette's claim, her troubles did not end. The contractor who had been banned from her property nevertheless worked on the house and billed Allstate for $22,000. Burdette had explicitly told Allstate not to pay the contractor a dime, she said, but the company paid him under her policy anyway. The contractor couldn't be reached for comment.
More than a year later, Burdette's home is still being repaired and Allstate refuses to reimburse the $22,000. She consulted four different lawyers to see if she had a legal case. While she said they all agreed that she was entitled to reimbursement, she said they also agreed that she lacked the funds to fight the insurance giant. "They told me, 'You'll run out of money,'" she said.
NO FLUKES
Roberts, the management consultant, said that companies like Allstate attempt to pass off claims delays as fluke occurrences. But, he said, they are actually routine and intentional products of the McKinsey system: "The Allstate/McKinsey system for 'lowballing' claims payments ... is driven by the claims performance management and pay systems from the top to the bottom of the organization."
Feinman, the Rutgers law professor, also suggested the deck is stacked against individuals who make claims. "You have an accident or a fire in your house. You call up the insurance company. You describe the circumstances. Maybe they send an adjuster out, and they say it's not covered, or it's covered but here's the dollar amount that we're obligated to pay you," he said. Most people, Feinman said, do not have the expertise "to know whether or not that's right."
Allstate spokeswoman Laura Strykowski said the company can't comment on specific cases because of privacy requirements, but considers its claims process both legal and effective. "Our customers and claimants receive prompt and courteous claim service and our goal is to settle each claim fairly and efficiently," she wrote to HuffPost. "As a regulated company, Allstate's claim practices are available to and regularly reviewed by state departments of insurance."
But experts like Feinman argue that insurance regulation has become little more than a fig leaf. State insurance departments are usually understaffed and overwhelmed. And even if they had the legal firepower to contend with giant insurance companies, Feinman said, "the regulators are closer to the industry than they are consumers." Eleven of the past 15 presidents of the National Association of Insurance Commissioners (NAIC) went on to work for the insurance industry after leaving office, while a 17-year study from two Georgia State University professors found that around half of state-level insurance commissioners did so as well.
When combined with penalties that Feinman described as "laughably low" in many states, this close relationship means that regulation does not provide an effective check on insurance companies. And state governments themselves have incentive to place consumers on the backburner. Because insurance taxes are a major source of revenue for the states, said Roberts, insurance oversight commissions are usually more concerned with keeping companies solvent than resolving the problems of policyholders.
With the exception of the federal Affordable Care Act, insurance is regulated on a state-by-state basis. Although most states set a specific timeline for how quickly an insurance company must initially respond to claims, there is much more leeway when it comes to settling those claims. For example, in Missouri, an insurer must acknowledge receipt of a claim within 10 days and either pay or deny it within 15 days of receiving all necessary documentation. However, if the insurer decides it needs more time to investigate, it may keep delaying as long as it updates the policyholder every 45 days. In Georgia, where Burdette's house burned down, the insurer must notify the policyholder if it will affirm or deny a claim within 60 days. However, the insurer does not have to settle the amount it will pay within that period. Many states have similar provisions that allow insurers to put off paying claims indefinitely.
According to NAIC data, claim delays have long been the most frequent cause of policyholder complaint. As of Nov. 28, 2011, the NAIC had received 11,053 delay-related complaints this year alone, comprising almost a quarter of the year's total complaints. These data only reflect confirmed complaints -- the ones that the state insurance commission has investigated -- so the actual number of delayed claims is likely much higher.
Complaining to state regulators about the insurer's delay is always an option, but its effectiveness is questionable at best. "I have not seen it be successful," said Taff.

Tuesday, December 20, 2011

NTSB Recommends Ban On Cellphones While Driving

by THE ASSOCIATED PRESS

text size A A A
December 13, 2011
States should ban all driver use of cellphones and other portable electronic devices, except in emergencies, the National Transportation Board said Tuesday.
The recommendation, unanimously agreed to by the five-member board, applies to both hands-free and hand-held phones and significantly exceeds any existing state laws restricting texting and cellphone use behind the wheel.
The board made the recommendation in connection with a deadly highway pileup in Missouri last year. The board said the initial collision in the accident near Gray Summit, Mo., was caused by the inattention of a 19 year-old-pickup driver who sent or received 11 texts in the 11 minutes immediately before the crash.
The pickup, traveling at 55 mph, collided into the back of a tractor truck that had slowed for highway construction. The pickup was rear-ended by a school bus that overrode the smaller vehicle. A second school bus rammed into the back of the first bus.
The pickup driver and a 15-year-old student on one of the school buses were killed. Thirty-eight other people were injured in the Aug. 5, 2010, accident near Gray Summit, Mo.
About 50 students, mostly members of a high school band from St. James, Mo., were on the buses heading to the Six Flags St. Louis amusement park.
The accident is a "big red flag for all drivers," NTSB chairman Deborah Hersman said at a meeting to determine the cause of the accident and make safety recommendations.
It's not possible to know from cell phone records if the driver was typing, reaching for the phone or reading a text at the time of the crash, but it's clear he was manually, cognitively and visually distracted, she said.
"Driving was not his only priority," Hersman said. "No call, no text, no update is worth a human life."
The board is expected to recommend new restrictions on driver use of electronic devices behind the wheel. While the NTSB doesn't have the power to impose restrictions, it's recommendations carry significant weight with federal regulators and congressional and state lawmakers.
Missouri had a law banning drivers under 21 years old from texting while driving at the time of the crash, but wasn't aggressively enforcing the ban, board member Robert Sumwalt said.
"Without the enforcement, the laws don't mean a whole lot," he said.
Investigators are seeing texting, cellphone calls and other distracting behavior by operators in accidents across all modes of transportation with increasing frequency. It has become routine for investigators to immediately request the preservation of cellphone and texting records when they launch an investigation.
In the last few years the board has investigated a commuter rail accident that killed 25 people in California in which the train engineer was texting; a fatal marine accident in Philadelphia in which a tugboat pilot was talking on his cellphone and using a laptop; and a Northwest Airlines flight that flew more than 100 miles past its destination because both pilots were working on their laptops.
The board has previously recommended bans on texting and cellphone use by commercial truck and bus drivers and beginning drivers, but it has stopped short of calling for a ban on the use of the devices by adults behind the wheel of passenger cars.
The problem of texting while driving is getting worse despite a rush by states to ban the practice, Transportation Secretary Ray LaHood said last week. In November, Pennsylvania became the 35th state to forbid texting while driving.
About two out of 10 American drivers overall and half of drivers between 21 and 24 say they've thumbed messages or emailed from the driver's seat, according to a survey of more than 6,000 drivers by the National Highway Traffic Safety Administration.
And what's more, many drivers don't think it's dangerous when they do it only when others do, the survey found.
At any given moment last year on America's streets and highways, nearly 1 in every 100 car drivers was texting, emailing, surfing the Web or otherwise using a handheld electronic device, the safety administration said. And those activities spiked 50 percent over the previous year.
The agency takes an annual snapshot of drivers' behavior behind the wheel by staking out intersections to count people using cellphones and other devices, as well as other distracting behavior.
Driver distraction wasn't the only significant safety problem uncovered by NTSB's investigation of the Missouri accident. Investigators said they believe the pickup driver was suffering from fatigue that may have eroded his judgment at the time of the accident. He had an average of about five and a half hours of sleep a night in the days leading up to the accident and had had fewer than five hours of sleep the night before the accident, they said.
The pickup driver had no history of accidents or traffic violations, investigators said.
Investigators also found significant problems with the brakes of both school buses involved in the accident. A third school bus sent to a hospital after the accident to pick up students crashed in the hospital parking lot when that bus' brakes failed.
However, the brake problems didn't cause or contribute to the severity of the accident, investigators said.
Another issue involved the difficulty passengers had exiting the first school bus after the accident. The bus' front and rear bus doors were unusable after the accident the front door because the front bus was on top of the tractor truck cab and too high off the ground, and the rear door because the front of the bus had intruded five feet into the rear of the first bus.
Passengers had to exit through an emergency window, but the raised latch on the window kept catching on clothing as students tried to escape, investigators said. Exiting was further slowed because the window design required one person to hold the window up in order for a second person to crawl through, they said.
It was critical for passengers to exit as quickly as possible because a large amount of fuel puddled underneath the bus was a serious fire hazard, investigators said.
"It could have been a much worse situation if there was a fire," Donald Karol, the NTSB's highway safety director, said.

Monday, November 28, 2011

Woman's new Lexus wrecked by valet

Updated: Wednesday, 23 Nov 2011, 7:14 PM CST
Published : Wednesday, 23 Nov 2011, 3:17 PM CST
AUSTIN (KXAN) - When you place your car in the hands of a valet, you expect to get it back in one piece.
That isn't always the case, as one frustrated Austin woman found out.
Rosa Rivera went to an event at the Bass Concert Hall in October and let Central Texas Valet park her car. But her pleasant night turned into a nightmare.
"They took us to the parking garage to find our car and it was crashed against a utility pole," Rivera said told the KXAN Tipline. "Everythiing was splattered all over."
Her car was a new Lexus with only 2,000 miles on it.
Valet parking companies are required by law to carry full insurance, but Rivera's dealings with Central Texas Valet owner Corey Evers went downhill quickly.
"You'd expect like any other car accident their insurance calls you, provides you a rental car, they fix your car, you get your car back," Rivera said. "It didn't work out that way."
Rivera said Evers never even paid for her to get a loaner. "He said he would but he never showed up with his credit card."
Rosa then called him back, saying, "He said to talk to his lawyer, I wasn't able to talk to him anymore. I had to get a lawyer once he brought in his lawyers and we were given the runaround."Evers told KXAN that the his company did everything that was required of it and that the rentail car company mishandled the loaner-car arrangement.
Central Texas Valet says on its website: "Our insurance coverage is the most up-to-date and all-inclusive available to the industry."
Self-insured for the first $10,000 in repairs, Evers sent Rosa's Lexus to Big Boys Collision, a shop he used, where they wrote her a repair estimate of $7,000.
But she had the car moved to a shop her dealer recommended, Berli's Auto, where they said the damage was much more severe, possibly totaled.
Berli's General Manager Chad Kiffe said, "Unfortunately. It's a good car, 2011, but with the extent of the damage it's borderline." He adds, "Sometimes when you get into structural components, depending on the insurance company's guidelines, they may decide to total it."
Finally Evers' primary underwriter, Firemen's Insurance stepped up and did declare Rosa's car a total loss. She's expecting a settlement check from them, saying she learned a lesson, "I'm going to research whoever is doing the valet services at an event, and more than likely we'll self park."

Friday, November 18, 2011

Fatal police crash probed Results expected after the new year

More than four months have passed since the night a Wichita Falls police officer struck a car with his patrol cruiser at high speeds, killing two teenage girls inside the other vehicle.
Department of Public Safety investigators released earlier this week a report indicating Teddie Whitefield had Xanax and diet pills in his system before the fatal wreck. No criminal charges have been filed to date against Whitefield, who was indefinitely suspended from the Police Department in August.
A source in the Wichita County District Attorney's Office told the Times Record News on Wednesday the investigation into the incident remains ongoing.
The source said the district attorney's office did not expect that investigation to be completed until after the new year.
Whitefield appealed his suspension and has an arbitration hearing with city legal officials set for February. He is being represented by attorney Craig Driskell of the Combined Law Enforcement Associations of Texas.
Whitefield was suspended for several alleged violations of Police Department regulations — including using the prescription medications without reporting them to a supervisor and not providing documentation of medical clearance to use them while on duty. Officials also cited him for traveling at excessive speeds, making no reasonable attempt to avoid the collision and not wearing a seat belt.
Whitefield is seeking lost pay and benefits. In his appeal letter to city officials, Whitefield's legal counsel claimed the charges against him were "legally insufficient to support the imposition of any penalty or punishment and legally insufficient to support a conclusion that the appellant was guilty as charged in the charging instrument."
It also considered his suspension "clearly excessive considering all the mitigating circumstances."
An initial accident report listed speed as a contributing factor in the wreck but also noted the use of a cellphone inside the victims' car at the time of the wreck and Whitefield's use of the prescription medications as possible factors, as well. The driver of the girls' car reportedly did not have a valid driver's license.
The report showed that at about 9:30 p.m. June 30, Whitefield's patrol car struck the girls' car on its passenger side while traveling at least 80 mph along Jacksboro Highway — nearly twice the posted speed limit. Police logs showed Whitefield was not responding to an emergency call at the time.
The impact resulted in the deaths of 18-year-old Yeni Lopez and 13-year-old Gloria Montoya. It was later revealed Lopez was about eight months pregnant.
Whitefield received lesser injuries and was treated at a hospital and released shortly after the wreck.
Written by Matt Ledesma.

Monday, November 14, 2011

Texas Drivers Hit Roadblocks After Filing Auto Insurance Claims

A The Dallas Morning News analysis of the Insurance Department’s consumer complaint figures showed that 11 of the 25 largest auto insurers in the state — those with more than 100,000 policies — had a complaint index that was above average last year. 


Complaints that drivers filed with the state included such practices as delays in processing claims, “low-ball” offers and settlements, denial of claims and liability disputes. Alex Winslow of Texas Watch, a consumer group active in insurance issues, said unethical companies have an advantage because they undercut regular insurers on price largely because of the claims payment practices. 


“The business model is they drag their feet and make it as difficult as possible for the claimant to collect in hopes they will take a low-ball offer or give up,” he said. 


I’m concerned the Insurance Department is not being aggressive in policing market conduct. They should be exercising more authority over these companies that are using questionable practices.”  


TERRENCE STUTZ, The Dallas Morning News  11/14/2011


Click here to Learn the 5 Things You Must Do If You Are In A Car Accident.

Wednesday, November 2, 2011

BMW Recalls Vehicles for Potential Fire Hazard


Getty Images
Certan BMW X5 vehicles are included in a new recall.
BMW North America is recalling certain vehicles from the 2008 through 2011 model years to correct a possible problem with overheating circuit boards that could cause fires.
In a document filed with the National Highway Traffic Safety Administration, the car maker said the recall affects a total of 32,084 vehicles including 5 Series, 5 Series Gran Turismo, 7 Series, and X5 and X6 sport utility vehicles. The models involved have eight- or 12-cylinder turbocharged engines.
In these vehicles, the company said, a circuit board for the electric auxiliary water pump can overheat. This can lead to a fire in the engine compartment.
Under the recall, BMW said its dealers will replace the auxiliary water pump free of charge. The recall is expected to begin during november. Owners may contact BMW customer relations and services at 800-525-7417.

Friday, October 28, 2011

Texas Motor Speedway honors Wheldon

by CASEY NORTON
Bio
WFAA
Posted on October 17, 2011 at 5:49 PM
Updated Monday, Oct 17 at 8:44 PM




FORT WORTH - IndyCar and NASCAR drivers are calling for changes after the death of Indianapolis 500 champion Dan Wheldon. Five-time NASCAR Champion Jimmy Johnson said the open-wheel Indy cars should not race on ovals.

Texas Motor Speedway, an oval race track, said IndyCar is on the calendar to return, and any changes would be months away after serious discussions.

Dan Wheldon was killed on lap 11 in Las Vegas Sunday. He was involved in a 15-car collision. Vehicles broke into small pieces and caught fire. Wheldon's car flew into the catch fence, killing him.
Texas Motor Speedway lowered its flags to half-staff, but wasn't ready to talk about changes for IndyCar races.
"You know at times situations like this are going to occur," said TMS Vice President of Media Relations Mike Zizzo. "They're unfortunate; they're tragic; but it is part of the sport."
Zizzo called Wheldon a friend for nearly 15 years. He said Wheldon was a driver dedicated to promoting his sport.
"He was the person that if he was in the garage in the paddock, he touched a lot of people," Zizzo said. "It was one of those personalities where if you're around him, he made you happy; made you smile."
As a two-time Indy 500 champion, Wheldon made strong ties in North Texas when he took part in media stunts and promotions.
In 2005, he led the cattle drive through the Fort Worth Stockyards. In May 2011, six years later, Wheldon drove then-Mayor Mike Moncrief to work in an Indy car.
On the streets, they talked about Texas, racing and his two young sons.
"I know the challenge it's going to be when those kids start growing up," Moncrief said. "They're going to miss their dad. And so it's a difficult road they have ahead."
As much as he loved Texas, Wheldon had his share of accidents on the oval track. In 2008, a practice lap sent him flipping through the infield at Texas Motor Speedway. He limped away and called it "part of life."
Wheldon's death could eventually lead to new safety standards in IndyCar racing.
For now, his sport is honoring his life as a champion
.

Monday, October 17, 2011

Dan Wheldon's death stuns racing world


LAS VEGAS -- The racing world may have thought Dan Wheldon had experienced the highest highs and the lowest lows that the sport had to offer in 2011.
But then motorsports suffered the lowest point possible with Wheldon's death Sunday at Las Vegas Motor Speedway.
Wheldon started the season unemployed but parlayed a one-off drive in the Indianapolis 500 into his second Indy win and the richest payday of his racing career. And he was on the brink of even greater things in the years ahead. But he got caught in a 15-car crash on the 11th lap of the Las Vegas Indy 300.
[+] EnlargeDan Wheldon
Robert Laberge/Getty ImagesA fan shared a message after it was announced that Dan Wheldon had died from injuries suffered in a crash at Las Vegas Motor Speedway.
The 2005 IndyCar Series champion's car was launched into the catch fence, causing what INDYCAR termed "unsurvivable injuries."
Wheldon was 33 years old and leaves a wife and two children.
ESPN.com learned from team owner Michael Andrettithat just hours prior to Sunday's race, Wheldon signed a multiyear deal to replace Danica Patrick in Andretti Autosport's No. 7 car sponsored by GoDaddy.com.
Wheldon drove for Andretti Autosport from 2003 to 2005, winning the 2005 Indianapolis 500 and series championship. He was part of a powerful, four-car Andretti juggernaut including Dario FranchittiTony Kanaan and Bryan Herta that won 11 of 17 races during that magical '05 season.
"He was a very close friend and we had just literally inked it this morning," Andretti said. "We had great plans to do fun things together. I'm going to miss him. There was a lot of life in that guy. He was part of the glory days here. We had a combination that has never been put together in the sport of auto racing, in my opinion.
"But it's part of our sport. He knew the risks; we all know the risks when we get in the car. It probably touches me a little more because of everything that was going on. It's a terrible thing, but unfortunately in our sport we've had a lot of days like these. They suck, but that's the way it is."
Wheldon was making only his third start of the 2011 season. He spent much of the year serving as the test and development driver for the new chassis that the IndyCar Series is introducing for 2012.
At Las Vegas, Wheldon was part of a publicity stunt known as the GoDaddy IndyCar Challenge in which he would have split a $5 million prize with a fan should he have won the race.
Wheldon started from the back of the 34-car field and had moved up to 24th place when the carnage unfolded on the 11th of a scheduled 200 laps.
It appeared that Wheldon never lifted from the throttle before striking the back of E.J. Viso's car, sending Wheldon's No. 77 Sam Schmidt Motorsports entry airborne into a barrel roll.
The car struck the catch fence with enough force to shear the roll hoop cleanly from the top of the Dallara chassis.
"I don't know what I can say to comfort anybody," said Kanaan, who aside from being Wheldon's teammate from 2003 to 2005 was one of his closest friends. "But I think if you asked everyone in this field how they would want to go, that's the way. If I could choose I'd do the same. But right now I can't describe the pain.
[+] EnlargeDan Wheldon
Tom Pennington/Getty ImagesThe IndyCar Series family lined the track at Las Vegas Motor Speedway as drivers completed a five-lap tribute to honor Dan Wheldon.
"I just pray that he rests in peace. Right now I just want to give my support to his family. He was one of my best friends and one of my greatest teammates back in the day."
Kanaan and Franchitti shared a similar experience in 1999 when their close friend Greg Moore was killed during the season finale at California Speedway. The Brazilian, who won the IndyCar title in 2004 and served as a mentor to Wheldon, put the day's events into perspective.
"We don't think about things like this," Kanaan said. "As race car drivers, we have to block out that possibility. Unfortunately when it happens it's really hard.
"But what we do is dangerous and we face that every day," Kanaan continued. "It's been happening for years, for decades. It's just hard to swallow, but we have to move on. We're racers; we love what we do. Eventually we're going to have to turn the page and remember him with the great memories we have. I know exactly what he would say if I told him I was going to quit: He'd say he was going to take my place."
Franchitti paid tribute to Wheldon on a day when the focus was meant to have been on him. Franchitti clinched his fourth IndyCar series title (and third consecutive) on Sunday when his championship rival, Will Power, was involved in the same crash that killed Wheldon.
"Right now I'm numb and speechless," Franchitti said. "One minute you're joking around at driver intros and the next Dan's gone. We had a couple of fall outs over the way, but we were friends. Everybody in IndyCar Series considered Dan a friend. You saw the reaction. He was one of those special, special people from when he showed up first in IndyCar. And he was kind of brash, all that stuff, but he was a charmer. Then he became this loving family guy who is still charming, but he had this whole new side to him.
"I'm just thinking of [Wheldon's wife] Susie and the boys," Dario added. "When I think about them, I'm struggling to hold it together. I don't know what else to say."
For Franchitti, the similarities to the Moore tragedy of 1999 were uncanny. The only difference this year is that he came out on top in the championship standings.
"We can put so much pressure on ourselves to win races and championships, and that's what we love to do," Franchitti said. "It's what we live for.
"But on days like today, it doesn't really matter."
John Oreovicz covers open-wheel racing for ESPN.com.