Compensation Risk Managers, a wholly owned subsidiary of workers compensation insurance products provider CRM Holdings, has reached a resolution with the New York State Workers' Compensation Board.
No fines, no penalties and no admission of wrongdoing were important elements of an agreement signed between the New York State Workers’ Compensation Board (WCB) and Compensation Risk Managers (CRM). Under the terms of the agreement, CRM, which had voluntarily exited the New York self-insured group market during the second half of 2007 and first quarter of 2008, will voluntarily surrender its third party administrator’s license to provide third party claims administrative services to self-insured workers compensation groups in New York.
As part of the ongoing transfer of CRM’s self-insured groups that voluntarily closed, it will continue to assist the WCB in the transfer of the administration of the groups still being managed by CRM to a new third party administrator appointed by the WCB under the Workers’ Compensation Law and the WCB’s regulations. In a separate matter, CRM agreed to pay $55,000 to satisfy all penalties that previously had been assessed by the WCB.
Daniel Hickey, chairman and CEO of CRM Holdings, said: An end to this dispute benefits our shareholders, as well as clarifies our defense of the allegations. The resolution of this matter allows us to turn our focus to meeting the needs of our brokers and end users as we continue to selectively expand our business.