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$133 Million in Unfunded Workers Comp Claims Billed to NY Employers

Source: Business Insurance

Posted on 19 Aug 2009

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Nearly 2,000 companies insured under group trusts formerly operated by CRM Holdings Ltd. have been billed $133 million to cover unfunded workers compensation claims, a New York State Workers' Compensation Board spokesman said Tuesday.

Bermuda-based CRM last year surrendered its third-party administrator license in New York when the New York State Workers' Compensation Board took over several CRM self-insurance trusts. State regulators claimed the company failed to pay claims and failed to adequately reserve for claims.

CRM said its business practices were sound but it was a victim of economic conditions.

New York state employers that participated in the failed CRM trusts, however, agreed to share responsibility for future claims. Each has been billed an average of $74,000.