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.