A New York self-insured trust administrator covering workers' compensation claims has agreed to surrender its license, underscoring the risk of collapse inherent in such plans, an association said.
On June 2, the New York state Workers' Compensation Board (WCB) announced that self-insured trust administrator Compensation Risk Managers LLC agreed to surrender its license to do business as a third-party administrator by Sept. 8.
This action settles charges by the WCB that CRM failed to pay injured workers in a timely fashion, did not file proper forms with the WCB, engaged in "improper delay tactics," set inadequate reserves on claims, and submitted false information to its clients and the WCB. Under the agreement, according to news reports, CRM admitted no wrongdoing.
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