Although not in any immediate financial trouble, 11 of 14 self-insured employer workers' compensation trusts in New York administered by First Cardinal LLC are considering steps to dissolve their operations.
Richard Flaherty, First Cardinal president and chief executive officer, revealed the trusts' intentions in a letter to First Cardinal's broker partners.
He cited legislation signed into law in July by Gov. David Paterson as the primary reason for the decision. "It is now clear that the statute empowers the Workers' Compensation Board (WCB) to impose assessments on New York State self-insurance groups for other, unrelated self-insurance groups that have defaulted on their workers' compensation obligations," he wrote.
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