CRM Holdings Ltd., a provider of a full range of products and services for the workers' compensation insurance industry, announced its wholly-owned subsidiary Compensation Risk Managers LLC ("CRM") has reached a resolution with the New York State Workers' Compensation Board ("WCB").
No fines, no penalties and no admission of wrongdoing were important elements of an agreement signed today between the WCB and 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' comp groups in New York.
"I would like to thank the Workers' Compensation Board and Chairman Weiss for working with us to resolve this matter quickly. The group self-insured trust industry is facing some tremendous challenges in the months ahead and we are committed to helping them find solutions wherever we can," said Daniel Hickey Jr., the company's chairman and chief executive officer.
Hickey continued, "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."
The hearing originally scheduled for May 20, but postponed last week, has been canceled. Both sides consider the matter resolved.
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.