N.Y. Court Holds Up Assessments for Failed Workers’ Comp Trusts

By | July 10, 2008

  • July 10, 2008 at 9:06 am
    Darwin says:
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    How many times in history has the lack of public oversight, or inadequate oversight by those who have trouble grasping what they are responsible for; coupled with the total inability of the public to have any kind of meaningful access to information filed with a public agency led to disaster.

    In fact disaster is still being courted, because all or the records are still being considered confidential, and the same regulators are still in charge.

    Everytime when money is thrown on the table, and the lights are turned out; the money disappears, and others are forced to pick up the pieces. And this time is no different.

    Important lessons like these are usually learned in grade school, but appears to be still a challenge to those whose resume has higher credentials.

    The real pitfalls of group self insurance and so the individual self insureds in New York, is their reliance in a regulatory agency that hadn’t learned how to regulate.

    Our tax dollars at work!

  • July 10, 2008 at 12:59 pm
    Doctor J says:
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    There’s no guarantee fund behind SIGs and so, the WCB is correct, assuming the 9 SIGs in question are actually insolvent AND that additional money cannot be collected from the SIG members.

    There’s no other recourse for IWs.

    While its unfortunate for the other SIGs to have to potentially foot the bill, the money has to come from somehwere and you’d think the members of the dying SIGs would be assessable first, though.

  • July 10, 2008 at 1:38 am
    D says:
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    The real problem is that CRM seems to have been left of the hook by NY, they should seize the assets of CRM for the fraud they committed with suppressed reserves. The members of CRM’s SIG’s are going to learn a painful lesson for having CRM mismanage their SIG’s.

  • July 10, 2008 at 2:09 am
    Reagan says:
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    There is a Liquidation Bureau, don’t they also encompass self insureds?

  • July 11, 2008 at 9:18 am
    pay one way or the other says:
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    Somebody has to pay the injured workers. The only logical choice in this instance is to have self-insurers, who avoided purchasing insurance in hopes of avoiding costs like the guaranty fund, assume the risks associated with their behavior. In other words, if insurers must participate in guaranty funds as a condition of selling policies in a state, then it is only fair that the alternative system of providing workers’ compensation coverage for employees (i.e., self-insurers) should also have a mandatory guaranty fund or assessments as a cost of funding the full costs of the alternative system.

  • July 13, 2008 at 6:40 am
    Shame on all of them says:
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    Isn’t being a licensed insurance professional hold everyone ethically and morally obligated to the insured, as well as the injured worker? It’s a shame that higher commission takes precidence over what is truly best for a client. Stop promoting SIG’s and do what is best for your insureds!



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