The New York state attorney general has accused four insurance groups of collecting too much in workers’ comp fees – and they’ve agreed to a $120 million settlement.
The insurance groups include Zurich Financial Services Group, ACE Ltd., CNA Financial Corp. and Pennsylvania Manufacturers’ Association Insurance Company. The groups agreed to the settlement because they were found to have collected too much money from businesses with workers’ compensation policies.
How did this happen? In 2000, the New York Workers’ Compensation Board (WCB) began using a new method to calculate premiums for workers’ comp policy holders (policy holders are typically New York businesses looking to insure their workers). The new calculation seems to have confused a lot of people, as in addition to insurance groups collecting too much, some groups collected too little.
The insurance companies seem to be blaming the WCB for the confusion, saying their rules were too hard to understand (so, do you think that they can now sympathize with injured workers, who also have to follow convoluted and perplexing WCB rules?)
Legislation passed in 2009 and 2010 by former NY Attorney General Andrew Cuomo is allowing the state to go after insurers that overcharged for workers’ comp premiums. All four insurance groups that are part of the $120 million settlement cooperated with the investigation.
If you think workers’ compensation rules in New York are hard to understand, you are not alone! Get help from our experienced NY workers’ comp attorneys immediately by calling 866-205-2415.