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Best Source of Up-to-Date news on workers' compensation and disability in New York

Settlement over NY Workers Comp Premium Charges

Posted on Jan 13, 2011

New York State is getting back $120 million from four different insurance companies who agreed to repay the excess workers' compensation surcharges they've received. It seems that the insurance companies had been receiving varying amounts of surcharges for workers' compensation due to different state formulas for calculating amount due, dating back as far as the year 2000.

Workers' Compensation Law was changed in budget bills during 2009 and 2010 to prevent future overcharging and to enable NY to collect the excess surcharges.

The Workers' Compensation Board charges insurance companies annual fees, but apparently used a different calculation of the fees for the insurance companies than it did for calculating surcharges for policyholders. Some insurance companies did not charge their policyholders enough, while others - including the four who have already agreed to repay excess Workers' Compensation surcharges: Ace Ltd, Zurich Financial Services Group, Pennsylvania Manufacturers, and CNA companies.

The following breakdown is the amount each company will be paying to NY State:

Ace Ltd: $70 million
CNA Companies: $5.8 million
Pennsylvania Manufacturers: $5.9 million
Zurich Financial Services Group: $37.5 million

New York governor, Andrew Cuomo indicated in a statement that insurance companies who have excess workers' compensation funds that do not come forward to allow the state to collect would be brought to justice.

If you are applying for or appealing a workers' compensation claim and live anywhere in the New York City metropolitan area, please contact Markhoff & Mittman. Our reward is producing results that let people move on with their lives.

Workers' Comp Attorney New York