Compensation Risk Managers L.L.C (CRM) of Poughkeepsie paid a $96,110 penalty to settle charges it violated licensing provisions of New York insurance law, state insurance Superintendent Eric Dinallo announced recently.
CEO Daniel G. Hickey Jr. signed a stipulation acknowledging that the company had acted as independent adjusters when it was not licensed to do so. CRM also acknowledged paying fees or compensation to some employees who acted as independent adjusters while not being licensed as such.
State insurance law requires that independent adjusters be licensed and that companies only employ or contract with licensed adjusters. The state maintained CRM was handling worker”™s compensation matters without due licensing designed to ensure adjusters are qualified to perform their duties.
CRM and Hickey admitted they were in violation of the law from 2002 to 2007, and agreed to take all necessary steps to prevent a recurrence of similar violations.
“The fine was in connection with violations that occurred over period of years. It worked out to something like five dollars per violation, cumulatively it added up,” said Ron Klug, spokesman for the state Insurance Department.
CRM is a national insurance program manager and administrator. A call to the CRM office seeking comment was met with a recording and not returned.
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