Risk Management Helps Clients Secure Claim Monies

9/2/2009

POMCO Group Helps Secure Settlement Monies

The New York State Legislature amended the Workers' Compensation Law (WCL) in 2007 to establish the Waiver Agreement Management Office (WAMO) to help reduce and ultimately eliminate the liabilities of the Second Injury Fund. When the fund is eliminated, the fund could return the full liability for these claims to self-insureds.

The Second Injury Fund is funded by annual assessments against insurance carriers, self-insured employers, and the State Insurance Fund. The amount of the assessment is driven by the amount of Second Injury Fund payments made during the preceding year. Reduction of Second Injury Fund liabilities should decrease the Workers' Compensation Board assessments against carriers, self-insured employers, and the State Insurance Fund.

 

POMCO Group's Risk Management division is already evaluating all Second Injury Fund claims to determine possibilities for settlement of such claims. WAMO will entertain any reasonable settlement offer - the earlier EM engages WAMO for settlement contributions the better.

WAMO is beginning to work with self-insureds to settle workers' compensation claims with Second Injury Fund reimbursement. WAMO has already begun negotiating with insurance carriers on similar settlements.

WAMO will have approximately 4 ½ billion dollars available to contribute toward settlement of workers' compensation claims. WAMO reports that monies will be available as early as November 2009 and that it will make monies available prior to settlement payout. Therefore, self-insureds should be evaluating claims and negotiating settlement offers now.

Click here to find out how POMCO Group can help you evaluate claims and negotiate settlements now.