Attorney General's News Release

January 20, 2006

Agreement with workers' comp company will protect employees at 211 small businesses in Missouri

Jefferson City, Mo. — A company that had contracts to provide workers' compensation insurance to more than 200 small businesses in Missouri — but which mistakenly let the coverage lapse for one year — will cover claims for that period, under a settlement with Attorney General Jay Nixon.

Corporate Resource Management (CRM), based in Oklahoma City, was under the assumption it had purchased coverage through Realm, an insurance provider in New York. It turned out the coverage was invalid. As a result, CRM’s 211 clients in Missouri were left without coverage from Nov. 1, 2002, to Nov. 1, 2003.

The settlement, filed in Cole County Circuit Court, stipulates that CRM accepts responsibility to pay for workers' compensation awards that occurred during the time period when no coverage was in place. There are currently eight known outstanding claims still pending for which CRM is responsible under the agreement. CRM is providing a Letter of Credit as security for payment of those claims, which have a projected value of $231,284.07.

Nixon says the company will also make a payment of $44,000 to the state Merchandising Practices Revolving Fund to reimburse the state for the costs of the investigation and enforcement of the Merchandising Practices Act.

Last October, Nixon obtained a similar judgment against Quick Labor, which collected $900,000 in workers' compensation premiums from Missouri businesses, but failed to implement the coverage. Quick Labor also had to ensure that claims for the period in which there was no coverage would be paid, and the company was required to pay $75,000 to reimburse the state for costs of investigation and enforcement of the Merchandising Practices Act.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818