A subsidiary of Bermuda-based workers' compensation specialists CRM Holdings is facing an imminent action to revoke its third-party administrative licence by the New York Workers' Compensation Board (WCB).

Compensation Risk Managers (CRM) has also received a subpoena from the office of New York Attorney General Andrew Cuomo requesting documents. CRM believes the subpoena may relate to the WCB action.

CRM provides workers' compensation insurance and reinsurance products, as well as fee-based management services to self-insured entities. The licence that the WCB has warned it will try to revoke allows CRM to provide third party claims administrative services to self-insured workers' compensation groups in New York.

In a company statement released yesterday, CRM said it believed the WCB's charges were "substantially without merit". Pursuant to such an action from the WCB, CRM is entitled to present evidence at an administrative hearing, which will make a judgment. The Attorney General's subpoena requested documents related to CRM's administration of the Healthcare Industry Trust of New York.

"CRM intends to fully cooperate with the New York Attorney General's request," CRM's statement read. "To CRM's knowledge, the New York Attorney General has not initiated any proceedings against CRM. CRM believes that the subpoena relates to the concurrent investigation being conducted by the WCB."