The New York State Insurance Fund (NYSIF) paid a workers' comp claim it knew was a fake and others that were totally unsubstantiated, according to an appeals court ruling that an attorney said could have far-reaching consequences.
"This is going to force a change in the Insurance Fund quality of service," predicted Mark Dreux and attorney with Arent Fox law firm in Washington, which represented the Photocircuits Corp. when it challenged the fund for failing to defend it against unauthorized payments.
The Glen Cove, N.Y. circuit board maker argued that NYSIF had asked the company to pay $466,100 in additional workers' compensation insurance premiums to cover four claims that it had evidence were completely bogus or unsubstantiated, according to court papers.
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