An investigative report co-published by the independent, non-profit web site ProPublica and the Los Angeles Times indicates that insurer CNA Financial Corp. is facing a criminal investigation based on the way it handled claims related to a federally funded program that provides what is essentially workers' compensation coverage to contractors killed or injured while working overseas for the United States.
Instead of paying out benefits, CNA is accused of withholding information from the federal government and avoiding making payments to nine families who lost relatives in a 2006 attack, according to court files and interviews, the story says.
The report goes on to highlight problems associated with the Defense Base Act, essentially a workers' compensation system for overseas federal contractors.
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