Thank you for sharing!

Your article was successfully shared with the contacts you provided.
HARRISBURG, Pa. — Zurich American Insurance Co. will pay $122 million to resolve claims of bid-rigging and price-fixing in the commercial insurance market under a nationwide settlement negotiated by Pennsylvania and 10 other states, state Attorney General Tom Corbett announced Monday. The amount to be paid to policyholders in all 50 states reflects the final terms of a settlement that was filed Monday in state courts, said Nils Frederiksen, a spokesman for Corbett. The states discovered that Zurich American failed to disclose it paid “contingent commissions” to insurance brokers and conspired with brokers in a scheme to overcharge commercial policyholders, Corbett said. Zurich American also will pay an additional $20 million to the investigating states for costs and fees. Preliminary settlement terms announced in March called for policyholders nationwide to receive $152 million in refunds, but the company was permitted to credit $30 million toward that amount in other nationwide settlements it is paying under a separate agreement with New York, Connecticut and Illinois, Zurich in North America spokesman Keith Owens said. The company is not admitting any wrongdoing, Owens said. The multistate coalition in the settlement also includes California, Florida, Hawaii, Maryland, Massachusetts, Michigan, Oregon, Texas, Virginia and West Virginia. Written notices will be mailed to all affected policyholders by Dec. 12. They will have until Jan. 11 to file a claim, opt out or object, Corbett said. Zurich American is a unit of Swiss insurance giant Zurich Financial Services.

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 1 article* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.