The U.S. Department of Justice (DOJ) announced March 23 that Fireman's Fund Insurance Company has agreed to pay $44 million to settle allegations under the federal False Claims Act that it knowingly issued insurance policies that were ineligible under the U.S. Department of Agriculture's (USDA) federal crop insurance program and falsified documents. Fireman's Fund, an Allianz SE subsidiary headquartered in Novato, Calif., provides personal and commercial property insurance throughout the United States.

"Federal crop insurance provides vital support for farmers suffering crop losses due to natural disasters," said Acting Assistant Attorney General Benjamin C. Mizer of DOJ's Civil Division. "The Department of Justice will continue aggressively to pursue those who abuse this important program." 

Between 1999 and 2002, Fireman's Fund operated a crop insurance business and participated in the federal crop insurance program. Under the program, Fireman's Fund sold and serviced crop insurance policies that were reinsured by the USDA for a portion of the risks.

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Rosalie Donlon

Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU You can contact her at [email protected].