Zurich Settles Insolvency Claims For $110M
NU Online News Service, Jan. 10, 3:32 p.m. EST?Zurich Financial Services Group has reached an agreement with California's insurance commissioner regarding claims transactions between two insolvent workers' compensation groups.[@@]
Under the settlement announced today, Zurich's insolvent Centre Insurance Company unit would pay up to $110 million, most of it in cash, to the state's insurance department, which is serving as the liquidator.
The settlement, involving the case of Insurance Commissioner vs. Centre Insurance Company, et al., resolves claims disputes between insolvent Superior National Insurance Companies and Centre Insurance Company.
Zurich announced that the settlement resolves "extensive and complex claims and regulatory issues relating to business transactions" between the two companies now in liquidation.
The case, originally filed in 2002, involved claims of $250 million.
The bulk of the settlement will be channeled to the California Insurance Guarantee Association for payment of workers' comp claims against the insolvent companies.
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