Florida Insurance Commissioner Kevin McCarty said yesterday he has issued a consent order requiring the Chubb Group of companies to refund over $13 million in excess workers' compensation profits to its customers.
The order states that the Office of Insurance Regulation performed an evaluation of the data submitted by the Warren, N.J.-based firm and determined that between the years 2002 and 2004, the insurers realized excess profits in the amount of $13,099,891 for workers' compensation business.
"Florida law prohibits insurers to earn excess profits and requires that if we determine any were earned, the company must return it to the policyholders," Mr. McCarty said.
According to his office, the insurer must make the refund or offer renewal credits to its policyholders within the next two months.
Chubb issued a statement asserting, "We do not set workers' compensation rates in Florida--the state does--and as a result of Chubb's and our customers' efforts we have been better able to control and reduce workers' compensation losses."
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