Chubb Group Ordered to Refund Over $13 Million To Customers

The Florida Office of Insurance Regulation today released the following news regarding a Consent Order issued to The Chubb Group for the refund of over $13 million in excess profits to its customers.

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Commissioner McCarty Orders Workers’ Compensation Insurers To Refund Over $13 Million To Customers

TALLAHASSEE (07/19/2007) – Florida Insurance Commissioner Kevin McCarty issued a Consent Order today requiring The Chubb Group of companies to refund over $13 million in excess profits to its customers.  The order states that the Office of Insurance Regulation performed an evaluation of the data submitted by the group, 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,” McCarty said.
 
The Chubb Group consists of Federal Insurance Company, Chubb Indemnity Insurance Company, Chubb National Insurance Company, Great Northern Insurance Company, Pacific Indemnity Company, and Vigilant Insurance Company.
 
The insurers must make the refund or offer renewal credits to its policyholders within the next two months.
 
Click here to view the Consent Order.