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CA Department of Insurance

California employers protected from being dragged out of state to resolve disputes with insurer

News: 2013 Press Release

For Release: July 11, 2013
Media Calls Only: 916-492-3566
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California employers protected from being dragged out of state to resolve disputes with insurer

The California Department of Insurance announced today a settlement with Zurich American Insurance Company and Zurich American Insurance Company of

"Zurich's practices required California employers to resolve disputes in Zurich's backyard, under unfavorable law and circumstances and at added expense to employers," said Commissioner Jones."This settlement gives

California employers the opportunity to level the playing field by arbitrating disputes in California , under California law."

The Department filed an order to show cause against

Zurich in 2012, asserting Zurich failed to file workers' compensation large deductible agreement forms with the department as required by the California Insurance Code.

Zurich never filed its large deductible agreements for review, even after the department advised all insurers in 2011 that filing was required.Zurich's agreements were generally offered on a take it or leave it basis to employers.The agreements also required that New York law apply to disputes, and disputes be resolved in Chicago, regardless of whether the employer's business was based entirely in California.

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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