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Zurich Class Action Law Suit DOES NOT include Crop Insurance sold by Rain and Hail
In the last few days, some policyholders have received notifications about the settlement of class action litigation involving Zurich Insurance Companies and their Brokers.
Rain and Hail was not involved in the underlying litigation or the settlement. Moreover, this litigation and settlement do not affect any of the crop insurance lines sold and serviced by Rain and Hail. In this regard, we can offer the following information that we have received from ACE concerning this litigation and settlement:
- The Zurich companies have distributed documents that pertain to Zurich's settlement of a class action suit in New Jersey that alleged antitrust violations by Zurich, by insurance brokers and by several dozen insurers. ACE has no involvement whatsoever in Zurich's settlement. Questions about that settlement should be directed to Zurich.
- As part of its settlement, Zurich has apparently agreed to provide some amount of compensation to policyholders even for insurance purchased from dozens of insurers other than Zurich. As a result, ACE and other insurers appear on lists in the Zurich settlement documents. ACE is not involved in any way in this process and is not paying any amounts. Whatever is to be paid is decided by, and paid by, Zurich.
- ACE is a defendant in the lawsuit that Zurich settled, and has been a defendant in that case for two years. ACE has not settled the case , nor has any insurer other than Zurich. ACE has denied the allegations in the case, and ACE is defending against the claims in the case.
- ACE did agree to a settlement in a different matter, and ACE did agree to pay certain amounts to its own policyholders in the "excess casualty" marketplace as part of that settlement. ACE has sent its own settlement documentation to its policyholders in that excess casualty market. The ACE settlement is limited to excess casualty policyholders who placed their insurance through Marsh.
- Although there have been many investigations of insurers and insurance brokers over the past several years, none of them has involved any allegations against ACE in connection with crop insurance. Nothing in ACE's settlement pertains to crop insurance. There are no allegations about crop insurance in the New Jersey lawsuit.
