Zurich in $37.5m settlement

Zurich Financial Services has agreed to pay $37.5m to the US state of New York to settle claims they collected too much in workers’ compensation fees.

New York Attorney General Andrew Cuomo previously announced that Zurich was one of four insurance groups that had agreed to pay back nearly $120m in "excess funds" related to workers' compensation insurance.

The other insurers were ACE ($70m) and US firms CNA ($5.75m) and Pennsylvania Manufacturers ($5.9m).

In a statement to AFP, Zurich said it had reached an agreement "that resolves a difference of opinion as to the proper legal interpretation of laws enacted in 2009 and 2010."

"As part of the agreement, Zurich has agreed to pay to the Workers' Compensation Board a total of $37.5m in full satisfaction of any liability for assessments under the 2009 and 2010 legislation."

The attorney general's office stated that in 2009 and 2010, changes to state legislation stopped previously accepted surcharges on premiums to cover annual fees charged by the board, and allowed New York state to recover the excess funds that the insurance companies had collected.

"These four groups of insurance companies have done the responsible thing by agreeing to resolve their disputes with the State," Cuomo said last week.

"Other insurers who still retain excess funds should follow their lead or they will be brought to justice," he added.