Chubb subsidiaries fined
Six subsidiaries of Chubb & Son have agreed to pay a $534,000 fine ordered by Washington Insurance Commissioner Mike Kreidler.
An identical amount was suspended as long as the companies do not violate, for at least three years, a negotiated compliance plan that requires self-audits, among other conditions.
Federal Insurance Co., Pacific Indemnity Co., Great Northern Insurance Co., Executive Risk Indemnity Inc., Vigilant Insurance Co., and Northwest Pacific Indemnity Co. did not document reasons for rate increases and decreases as far back as 1998.
The problems have not been corrected despite fines imposed on Chubb or its subsidiaries since 2000.
The companies could have had their lost their ability to write coverage in Washington for nine months had the consent order not been put in place.
The fine will be paid into the state general fund.
