Posted March 24, 2015
The Fireman’s
Fund Insurance Co. has agreed to pay $44 million to settle allegations under
the False Claims Act, according to an Insurance Journal article available here.
Reuters also published an article available here.
According
to the allegations, they knowingly issued insurance policies that were
ineligible under the U.S. Department of Agriculture’s (USDA) federal crop
insurance program and falsified documents.
Between
1999 and 2002, Fireman’s Fund operated a crop insurance business and
participated in the federal crop insurance program. Under the program, Fireman’s
Fund sold and serviced crop insurance policies that were reinsured by the USDA
for a portion of the risks.
Crop
insurance protects farmers against losses attributable to natural disasters
such as disease, droughts, floods, freezes and hail, as well as falling
commodity prices, according to Reuters
The
Justice Department said the Fireman's Fund settlement involved no determination
of liability.
For more information on crop insurance programs, please
visit the National Agricultural Law Center’s website here.
