Insurance Watchdog Settles With Fremont For $37M

Law360, New York (June 15, 2009, 12:00 AM EDT) -- California's insurance commissioner has reached a $37.3 million settlement of four lawsuits stemming from the 2003 bankruptcy of workers' compensation insurer Fremont Indemnity Co., according to the state's Department of Insurance.

Under the settlements, the Fremont liquidation estate will use the $37.3 million to pay policyholder claims, the commissioner said Friday.

Once one of the largest California-based workers' compensation insurers, Fremont failed in 2003, along with dozens of others that collapsed between 1999 and 2003 because of a rise in claims costs.

In 2003, after California's...
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