Calif.’s Zurich Deal May Spur Insurance Arbitration Fights

Law360, San Diego (July 12, 2013, 11:00 PM EDT) -- The California Department of Insurance said Thursday it reached a settlement requiring Zurich American Insurance Co. to drop workers’ compensation insurance provisions that force employers to arbitrate disputes with Zurich out of state, a deal that could prompt companies to argue such out-of-state arbitration clauses by other insurance carriers are unconscionable, according to experts.

State Insurance Commissioner Dave Jones said Zurich improperly used its workers’ comp insurance agreements to force California employers to arbitrate commercial disputes in Illinois, where Zurich is headquartered, and to be subject...
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