Workers’ comp carrier saga ends with $37 million settlement — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Workers’ comp carrier saga ends with $37 million settlement

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The commissioner of California’s Department of Insurance has reached a $37.3 million settlement of four lawsuits stemming from Fremont Indemnity Co.’s 2003 bankruptcy.

Fremont, once one of California’s largest workers’ compensation insurers, failed in 2003 due to rising claims costs.

Under the terms of the settlements, the Fremont liquidation estate will use the $37.3 million to pay policyholder claims. The lawsuits stem from a 2003 investigation into Fremont conducted after the insurance commissioner was appointed liquidator of the company. The lawsuits sought to recover funds for policyholders, injured workers and other creditors.

When Fremont’s parent company Fremont General filed for bankruptcy in 2008, the state insurance commissioner filed several claims in the bankruptcy case. Those claims resulted in two separate settlement agreements in the amount of $37.3 million.

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