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.
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