Zurich American Insurance Co. will refund about $4.6 million to policyholders of New York statutory disability insurance policies because the carrier failed to spend at least 60 percent of total premiums on claims as required by the state's law.
Approximately 73,000 policyholders—primarily small businesses—will receive refunds through an agreement with the New York Department of Financial Services (DFS), according to a statement from Gov. Andrew Cuomo's office.
The department says Zurich failed to meet the 60 percent minimum loss ratio (MLR) because it overestimated the amount of money it would spend to pay claims when customers received their quotes. The refunds will involve policies issued in 2009, 2010 and 2011.
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