Missouri insurance regulators announced a settlement agreement with Nationwide Agribusiness Insurance Co. and Farmland Mutual Insurance Co. following a market conduct examination into the companies’ handling of workers’ compensation insurance.
Department of Insurance Director John M. Huff reported that as part of the settlement, Missouri will receive $142,250 and policyholders will receive $250,000 in restitution.
The department said the settlement was reached after a market conduct examination revealed that Nationwide offered a dividend plan to some policyholders, but not to other policyholders. The companies will pay $250,000 to policyholders excluded from the dividend plan.
The exam also found that Nationwide and Farmland failed to properly apply the Second Injury Fund surcharge rate to premium, utilized base rates that were not on file with the department and failed to apply the administrative surcharge rate to premium. As a result of the additional findings, the companies will pay $142,250 to the Missouri State School Fund.
The examination found that in some cases, the companies used an application form that was no longer permitted in Missouri.
Court documents show that Nationwide and Farmland agreed to the findings in the market conduct exam. As part of the settlement, both companies agreed to take and maintain remedial actions to ensure compliance with Missouri statutes and regulations.