A crop insurer has reached an agreement with North Dakota insurance regulators under which it will return a portion of premiums to some crop/hail insurance policyholders.
North Dakota Insurance Commissioner Adam Hamm announced an agreement with Austin Mutual Insurance Co. to resolve an issue over whether it used rates in North Dakota that were not approved by the department.
“North Dakota is a prior-approval state, which means no insurance policy, contract, or agreement may be issued until it has been filed with and approved by the Insurance Department,” Hamm said.
The agreement requires Austin Mutual to return a portion of the premiums it charged North Dakota policyholders for certain types of crop/hail insurance for 2010 and 2011.
A total of $97,266 will be returned to North Dakota policyholders. The agreement also calls for Austin Mutual to make a $10,000 settlement payment to the department.
Source: North Dakota Department of Insurance