Zurich, Calif. Commissioner in Settlement Talks Over Superior Nat'l Suit
May 22, 2003

Zurich Financial Services said it is in settlement talks with California Insurance Commissioner John Garamendi regarding a case of alleged fraud and breach of contract, according to the Dow Jones Business News.

The lawsuit involves the 2000 bankruptcy of Superior National Insurance Group.

Garamendi allegedly claims Zurich Financial illegitimately drew more than $200 million shortly before the collapse of the Superior National.

A Zurich spokesperson maintains they obtained the funds lawfully.

The funds allegedly come from an insurance contract that was redeemed in order to pay Superior National's debt to Zurich. Garamendi reportedly maintains that the transaction occurred at a time when Superior National was already effectively insolvent.
URL: www.insurancejournal.com/news/newswire/west/2003/05/22/29187.htm