Fireman’s Fund Insurance Company to Pay $44 Million to Settle False Claims Act Allegations

Written March 27, 2015 by Robert Lu

On Monday, March 23, 2015, the U.S. Department of Justice announced that Fireman’s Fund Insurance Company has agreed to pay $44 million to settle allegations under the False Claims Act that it knowingly issued insurance policies that were ineligible under the U.S. Department of Agriculture’s (USDA) federal crop insurance program and falsified documents. Fireman’s Fund, an Allianz SE subsidiary headquartered in Novato, California, provides personal and commercial property insurance throughout the United States.

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. According to the allegations, the Allianz unit, Fireman’s Fund, falsified multiple documents out of six U.S. offices between 1999 and 2002 that were eventually submitted to the USDA, including backdating policies, forging the signatures of farmers, accepting late and altered documents, whiting-out dates and signatures, as well as signing documents after relevant deadlines had passed.

The settlement between Fireman’s Fund and the Justice Department includes no determination of liability. For more information about the False Claims Act, and the Firm’s resources and services for whistleblowers please visit the Firm’s Whistleblower Page.