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Fire Insurance

Warren, MI: (Nov-20-07) The city of Warren brought charges against insurance agent Arthur Dickinson and US Fire Insurance in the late 1990's, alleging that they overcharged the city by awarding insurance contracts under a "contingency commissions" system. The suit claimed that the system prevented competitive bidding for the contracts and was not in the best interests of the city.

As part of a settlement reached in the case, sources stated that the city is geared to collect a $1 million check and will save possibly millions of dollars by capping its exposure in cases still pending that were covered under old insurance. It also will save money in reductions in future premiums for the old cases and avoidance of a $436,000 payment. City officials claimed victory, resolving the long drawn out lawsuit. [MACOMB DAILY: FIRE INSURANCE]

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Published on Nov-21-07


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