WASHINGTON STATE ORDERS CHUBB UNITS TO HALT SALES

Washington state insurance commissioner Mike Kreidler has ordered six operating units of US p/c group Chubb Corp to halt new writings for nine months, commencing November 18, saying that the companies violated state law by changing rates for some customers without explanation. Mr Kreidler has also recommended that parent Chubb & Son pay a $534,000, subject to a hearing. "We've repeatedly tried to work with Chubb and its subsidiaries to fix a number of ongoing violations of state law", said Mr Kreidler, noting that the alleged violations have been "recurring for decades". The Chubb units included in the order are Federal Insurance Co, Pacific Indemnity Co, Great Northern Insurance Co, Executive Risk Indemnity Inc, Vigilant Insurance Co and Northwestern Pacific Indemnity Co. Chubb said that it will file an appeal against the order and the fine while continuing to honour and renew current policies.