Judge Approves $72M Insurance Settlement With Hartford Financial

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A federal judge has given preliminary approval to a settlement under which The Hartford Financial Services Group will pay $72.5 million to 21,000 people nationwide who alleged the insurer engaged in fraud in settling their injury claims.

U.S. District Court Judge Janet C. Hall approved the agreement last week in Bridgeport to resolve the class action lawsuit.

The Hartford Courant reports that the case involves people who were injured and eligible for personal-injury or workers'-compensation claims.

Rather than receiving the money all at once, the company paid "structured settlements," over time.

The plaintiffs alleged that The Hartford engaged in fraudulent settlement practices by deducting up to 15 percent of the value of their settlements in undisclosed annuity costs.

The Hartford says the claimants received the promised amounts they were due. It says the company settled to avoid the uncertainty and cost of continued litigation.

Copyright AP - Associated Press
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