Zenith Hit With $1.3 Million in Texas Comp Case

A.M. Best reported that a Travis County, Texas jury awarded $1,391,243 in damages to the Texas Restaurant Association Workers' Compensation Purchasing Group, a workers' compensation purchasing group, against Zenith Insurance Co. for improperly diverting dividends. The Group brought the lawsuit alleging that Zenith had improperly diverted dividends owed to the purchasing group by Zenith's own competing group. Texas allows purchasing groups for workers' compensation insurance. This arrangement allows an association to pool premiums in order to receive volume discounts, provide for distrib...