Civil Service Employees Insurance Company and CSE Safeguard Insurance Company Announce Settlement with California Department of Insurance

Companies Disagree with, but Accept, Alleged Findings of Department Market Conduct Examination

SAN FRANCISCO--(BUSINESS WIRE)-- Civil Service Employees Insurance Company and CSE Safeguard Insurance Company (collectively “CSE”), announced today the settlement of an enforcement action against CSE by the California Department of Insurance (“Department”). The settlement marks the end of a lengthy market conduct examination in which the Department of Insurance found alleged violations of the Insurance Code and Regulations by CSE.

CSE disagreed with the vast majority of the citations issued by the Department, most of which concerned technical interpretations of the Regulations – not improper or unfair treatment of policyholders. When discussions seeking an informal resolution stalled, CSE invoked its right to have the dispute resolved in an administrative hearing. Several months after the hearing was adjourned, the Department of Insurance presented to CSE a settlement proposal substantially less than its prior settlement offer.

“CSE has been serving the insurance needs of civil servants for more than 60 years, providing them with quality protection at affordable rates,” said CSE Insurance Group President and Chief Executive Officer Pierre Bize. “The findings of the Department of Insurance’s market examination are not representative of our commitment to proving excellent service to our policyholders, but we look forward to putting this matter behind us and building a collaborative future relationship with the Department.”

CSE has a history of being recognized by the California Department of Insurance for its performance. In 2009, CSE completed its second consecutive year of having no justified complaints from any of its Homeowners policy holders filed with the Department, a testament to the quality of CSE’s claims handling procedures.

About CSE Insurance Group

Since 1949, CSE Insurance Group (www.cseinsurance.com) has served the people who serve the people by providing top quality property and casualty insurance for teachers and other educators, firefighters , law enforcement personnel , and other government and civil service employees at affordable rates. CSE Insurance has also offered its products and services to the general public for more than two decades.

With a financial strength rating of A- (Excellent) by insurance industry analyst A. M. Best, CSE Insurance offers a wide range of insurance products, including auto, home, liability, boat, and commercial. CSE Insurance products are sold through independent insurance agents in California, Arizona, Nevada, and Utah.

For CSE Insurance Group
Bill Criswell, 415-398-2220
billcris@pacbell.net

Source: Civil Service Employees Insurance Company