Chubb Subsidiary Sued Over Unpaid Interest in Benefit Policies

ACE American Insurance Co. allegedly violated federal benefits law by refusing to pay interest on benefits due under its group accidental death policies.

A former Delta Air Lines Inc. pilot, whose wife died of cardiac complications caused by the interaction of prescribed medications, filed the suit Nov. 26 in the U.S. District Court for the Western District of Washington.

The pilot and his wife were covered under a group accident insurance policy issued by ACE for Delta. Under the policy, Ace owed 18 percent interest per year on the benefits due if it didn’t meet certain conditions, including issuing a ...