Scientology Sued Over Insurance

Source: St. Petersburg Times
Date: November 4, 1994

An insurance company has sued a branch of the Church of Scientology, alleging it was underpaid for a workers' compensation policy.

Liberty Mutual Insurance Co. claims in a lawsuit filed Monday that the church's Flag Service Organization owes $378,873 in premiums and fees assessed after an audit turned up employees who had been covered under the policy but were "not yet paid for."

A contract between Liberty Mutual and Scientology states that premiums are based on the number of employees covered, according to the lawsuit. The yearlong policy expired in February.

Flag Service, based in Clearwater, is Scientology's spiritual headquarters.

"The church's insurance agent has been in frequent good faith negotiations with Liberty Mutual to determine what amount we actually owe on workmen's compensation," church spokesman Brian Anderson said Thursday. "Liberty Mutual's figure is incorrect as the true figure is much, much lower. However, we have expressly stated our willingness to pay what's owed once a correct figure was established."

Anderson also said the church was surprised by the lawsuit. "Liberty Mutual gave no indications to our agent of dissatisfaction with our negotiations," he said.

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