The Department of Financial Services says Monday refunds to about 73,000 policyholders, mostly small businesses, involve policies issued in 2009, 2010 and 2011.
Officials say the insurer overestimated the amount it would spend on claims when the policies were priced.
The insurance provides temporary benefits to partly replace an eligible employee's wages when disabled by an off-the-job illness or injury and during pregnancy.
Zurich didn't initially reply to requests for comment.
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