Chubb Corp., facing a class-action lawsuit by...

Chubb Corp., facing a class-action lawsuit by farmers in 10 states who say they were unfairly denied drought insurance, has offered another $43.7 million in coverage to some farmers whose applications it had rejected this year. The company said in U.S. District Court in Cincinnati, where the lawsuit was filed, that it was willing to try to reach a settlement with farmers who applied for drought insurance, but were rejected and filed suit. The offer is subject to approval of Judge Carl B. Rubin, who is presiding over the class-action lawsuit. It potentially represents about 8,000 farmers. If such a settlement is accepted, Chubb said it would result in an after-tax charge against earnings of $13 million in the fourth quarter of 1988.