Yesterday Workers’ Comp Executive issued a Flash Report stating that Applied Underwriters’ and California Insurance Company (CIC) had been enjoined by Court Order from writing new and renewal business. The article has been removed from our website.
In fact, the Court Order states CIC is enjoined from writing business except upon written consent of the California Department of Insurance Conservation and Liquidation office. The CLO says, it has provided consent and “the company is being operated on a status quo basis.”
CLO’s written permission, however, was not issued until after our initial story published on November 7. The CLO’s letter granting consent is signed and dated November 8. Copies of the CLO’s Consent is available in our Resources section.
California Insurance Company is offering new and renewal quotes and is writing business.
The San Mateo Superior Court’s order putting CIC into conservatorship explicitly stated that “CIC and its officers, directors, agents, and employees are enjoined from issuing any new or renewing any insurance policies except upon the written consent of the Conservator.”