It’s curtains in California for Applied Underwriters’ EquityComp Program in total and also for SolutionOne Program to the extent it uses unfiled agreements. The California Commissioner announced the cease and desist just minutes ago. California is the third state to stop the sales of Applied products.
California Insurance Commissioner Dave Jones ordered Applied Underwriters and California Insurance Company (CIC) to cease and desist from continuing to sell or renew all insurance products which use unfiled agreements. No agreements are on file as of this writing.
The order applies to all EquityComp Program products and at least some of its SolutionOne products. It is illegal for brokers to sell or renew such products effective now.
“Insurance companies are required to file rates and terms so we can make sure they are complying with the law,” said Jones in his news release. “These filing requirements were put in place to protect businesses from insurers seeking to take advantage of their market power – Shasta Linen is an example of why it’s critically important to require insurers to file all their rate and terms.”
Commissioner Jones learned last week that, despite his order making the Shasta Linen decision precedential, Applied Underwriters was recalcitrant, unapologetic, and continuing to sell new and renewal policies in the EquityComp program. The Commissioner also learned that it was using unfiled collateral contracts in the SolutionOne program.
Applied Underwriters left Commissioner Dave Jones with no other choice if he wanted to protect business consumers and brokers.
Workers Comp Executive will have more tomorrow. We did not attempt to contact the company for a reaction.
For a copy of the Commissioner’s Cease and Desist Order click here.
Click here to see all of our other stories about Applied Underwriters.
Applied Underwriters was once but is no longer an affiliate of Berkshire Hathaway. Applied’s management bought it. Berkshire Hathaway bears no responsibility for any of the events which have transpired involving Applied Underwriters’ or its subsidiaries including California Insurance Company.