Applied Underwriters’ California Insurance Company subsidiary is still in conservation under the control of the Conservation and Liquidation office. Now CIC has filed a motion to lift that conservation order. It also filed motions requesting that its declarations stating its reasons be sealed.
The California Department of Insurance sought and received the conservation order after Applied attempted an end-run around its oversight authority. Applied claimed to have merged CIC with a hastily created New Mexico insurance carrier with a nearly identical name. CDI balked at Applied’s assertion that it was no longer a California regulated entity, sought and received the conservation order.
A court hearing is now scheduled for late-February to consider a motion by the forces of Applied/CIC to dismiss that conservation order.
“CIC will face irreparable harm if the matters it seeks to have sealed are subject to public disclosure,” says DLA Piper attorney Shand Stephens in a declaration to the San Mateo Superior Court that issued the conservation order. “The documents CIC requests to have sealed include discussion of settlement negotiations with the CDI and proposals regarding CIC’s post-conservatorship structure, all of which are still the subject of ongoing negotiations and discussions between CIC and CDI that the parties intend to keep confidential.”