The trial court in the Applied Underwriters’ California Insurance Company conservation issued a tentative decision late yesterday in response to CIC’s objections to the California Insurance Department’s rehabilitation plan.
“The Court finds the Amended Plan is “reasonably related to the public interest in rehabilitating the insurer and not be arbitrary or improperly discriminatory” or “contrary to [a] specific statute,” and the arguments raised, and evidence cited by CIC in its objections asserted in opposition and in surreply do not demonstrate otherwise,” Judge Greenberg wrote in the tentative decision. “The Commissioner shall prepare both an order consistent with the parties’ arguments, the Court’s findings and rulings after oral argument and judgment for the Court’s consideration, review and approval.”
The Tentative is strongly written and is unlikely to be changed by whatever argument Applied/CIC presents today.
Workers’ Comp Executive is in the San Mateo courtroom this morning and will have additional coverage of the proceedings as developments warrant.
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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.