The purported sale of Applied Underwriters and its insurance company subsidiaries by Berkshire Hathaway to company founder Steve Menzies may not be a done deal after all. Berkshire reported the sale in a filing with the SEC and sent out a press release stating as much to numerous news outlets.
The California Department of Insurance, however, says it never signed off on the deal that includes locally domiciled California Insurance Company. CIC is the largest carrier in the group of companies under the North American Casualty Company group banner and is currently involved in numerous legal battles with California employers.
“The California Department of Insurance was disturbed to learn that the parties to this transaction purportedly acquired California Insurance Company without obtaining the statutorily-required approval of the California Department,” CDI’s press office said in a message delivered this morning. “In light of this development, we are currently exploring all available options.”
That Applied might attempt to proceed with the deal without following the legal process is not news to some familiar with their operations.
“This is another example of the kind of lawlessness these people perpetrate thinking they are above the law and regulators,” says attorney Larry Lichtenegger who representing scores of employers aggrieved by Applied’s illegal EquityComp program. “They said it in the original patent, they act like this in court and now maybe it’s coming home to roost.”
Workers’ Comp Executive left a message with Berkshire Hathaway this morning requesting comment, but as of yet have not received a response.
This is a developing story and we will bring you the news as it becomes available.
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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.