The ink is barely dry on the settlement agreement between Applied Underwriters and the California Department of Insurance. Attorneys adverse to Applied in the many open cases say it should bolster their position in court which is good for employers. The bad news, however, is there may be no quick way out for employers already …
Applied Underwriter’s fight with the California Department of Insurance over the legality of its EquityComp program and the integral but unfiled reinsurance participation agreement (RPA) may be coming to a close. CDI officials say they are unaware of any deal despite Court filings which say the Berkshire Hathaway (BRK.A) subsidiary and CDI have a settlement …
Applied Underwriters Captive Risk Assurance Company, (AUCRA), through its EquityComp program is still charging former insureds what some say are exorbitant run-off loss development factors on open claims after the termination of the policy periods or agreement. Attorney Larry Lichtenegger, who has the most cases against Applied Underwriters’ says the company is violating both the …
APPLIED UNDERWRITERS’ EQUITYCOMP PROGRAM IS DEAD IN CALIFORNIA Berkshire Hathaway’s Applied Underwriters’ and California Insurance Commissioner Dave Jones have signed a new “Stipulated Consent Cease and Desist Order” which bars Applied Underwriters’ from selling its EquityComp program. Applied had already stopped selling its EquityComp program in California. More importantly, though, the consent order also prevents …
Against the backdrop of a severe regulatory action against Applied Underwriters’ by the California Department of Insurance, Berkshire Hathaway carriers have lifted the moratorium on writing each other’s business. As of last week, it’s every (wo)man – make that carrier – for itself. Reliable industry sources tell Workers’ Comp Executive that Berkshire Hathaway Homestate Insurance …
Now it’s a California Superior Court Judge who has ruled the reinsurance participation agreement (RPA) in Applied Underwriter’s EquityComp program is void and unenforceable in California. The reason: Applied Underwriters has never filed and approved. The ruling also means the arbitration clause in the RPA is out. It’s another in the latest series of blows …
Industry calls are increasing for Insurance Commissioner Dave Jones to act and make its decision regarding the Applied Underwriters’ EquityComp program applicable to all California employers – not just the employer that brought the successful case. The decision in the Shasta Linen case found that the key document in the program, it’s “Reinsurance Participation Agreement” …