قالب وردپرس درنا توس
Home / Insurance / Applied sues California again in response to New Mexico threats

Applied sues California again in response to New Mexico threats



Applied Underwriters Inc .: s California Insurance Co. filed a lawsuit in federal court on Thursday, accusing the California Department of Insurance of illegally blocking the insurer's attempts to reside in New Mexico, marking the latest in a series of disputes between applied regulators and Golden State.

On Tuesday, the New Mexico Insurance Inspector's Office issued an order to the CIC demanding that the insurer immediately comply with the government regulations required for its approved re-domestication in New Mexico or face financial penalties and revocation of its Certificate of Authority.

Omaha, Nebraska-based Applied responded by filing a lawsuit in the U.S. District Court of the Eastern District of California against California Insurance Commissioner Ricardo Lara, claiming that he and others in the state insurance department. has acted in bad faith by establishing an "arbitrary, illogical and illegal conservatory of the CIC to prevent its new re-domestication in Mexico," Applied said in a statement.

Since Berkshire Hathaway Inc. sold Applied and its subsidiaries in 201

9 to Applied founder and president Steve Menzies and a private equity firm in a $ 920 million deal, workers' compensation insurers have struggled with California regulators to refrain from to approve the sale of CIC on the basis that Applied attempted to redirect CIC in New Mexico without California's approval.

In November 2019, a judge in the San Mateo County Superior Court appointed the California Department of Insurance Conservator of CIC, and in October 2020, the department submitted a rehabilitation plan for CIC that would require CIC to transfer its business book to another California-approved insurance company and provide policyholders a reasonable opportunity to settle their claims related to Applied & # 39 ;s SolutionsOne and EquityComp programs.

One day after the rehabilitation plan was submitted, Applied California and Mr. Lara in the district. the court and also claimed that the insurance department and the commissioner placed CIC in a conservatory under false pretenses and had a "vendetta" against the insurer. plan, and that the transfer of its entire book on California operations to a competitor would force the company to settle more than 40 separate civil proceedings.

"Incredibly, the CDI has targeted the CIC despite our good citizenship in paying claims …," Jeffrey A. Silver, the insurer's attorney, said in a statement.

In his statement in support of the Rehabilitation Plan, Joseph Holloway, the California conservator appointed to oversee the CIC's day-to-day operations, said the insurer violated the terms of the court's preservation decision in March 2020 when it made a $ 20 million non-collateral loan applied to insurer without prior notice and permission from C DI or himself.

A hearing on the rehabilitation plan is scheduled for March 4 in San Mateo Superior Court.

This fight with California is not Applied's first. In 2017, CDI accused CIC and another Applied subsidiary, Applied Underwriters Captive Risk Assurance Co., of using "bait and gear" marketing methods to compensate workers. The insurer has also been involved in disputes in New Jersey, New York and Vermont, with insurance authorities accusing the insurer of selling compensation schemes to unauthorized workers. Catalog

Catalog


Source link