In two previous posts, on April 19, 2016 and June 21, 2016, we reported on the EquityComp workers’ compensation program offered by Berkshire Hathaway subsidiaries Applied Underwriters (Applied) and California Insurance Company (CIC). In the wake of the California Insurance Commissioner’s ruling in Shasta Linen that the EquityComp program is invalid and unenforceable, Applied Underwriters and the Commissioner on September 6, 2016 stipulated to a Cease and Desist Order. The Order can be found online here: Stipulated Consent Cease and Desist Order. Insureds under the program should read it carefully, as it presents them with a number of options.
Continue Reading NEW UPDATE: Is Your Workers’ Compensation Program Unlawful?
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UPDATE: Is Your Workers’ Compensation Program Unlawful?
By Farella on
Posted in General Liability Policies, Risk Management
Under a ruling this week from the California Insurance Commissioner, your company may be insured under an unenforceable workers’ compensation program. You may also be entitled to a refund of premiums paid to California Insurance Company (CIC) and Applied Underwriters (Applied), two Berkshire Hathaway subsidiaries.
Our April 19, 2016 post discussed a decision from the California Department of Insurance finding that the EquityComp workers’ compensation program sold to Shasta Linen Supply by CIC and Applied is void as an unfiled collateral agreement. CIC appealed the administrative law judge’s decision finding the program void. Shasta appealed the denial of its claim for reimbursement of all sums in excess of actual claims paid. On June 20, 2016, the California Insurance Commissioner affirmed the ALJ’s decisions.
Continue Reading UPDATE: Is Your Workers’ Compensation Program Unlawful?
Bad Facts Make Good Law in Howard v. American National
By Erica Villanueva on
A recent California Court of Appeal case, Howard v. American National Fire Insurance Co., 187 Cal. App. 4th 498 (2010), addresses a question that all insurance litigators will find of particular interest: whether an insurer can breach its duty to settle by rejecting a settlement offer that is within the total available limits of…
Insurer’s Agreement To Defend Insufficient; It Must Actually Defend By Immediately And Fully Funding The Insured’s Defense.
By Tyler Gerking on
Posted in General Liability Policies
On July 21, U.S. District Court Judge Claudia Wilken handed insureds a significant victory in a coverage case for Seagate, a computer hard drive manufacturer. Download 2010-07-21 Order re defts MTC and plffs MSJ (2) Farella represents Seagate in that action. Judge Wilken granted Seagate partial summary judgment on its claim that the Insurance Company…