RPNA Carves A Meaningful Path for Policyholders

The issue of Applied Underwriters’ ‘bait and switch’ marketing tactics to sell its workers’ compensation product was the focus of a recent San Fernando Valley Business Journal Article. The article highlighted RPNA’s case against the Berkshire Hathaway subsidiary (Luxor Cabs v. Applied Underwriters Captive Risk Assurance Company) as well as a similar case (Shasta Linen Supply, Inc. v. Applied Underwriters, Inc.), which prompted the California Department of Insurance (CDI) to hold Applied Underwriters accountable for its unlawful practices and comply with well recognized state filing requirements.

Referencing CDI’s settlement with Applied Underwriters, Nick Roxborough stated, “The settlement is a good first start for policyholders of Applied Underwriters in that it renders the Shasta Linen decision precedential for all policyholders similarly situated to the Shasta Linen plaintiffs.”