SACRAMENTO, Calif.--(BUSINESS WIRE)--Applied Underwriters issued the following statement today regarding the settlement reached between the company and the California Department of Insurance (CDI) related to the appropriate regulation of Applied Underwriters’ EquityComp® product.
“Applied Underwriters is grateful to Commissioner Jones and the department’s staff for working diligently to resolve this matter and provide certainty that our innovative workers’ compensation policy product, EquityComp®, is fit for the marketplace. We are pleased to now resume selling this product in California,” said Applied Underwriters General Counsel Jeff Silver.
Applied Underwriters is ranked by the State of California as the most reliable processor of claims among all private workers’ compensation insurers. Applied also owns an A+ rating from A.M. Best, the key industry rating bureau.
EquityComp® is a unique product created by Applied Underwriters to serve mid-sized and large employers that uses a Reinsurance Participation Agreement (RPA) to incentivize workplace safety by the insured. The product has a U.S. patent.
The settlement with CDI provides clarity as to how the department interprets EquityComp® and affirms its fitness for the marketplace.
“We’re very proud of the innovative EquityComp® product that is very well received in the marketplace,” continued Silver. “When there is product innovation, it is not unusual to pause and work with regulators to provide them the comfort and assuredness that they have met their obligations to the public. We’re gratified that the California Department of Insurance has worked with us in good faith to resolve their concerns and approve EquityComp® to resume being offered to California employers.”
