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March 4, 2020 News

Berger Montague to Represent California Employers in Workers’ Compensation Insurance Actions Against Applied Underwriters and California Insurance Company

SAN DIEGO, March 4, 2020 – Berger Montague, one of the nation’s leading litigation firms, is representing California-based employers who were overcharged for premiums paid on workers’ compensation insurance policies issued by California Insurance Company, an Applied Underwriters subsidiary, under the EquityComp, SolutionOne, or JumboGC programs at any time since 2008.

Applied Underwriters marketed and sold the EquityComp, SolutionOne, and JumboGC programs to small and midsized employers and charged premiums based on rates and rating plans that were not filed with state insurance regulators. The California Department of Insurance has determined that Applied Underwriters’ use of these unfiled rates violates the California Insurance Code. As a result, premiums based on these unfiled rates that exceed the amounts due under filed guaranteed cost workers’ compensation policies issued by California Insurance Company should be refunded.

“Applied Underwriters and California Insurance Company have been found to be using unfiled rates and rating plans to charge California businesses higher premiums than permitted by law,” said Berger Montague Shareholder Glen L. Abramson. “We want to help get that money back.”

 For the past three years, Berger Montague has represented California employers in a class action against Applied Underwriters and California Insurance Company in federal court in Sacramento. In 2019, however, the court declined to certify the class, holding the employers’ individual claims were large and must be litigated separately. Accordingly, overcharged California employers must now file their own lawsuits or administrative actions to protect their rights and recover money owed to them by Applied Underwriters.

Based on its extensive knowledge of Applied Underwriters’ programs and analysis of thousands of documents obtained in the class action, Berger Montague has a deep understanding of Applied Underwriters’ illegal practices, as well as the best approach to maximize individual employers’ recoveries.

California employers who participated in Applied Underwriters’ EquityComp, SolutionOne, or JumboGC programs at any time since 2008 should contact Glen Abramson at [email protected] or 215-875-4683 or Michael Twersky at [email protected] or 215-875-3052 to discuss your rights and valuable recovery options.

Berger Montague is a national class action and commercial litigation law firm with offices in San Diego, Philadelphia, Minneapolis, and Washington, D.C. The Firm litigates complex civil cases and class actions in federal and state courts throughout the United States. The Firm has pioneered the use of class actions in America and recovered over $36 billion for clients and class members since its founding 50 years ago.

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