Press Room

MAY 2, 2022 | PRESS RELEASE

Applied Underwriters Will Challenge Court Ruling Setting “Intramural” Hearing Venue in New Jersey Department of Banking and Insurance

Carrier to bring matter to light in NJ Supreme Court arguing regulatory overreach in NJDOBI misuse of relevant statute to avert discovery process

May 2, 2022 -- Applied Underwriters will challenge the recent court ruling that sets the venue for arguments in an ongoing dispute between the Continental Indemnity Company and the New Jersey Department of Banking and Insurance (“NJDOBI”) in the venue of the Department’s Administrative Hearing unit, rather than State Superior Court. The long-fought dispute stems from the NJDOBI’s insistent attacks on Continental’s EquityComp® program, one that has enjoyed an unblemished record in New Jersey, with no claims complaints.

According to Mr. Jeffrey Silver, Esq, Executive Vice President, General Counsel of Applied Underwriters, the Company requested a hearing in Superior Court under the applicable state statute, but the Department objected preferring its own facility for a first procedural step prior to Superior Court: “It is apparent that the Department wants to delay the inevitable court process, fearing that the revelations that will come out in discovery and document production that the EquityComp program is acceptable and that other considerations motivated the Department’s actions. We have long held that the regulatory overreach manifested in this case will result in harm to the many New Jersey businesses that seek better options for insuring workers’ well-being through our award-winning safety and client care programs. We will take our case all the way to the New Jersey Supreme Court to set this right. Regardless of intramural administrative hearings’ results, this matter will inevitably be retired de novo in Superior Court. The administrative hearings are a waste of taxpayer monies, as well as the time and energy of the parties, and are just a delay tactic.”

“Incredibly,” Mr Silver continued, “the essence of the matter in dispute is whether Continental’s clients may participate in captives to retain risk in the placement of their Workers’ Compensation coverages that were fronted fully by admitted insurance policies and that had been approved by the New Jersey Compensation Rating and Inspection Bureau (“NJCRIB”). We are pleased to note that NJCRIB confirmed that the structure of the EquityComp captive program did not need to be filed as long as the underlying workers’ compensation policy and forms were approved, which, of course, they were. This position was confirmed twice in writing from NJCRIB which governs Workers’ Compensation rates and forms. The NJCRIB decision has been ignored as ‘unimportant’ by NJDOBI bureaucrats.”

Mr. Steve Menzies, Chairman of Applied Underwriters, commented that the Company has had great respect for the State’s efforts to attract and keep captives in New Jersey: “We have seen the State encourage and accommodate important captives, such as for pharmaceutical companies, operating in the State through its forward-looking captives unit, which, incidentally, did not agree with the NJDOBI’s position in this matter, especially given the impeccable record of our enterprise, such as not one complaint from a claimant ever against our company or the EquityComp product. We observe best practices in treating injured workers and have had excellent results enabling businesses to insure properly and confidently. No company with our record deserves to be the victim of regulatory overreach well beyond the NJDOBI’s consumer protection role.”


For further information contact:
Ryan Gerding, Public Relations, at +1 (913) 602-8531 or at press@auw.com

About Applied Underwriters (www.auw.com)
Applied Underwriters® is a global risk services firm that helps businesses and people manage uncertainty through its business services, insurance and reinsurance solutions. As a company, Applied Underwriters has been distinguished by its innovative approaches to client care and by its strong financial strength. Applied Underwriters operates widely throughout the US, UK, EU and Middle East. Its operational headquarters is located in Omaha, Nebraska.

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