STORY FROM: Reinsurance & Arbitration

Neb. Federal Judge Refuses to Strike Class Action Counterclaim Against Applied Underwriters

OMAHA, Neb. - A Nebraska federal judge has overruled Applied Underwriters Inc. (AUI)'s objection to an order allowing Top's Personnel Inc. to assert a class action counterclaim accusing AUI of charging policyholders grossly inflated premiums for workers' compensation insurance.

In a Feb. 21 order, Judge John M. Gerrard of the U.S. District Court for the District of Nebraska refused to strike the counterclaim, in which Top's seeks to represent a class of thousands of "EquityComp" program participants who executed allegedly fraudulent promissory notes with AUI.

Applied Underwriters Captive Risk Assurance Company Inc. (ACURA) and Top's entered into a reinsurance participation ...

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