Applied Underwriters Settles Claims in Neb. ‘EquityComp’ Action

OMAHA, Neb. — Applied Underwriters Inc. and its captive reinsurer, Applied Underwriters Captive Risk Assurance Company Inc. (AUCRA), have settled claims they used a “mislabeled” reinsurance participation agreement (RPA) in their “EquityComp” workers’ compensation program to evade regulators’ oversight.

In a Feb. 21 order, Judge John M. Gerrard of the U.S. District Court for the District of Nebraska ordered the defendants and plaintiff Coyle Trucking Inc. to file a joint stipulation for dismissal within 30 days.

Coyle, a Pennsylvania company, bought Applied’s EquityComp program for workers’ compensation insurance. The program includes a guaranteed cost workers’ compensation policy, which fixes the …