Applied Underwriters Seeks Dismissal of Reinsurance Participation Agreement Lawsuit

OMAHA, Neb. — Applied Underwriters Inc. (AUI) and its captive reinsurer have asked a Nebraska federal court to dismiss a lawsuit arising from their EquityComp workers’ compensation program, in which they are accused of breaching a reinsurance participation agreement (RPA) by refusing to reimburse a policyholder $2.8 million.

In a Jan. 7 motion to dismiss filed in the U.S. District Court for the District of Nebraska, AUI and ACURA argue that the breach of contract and misrepresentation claims are inadequately pled and untimely.

In 2014, AUI sold its EquityComp program to plaintiff Certified Moving & Storage Company LLC, which included …