Applied Underwriters Reinsurer Denies Policyholder’s Breach of Contract Allegations

OMAHA, Neb. — Applied Underwriters Captive Risk Assurance Company Inc. (AUCRA) has denied a policyholder’s allegations that it breached a reinsurance participation agreement (RPA) in a workers’ compensation program by significantly raising the ultimate projected claims cost without explanation.

In a May 31 answer filed before Judge Brian C. Buescher of the U.S. District Court for the District of Nebraska, AUCRA has also asserted various affirmative defenses, including failure to state a claim, failure of the plaintiff to meet its own obligations under the RPA, equitable estoppel, and failure to mitigate damages, if any.

In 2014, Applied Underwriters Inc. sold …