Jump to content

California Dept of Insurance statement on Berkshire Subsidiary


gfp
 Share

Recommended Posts

Thank you for posting!

 

I'm curious to hear Berkshire's response. Seems odd not filing the policy with the state commissioner...

 

Found this article in the WSJ today:

"Regulator Faults Berkshire Hathaway Insurance Unit"

http://www.wsj.com/articles/regulator-faults-berkshire-hathaway-insurance-unit-1466444329

 

“The company strongly disagrees with the commissioner’s decision and intends to vigorously pursue all legal avenues,” said a person authorized to speak on behalf of Applied Underwriters.
Link to comment
Share on other sites

I'm all for uncovering the shadier side of Berkshire, but can anyone explain the following to me:

 

The insurance company later had one of its affiliates—another Berkshire Hathaway entity—sell Shasta Linen a second insurance policy called EquityComp, which is not a traditional guaranteed cost workers' compensation insurance policy. This second insurance policy was a retroactive non-linear insurance policy, which adjusted the rates paid based on current loses and provided no experience modification of rates based on the employers' claims experience.

 

Did they have a gun to this business's head? Why just, you know, not buy the shitty policy?

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...