DFS Fines Applied Underwriters $3 Million for Unlicensed Workers' Comp Insurance Business

Posted to Applied Web NY on Thu, 07/18/2019 - 11:02

Applied Underwriters Overcharged Many Small and Medium-Sized Employers for Unapproved Workers’ Compensation Products that Violated New York Law

Financial Services Superintendent Linda A. Lacewell today announced the Department of Financial Services (DFS) has fined Applied Underwriters $3 million for offering workers’ compensation insurance bundled with side agreements called “Reinsurance Participation Agreements,” which were not filed with or approved by the Department.  Under these side agreements many employers, including small businesses, paid substantially more than what would have been paid under similar workers’ compensation plans.

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