Work Comp Insurer Requests Commissioner Dave Jones Retract Inaccurate Press Release, Calm Market Confusion

Omaha, Nebraska -- Monday, July 16, 2016 -- Workers' compensation insurer Applied Underwriters, Inc. is still waiting on its request to California Insurance Commissioner Dave Jones to retract and correct his office's inaccurate June 29, 2016 press release which falsely asserted that a "cease and desist" order had been imposed upon Applied's California affiliates.

"We are hopeful that Commissioner Jones will correct his error immediately as it is causing harm to our companies and creating confusion with our clients and in the marketplace. We formally asked him through counsel to remedy this error over a week ago but he has been unresponsive," said Applied General Counsel Jeffrey Silver.

Jones' press release claims a cease and desist order was imposed. In fact, under California law the request for a cease and desist order is pending as a matter of due process with an administrative judge. Applied and its affiliates are vigorously challenging Jones' rationale for seeking the order.

Jones is seeking to prevent a product called "EquityComp®" from being sold in California. The product has previously been reviewed by the department at least four separate times without question and is sold nationwide. Applied has voluntarily stopped selling the product in California until issues with the Department are resolved, however Jones' misstatement has unduly confused and misled existing EquityComp® clients.

"We are hoping the Commissioner will respect the course of due process and the importance of communicating accurately and clearly to the marketplace," added Silver.

Attached: July 7, 2016 letter from Applied outside counsel to Commissioner Jones requesting corrective action.

For further information contact: Stutzman Public Affairs, at +1 (916) 930-0100