DOI Fines Carriers for Slipping Reinsurance Agreements Into Comp Policies

The Illinois Department of Insurance has fined two former Berkshire Hathaway subsidiaries for illegally packaging reinsurance with workers' compensation policies and overcharging employers. The department said Tuesday that Continental Indemnity and Applied Underwriters must pay $250,000 in penalties after a recent market conduct examination found dozens of violations. The carriers sold policies that were not approved by the department, resulting in overcharges on premiums, including $8,300 on one policy. The carriers, no longer subsidiaries of the Berkshire Hathaway companies, sold comp ...