Post by Logan on Jun 22, 2016 2:22:13 GMT -6
Two Berkshire Hathaway affiliates accused in California workers' comp 'scheme'
California’s insurance commissioner ruled this week that two affiliates of Omaha-based Berkshire Hathaway Inc. broke California law with a “complex insurance scheme” that boosted their profits while raising costs for a family-owned laundry.
California Insurance Commissioner Dave Jones said Applied Underwriters and California Insurance Co. designed a workers’ compensation program called EquityComp to circumvent his department’s review, “to the disadvantage of small- and medium-sized businesses.”
The arrangement meant smaller businesses would risk high costs as workers’ comp claims occurred, rather than paying steady rates based on past claims.
The decision resulted from a complaint by the 60-employee Shasta Linen Supply Inc. of Sacramento.
Read more: www.omaha.com/money/berkshire-hathaway-affiliates-accused-in-california-of-workers-comp-scheme/article_cfdac989-1382-52fd-9a22-4a1f3743f6c1.html
California’s insurance commissioner ruled this week that two affiliates of Omaha-based Berkshire Hathaway Inc. broke California law with a “complex insurance scheme” that boosted their profits while raising costs for a family-owned laundry.
California Insurance Commissioner Dave Jones said Applied Underwriters and California Insurance Co. designed a workers’ compensation program called EquityComp to circumvent his department’s review, “to the disadvantage of small- and medium-sized businesses.”
The arrangement meant smaller businesses would risk high costs as workers’ comp claims occurred, rather than paying steady rates based on past claims.
The decision resulted from a complaint by the 60-employee Shasta Linen Supply Inc. of Sacramento.
Read more: www.omaha.com/money/berkshire-hathaway-affiliates-accused-in-california-of-workers-comp-scheme/article_cfdac989-1382-52fd-9a22-4a1f3743f6c1.html