Mixed decision in Berkshire Hathaway workers comp policy case

A federal appeals court affirmed in part and reversed in part a district court decision involving a daycare that challenged a Berkshire Hathaway Inc. subsidiary’s insurance business practices related to a workers comp policy in the Commonwealth of Virginia.

Minnieland Private Day School Inc., a private daycare based in Woodbridge, Virginia, entered a reinsurance participation agreement in 2013 with Berkshire Hathaway subsidiary Applied Underwriters Captive Risk Assurance Company Inc. According to the three-year agreement, one or more insurers, all of which were Berkshire Hathaway subsidiaries, would issue workers comp policies to the daycare. The agreement also established a “segregated protected cell” through which Minnieland would share the issuing insurers’ profits and losses related to Minnieland’s policies, according to court documents in Minnieland Private Day School Inc. vs. Applied Underwriters Captive Risk Assurance Company Inc.

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