EquityComp has officially – and apparently favorably – resolved its dispute with the California Department of Insurance.
While reports in the media to date and advisories from various unofficial sources have been factually inaccurate, the EquityComp program has been at a standstill in many states for new business since the middle of last year.
Today, under its settlement with the CDI, EquityComp is preserved essentially in its original form and entirely in its intended design. The product has been accepted as filed and approved and the company is free to resume selling the program immediately. The settlement has no penalties, no give-backs, nor any other monetary concessions.
Typically, plaintiffs’ counsel, some media and blogging pundits, and some political opportunists may persist in the pursuit of this matter; as long time insurance observers, we feel that it is well ended and should be set to rest, especially given the fact that public funds are wasted in this fruitless pursuit and companies’ dollars are misspent with undue changes and possibly poorer products.
Retail agents and brokers have been faithful in their support of the Company as they are wont to be, after the favorable experience their clients and they have enjoyed with the product mix.
Testimony to this is the fact that new business applications have flowed to the Company, unabated, giving the Company its best first quarter in five years.
As the Insurance Advocate, we support the EquityGroup and other entities like it that face overweening regulators and rather ignorant activists wearing various “uniforms.”
We salute the Company for “sticking it out” to provide these options to the clients represented meaningfully and creditably by the producer force. SA