It does not. Your insurance coverage is not impacted by this lawsuit. Preferra remains committed to providing the same high-quality coverage and service to all policyholders throughout the legal process. Preferra has taken steps to separate itself from NASW and its affiliates and ensure it remains in a strong financial position with sufficient capital to pay all claims for its insureds. These steps include replacing NASW Insurance Company as Preferra’s reinsurer with Lloyd’s, one of the world’s leading reinsurance companies.

Preferra took legal action to protect its policyholders after NASW and its affiliates, NASW Assurance Services Inc. (ASI) and NASW Insurance Company Inc. (NASWIC), failed to meet their contractual obligations to Preferra and its policyholders. These entities also attempted to interfere with Preferra’s insurance processes, Preferra customer interactions, and misused policyholder data, which prompted Preferra to take legal action. Preferra made every effort to resolve these issues with NASW amicably and avoid legal action but unfortunately, NASW and affiliated entities made it clear they would not act with policyholders’ best interests in mind unless required in a court of law.

The lawsuit claims that NASW and its affiliates:

1. Refused to pay insurance claims that NASW Insurance Company is contractually obligated to cover.
2. Misused Preferra’s policyholder information.
3. Attempted to block Preferra’s efforts to pay dividends to policyholders.
4. Took steps to undermine the protections Preferra provides to social workers.
5. Unfairly blocked Preferra staff from contracted resources and benefits necessary to do their work.

Preferra has taken several steps to safeguard its policyholders, including:

1. Replacing NASW Insurance Company with Lloyd’s, one of the world’s leading reinsurance companies, to ensure the financial strength needed to pay all claims.
2. Separating itself from NASW and its affiliates to avoid further interference.
3. Providing eligible policyholders with a premium refund dividend check in 2024 based on strong company financial performance in 2023, despite NASW’s attempts to block this in an effort to create more financial returns to NASW that are due to Preferra policyholders.

NASW Insurance Company failed to pay outstanding claims on social work policies for which it was the reinsurer, despite having received premiums from Preferra for reinsurance coverage over the years. Additionally, NASW Assurance Services interfered with Preferra’s relationships with policyholders during the application, renewal, and claims processes, and withheld contracted services adversely impacting Preferra staff.

Preferra is seeking compensation for the outstanding claims that NASW Insurance Company owes to Preferra on behalf of Preferra policyholders. The lawsuit also aims to hold NASW, NASW Assurance Services, and NASW Insurance Company accountable for their contract breaches and prevent further harmful practices against social workers, Preferra and Preferra staff members.

Preferra replaced NASW Insurance Company with Lloyd’s to ensure that its policyholders are fully protected. Lloyd’s is one of the world’s most reputable reinsurance companies, and this switch strengthens Preferra’s ability to meet its financial obligations to its insureds.

The lawsuit is intended to ensure that social workers and other behavioral health professionals insured by Preferra receive the protection and claims support they deserve. Preferra aims to stop NASW, NASW Assurance Services and NASW Insurance Company from unfair, unethical practices and further efforts at undermining the insurance coverage and services provided to policyholders.

Yes, Preferra is financially strong and fully capitalized to pay all Preferra policyholder claims. The steps taken, including replacing NASW Insurance Company as the reinsurer with Lloyd’s, a globally reputable reinsurance company, ensure that the company remains in a solid financial position.

The length of the legal process is uncertain, but Preferra is committed to resolving the issue as swiftly as possible. Regardless of the timeline, policyholders will continue to receive uninterrupted service and coverage.

No, all policyholders who paid premiums in 2023 and were still insured with Preferra as of April 2024 will still receive a premium refund dividend check in the amount of 6.2% of the annual premiums you paid for your liability insurance with us.

If you have any questions or concerns about your policy or claims, please contact Preferra’s customer service team directly 888-278-0038 or [email protected].

Rest assured, your coverage is secure, and Preferra Insurance Company RRG is fully committed to supporting you through any inquiries you may have.

If you would like to contact Preferra Insurance Company RRG, please contact us at [email protected].

Rest assured, your coverage is secure, and Preferra Insurance Company RRG is fully committed to supporting you through any inquiries you may have.