Preferra Insurance Files Lawsuit Against NASW for Misconduct

Preferra Insurance Takes Stand Against NASW

Preferra Insurance Company RRG is fiercely committed to its policyholders, particularly those in the social work community. The company is standing up to the National Association of Social Workers (NASW) by filing a lawsuit that underscores their obligation to protect social workers. One of the main aims of this lawsuit is to hold NASW accountable for allegedly misleading its members, misusing member data, and undermining the insurance programs in place for those they claim to support.

The Heart of the Matter

At the core of this legal action is an accusation that NASW, along with its affiliates, is failing to meet its obligations to Preferra, which primarily exists to serve and protect social workers. The lawsuit was filed in a federal court and also targets NASW's fully owned subsidiaries: NASW Assurance Services Inc. (ASI) and NASW Insurance Company Inc. (NASWIC). This comprehensive approach denotes Preferra's determination to advocate for the rights and protections of its policyholders.

Commitment to Social Workers

Dr. Richard Jones, the Board President of Preferra Insurance, emphasized their unwavering commitment to social workers and other behavioral health professionals who rely on their coverage for various liability needs. He stated that despite attempts to resolve the matter amicably, NASW's reluctance to act in the best interests of its policyholders has left Preferra with no other choice but to pursue this lawsuit. The fact that a professional association, which is supposed to support social workers, is ostensibly acting against their best interests is alarming.

Accusations Against NASW

The lawsuit delves into specific accusations against NASW and its affiliates, claiming they have engaged in practices that are detrimental to social workers. This includes a refusal to honor insurance claims that NASWIC is contractually bound to address. Furthermore, there are troubling indications that NASW has redirected profits away from the policies offered to social workers through Preferra, actively impeding Preferra's attempts to distribute dividends to its policyholders.

Data Misuse Concerns

Preferra's complaint also highlights significant concerns about the misuse of sensitive personal data belonging to its policyholders. It asserts that ASI sought to encroach on the relationship that exists between Preferra and its clients, thereby creating a gulf of confusion that compromises the application, renewal, and claims processes that policyholders depend upon.

Policyholders' Interests at Stake

This lawsuit has been initiated with the utmost consideration for the interests of Preferra policyholders. The company remains steadfast in its commitment to ensuring that all policyholders continue to receive high-quality coverage and service throughout the legal proceedings. In response to the ongoing issues with NASW, Preferra has opted to transition its reinsurance arrangements from NASWIC to Lloyd's, a prominent global reinsurance provider.

Facing Challenges Head-On

Dr. Jones expressed concern about NASW's actions and their impact on the social work community, stating they have inadvertently emerged as one of the most significant hurdles for policyholders. He reassured that Preferra is dedicated to advocating for its members' rights and combating any attempts by NASW to undermine their essential protections.

Breaches of Contract and Seeking Justice

The legal action outlines several breaches of contract by ASI that have adversely affected Preferra and its workforce. One of the key demands is for NASWIC to settle unpaid claims on social work policies for which they provided reinsurance. The outstanding amounts owe to both Preferra and its policyholders, who deserve restitution as insured individuals and stakeholders of the company.

About Preferra Insurance Company RRG

Established in 2012, Preferra Insurance Company is recognized for delivering reliable liability insurance solutions tailored for social workers, mental health experts, and behavioral health specialists. This independent organization thrives under the guidance of social work leaders and insurance professionals. Preferra is proud to provide comprehensive liability coverage to over 100,000 social workers, coupled with risk management training on relevant issues within the profession.

Frequently Asked Questions

What prompted Preferra Insurance to file a lawsuit against NASW?

The lawsuit was filed due to NASW's alleged refusal to meet its obligations to Preferra and its policyholders, including issues related to claim payments and insufficient support.

How does this lawsuit affect Preferra's policyholders?

Throughout the litigation process, Preferra assures that all policyholders will maintain the same high-quality insurance coverage and services.

What specific claims are being made in the lawsuit?

The lawsuit alleges multiple breaches of contract, misuse of policyholder data, and a failure to fulfill obligations related to claim payments by NASW and its affiliates.

Who is Preferra Insurance Company RRG?

Preferra Insurance Company RRG is a well-established organization providing liability insurance specifically for social workers and other behavioral health professionals, focusing on their unique needs.

What steps is Preferra taking to uphold its promise?

Preferra is taking proactive measures to dissociate from NASW and its affiliates, securing its financial stability and ensuring all claims can be paid to its policyholders reliably.

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