Preferra sues National Association of Social Workers

Preferra sues National Association of Social Workers | Insurance Business America

Professional Risks

Preferra sues National Association of Social Workers

“We never expected one of the biggest threats to our policyholders to be the association that claims to represent them”

Professional Risks

By
Terry Gangcuangco

Preferra Insurance Company RRG has taken the National Association of Social Workers (NASW) to court, accusing the professional body of failing to fulfill its obligations to the social workers insurer.

Brought before the US District Court for the District of Columbia, the legal action includes NASW subsidiaries NASW Assurance Services (ASI) and NASW Insurance Company (NASWIC).

Dr Richard Jones (pictured), president of Preferra’s board, declared: “Preferra’s first obligation is to the social workers and other behavioral health professionals we protect with professional, general, and cyber liability insurance.

Jones expressed ‘deep concern’ over NASW’s refusal to meet its responsibilities, citing actions that he said undermine the protections Preferra provides to social workers.

Preferra’s lawsuit outlines multiple grievances, including NASWIC’s alleged refusal to pay valid insurance claims and attempts by NASW to direct more profits toward the association while obstructing Preferra’s ability to distribute dividends to its policyholders.

Another key issue highlighted in the complaint is ASI’s supposed misuse of Preferra’s policyholder data. The insurer claims that ASI sought to interfere with the management of policyholder relationships by disrupting the application, renewal, and claims processes, which Preferra oversees.

The company emphasized that the legal action was taken with the best interests of its policyholders in mind. According to Preferra, all policyholders will continue to receive uninterrupted coverage and service throughout the litigation.

Preferra has also taken steps to distance itself from NASW and its subsidiaries, ensuring the insurer remains financially stable with enough capital to meet its obligations. These include replacing NASWIC as its reinsurance partner.

Jones stated: “NASW’s actions are causing confusion among social workers who rely on Preferra for peace of mind with their insurance coverage.

“We never expected one of the biggest threats to our policyholders to be the association that claims to represent them, but we’re committed to fighting for social workers and standing up for our policyholders no matter what.”

As of writing, NASW has not issued a public statement in response to the lawsuit.

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