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Applied Underwriters, Inc. and Applied Risk Services, Inc. have filed a lawsuit against Ricardo Lara, the Insurance Commissioner of the State of California, and others in the U.S. District Court for the Eastern District of California. The suit asserts five claims under the U.S. Constitution. California Insurance Company (CIC) is an insurance company that was previously owned by Berkshire Hathaway. After the merger, the California Department of Insurance made official statements that it did not approve the sale of CIC, which was included in the transaction involving  Applied.

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