Legal Developments
Report Takes Aim at Lack of Third-Party Litigation Funding Disclosure
Third-party litigation funding has become a multibillion-dollar business and is contributing to the growth of insurers' legal costs and the size of settlement payouts, according to a new report from the Insurance Information Institute. The lack of transparency around lawsuit financing can extend a suit's duration and increase costs. Learn More
July "CICR" Analyzes Reserve Mechanical Opinion
Don't miss the July issue of "Captive Insurance Company Reports" ("CICR"), in which P. Bruce Wright and Saren Goldner from Eversheds Sutherland (US) LLP provide an analysis of a recent opinion by the US Court of Appeals for the Tenth Circuit in the micro-captive case Reserve Mechanical Corp. v. Commissioner. Learn More
Washington State Bill Seeks To Clarify Captive Premium Tax Obligations
A senate bill introduced in the state of Washington is seeking to formalize and clarify the position of captive insurers covering risks in the state. Senate Bill 5315 puts a number of requirements on captives that are writing Washington-based risks and are owned by Washington-headquartered companies. Read More
Vermont Files Federal Fraud Suit Against Captive Executive, Advisers
Vermont's Department of Financial Regulation has filed a federal suit against a captive insurance executive and financial adviser alleging a multimillion-dollar fraud against policyholders. The suit names the former president of Global Hawk Risk Retention Group and several of Global Hawk's outside professional advisers. Read More
AIG Sues Ambassador Captive Solutions over Allegedly Forged Reinsurance Agreement
AIG filed a lawsuit May 11, 2020, against Ambassador Captive Solutions, alleging Ambassador coordinated a scheme of counterfeit insurance policies. Ambassador denies the claims of forgery and instead argues a case of contract dispute. Read More
Coalition of Captive Industry Groups Files Amicus Brief in CIC Case
A coalition of 23 captive industry associations has filed an amicus brief before the US Supreme Court in the case of CIC Servs., LLC v. Internal Revenue Service, et al. Earlier this year, the high court agreed to hear CIC's appeal of a lower court ruling favoring the IRS. Read More
Insurers Group To Promote Pandemic Backstop Alternative to Congress
The American Property Casualty Insurance Association is planning virtual meetings with members of the US House Financial Services Committee to promote the Business Continuity Protection Program (BCPP), a proposed pandemic business interruption backstop. The BCPP is designed to help businesses meet the financial challenges from future pandemics. Read More