Legal Developments
Vermont Captive Insurer Seeks Reinsurance Recoveries in Dispute with Lexington, Swiss Re Unit
A Vermont-domiciled captive insurer has filed suit seeking reinsurance recoveries tied to abuse-related claims involving a former boarding school. The dispute centers on coverage treatment, batching of claims, and allocation of losses across policy years to trigger excess general liability and facultative reinsurance coverage. Learn More
SRA 831(b) Admin and Affiliates Sue IRS over Final Micro-Captive Regulations
SRA 831(b) Admin and affiliates are suing the Internal Revenue Service (IRS) over its 2025 final rule on captive insurance, arguing it exceeds regulatory authority and burdens small businesses. The lawsuit highlights prior audits, compliance efforts, and industry pushback on proposed rules that foreshadowed the expanded reporting requirements now in force. Learn More
Arkansas Governor Signs Bill to Form State Property Insurance Captive
Arkansas Governor Sarah Huckabee Sanders has signed a measure creating a state-owned captive insurance company aimed at stabilizing property insurance for public schools, higher education institutions, and state-owned buildings. The measure provides that the Arkansas Department of Transformation and Shared Services will oversee the state captive insurance program's operations. Read More
Arkansas Advances Bill to Establish State-Owned Captive for Public Property Insurance
Arkansas House Bill 1821 introduces a state-owned captive insurance company to centralize property coverage for public schools and state entities. The program aims to stabilize premiums, improve risk management, and replace fragmented insurance structures. If passed, it will be a significant move in government-led captive insurance reform. Read More
Dorset Peak Solutions Sues Oxford Risk Management over Alleged Captive Insurance Misconduct
Dorset Peak Solutions has filed a lawsuit against Oxford Risk Management, alleging a captive insurance restructuring that reduced financial protections for policyholders. The suit claims Oxford secretly transferred liabilities to a Bermuda entity, violating contracts and securities laws. The case raises key issues in risk management and regulatory oversight. Read More
Captive Insurer Disputes Reinsurance Obligations Following Acquisition
McLaren Insurance Company, Ltd. (MICoL), a captive insurer, has filed a lawsuit against Hiscox and MedPro over reinsurance obligations. MICoL alleges improper assignment of duties under a reinsurance agreement related to a Legionella batch claim, seeking a declaratory judgment and indemnification for covered losses. Read More
Governor Scott Signs Bill Updating Vermont Captive Insurance Laws
Governor Phil Scott signed Bill H. 659, updating Vermont's captive insurance statutes to enhance regulatory practices, reduce redundancies, and align with market needs. Read More