Operational and legal complexities, as well as preparing for the tight reporting window for breach notification, are the main challenges that re/insurers have met on their path toward complying with the implementation of the EU's General Data Protection Regulation (GDPR) on May 25, 2018.
A recent New York court of appeals ruling found that Preferred Contractors Insurance Company Risk Retention Group, LLC (PCIC), is not subject to New York insurance law for an insurer's failure to provide timely disclaimer or denial notice. The court ruled that compliance with New York law is preempted by the federal Liability Risk Retention Act (LRRA).
On May 7, 2018, in a unanimous decision, the Georgia Supreme Court affirmed in Reis v. OOIDA Risk Retention Group, Inc., that the Liability Risk Retention Act (LRRA) preempts state insurance laws that regulate the business of foreign risk retention groups in Georgia.
The Consolidated Appropriations Act of 2018 was enacted on March 23, 2018, and included amendments to IRC section 831(b). Most importantly, the Act clarifies that for purposes of the first diversification test of section 831(b), the term "policyholder" refers to the direct insured under a policy and not to a reinsured.
The Georgia Supreme Court will rule on the Reis et al. v. OOIDA Risk Retention Group, Inc. case after the Georgia State Court of Appeals transferred the case to the Georgia high court on the constitutional issue of federal preemption. Frequently, these cases center on whether the federal Liability Risk Retention Act of 1986 (LRRA) preempts state law.