Legal Developments

Insurance Trade Groups Oppose Draft Bill Requiring Pandemic Coverage

April 14, 2020

A group of insurance industry trade organizations expressed opposition to a draft bill that would require insurers to offer pandemic business interruption coverages. Such a measure "would threaten the very existence of the business interruption insurance market," the groups said. Read More

Letter Challenges IRS Treatment of Small Captive Insurance Companies

April 3, 2020

A letter to US Rep. Kevin Brady (R-Texas) takes issue with Internal Revenue Service (IRS) treatment of so-called 831(b) captive insurance companies. The current COVID-19 pandemic underscores the importance of captive insurance programs to midmarket companies, the letter says, but the IRS is targeting and harassing small captives. Read More

New Utah Law Lets Captives Reinsure Risks from Any Insurer

April 2, 2020

Legislation recently signed into law by Utah Governor Gary Herbert will expand the business that Utah captive insurance companies are allowed to do. The new measure, HB 37, will allow Utah captives to reinsure risks ceded by any other insurer. Read More

SIIA Offers Insights Following IRS Micro-Captive Settlement Results

February 18, 2020

The Self-Insurance Institute of America, Inc. (SIIA), said in a statement that the vast majority of captive insurance participants are not only doing the right thing but are left untouched by the recent Internal Revenue Service (IRS) global settlement initiative offered last year. Read More

IRS Settlement Offers Accepted by Majority of Micro-Captive Owners

February 3, 2020

The Internal Revenue Service (IRS) announced last week that around 80 percent of so-called 831(b) micro-captive owners who received settlement offers have accepted them. Read More