Legal Developments

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. Read More

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. Read More

In a legislative victory for the captive insurance industry, Congress passed, and the president signed into law, key tax clarifications for enterprise risk captives proposed by the Self-Insurance Institute of America (SIIA). The Consolidated Appropriations Act of 2018 is the result of ongoing spending and appropriations debates within Congress. Read More

The UK government has committed to amend the 1993 Reinsurance (Acts of Terrorism) Act to extend Pool Re coverage to include non-damage business interruption losses resulting from acts of terrorism. Pool Re was founded by the UK insurance industry in cooperation with the UK government. Read More

Legislators in states with captive insurance company laws are continuing their drive to modify their states' captive insurance company statutes to stay competitive with other domiciles. Read the latest roundup of state captive legislation in 2018. Read More