Regulation and Oversight

IRS Offers New, Stricter Settlement Offer to Micro-Captive Owners

October 23, 2020

The Internal Revenue Service (IRS) has announced a new limited-time settlement offer to certain taxpayers that the agency alleges participated in abusive micro-captive insurance transactions. The IRS said that in the coming days it will begin sending settlement offers with stricter terms than its first limited-time settlement initiative that began last year. Read More

Medical Professional Liability Remains Dominant RRG Coverage Line

October 19, 2020

While risk retention groups (RRGs) can write a wide range of coverages, one line of coverage is dominant: medical professional liability. Of the roughly $3.5 billion in direct RRGs premiums in 2019, well over 50 percent—nearly $1.96 billion—was for professional liability coverage for RRGs' policyholder-owners. Read More

2 Years after Implementation, GDPR Brings Data Privacy Stability

October 12, 2020

Two years after the implementation of the European Union's General Data Protection Regulation (GDPR), data privacy has become a standard concern of corporate leaders, particularly as they also rank cyber threats among their top risk concerns. The GDPR created a single source of data protection rules applying across Europe. Read More

Reserve Tax Case Brief Argues Transactions Did Constitute Insurance

October 9, 2020

A reply brief filed in the US Tenth Circuit Court of Appeals on behalf of Reserve Mechanical Corp. in Reserve’s tax case with the Internal Revenue Service argues that its captive insurance arrangements did meet the requirements to constitute insurance for federal tax purposes. Read More

IRS Indicates It's Stepping Up Enforcement of Abusive Micro-Captives

October 6, 2020

The Internal Revenue Service (IRS) has indicated that it's expanding its enforcement focus on abusive micro-captive schemes, encouraging taxpayers participating in micro-captive arrangements to consult an independent tax adviser ahead of the October 15 filing deadline. The IRS encouraged participants in such arrangements to consider exiting them. Read More