Legal Developments
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. Learn 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. Learn More
Captive Insurance, Medical Malpractice, and Dobbs
The US Supreme Court's 2022 Dobbs ruling raises important questions for captive insurance companies writing medical malpractice coverage. Medical malpractice professionals must now consider coverage issues around medical procedures involving abortions or services tangentially related to abortions. Read More
The Dobbs Decision and Captives
Captives underwriting medical professional and general liability coverages face new challenges as a result of the US Supreme Court's 2022 decision in Dobbs v. Jackson Women's Health Org., 142 S. Ct. 2228 (2022). These challenges should be evaluated and understood by captive boards of directors, risk managers, and claim managers. Read More
Report Takes Aim at Lack of Third-Party Litigation Funding Disclosure
Third-party litigation funding has become a multibillion-dollar business and is contributing to the growth of insurers' legal costs and the size of settlement payouts, according to a new report from the Insurance Information Institute. The lack of transparency around lawsuit financing can extend a suit's duration and increase costs. Read More
July "CICR" Analyzes Reserve Mechanical Opinion
Don't miss the July issue of "Captive Insurance Company Reports" ("CICR"), in which P. Bruce Wright and Saren Goldner from Eversheds Sutherland (US) LLP provide an analysis of a recent opinion by the US Court of Appeals for the Tenth Circuit in the micro-captive case Reserve Mechanical Corp. v. Commissioner. Read More
Washington State Bill Seeks To Clarify Captive Premium Tax Obligations
A senate bill introduced in the state of Washington is seeking to formalize and clarify the position of captive insurers covering risks in the state. Senate Bill 5315 puts a number of requirements on captives that are writing Washington-based risks and are owned by Washington-headquartered companies. Read More