Legal Developments

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). Read More

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. Read More

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