Legal Developments

On March 27, CIC Services, LLC, and Ryan, LLC, filed suit against the IRS in US District Court for the Eastern District of Tennessee, seeking injunctive relief by setting aside IRS Notice 2016-66, as modified by IRS Notice 2017-06. On April 21, the court issued an order on CIC's and Ryan's motion for preliminary injunction, denying their request to immediately halt the IRS from enforcing its rule. Read More

On April 18, the Texas House Insurance Committee approved legislation making improvements in the Texas captive insurance law. Among the six improvements would be credit for reinsurance ceded to non-affiliated and non-admitted reinsurers that meet the standards of the bill. Read More

The National Risk Retention Association filed an amicus curiae brief in support of Restoration RRG in its recent court appeal, challenging the Wisconsin Department of Safety and Professional Services for discrimination against risk retention groups. Read More

The Insurance Data Security Model Law is being drafted to apply to traditional insurance companies, but there is some concern that, as drafted, the language would also be deemed to apply to captive insurers domiciled in the states that enact it. This article explains why. Read More

Many captives are probably aware of the work being done at the National Association of Insurance Commissioners (NAIC) concerning cyber-security risks. This process began in late 2014 when the NAIC's Executive (EX) Committee appointed a "Cybersecurity (EX) Task Force" to serve as the point group on all regulatory matters related to cyber-security. In April 2015, the Cybersecurity Task Force adopted the Principles for Effective Cybersecurity: Insurance Regulatory Guidance."" Read More