On February 14, 2008, a divided New York Court of Appeals held that a member of a New York limited liability corporation (often referred to simply as a “LLC”) could bring a derivative lawsuit on behalf of the LLC against the entity’s managers.
Read MoreThe Internal Revenue Service announced on February 20, 2008 that it is withdrawing the proposed IRS Regulation §1.1502-13(e)(2)(ii)(C). The withdrawn regulation would have disallowed as a current deduction for federal income tax purposes any premium payments to an affiliate captive insurer if the captive received as little as 5% of its total premiums from affiliates on the same consolidated tax return.
Read MoreLast week, the Supreme Court upheld a Second Circuit decision finding that the Food and Drug Administration’s extensive pre-market approval process for Class III medical devices preempts state law causes of action for injuries allegedly caused by those devices.
Read MoreEarlier this month, Rhode Island’s Lt. Governor, Elizabeth Roberts, proposed the Healthy Rhode Island Reform Act of 2008. Among other things, Part V of the proposed act, commonly known as the “play or pay” proposal, requires employers in Rhode Island to either provide employee health benefits or to contribute to a state fund that will cover the uninsured up to a certain level.
Read MoreIn a recently released revenue ruling, the IRS has established procedures for determining if insurance written through protected cell companies constitutes insurance for federal income tax purposes. This is a result of the previously issued Notice 2005-49, in which the IRS requested comments from the public on this issue. Concurrently, the IRS issued Notice 2008-19, in which it is requesting comments from the public on guidance regarding the issues that arise if such arrangements actually do constitute insurance.
Read MoreOn Thursday, the Florida House Committee unanimously passed a bill backed by Chief Financial Officer Alex Sink requiring insurer’s that buy into the state’s catastrophe fund to purchase reinsurance from the private market. It was estimated that the bill, which was backed by Republican’s such as Ron Reagan, could inject as much as $3 billion of limits back to the private reinsurance market.
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