The Internal Revenue Service on November 1 issued Notice 2016-66, which requires information reporting with respect to certain insurance or reinsurance transactions involving captive insurance companies that claim the benefits of an election under Section 831(b) of the Internal Revenue Code available to certain small insurance companies, often referred to…

Read More Captive Insurance Arrangements Taking Advantage of Section 831(b) Election May Be Required to Report to the IRS

New insurance commissioners were elected in 5 states. Delaware elected Democrat Trinidad Navarro. Montana elected Republican Matthew Rosendale. North Carolina elected Republican Mike Causey. North Dakota elected Republican Jon Godfread. Washington re-elected Democrat Mike Kridler.
Read More Elected Insurance Commissioners

The Vermont Department of Financial Regulation recently issued a proposed rule on Regulation C-81-2. The proposed rule, which will be the subject of a public hearing on December 5, clarifies annual reporting requirements of Vermont-domiciled captive insurance companies by adding details to the annual audit and certification of loss reserves.
Read More Vermont Issues Proposed Captive Rule

Red Chalk Group presents this first of its kind event dedicated to the $1+ trillion insurance marketplace and designed for senior executives to engage leading industry and Blockchain experts as they address top-of-mind issues.

Tuesday, November 8, 2016
8:00 AM – 4:30 PM

UBS Tower
Conference Center on 2nd Floor…
Read More Please Join Us – Blockchain Insurance Summit

Locke Lord’s Insurance & Reinsurance Newsletter provides topical snapshots of recent developments in the fast-changing world of insurance. For further information on any of the subjects covered in the newsletter, please contact one of the members of our Insurance team.

In This Issue:

  • “When Does the Acquisition of a

…
Read More Locke Lord’s Insurance & Reinsurance Newsletter – September 2016

The EU-U.S. Privacy Shield (the “Privacy Shield”) has been promulgated through a joint effort between the United States (the “U.S.”) and the European Union (the “EU”) in order to facilitate the transfer of personal data from the EU to U.S. companies. The Privacy Shield officially went live on August 1…

Read More Locke Lord’s Zach Lerner, Associate in the New York office, Co-Authors “The Privacy Shield and its Impact on U.S. Insurance Companies” for FORC Fall 2016 Edition

The U.S. Eleventh Circuit Court of Appeals certified 2 questions under Florida law to the Florida Supreme Court relating to 3 STOLI life insurance policies. The Florida Supreme Court rephrased (and conflated) the 2 questions and stated the issue to be, “Can a party challenge the validity of a life…
Read More Florida Supreme Court Advises the Eleventh Circuit that A STOLI Policy Cannot Be Rescinded After the Contestability Period

A Georgia appellate court has ruled that there is no continuous trigger of coverage for an environmental claim when the subject policy responds to occurrences, not property damage, during the policy period. The insured sought coverage from the insurer for costs arising from a 1976 turbine fuel leak. The lower…
Read More Georgia appellate court: no continuous trigger when policy responds to occurrences, not property damage, during the period

The Louisiana Supreme Court has endorsed pro rata allocation of defense costs associated with hearing loss cases across triggered policy periods. The decision reversed a 2015 appellate ruling that pro rata allocation applied to the costs associated with the duty to indemnify but not the duty to defend, making a…
Read More Louisiana Extends Pro Rata Allocation to Defense Costs

“Quota Share Reinsurance”

A form of reinsurance whereby the reinsurer accepts a stated percentage of each and every risk underwritten by the reinsured company within a defined category of business and within the underlying insurance contract parameters on a pro rata basis and is usually paid a pro rata portion…

Read More InsureTerms™/Terminology for the Consummate Insurance & Reinsurance Lawyer: “Quota Share Reinsurance”