Shadow Insurance in A COVID-19 Era: A Federal/State Perspective on Negligence and Corporate Formalities

Expired

Program Number

30129

Program Date

2020-05-11

CLE Credits

The McCarran-Ferguson Act of 1945 exempted the insurance industry from most federal regulation. With the repeal of the Glass-Steagall Act in 1999, non-insurance company money and unlicensed third party players started flowing into the insurance industry at an unprecedented rate. A 2013 New York Department of Financial Services Report documented the phenomenon of â€œshadow insurance due to a regulatory â€œrace to the bottom among states, permitting insurance companies to operate with insufficient reserves. Can these companies be made to pay? Corporate decisionmakers now ask: How do I get my â€œcaptive insurance program to pay? Who sold me this worthless policy? How do I liberate cash for my balance sheet? Topics covered: insurance law basics, scrubbing down policies, spotting problems in corporate formalities, moving up the reinsurance food chain. Who should attend: those working with business management to understand their rights, how to hold producers to account where coverage is flawed and to recoup misdirected premiums. Join Ray Dowd and Sam Blaustein of Dunnington Bartholow & Miller LLP for tips for counseling the C-Suite on developments in the wake of COVID-19. In a recent landmark litigation over a reverse Ponzi scheme, Dowd and Blaustein litigated around arbitration to obtain pre-answer security securing recoupment of premiums in excess of $14MM. Their efforts led to the multi-billion dollar California Insurance Company being seized by the California Department of Insurance and to the New York Department of Financial Services finding a complex international reinsurance program marketed nationwide illegal.