Regulatory & Compliance Matters
CLG regularly represents foreign and domestic insurers and reinsurers, insurance producers, claims professionals and other licensees in significant insurance regulatory matters, including, negotiations with state regulatory entities on matters of compliance and market conduct, licensing, product-to-market development and implementation, policy drafting, discontinued operations and market withdrawal, surplus lines writings and other compliance issues such as OFAC, “junk fee” and CFPB matters. Our experience includes niche individual, group and InsureTech product offerings. CLG frequently provides insurance regulatory support in connection with significant litigation matters, including class actions.
RISK MANAGEMENT ISSUES
Risk arises when outcomes deviate from those outcomes that are expected. Accidental loss of property, income, life and health and liability to others are facts of life that present risk to all business organizations. CLG regularly advises corporate risk managers and corporate counsel on issues related to the development and placement of global insurance programs, the developments of domestic/offshore captive facilities and the negotiation of related reinsurance agreements, workers compensation premium plans (such as deferral, retrospective rating, policyholder dividends, excess loss premium, incurred loss and paid loss plans), direct procurement, industrial insured exceptions and surplus lines placements.
Transactional Matters
M&A activity within the insurance industry requires highly specialized knowledge of, and experience with, state regulators. We represents insurance companies and non-industry clients in mergers and acquisitions, including, pre-transaction strategies, the negotiation and execution of documentation, obtaining change of control approval, demutualization, formation, restructuring and re-domestication, affiliate transactions and post-acquisition product and process integration. CLG is uniquely experienced in securing the required regulatory approval for these transactions.
Insurer Insolvencies
Insurer insolvencies are a fact of life. Insurers and reinsurers can and do fail. CLG regularly advises corporate risk managers, senior management and corporate counsel on commutations, novations, loss portfolio transfers, policy buy-backs and other disengagement transactions with financially impaired insurers and excess insurers. We likewise regularly provide guidance regarding voidable preferences, fraudulent transfers, recoupment, the reduction/return of policyholder collateral, proof of claim submission and guaranty fund protection.
Non-Industry Clients
Insurance regulatory and compliance issues often impact companies outside of the insurance industry. CLG specializes in representations of clients whose primary industry is not insurance, but whose business operations trigger insurance regulatory, risk and compliance concerns - including, transportation carriers, wireless communication service providers, self-storage facilities, InsureTech start-ups, financial institutions, staffing companies and national manufacturers and retailers seeking to develop and market insurance, service contract and warranty offerings to customers.
Risk Management for Franchise Systems
Franchisee insurance is the first line of defense when a problem arises in the franchise operation. For this reason, franchisors typically require specific types and amounts of insurance. CLG regularly advises franchise clients regarding franchisee insurance programs. Our services include the review of the steps, costs, risks and benefits associated with establishing a “franchisee insurance program” to insure the risk of a franchise system, as well as the use of a captive to reinsure it. We help franchise clients find creative alternatives to traditional insurance programs, while at the same time avoiding missteps as they navigate this complex regulatory environment.