November 2019

The Tempo Has Quickened On Pending Litigation Matters
Involving Captive Insurance Companies

(Southern Pines)….The tempo has quickened on pending litigation matters involving captive insurance companies. Two major developments unfolded during January. First, the strongly challenged IRS Notice 2016-66 is now officially before the Supreme Court of the United States (SCOTUS). CIC Services, LLC, filed its petition for Certiorari with SCOTUS on January 17. The long running attempt to curb the rule making authority of the IRS was officially docketed on January 24, 2020 as Case No. 19-930.

The Solicitor General on behalf of the US Treasury Department and the Internal Revenue Service, has until February 24 to file its response. By the same due date, NCCIA, together with some other 10-15 state associations and SIIA, will file its Amicus Brief. The brief in support of CIC Services, will ask the SCOTUS to take review of the flawed rulings of the 6 th Circuit Court of Appeals and the earlier Federal District Court in Tennessee. More complete details as to the arguments to be advanced by CIC and NCCIA and others will appear in the February Newsletter. The NCCIA Government Affairs Committee Chaired by Alex Webb are working with Tennessee counsel – Kevin Doherty and his firm Dickinson Wright in perfecting this “Friend of the Court” filing.

Second, the Appellant’s brief in Reserve Mechanical case (RMC case) is now due in the 10 th Circuit Court of Appeals on January 31, with the Amicus Brief of the Captive Insurance Associations to be filed on or before February 7, 2020. Ten associations including SIIA, are seeking reversal of the controversial Tax Court ruling. RMC that has drawn considerable attention in the captive insurance industry. Like the CIC Services case, this litigation could be drawn out over a number of months. The original Tax Court ruling was issued June 18, 2018. For more information contact Lane Brown, VP Government Affairs at 704.713.0008.

Early Bird Registration For The 2020 Annual Conference Will Go Live On The Association’s Web Site On Thursday,, 

NCCIA President Thomas Adams announced that Early Bird registration for the 2020 Annual Conference will go live on the association’s web site on Thursday, February 13th . There is a lot new about this year’s conference including a move from late summer to late spring. The Washington Duke Inn on the campus of Duke University will be the site for this year’s May 13-15 event. However, new this year is a special Pre-Conference Event for Captive Owners and their direct employees which will occur on Tuesday afternoon May 12 th . There will be special incentives for owners to attend this year. Committee meetings have also been moved to Tuesday.

Adams said “there is a lot new that will be unveiled on February 13. Look for a special mailing and registration materials to be available along with the conference program.”

The NCCIA Board Of Directors Held Its Winter Meeting At The Washington Duke Inn In Durham On January 10th

The NCCIA Board of Directors held its winter meeting at the Washington Duke Inn in Durham on January 10th . The Board did a review of issues relating to the Annual Conference and were extremely pleased with their first look at the Conference Agenda and the new owner’s track. Lea Riddle, Chairman remarked that “this years conference will take another step forward by refreshing its educational offerings and has a great new venue for its location here at the Washington Duke Inn.”

The Board agreed to extend an invitation to all committee members to serve another year on their respective committees. Others who are interested in serving should contact either Lea Riddle or Thomas Adams.

The Board also received a report form government Affairs Committee Chair Alex Webb and approved spending for North Carolina’s share of an Amicus Brief in the CIC Services case. (see above)
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