The U.S. Department of the Treasury has finally regulations to deal with so-called microcaptive transactions.
Microcaptives are, for the most part, insurance companies that attempt to qualify for treatment under section 831(b) of the Internal Revenue Code by way of a shared risk-pool arrangement which only superficially provides risk sharing and risk distribution for tax purposes, and whose real purpose is to provide inflated deductions for the businesses that the microcaptives are insuring.
Read the Full Article: https://www.forbes.com/sites/jayadkisson/2023/04/11/us-treasury-department-issues-proposed-regulations-to-finally-eviscerate-microcaptive-tax-shelters/
Company to demo product at upcoming MAPConnected warranty roundtable
ANN ARBOR, Mich. (October 4, 2021) — LegalEase Solutions LLC, which provides customized legal solutions for corporations, in-house legal departments and law firms, has launched iPAT for the automotive OEM market. Developed by a team of attorneys and data scientists at LegalEase in partnership with Felix AI, iPAT leverages historical data, artificial intelligence (AI) and predictive analytics to predict case outcomes, value cases and analyze buy-back eligibility of vehicles, to help OEM’s resolve warranty/lemon law claims more accurately, quickly and at a significantly lower cost.
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A local attorney and his wife are plaintiffs in a lawsuit that alleged multiple telemarketing companies conspired in an auto warranty scam …
Full Article: https://www.aspentimes.com/news/local/suit-from-aspen-lawyer-pastor-over-auto-warranty-calls-seeks-millions/
A Department of Insurance investigation that found a company was illegally selling vehicle service contracts, or “extended warranties,” has led to an order requiring it to refund consumers and dissolve its operations.
Full Release: http://www.insurance.ca.gov/0400-news/0100-press-releases/2021/release059-2021.cfm
AUL Corp. announces the rollout of new enhanced options to the F&I provider’s core vehicle service contract policies for pre-owned units.
Full Article: https://www.autoremarketing.com/subprime/aul-enhances-vsc-policies-electric-and-hybrid-vehicles
Attorney General Josh Shapiro announced that his Office has filed a civil lawsuit against extended automobile warranty company Delta Auto Protect to get money back for consumers and repair shops…
Full Article https://www.attorneygeneral.gov/taking-action/press-releases/ag-shapiro-suing-delta-auto-protect-to-get-money-back-for-consumers-in-repair-scam/
Minnesota makes changes to its Statutes related to Vehicle Service Contracts and adds language for Ancillary Programs.
Accomplishment Establishes AUL as One of the Top Independent Vehicle Service Contract Providers in the Nation.
Zurich North America, one of the largest insurance and vehicle service contract providers for auto dealers plans on a heavy focus on F&I in 2018.
With several providers settling lawsuits in the past that claimed the telemarketers were agents of the Service Contract providers this is a positive and logical finding. In this case – Royal Administration Services Inc. could not be held liable for unsolicited calls made by independent contractors.