1. The Group Captive LookingGood
Recent news highlighting court decisions, legislative
action and market dynamics is providing a boost to the
group captive insurance approach. Considering the
financial implications of choosing another form of group
or pooled insurance for your workers’ compensation or
health benefits, group captives present a compelling and
convincing alternative.
See for example, the recent confirmation by the U.S.
Supreme Court that they will not entertain a review of
New York’s Workers Compensation Board authority to
assess any remaining self- insured groups close to $1
billion of liabilities left by more than 50 failed self-insured
groups or trusts. Yes, that’s $1 billion with a B and their
definition of joint and several liability means you pay
claim obligations of other employers outside of the group
you joined.
Judicial Enforcement of Joint & SeveralLiability
Email:jboerio@roundstoneinsurance.com
Website: http://www.roundstoneinsurance.com/

2. The Group Captive LookingGood
The idea of joint and several liability beyond the
insurance facility that you participate in is a very bad
outcome for the self-insured group industry and a very
good example of why the group captive approach is a
superior insurance vehicle.
There is no joint and several liability among separate
captive entities and most captive insurance companies
organizational documents remove joint and several
liability beyond the captive participants contributed
capital.
In other words, if the New York employers considering
how to fund their workers compensation risk chose to
proceed under the group captive approach rather than
the self- insured group or trust approach, they would
have avoided the $1 billion assessment they are now
confronting.
Email:jboerio@roundstoneinsurance.com
Website: http://www.roundstoneinsurance.com/

3. The Group Captive LookingGood
Legislative Attack on MEWAs
State legislative bodies have a long history of making life
difficult for health plans known as multiple employer
welfare arrangement or MEWAs. Now, the federal
government has picked up the lead and included
dramatically increased criminal enforcement and
reporting requirements in PPACA (Patient Protection and
Affordable Care Act also known as “Obama Care”).
Common sense indicates reserves for known and
unknown claims are necessary for any viable insurance
facility. The difficulty arises when an insurance facility
does not know or anticipate who or how those reserves
will be established. This is the environment that MEWAs
face with regulators throughout the states. While MEWA
assessments have not to this writer’s knowledge reached
the $1 billion mark like New York workers compensation
groups, many an employer funding its health benefits
through a MEWA have received a disturbing letter
informing them their estimated health premium was not
enough and they now must pay more. Adding insult to
injury, the determination that the reserves are not
enough often appears arbitrary, unfounded and even a
Email:jboerio@roundstoneinsurance.com
Website: http://www.roundstoneinsurance.com/

4. The Group Captive LookingGood
veiled attempt by the state regulator to push the MEWA
out of the health insurance business.
For more details about The Group
Captive Looking Good visit here
http://www.roundstoneinsurance.com/
Email:jboerio@roundstoneinsurance.com
Website: http://www.roundstoneinsurance.com/