STORY FROM: Reinsurance & Arbitration
Texas High Court Refuses to Review Reinsurance Risk Pool Tax Ruling
September 7, 2017
AUSTIN, Texas — The Texas Supreme Court will not review an appellate court’s ruling that two insurers may not recover more than $1 million in taxes, penalties and interest on reinsurance agreements issued to two Texas self-funded risk pools.
On Sept. 1, the high court denied a petition for review filed by Argonaut Insurance and Argonaut Great Central Insurance Co. The insurers sought to challenge a June 2015 ruling in which the Texas 3rd District Court of Appeals held that premium payments made by the risk pools to the insurers are not non-taxable “reinsurance income.”
The Argonaut companies provided insurance ...