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Supreme Court Rules Against Estate in Business Buy-Sell Case

The Supreme Court agreed with the 8th Circuit. The stock redemption agreement created no offsetting liability because it was not set up in a way that would cut the economic value of the supply company’s shares, Justice Clarence Thomas wrote in the opinion. “A redemption obligation could, for instance, require a corporation to liquidate operating assets to pay for the shares, thereby decreasing its future earning capacity,” he wrote in a footnote. “We simply reject Thomas [Connelly]‘s position that all redemption obligations reduce a corporation’s net value.” When valuing the business for estate tax purposes, the estate must assess how much Michael Connelly’s shares were worth when he died, before the supply company paid to redeem his shares, Thomas adds. “A hypothetical buyer would thus treat the life-insurance proceeds that would be used to redeem Michael’s shares as a net asset,” Thomas writes. The U.S. Supreme Court building in Washington, D.C. (Credit: Bloomberg)

Canadians know all the ways to save on their monthly expenses, but not on insurance 0

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Canadians know all the ways to save on their monthly expenses, but not on insurance

Toronto, ON (Jun. 4, 2024) – The rising cost of living has forced many Canadians to take a closer look at their monthly expenses. While many have gotten savvy at saving money on their phone bills, utilities, and groceries, a recent survey conducted for TD Insurance shows that saving on home and auto insurance isn’t top-of-mind for insured Canadians polled. The reality is, there are many ways to save on home and auto insurance, but Canadians aren’t aware of them. In fact, a TD Insurance Survey conducted by Maru Public Opinion found that 75 per cent of insured Canadians surveyed are more aware of how to save on their phone bill versus their insurance bill (69 per cent). The survey also found that 70 per cent of insured Canadians surveyed dedicate time to reducing grocery costs, 46 per cent to decreasing their internet bill and 42 per cent to reducing spending or finding deals on clothing – a habit not many extend to home and auto insurance (38 per cent). It’s clear from the survey that Canadians polled are keen to give things up to save money. From couples opting to DIY their home upgrades, to university students foregoing new clothing...

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Colorado Woman Handcuffed in Police Car Hit by Train Receives $8.5M Settlement

Article 0 Comments A Colorado woman who was seriously injured when a freight train hit the parked police vehicle in which she sat handcuffed has reached an $8.5 million settlement, a lawyer representing two of the involved police officers said. The city of Fort Lupton and nearby town of Platteville, which together employed the three officers sued in the 2022 crash, will each pay half of the settlement to Yareni Rios, said attorney Eric Ziporin. Ziporin represents the two officers who worked for Fort Lupton at the time, Jordan Steinke and Ryan Thomeczek. He declined to comment further on the agreement. Fort Lupton Police Chief William Carnes said in a statement that the settlement was reached to “the mutual satisfaction of the parties, recognizes the gravity of this matter, and allows all parties to move forward.” Former Platteville police Sgt. Pablo Vazquez was also sued. The Associated Press sent his attorneys an email seeking comment. Related: Woman Who Survived Train Crash into Patrol Car Files Lawsuit in Colorado Steinke and Vazquez were both sentenced to probation in connection with the crash; Thomeczek was not charged. Rios, then 20, was pulled over by Vazquez on Sept. 16, 2022, after a road...

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US Auto Insurance Market on the Mend; Homeowners Line Volatile: Fitch

Article 0 Comments The U.S. personal insurance sector is positioned for improving underwriting performance in 2024. According to Fitch’s latest U.S. Personal Lines Market Update, the change is predicted amid signs that the previous surge in claims severity from higher inflation and supply chain shortages has subsided, combined with rapid written premium growth from significant rate increases. Personal lines insurance is the largest U.S. P/C insurance market sector, representing over 51% of 2023 industry net written premiums (NWP). The latest report from Fitch Ratings found the U.S. personal lines insurance sector endured a third consecutive year of underwriting losses in 2023, with the sector statutory combined ratio (CR) improving to 107% from 110% in 2022. Auto The personal auto line has seen a volatile four years in the wake of a 2020 pandemic-related 24% decline in auto liability reported claims, which contributed to a CR of 92.5%—the best personal auto results in at least 25 years. Those numbers rapidly shifted to a 112% segment CR in 2022. Substantial rate increases and underwriting actions in 2023 led to a considerably better ratio of 105%. Sustained pricing momentum in 2024 and tapering claims trends will lead to break-even or better results for...

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Carolina Insurance Agent Charged With Forging Life Insurance Policies on 16 People

Article 0 Comments North Carolina authorities have charged a Battleboro insurance agent with 74 counts after they said he forged life insurance applications for 16 people. Jonathan Michael Vlasak, 35, a licensed producer qualified to sell property, casualty, life and accident insurance, took out life insurance policies on the individuals and attempted to obtain some $8,200 from Occidental Life Insurance Co. and $3,750 from Americo Life Insurance, the North Carolina Department of Insurance reported. “This was an extraordinary case and I thank our agents for staying with the investigation and uncovering this scheme,” state Insurance Commissioner Mike Causey said in a statement. “Consumers need to be extra vigilant to protect sensitive information such as this from getting into the hands of the wrong person.” Investigators with the department charged Vlasak with 25 counts of forgery, 25 counts of identity theft, 22 counts of obtaining property by false pretenses and two counts of attempting to obtain property, all of which are felonies. Vlasak was arrested this week and released on a $100,000 bond. The National Association of Insurance Commissioners’ license-check site shows that Vlasak has been licensed since 2017. He is currently appointed with seven life insurers, but not with Occidental...

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Mutual of America Names Brian Severin President

Severin began working for Mutual of America as a sales specialist in 2000. He was one of the executives who helped the company shift to a remote-work strategy after COVID-19 hit. Later, he helped the company set up recordkeeping and administration systems. He has a bachelor’s degree from Loyola Marymount University, and he completed the Boeing Company management training program. Two years ago, he told ThinkAdvisor that the financial markets and the idea that individuals could own a piece of a company had fascinated him since he was young. Brian Severin. Credit: Mutual of America

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Maui Council to Study Impacts of Eliminating 7,000 Vacation Rentals

Article 0 Comments Blue Cleaning, a small business in West Maui that spruces up 27 vacation rentals, survived the sharp decline in tourists during the Covid-19 pandemic and after the devastating Aug. 8 wildfire in Lahaina. But now Leo Szakacs-Kekona, who owns and runs the operation with his wife, is worried about Mayor Richard Bissen’s recent proposal to permanently eliminate 7,000 short-term rental units — more than half of the island’s stock — by Jan. 1, 2026, in an effort to create much-needed long-term housing for the county. “Is this going to be the blow that knocks us down?” Szakacs-Kekona said. “Other independent contractors also are worried. It’s always the little guy that gets shot down first.” Even Bissen said there would be “economic fallout” when he announced his proposal in early May. But how much fallout is what Tasha Kama, chair of the County Council’s Housing and Land Use Committee, wants to know before making any decisions. In a council meeting last week, a Kama-led budget amendment passed that moves $300,000 originally earmarked for the Maui Food Bank to a new short-term rental study. The nonprofit said it doesn’t need the funding due to an influx of fire-related donations....

Brokerlink Expands Into Two New Provinces With Largest Ontario Acquisition To Date 0

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Brokerlink Expands Into Two New Provinces With Largest Ontario Acquisition To Date

Toronto, ON (June 5, 2024) – BrokerLink is excited to announce its largest Ontario acquisition to date and its first foray into two new provinces, as it welcomes The Standard Insurance Brokers Ltd. (The Standard), effective June 1, 2024. This partnership expands BrokerLink’s services throughout Northern Ontario and introduces the brokerage to thousands of new customers in Manitoba and Saskatchewan. Established in 1897, The Standard has offered customers in Northwestern Ontario, Manitoba and Saskatchewan peace of mind by providing tailored insurance solutions for their home, auto, business, farm, recreational vehicles, life and group benefits and more. The brokerage is also well known for its expertise in specialty insurance programs, including tourist resorts, RV campgrounds, aerial crop spraying and professional liability for architects and engineers. The Standard has grown significantly in three provinces over the past century, and has offices located in Kenora, Dryden, Red Lake, Sioux Lookout, Thunder Bay, Fort Frances, Winnipeg, Flin Flon and Creighton. “We are champions for our customers and passionate about supporting the communities where we live and work,” says Gord McCool, President of The Standard. “Focusing on our people, customers and community is paramount to us, and we found that BrokerLink shares these values. This...

U.S. Property and Casualty Insurers: Industry Loss Estimates Reveal Continued Challenges 0

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U.S. Property and Casualty Insurers: Industry Loss Estimates Reveal Continued Challenges

Verisk & APCIA’s estimate of $21.1 billion in underwriting losses in 2023 shows the industry facing continued challenges from natural catastrophe events, inflation Jersey City, NJ (June 1, 2024) – Verisk, a leading global data analytics and technology provider, and The American Property Casualty Insurance Association (APCIA), the primary national trade association for home, auto, and business insurers, have remarked on full-year 2023 losses for the insurance industry, which they estimate to be USD$21.1 billion. According to key financial indicators for private U.S. property/casualty insurers, 2023 followed similar trends in underwriting losses to those seen in a difficult 2022. While the estimated industry net underwriting loss of $21.1 billion is lower than the $24.8 billion reported in the previous year, net income is at the lowest level it has been in more than 10 years. In 2023, it declined to $35.7 billion, compared to $44 billion in the preceding year, representing a 19 percent decrease. Incurred losses and loss adjustment expenses for 2023 increased by 10.1 percent, while earned premiums grew by 9.9 percent. The combined ratio, a crucial measure of profitability for insurers, barely changed at 101.6 percent in 2023 versus 102.4 percent in 2022. The preliminary results, as...

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Dozens More Former Youth Inmates Sue Over Alleged Sexual Abuse at Illinois Detention Centers

Article 0 Comments Dozens more former youth inmates filed lawsuits seeking millions of dollars in damages for sexual abuse they allegedly endured at Illinois detention centers dating back to the late 1990s. Thirteen women and 95 men filed two separate lawsuits Friday in the Illinois Court of Claims against the state Department of Corrections and the state Department of Juvenile Justice. Each plaintiff is seeking $2 million in damages, the most allowed under law. “This is just outrageous misconduct by the state of Illinois, by the juvenile justice system, that has persisted for decades and it has to stop,” Jerome Block, one of the former inmates’ attorneys, said during a news conference Monday. Department of Juvenile Justice officials issued a statement Monday afternoon saying they were aware of the lawsuits “related to allegations under prior administrations.” They said the department takes youth safety seriously and that all allegations of staff misconduct are immediately investigated, often in partnership with the state Department of Corrections, the Illinois State Police and the Department of Children and Family Services. They added that all staff working at their facilities undergo background checks as well as receive training and ongoing professional development. The filings are packed...