Category Archives: Insurance

Stress testing S corporations for Reasonable Compensation

S corporations will be one of the major beneficiaries of the new tax law, the Tax Cuts and Jobs Act (“TCJA”), which added a new provision to the Internal Revenue Code. Owners of certain pass-through organizations can receive a 20% deduction on taxable income. But it’s not all good for S corporations who could face increased scrutiny from the IRS. Here’s why. Let’s start with the basics. Pass-Through entities are those businesses that do not pay corporate income tax and include Sole Proprietorships, Partnerships, Limited Liability Corporations (“LLC”) and S corporations. Profits of these entities are passed directly through the business to the owners and are taxed on the owners’ individual income tax returns. But owners of S corporations get compensated differently than the owners of other entities. S corporation owners receive W-2 compensation. The other owners have Earned Income from Self Employment. Increased Tax Exposure….. To continue reading this legal news please click Read full information...

Posted in Insurance | Tagged , , , , | Leave a comment

New Structured Settlement Video

April 11, 2018 – Courtesy of our friends at Pacific Life, we’re happy share with you today a new educational video designed to help plaintiffs answer a few very basic questions they’re likely to ask themselves when in the process of resolving their personal injury claim: At two minutes nineteen seconds, the video is an easy watch and hits all the high notes about why this proven settlement option has remained so popular since its inception decades ago. We appreciate when our life company business partners provide materials to help us help our clients better understand the value of the important services we provide. Pacific Life is among the many excellent companies we proudly represent, and we are grateful to them for providing this important service to the public. But what else would you expect from a company that has been honoring its financial commitments for 150 years? Thanks Pac Life! Enjoy the video... To continue reading this legal news please click Read full information...

Posted in Insurance | Tagged , , | Leave a comment

Cryptocurrencies: New Digital Assets, New Legal Issues?

Among the many innovations we have had to confront in a world characterized by rapid technological change is the advent of cryptocurrency, as a social and financial phenomenon. As I have previously noted, the current cryptocurrency craze has also become a legal phenomenon as well, as now nearly a dozen securities class action lawsuits involving cryptocurrency, ICOs, and blockchain technology have been filed just in the last six months or so. The latest of these lawsuits  — one involving allegations relating to an Italian cryptocurrency exchange operator nicknamed “The Bomber” and including investor demands for the court to compel a “rescue fork” — may suggest that in addition to technological change, the advent of cryptocurrency could introduce legal changes as well.   The latest cryptocurrency securities class action lawsuit involves the efforts by a Texas company called NANO  (f/k/a RailBlocks) to develop, promote, and sell a….. To continue reading this legal news please click Read full information...

Posted in Insurance | Tagged , , , , | Leave a comment

Told ya so!

Back in late '16, we pointed out that "going bare" had begun to make sense since health insurance had become too expensive to use:"It might be a ticket to get you into certain medical facilities, but in these days of narrow networks, it will keep you out of others."Believe it or not, it's gotten worse:"Obamacare is now so expensive it keeps patients away from their doctors"And, I would add, their hospitals and specialists, as well.As Heartland Institute's Justin Haskins points out:"In a recent survey … 47 percent of those surveyed said they chose within the past 12 months not to see a doctor or dentist for a routine checkup … because of the high costs associated with healthcare."But how could that be; after all, annual physicals are "free."Well, except for that whole pesky thousands-of-premium-dollars-later thing.And then there are the non-routine costs, with additional out-of-pockets in the thousands (often….. To continue reading this legal news please click Read full information...

Posted in Insurance | Tagged | Leave a comment

Made in America: Insurer Has No Duty to Defend Insured Falsely Advertising Origin of its Products

In a recent case, the United States District Court for the District of New Jersey held that an insured had no duty to defend an insured accused of falsely advertising the origin of its product.  Albion Engineering Company, a New Jersey company, was sued by a competitor for false advertising because it claimed that its products were made in America when, in fact, they were made in Taiwan.  Albion then sought coverage from its insurer, Hartford Fire Insurance Company.  The Hartford policy provided coverage for, among other things, personal and advertising injury.  In Albion Engineering Co. v. Hartford Fire Ins. Co., 2018 WL 1469046 (D.N.J. March 26, 2018), Judge Noel L. Hillman held that there was no coverage for the claims. Many liability policies provide coverage in connection with “advertising injury.”  In determining the extent to which such coverage exists, it is necessary to closely examine the policy language because the wording of such….. To continue reading this legal news please click Read full information...

Posted in Insurance | Tagged , , , , , , , , , | Leave a comment