The Massachusetts Appeals Court recently decided that a Vermont captive insurer is subject to a bad faith claim under Massachusetts G.L. c. 176D. Tom, a partner in the firm’s Insurance and Reinsurance Practice Group, states that “the decision will increase captives need to reinsure themselves for extra-contractual liability. The case makes clear that captives will not be treated as self-insured and will be subject to chapter 176D and bad faith claims just like commercial insurers.”
Click here to read the complete article and the rest of Tom’s comments.