Regulators' Unclaimed Property Position Again Rejected

Law360, New York (August 19, 2014, 5:30 PM EDT) -- State regulators continue to misapply unclaimed property laws, according to recent court decisions. A series of 2014 appellate case rulings provides insurers with new ammunition for pushing back against regulators and contingency fee auditors. Against a backdrop of ongoing multistate audits, market conduct examinations and regulatory settlements, insurers are increasingly resorting to litigation to resolve growing disputes over the interpretation and administration of unclaimed property statutes in the insurance context. These efforts are paying dividends, as the courts are rejecting positions taken by state regulators and auditors. Recent decisions from appellate courts in Florida and Kentucky are the latest examples of this trend....

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