Artex Risk Beats Appeal from Captive Insurers to Litigate Claims

A district court ruling compelling potential class action plaintiffs to individually arbitrate their claims against insurance management companies Artex Risk Solutions Inc. and TSA Holdings LLC was upheld by the Ninth Circuit on Wednesday.

The plaintiffs are 81 owners of captive insurance companies formed and managed by Artex and TSA. The entities are referred to as “captive” insurance companies because the owners are also the insured. According to the lawsuit, the companies failed to inform or advise the plaintiffs that the entities amounted to illegal and abusive tax shelters.

Although the plaintiffs reported their insurance payments as tax-deductible business expenses, ...