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Thompson and Propst win appeal.

Nov 21st, 2017

Representing nonprofit healthcare corporation Catholic Health Initiatives and its pure captive insurer, First Initiatives Insurance, Ltd., Todd Thompson and Chad Propst recently won an appeal at the Kentucky Court of Appeals concerning whether Kentucky’s bad-faith insurance laws applied to a pure captive insurer. Following oral argument, in a 3-0 opinion, the Kentucky Court of Appeals affirmed the trial court’s grant of summary judgment to Catholic Health Initiatives and to First Initiatives Insurance, Ltd., holding that pure captive insurers are engaged in self-insurance and not traditional insurance and, therefore, Kentucky’s bad-faith insurance statute does not apply to same. The opinion was rendered on November 17, 2017, and is to be published. Merritt v. Catholic Health Initiatives, Inc., No. 2016-CA-001470-MR, 2017 Ky. App. LEXIS 703 (Ky. App. Nov. 17, 2017).