finding sufficient risk distribution where insurer insured numerous unrelated insureds even though the risks "were not statistically independent * * *, but rather were highly correlated"
How later courts described this case
- finding sufficient risk distribution where insurer insured numerous unrelated insureds even though the risks "were not statistically independent * * *, but rather were highly correlated"
- finding risk transfer where the insurer "not only was financially capable of satisfying claims made against it, but it in fact paid such claims"
- finding risk transfer where the insurer “not only was financially ca- pable of satisfying claims made against it, but in fact paid such claims”
- 30% writing for unrelated parties
Written by the judges who cited it.
The opinion
WHALEN, J., dissenting: I respectfully dissent from the majority opinion of this case for the reasons stated in the “payments to insurance company subsidiary” segment of my dissenting opinion in Sears, Roebuck & Co. and Affiliated Corps, v. Commissioner, 96 T.C. 61 (1991), docket No. 2165-89, released today.
Chabot and Parker JJ., agree with this dissent.