Reporting Developments Affecting the Insurance and Reinsurance Industries

 

Use It or Lose It?: FTC Warns Companies Against Conditioning Warranty Coverage on Use of Specified Parts or Services

On April 10, 2018, the FTC announced that its staff sent warning letters to six major companies that market and sell automobiles, cellular devices, and video gaming systems in the United States. The FTC expressed concerns with the companies’ promotional and warranty materials that require consumers to use specified parts or service providers to keep their warranties intact.

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Independent Contractor Misclassification: Class Action Lawyers Now Targeting the Insurance Industry

Independent insurance sales agents have been treated as independent contractors (ICs) for decades. But recently, class action lawyers have begun to target insurance companies with claims that carriers have misclassified these sales agents as ICs instead of employees.

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