Declarations

Data Boom

“The data center opportunity, it is unique; it has never been seen before; it is monumental. It also requires a level of response and complexity that’s beyond what the traditional industry has ever accomplished—just be clear about that. This requires real, net new innovation around alternative forms of capital, how we think about risk, how we pool risk, all those pieces.”

– Aon Chief Executive Officer Greg Case during a call to discuss the broker’s Q4/ FY2025 results. Case said the global boom in the construction of data centers creates mid-single-digit or greater organic revenue growth opportunities for major brokers.

Bump-Up Smackdown

“For years, insurers have wielded the bump-up exclusion to categorically deny coverage for settlements of litigation arising from corporate transactions…The Delaware Supreme Court has now made clear that the applicability of a bump-up exclusion to the settlement of shareholder litigation depends on the facts and policy language of each case and is not a one-size-fits-all proposition.”

– Orrie Levy, partner at Cohen Ziffer Frenchman & McKenna. The court ruled insurers failed to show the settlement represented an increase in what the shareholders claimed was an inadequate deal price—one of two requirements needed to invoke the exclusion.

FAIR Reform Bill

“It is bad for FAIR Plan policyholders because it expands coverage through a plan that lacks the financial capacity to absorb the next major catastrophe. And it’s bad for all other Californians, who will inevitably be forced—yet again—to absorb the cost of future FAIR Plan shortfalls after the next major event.”

– Nicole Ganley, American Property Casualty Insurance Association assistant vice president for public affairs on Assembly Bill 1680, which enacts FAIR Plan reforms identified in the California Department of Insurance’s recent Report of Examination.

THC in Texas

“Texas is on a trajectory for providing safe and legal access for responsible adult use and continuing to build out access for patients who benefit from this medicine through the compassionate use program.”

– Heather Fazio, director of the Texas Cannabis Policy Center, a nonprofit that advocates for greater access to cannabis and decriminalization. In a span of a year, those in the Texas THC industry witnessed the Texas Legislature expand the medical cannabis program, only to ban all THC products. Then Gov. Greg Abbott vetoed that ban. At Abbott’s direction, the Texas Alcoholic Beverage Commission and the Department of State Health Services are working together on industry rules and regulations.

Tax-Free Insurance Accounts

“Insurance Savings Accounts are a sustainable way for Kansans to save state-tax free for their insurance costs. As the legislature works to address affordability, they should include this tool for Kansas families.”

– Kansas Insurance Commissioner Vicki Schmidt testifying in favor of a bill that would create an Insurance Savings Account (ISA). The bill will allow Kansas tax filers to open an ISA at a financial institution and make tax-free contributions up to a set amount, depending on their tax filing status. Account holders can then use the money contributed to pay for any property and casualty insurance expense, including home and auto insurance premiums and their associated deductibles.

Curbing Permits

“This bill is aimed at things like decks, fencing, home improvements—not major construction projects,”

– Florida State Rep. Tiffany Esposito, R-Fort Myers, on a state bill that would bar local governments from requiring permits for work projected to cost less than $7,500 on a single-family home. Permits would still be allowed for structural, electrical, and plumbing work below that level, and contractors would need to keep records of their work. Current Florida permit requirements vary by county and city, with many jurisdictions mandating permits if work covers more than 120 square feet, even for fencing and outdoor sheds, or if heating and air conditioning work will cost over $5,000.