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Excise Tax Inapplicable to
Foreign-to-Foreign Retrocessions


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On February 5, 2014, the United States District Court for the District of Columbia granted summary judgment for the plaintiff in Validus Reinsurance Ltd. v. United States of America, Civil Action No. 13-0109 and held as a matter of law that the Federal Excise Tax (FET) on insurance transactions does not apply to retrocessions.

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