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“Good” Enough: Court Finds Certification Merely Defective on Pass-Through Claim

Client Alert | 1 min read | 05.04.16

In M.K. Ferguson Co. v. U.S. (Apr. 14, 2016), a case involving a pass-through claim compelled by the prime’s bankruptcy judge, the CFC denied the government’s motion to dismiss and held that the prime’s initial pass-through certification – which stated only that the prime was “authorized to certify the claim” – was not a “failure to certify” (which would have cost the court its jurisdiction) but was instead a “defective certification” that the prime could (and did) cure through its subsequent certification. Although the prime contractor had previously expressed “legitimate concerns as to the amount claimed” to the bankruptcy judge, the CFC concluded that the prime’s compliance with the bankruptcy court’s order showed the prime’s sponsorship was made in “good faith” and remanded to the agency for a final decision, after holding that the prime’s potential liability to the subcontractor (despite the discharge of liability in bankruptcy) was enough to satisfy the “modern” Severin doctrine.

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Client Alert | 4 min read | 03.25.26

NAIC Intensifies AI Regulatory Focus: What Health Insurance Payors Need to Know

The National Association of Insurance Commissioners (NAIC) is intensifying its oversight of how insurers use AI — and the pace of regulatory activity shows no signs of slowing. Over the past several months, the NAIC has published a formal Issue Brief staking out its position on federal AI legislation, launched a multistate AI Evaluation Tool pilot aimed at examining insurers’ AI governance programs, and continued to expand adoption of its AI Model Bulletin across state lines. These developments continue a trend towards enhancing regulation; the NAIC adopted AI Principles in 2020 and a Model Bulletin in 2023 clarifying that existing insurance laws apply to AI systems and establishing expectations for governance, documentation, testing, and third-party oversight. That Model Bulletin has now been adopted in approximately 24 states....