D.C. counsel weighs in on Blue Cross deal.(District of Columbia Corporate Counsel John Ferren issues opinion that assets of Blue Cross and Blue Shield of the National Capital Area must be protected before its merger with Blue Cross and Blue Shield of Maryland Inc. is allowed)

National Underwriter Life & Health-Financial Services Edition, December, 1997 by Bell, Allison

Insurance regulators should ask for safeguards to protect the assets of Blue Cross and Blue Shield of the National Capital Area (D.C. Blue) before letting the company combine with Blue Cross and Blue Shield of Maryland, according to the district's chief lawyer.

District Corporation Counsel John Ferren wrote in a draft opinion released in late November that letting the combination proceed without new safeguards could result in big cash payouts to top D.C. Blue executives and large transfers of assets away from the control of D.C. Blue.

District insurance regulators can ease concerns by requiring D.C. Blue to cancel severance agreements with three top executives and require limits on large transfers of D.C. Blue assets, Mr. Ferren wrote.

He...

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