U S Captive Insurance Law

This is the first book on captive insurance which informs the reader whether or not he should form a captive insurance company, how to run it along with an explanation of the tax issues associated with running a property and casualty insurance company. In addition, the reader is taken through an entire case law history of captive insurance to better enable him to understand the issues related to forming a captive insurance company. New with this edition is a lengthy section by Beckett G. Cantley addressing special IRS considerations about which the captive owner and/or practitioner should be aware. These include the applicability of certain judicial and statutory anti-avoidance doctrines applied by the IRS and courts to disallow certain tax benefits associated with captive transactions that exploit the Internal Revenue Code in a manner not intended or contemplated by Congress.

This is the first book on captive insurance which informs the reader whether or not he should form a captive insurance company, how to run it along with an explanation of the tax issues associated with running a property and casualty insurance company. In addition, the reader is taken through an entire case law history of captive insurance to better enable him to understand the issues related to forming a captive insurance company. New with this edition is a lengthy section by Beckett G. Cantley addressing special IRS considerations about which the captive owner and/or practitioner should be aware. These include the applicability of certain judicial and statutory anti-avoidance doctrines applied by the IRS and courts to disallow certain tax benefits associated with captive transactions that exploit the Internal Revenue Code in a manner not intended or contemplated by Congress.

This is the first book on captive insurance which thoroughly examines the relevant issues associated with starting a captive insurance company. Part I begins with a description of the companies most likely to benefit from a captive program. This is followed by a detailed outline and explanation of the formation process and ends with an overview of the tax issues encountered by a property and casualty insurance company. Part II presents the first in-depth historical analysis of the entire history of U.S. captive insurance case law. It begins with the reserve cases of the early 20th century and is followed by the flood plane cases of the 1950s, the I.R.S. victories of the 1980s, the taxpayer victories of the 1990s and the I.R.S. safe harbor Revenue Rulings of the early 2000s. With over 950 footnotes and 40 sources, this is the most complete treatment of captive insurance to date.

This is written to be the readers first book on captive insurance. It avoids legal and industry jargon, instead using straightforward language to quickly and efficiently explain how captives started and how a business can use a captive insurer to supplement its existing risk management program.

To help lawyers decipher the intricacies of captive insurance, this guidebook begins with a discussion of types of captives and addresses how to approach whether a captive makes sense for a business owner. The book focuses on various aspects of the captive's operation and management--from taxation, special uses, and regulation to eventual exit and potential tax litigation issues. Captive insurance covers legal and non-legal practice areas such as taxation (domestic, foreign, state, and local), insurance (regulatory, coverage, and reinsurance), securities, commercial transactions, employee benefits, tax controversy, actuarial science, underwriting, and more.

Insurance is a sophisticated financial vehicle that can be best understood through the lens of risk management. Experiencing dramatic growth, captive insurance is owned and controlled by its insureds, pooling the risks of its owners. Captive insurance provides businesses with unmatched flexibility regarding coverage, claims, premium, and control, while also offering advantages such as lucrative dividends and innovative financing techniques. This state-of-the-art guide traces the development of small captive insurance and addresses how to set up and properly manage a captive. Modern Captive Insurance: A Legal Guide to Formation, Operation, and Exit Strategies, begins with an overview of what captive insurance is and detail the advantages in setting up a captive for a range of different business situations. Chapters explain how to incorporate and start up a new captive insurance program, including basic terminology and the roles different professionals play in running captive programs. Captive insurance is an intricate yet effective risk management strategy. For guidance in properly establishing a captive, the authors address critical issues evaluated by the IRS, such as risk shifting and distribution, and explore ethical considerations arising out of off-shore captive management, such as how to identify money laundering red flags and how to properly manage the investments of reserves. Modern Captive Insurance takes an in-depth look at the topics and issues that are common in insurance and in businesses, but are often handled differently for captives, such as: Financial statements, investments, and financial ratings Policy drafting and coverage Risk pools and structuring the pooling arrangement to be valid Federal, state and local taxation Tax-exempt organizations Risk retention groups (RRP) Reinsurance, and more Table of Contents Chapter 1: Captive Company Formation Chapter 2: Captives and Capitalists Chapter 3: Risk Pools Chapter 4: Financial Statements, Investments, and Financial Ratings Chapter 5: Policy Drafting and Coverage Chapter 6: Underwriting and Claims Reserving Chapter 7: Federal Income Tax and Captives Chapter 8: State and Local Captive Insurance Issues Chapter 9: Tax-Exempt Organizations and Captive Insurance Chapter 10: Risk Retention Groups and How They Work Chapter 11: Reinsurance Chapter 12: Workers' Compensation and the Grand Bargain Chapter 13: Employee Benefits Conclusion Table of Cases and Index

The Definitive Guide to Captive Insurance Companies: What Every Small Business Owner Needs To Know About Creating and Implementing a Captive Americas top corporate estate, tax and asset protection attorney provides readers with true insight on multiple key sophisticated planning techniques for small business owners implementing captive insurance companies. The Definitive Guide to Captive Insurance Companies will provide readers with the ability to: - Reduce income taxation, - Increase cashflow, - Self-insure, - Protect personal and business assets, and - Enhance estate planning.

A captive insurance company is, in a nutshell, an insurance company formed by a business owner to insure the risks of the operating business. The operating business pays premiums to the captive, and the captive insures the risks of the operating business. A captive is much more than an exotic form of self-insurance: It is the creation of a new insurance company that has the potential to grow from being a mere captive into a full-blown insurance company seeking to profit from underwriting the risks of others. Adkisson's Captive Insurance Companies provides a basic introduction to captives and their benefits, including: utilize your own experience ratings; recapture underwriting profits; underwrite exposed risks and deductibles; access the reinsurance markets; and transfer wealth between generations. This book also provides a unique look at the wealth transfer, accumulation and preservation advantages of captives, as well as an overview of the types of captives, taxation of captives, and captive domiciles.