Captive Insurance

Safe Harbor Trilogy

Taxation Insurance companies (of all sizes) operate under different tax rules than other companies. The U.S. Tax Code (“Code”) recognizes that insurance companies receive premium dollars up front, but may not pay out claims (associated with those premiums) for many years. Therefore, the Code allows insurance companies more generous current deductions. Taxation should not be more »

Captive Glossary

Captive Glossary A Actuarial Report – A breakdown of ultimate loss costs by statistical reports. Used to calculate reserves of a company. Admitted Reinsurance – Reinsurance provided by a reinsurer licensed or authorized in the jurisdiction in question. A company is “admitted” when it has been licensed and accepted by appropriate insurance governmental authorities of more »

IRS Rulings & Key Court Cases

IRS RULINGS A closely held insurance company should only be implemented when it makes economic and business sense. There must be an inherent need to cover uninsured risk in a business before considering the implementation of such a company. The IRS has issued multiple Revenue Rulings, Procedures, Notices and Bulletins addressing various issues associated with more »

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