Insurance & Captives

Life Insurance

Life Insurance and Annuity Solutions -- Description of life insurance products and strategies used for planning.

Premium Financing Facilities -- Describes methods of financing the premiums for typically large life insurance policies, thus facilitating moving the insurance policy outside the estate, equity stripping the value of real property and other assets from creditors, and other unique planning benefits.

Insurance Company Bad Faith Top 40 -- A recurring problem in Risk Management is the insurance company that will not pay on its claims, or immediately leaps for the first loophole to avoid policy coverage.

Value of Life Insurance Contracts when Distributed from a Qualified Retirement Plan, IRS Final Regulations, 9 August 2005

Delaware Overhauls Captive Legislation

Caution regarding Private Placement Life Insurance
policies funded with business interests

 

Amazon	Barnes & Noble

Annuities

A Private Annuity Primer

Equity Indexed Annuities

Investor Alerts Regarding Annuities

 

Captive Insurance & Risk Retention Groups

Comprehensive information about captive insurance companies (captives) and arrangements, including risk retention groups. While our focus is on the uses of these structures for U.S. companies and business owners, many of these concepts may be useful to others.

This topic is broken into basically four major sections:

Captive Insurance Introduction -- Captive Insurance Companies for Risk Management, Asset Protection and Tax Planning.

Captive Insurance Companies Cases -- A selection of Landmark Cases regarding the use of captive insurance arrangements is included.

Risk Retention Groups -- Explains these pseudo-insurance company arrangements that are uniquely formed pursuant to federal law, and their use as fronting companies.

Captive Jurisdictions -- Overview of the major captive jurisdictions, foreign and domestic, including the insurance company statutes of those jurisdictions.

Litigation Expense Policies -- A form of policy which does not pay the claim nor make any funds available to the claimant, but instead only funds the costs and expenses of litigating the claim, and sometimes other ancillary costs.

Captive Insurance Company

Rev. Rul. 2005-40 -- Tax on Insurance Companies other than Life Insurance Companies

Captive Insurance Tax Mistakes -- Captive insurance company tax mistakes, risk spreading and risk shifting.

Workers' Compensation Captive Insurance -- Workers Compensation Captive Insurance Companies to reduce insurance costs.

Additional Information

IRS Guidance on Insurance Company Taxation

Correctly Running A Captive -- Overview of what it takes to properly run a captive insurance company and keep it in compliance with the local regulators and the IRS. "Know before you leap!"

Captive Insurance Terms

• Captive Insurance Company (“Captive”)
  Slang for an insurance company used predominantly to underwrite the business risk of other subsidiaries of the parent company or owner. The term “captive” is not used in any insurance statutes or in the Internal Revenue Code, but is rather a practice term used to describe an insurance company fulfilling the described role.

• Closely Held Insurance Company (CHIC)
  A privately-held insurance company that is typically owned either by the owner’s children or an irrevocable trust formed for the owner’s children, to provide additional tax and succession benefits in addition to those of the captive arrangement.

• Insurance Manager
  A person or entity that has obtained a license from the local insurance commissioner to manage insurance companies in that jurisdiction.

• Litigation Expense Policies
  A form of policy which does not pay the claim nor make any funds available to the claimant, but instead only funds the costs and expenses of litigating the claim, and sometimes other ancillary costs.