Adkisson's Captive Insurance Companies: An Introduction to Captives, Closely-held Insurance Companies, and Risk Retention GroupsA 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. |
Contents
3 | 19 |
4 | 29 |
5 | 37 |
6 | 45 |
7 | 56 |
8 | 69 |
10 | 79 |
Appendices | 87 |
D | 153 |
F Revenue Ruling 200131 | 179 |
J Notice 200334 | 193 |
Gulf Oil Corp v C I R | 243 |
Ο Sears Roebuck and Co v C I R | 263 |
P Ocean Drilling Exploration Co v U S | 277 |
Q Malone Hyde Inc v C I R | 305 |
S United Parcel Service v C I R | 341 |
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Common terms and phrases
actuarial affiliates AMERCO amount application approved arrangement assets Authority Bermuda brother-sister capital captive insurance company chapter commercial insurance Commissioner’s constitute insurance corporation deductible determined director domicile economic family employees entities federal income tax funds Gierse Gulf Gulf Oil Corp Health Care Indemnity Humana Inc incorporated Insco insurance business Insurance Commissioner insurance contracts insurance premiums insurance risk Internal Revenue Code investment issue Junkanoo jurisdiction Kidde Kidde’s letter of credit liability Malone & Hyde managing general agent Mentor Moline Properties National parent payments percent person plaintiff policies policyholders premiums paid protected cell purchasing group pure captive insurance reciprocal insurer regulations reinsurance reserves risk distribution risk of loss risk retention group risk shifting S.Ct shifting and risk sponsored captive insurance Stearns-Roger subsection subsidiary insurer surplus Tax Court taxable transaction transfer underwriting United unrelated business unrelated parties wholly owned subsidiaries