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September 08, 2009


Mark Capstone

Wonderful article. It's true that for the IRS to all destructibility of premiums paid into a captive, it must consider such arrangements as captives in the first place. That is where most business owners miss the point. We just dealt with a business owner who went with a fly-by-night, so called captive manager. His captive was not properly set up and he had problems with the IRS. if you decide to own a captive insurance company to cover some of your business risks, you want to make sure you are working with an experienced manager, preferably one that offers a turn-key package including legal representation.

Insurance Guy

Great read!


I'd agree. Can we expect to hear the ending of this story in the coming days?



Interesting to see what happens to the appeal of captive insurance companies with this.

what is captive insurance

A captive is an insurance company that insures the risks of its owner, affiliated businesses, or a group of companies. It issues policies, collects premiums, and pays claims.

Discount Auto Insurance Quotes

It could be very interesting how this plays out. Especially, with "Although the IRS has indicated that it will no longer invoke the “economic family theory” as an argument that risk has not shifted between related parties, the Service has indicated that it will continue to scrutinize each entity involved in an insurance transaction on many levels to determine if bona-fide insurance contracts exist." taken from the link above. Lets see what happens

Auto Insurance

great post

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