« Insurance Myths | Main | Insurance Predictions »

September 08, 2009

Comments

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!

Mike

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

Mike-http://elmike.wordpress.com

Eric

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

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)

Subscribe by Email

Organizations

Google Adsense