Featured News

Code of Ethics

Captive Insurance Industry Code of Ethics Adopted in North Carolina

The North Carolina Captive Insurance Association (NCCIA) recently adopted a code of ethics designed to maintain a high-quality captive insurance industry. The code of ethics is believed to be the first one created for the captive insurance industry. Atlas Insurance Management is one of the first captive insurance management firms to sign a written pledge to adhere to the 10 principles of the new code.
August 07, 2015 Read More
Keyboard Hands

New Online Captive Insurance Courses Offer CE and CPE Credit

A new Captive Insurance CE Learning Center, featuring online courses on captive insurance and related topics, is now open. Offered as a service of Captive.com, the learning center currently includes one course: Captives as Risk Retention Mechanisms. In July a second course, Property and Casualty Reinsurance Fundamentals, will be included, and a third course, Captives as Risk Transfer Mechanisms, will be added in August.
June 24, 2015 Read More

Treasury and IRS Issue New Proposed PFIC Regulations Aimed at Hedge Fund Reinsurers

Passive foreign investment company (PFIC) regulations proposed by the U.S. Department of the Treasury to close reinsurer PFIC loophole.
May 06, 2015 Read More

Hot Topics

Kitchen Sink

Captive-Related IRS Analysis: Everything but the Kitchen Sink

On August 14, 2015, the Internal Revenue Service (IRS) released Chief Counsel Advice (CCA) 201533011, in which the IRS determined that the excess loss insurance contracts at issue do not qualify as insurance for US federal income tax purposes. The CCA is the latest indication of the IRS's position on the ongoing issue of what is insurance and continues the IRS's reliance on the common sense insurance prong of the test for insurance to bolster its conclusions on the other prongs of the test.
August 26, 2015 Read More
American Courtroom Interior

Validus Court Holds FET Not Applicable to Foreign Reinsurance

Validus holding that federal excise tax (FET) does not apply to foreign reinsurance transactions is affirmed by the U.S. Court of Appeals for the District of Columbia Circuit.
May 27, 2015 Read More
Tax Court Decision

Healthmark Case Changes Brother-Sister Captive Tax Treatment

Captive insurance involving single-member limited liability companies may now qualify as insurance for tax purposes due to a recent decision in the Healthmark case.
April 06, 2015 Read More
IRS Building

IRS Dirty Dozen Abusive Tax Structures Single Out Micro-Captives

In IR-2015-19, the IRS explained that 831(b) micro-captives may be considered abusive tax structures and outlined determining criteria.
February 06, 2015 Read More

Recent News

Pausing To Give Thanks

On Thursday, November 26, 2015, Thanksgiving Day will be celebrated in the United States. Captive.com and Captive Wire will be pausing to observe the holiday.
November 25, 2015 Read More

Captive Insurers Have Opportunity in Reputational Risk Role

The key role captives can play in helping businesses protect against the potentially extensive damage a reputational occurrence can cause was the topic of a recent Delaware Captive Insurance Association (DCIA) 2015 Fall Forum presentation.
November 25, 2015 Read More

Captive Insurance Industry Urged To Comment on Revised NAIC Credit for Reinsurance Proposal by December 6

Response Letters 
An opportunity to comment on proposed changes to the National Association of Insurance Commissioners (NAIC) Credit for Reinsurance Model Act has been extended, and those who could be affected are encouraged to take advantage. "It is important that the captive insurance industry remain vigilant in monitoring and sharing their views on the proposed changes to the model NAIC Credit for Reinsurance Act," urged Steve Kinion, director of the Delaware Bureau of Captive and Financial Insurance Products.
November 24, 2015 Read More

Housing Authority Insurance Group A Rating Affirmed

Housing RRG 
A.M. Best has affirmed, according to a press release, the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of "a" of Housing Authority Property Insurance, A Mutual Company (HAPI); Housing Authority Risk Retention Group, Inc. (HARRG); and their jointly owned subsidiary, Housing Enterprise Insurance Company, Inc. (all members of and together known as the HAI Group). The outlook for these ratings is stable.
November 23, 2015 Read More

HealthCap RRG Financial Stability Rating Affirmed

Long-Term Care Facility 
The HealthCap RRG (Health Care Industry Liability Reciprocal Insurance Company, RRG) Financial Stability Rating of A, Exceptional, has been affirmed by Demotech, Inc.
November 20, 2015 Read More

Video Interviews Focus on Small Enterprise Risk Captive Insurers

Television Inteviews 
Video interviews included in A.M. BestTV special conference coverage from the recent Delaware Captive Insurance Association 2015 Fall Forum focus on issues related to the continuing growth of small "enterprise risk captives."
November 20, 2015 Read More

Cayman Captive Forum 2015 Has Much To Offer

Cayman Islands Beach Ocean 
The upcoming Cayman Captive Forum 2015, with 99 industry practitioners and experts speaking and serving as panelists at 34 informative and educational sessions, is expected to offer attendees a great deal of useful information to take away.
November 19, 2015 Read More

Anticipating an IRS 831(b) Captive Tax Audit

Internal Revenue Service 
Two recent captive insurance educational opportunities collectively provided participants with some excellent insights on best practices for captives formed for risk management purposes that seek 831(b) tax status and how the Internal Revenue Service (IRS) is attacking what it believes is abusive use of an 831(b) tax structure.
November 18, 2015 Read More

Comments Sought on Unintended Consequences of Credit for Reinsurance Model Act Proposal

Letter Writing Communication 
Proposed changes to the National Association of Insurance Commissioners (NAIC) Credit for Reinsurance Model Act could have a detrimental impact on employers that choose to self-insure medical risks and potentially other captive fronted coverage.
November 16, 2015 Read More