Why the CFM Decision Matters for Captive Insurance Programs

Recorded live at the 2026 Captive Insurance Companies Association International Conference, this episode of The Edge of Risk Podcast by IRMI features Kristen Lawler of Crowe discussing the Tax Court's CFM Insurance decision and its implications for captive insurance taxation. The conversation examines how the court approached operational discipline, pricing support, governance, documentation, and the ever-important "commonly accepted notions" test in determining whether a captive arrangement qualifies as insurance for federal tax purposes.

Ms. Lawler also explains why state licensure alone does not determine tax treatment and outlines practical questions captive owners should be asking their advisers as Internal Revenue Service scrutiny and case law continue to evolve.

The episode provides timely insight for captive owners, risk managers, and advisers seeking to better understand the operational expectations shaping today's captive insurance environment.

Hear the full conversation on Captive.com for practical insight into the CFM Insurance decision, the "commonly accepted notions" test, and how operational discipline can shape the federal tax treatment of captive insurance programs.