Group 2I: Captive Insurance Companies: The Do’s and Don’ts (Or something Else)
Captive insurance companies have moved into the middle market, and closely held businesses have learned that captive insurance companies can provide significant insurance benefits and cost savings. Benefits from better risk management provide the business reason to implement a captive insurance company, but a well-designed captive arrangement can also provide tax planning opportunities. The IRS, however, views many captive arrangements skeptically. We will provide an overview of how captives should operate from an insurance and tax standpoint, of the pros and cons of using captives, and of recent court cases discussing captive insurance companies.
Presenters: Sebastien Chain and Justin VandenBout