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CAPTIVE INSURANCE COMPANIES The firm sponsors the website http://www.captiveinsurancecompanies.com which provides an introduction to the concept of the captive insurance company and its most popular variants. It is written on an introductory and educational level to help those business owners and their advisors who are considering a captive arrangement.
This website also supports the book Adkisson's Captive Insurance Companies: An Introduction to Captives, Closely-Held Insurance Companies and Risk Retention Groups written by Jay Adkisson. The author has been active in the alternative risk management sector since 1995, has been forming captive insurance companies since 1998, and for several years was the owner of a licensed captive insurance management firm in the British Virgin Islands. Mr. Adkisson is an attorney licensed in California, Oklahoma and Texas and practicing in the law firm of Riser Adkisson LLP which has offices in Newport Beach/Orange County, California, and Athens, Georgia. He has twice appeared as an expert witness to the U.S. Senate Finance Committee and has lectured to the U.S. Internal Revenue Service, the U.S. Department of Justice, the University of Miami's Heckerling Institute on Estate Planning, the American Bar Association, numerous state and county bar associations, and similar forums nationwide.
Captive insurance companies are here to stay. After the IRS lost its $600+ million challenge against a captive owned by United Parcel Service in 2001, the Service resigned itself to the legitimacy of captive insurance companies and soon thereafter abandoned its economic family challenges to captives. The IRS has since issued a great deal of guidance to assist captive owners in their proper structuring, management and reporting. Most large corporations have captives. Starbucks™ formed a captive in 2007 for instance. Premiums paid to captives in 2006 in Vermont alone were estimated to exceed $11.55 billion.
More than half of the states have now passed captive insurance enabling statutes, and more than a half-dozen of those states now aggressively cater to the domestic captive market. Captives are now being formed for medium-sized businesses that are able to pay as little as $500,000 per year in premiums to their captive. Many advisors are only now becoming aware of the concept of the captive insurance company and introducing it to their clients. In addition to serving an insurance function, captives can also legitimately serve an intergenerational wealth transfer function to the extent that underwriting is successful by being tightly integrated with an advance estate plan. Financial and life insurance companies are now developing services and products that are specifically aimed at the captive marketplace. We assist prospective captive owners and their advisors in evaluating, designing, and implementing captive solutions. We also review existing captive structures and suggest ways that they can be used more efficiently. In addition to Mr. Adkisson's own firms, we also have relationships with experienced and reputable insurance managers, actuaries, underwriters, and accountants who specialize in captive insurance arrangements. You may contact Jay Adkisson for a telephone conference or for a speaking engagement by calling his scheduling assistant at 949.200.7284 or by e-mailing him directly to jay [at] risad.com (We serve clients nationwide). Explore this website further from the Sitemap |
Riser Adkisson LLP does not practice in any jurisdiction unless one its attorneys has been admitted to practice there, or an attorney of the firm has been properly admitted pro hac vice according to the local court rules of that state. Nothing in this website should be construed to be any advertisement for legal services directed to a state wherein Riser Adkisson LLP is not admitted to practice. Nothing in this website is any substitute for the services of a licensed attorney in the relevant jurisdiction. Persons resident in a state where Riser Adkisson LLP does not have an attorney regularly admitted to practice law should consult with their own local licensed attorney about that attorney retaining Riser Adkisson LLP to assist the local attorney with any client matters that such attorney believes our services and advice would be helpful.
The information given in this website does not constitute legal or accounting advice or opinion, and should not be relied upon for any planning purposes. It is provided solely and exclusively for general, non-specific educational purposes, and to advise the reader of the nature of the services offered individually by us. Planning of this nature is necessarily very circumstance-specific and therefore it would be dangerous to apply the very general rules described herein to any singular fact-pattern. Prudence demands that you consult with an experienced professional licensed in your state before attempting any of the planning techniques described herein. Additionally, the information given in this website is not meant to be a substitute for legal representation. You should consult with your local attorney regarding your suitability for the techniques stated herein under your local laws.
Except as may be specifically described in a fully-executed client engagement letter, Riser Adkisson is not your counsel and you will not rely upon Riser Adkisson LLP for any advice, counsel or suggestions as to the proposed or actual tax treatment of any transaction. Likewise, Riser Adkisson LLP does not make any guarantees or assurances in connection with any product, transaction or strategy discussed by Riser Adkisson LLP. Prudence demands that you retain independent professional tax counsel to objectively advise you on any tax consequences of any product, transaction or strategy discussed by Riser Adkisson LLP. Prudence also demands that you retain appropriately qualified and independent tax professionals to advise you of your tax compliance and reporting requirements.