CIC Services Knowledge Center
Sign Up for the Captivating Thinking Newsletter
Archives
Search Recent Articles
Captivating Thinking
Knowledge is power. That’s why we’re always looking to educate business owners on the best practice when it comes to Captive Management. But we also want to give you the resources you need to guide you through the risk management process. In the CIC Services Knowledge Center, you can:
- Read about CIC in the news
- Learn about industry standards
- Stay up-to-date on upcoming events
Explore these resources and equip yourself for the future!
13 Easily Identifiable Signs of a Sham Captive Insurance Arrangement
By: Sean King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC As I have noted in prior articles, “rules of thumb” offered up offhand by the IRS and certain others for distinguishing a “sham” captive transaction from a legitimate one are often too broad to be helpful. With that in mind, I have […]
How to Tell a Good Captive Insurance Company from a Sham—Part 6
By: Sean King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC Question: If a business owner lacks “sophistication” regarding insurance and relies on a captive manager to operate a captive insurance company, is this evidence of a sham? Welcome to part 6 of my series, addressing naïve and misguided criticisms of small captive […]
How To Tell A Good Captive Insurance Company From A Sham – Part 5
By: Sean King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC Question: Is it reasonable and legitimate for policy premiums paid to a captive insurance company to be higher than typical premiums paid for “similar” commercial insurance? A typical attack leveled by the I.R.S. against captive insurance companies to suggest evidence of a sham transaction is that the […]
How to Tell a Good Captive Insurance Company from a Sham—Part 4
By Sean King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC Question: Is a captive insurance company a sham if it was introduced to a business owner by a financial advisor? This week, I am continuing my series about distinguishing legitimate captive insurance arrangements from shams. Remember, there is growing concern among […]
How to Tell a Good Captive Insurance Company from a Sham—Part 3
By: Sean King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC If a captive insurance company does not replace third party commercial coverage, is it evidence of a sham? The short answer is an emphatic “no!” To suggest so would require complete ignorance
Captivating Thinking
Knowledge is power. That’s why we’re always looking to educate business owners on the best practice when it comes to Captive Management. But we also want to give you the resources you need to guide you through the risk management process. In the CIC Services Knowledge Center, you can:
- Read about CIC in the news
- Learn about industry standards
- Stay up-to-date on upcoming events
Explore these resources and equip yourself for the future!
13 Easily Identifiable Signs of a Sham Captive Insurance Arrangement
By: Sean King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC As I have noted in prior articles, “rules of thumb” offered up offhand by the IRS and certain others for distinguishing a “sham” captive transaction from a legitimate one are often too broad to be helpful. With that in mind, I have […]
How to Tell a Good Captive Insurance Company from a Sham—Part 6
By: Sean King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC Question: If a business owner lacks “sophistication” regarding insurance and relies on a captive manager to operate a captive insurance company, is this evidence of a sham? Welcome to part 6 of my series, addressing naïve and misguided criticisms of small captive […]
How To Tell A Good Captive Insurance Company From A Sham – Part 5
By: Sean King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC Question: Is it reasonable and legitimate for policy premiums paid to a captive insurance company to be higher than typical premiums paid for “similar” commercial insurance? A typical attack leveled by the I.R.S. against captive insurance companies to suggest evidence of a sham transaction is that the […]
How to Tell a Good Captive Insurance Company from a Sham—Part 4
By Sean King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC Question: Is a captive insurance company a sham if it was introduced to a business owner by a financial advisor? This week, I am continuing my series about distinguishing legitimate captive insurance arrangements from shams. Remember, there is growing concern among […]
How to Tell a Good Captive Insurance Company from a Sham—Part 3
By: Sean King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC If a captive insurance company does not replace third party commercial coverage, is it evidence of a sham? The short answer is an emphatic “no!” To suggest so would require complete ignorance
Sign Up for the Captivating Thinking Newsletter