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 […]

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

By Sean G. King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC Does a low claims history necessarily mean that future premium rates should be lowered? Last week, I began a series on identifying legitimate and sham captive insurance company arrangements.  This series of articles is important because there is much misinformation and […]

By Sean G. King, JD, CPA, MAcc Principal & In-House Counsel, CIC Services, LLC There is growing concern among regulators, the IRS, and captive insurance professionals that too many captive insurance companies, especially the small 831(b) variety, lack economic substance—that is, that they are shams constructed for the purpose of avoiding taxes rather than for […]

The term “game changer” has often been used to describe people or entities that break from the established or expected norms.  A “game changer” often defies existing paradigms or creates new paradigms.  In sports, a “game changer” is often an athlete that is far superior to his or her contemporaries, is very versatile or seems […]