The recent memorandum decision in Kadau v. Commissioner (T.C. Memo. 2025-81) provides a clear example of how the Tax Court currently analyzes micro-captive arrangements. Importantly, the opinion does not create new law; rather, it applies the well-established captive-insurance framework developed in Avrahami, Reserve Mechanical, Caylor, and Syzygy. We have previously distinguished how our clients do captive insurance from those prior cases, and we will do the same now with respect to Kadau.
On November 6, CIC Services had the privilege of joining the East Tennessee community at Covenant Health Park in Knoxville for the annual Light The Night event. The evening was a powerful reminder of what can be achieved when people unite around a shared purpose. Surrounded by lanterns glowing in honor of survivors, in remembrance of loved ones, and in support of those still fighting, our team stood with a community committed to bringing light to the darkness of cancer.
Light The Night is the signature event of Blood Cancer United, formerly the Leukemia & Lymphoma Society, the largest nonprofit dedicated to fighting blood cancers. Through its core pillars of research, patient support, and advocacy, Blood Cancer United advances its mission to help cure leukemia, lymphoma, Hodgkin’s disease, and myeloma. Since its founding, the organization has invested more than $1.8 billion in blood cancer research and has helped advance over 70 percent of FDA-approved blood cancer treatments in the past two decades. Its impact is felt locally as well. Families across Tennessee received more than $5.5 million in financial assistance last fiscal year to help cover co-pays, travel, and other urgent patient needs.
Bryan Ridgway and Jake Ridgway representing CIC Services and standing in support of the Light The Night mission.
We are proud to share that CIC Services was recognized as the top corporate fundraiser at this year’s event, a distinction that reflects the dedication and teamwork of everyone involved. We also extend special recognition to our partner, Bryan Ridgway, who served as the 2025 Corporate Walk Chair. His leadership helped expand corporate engagement throughout the region and played an important role in elevating participation and awareness for this year’s Light The Night.
The event as a whole raised more than $100,000 above last year’s total. If CIC reaches its $100,000 milestone before fundraising closes in February, we will become the first team in the event’s history to achieve this level of support.
Bryan Ridgway of CIC Services is delivering remarks during the Light The Night event.
While these achievements are significant, the true impact of Light The Night is found in the individuals represented by every lantern. Survivors walking beside us. Families honoring loved ones who are no longer with us. Patients demonstrating extraordinary courage as they continue their fight. Their stories remain the driving force behind this mission and the reason this event resonates so deeply with our team.
This year’s event reaffirmed what is possible when a community stands together. CIC Services is honored to support Blood Cancer United, and we extend our sincere gratitude to every donor, walker, volunteer, and advocate who helped make this year’s Light The Night such a meaningful success. We are humbled by the generosity shown to this cause and grateful for all who walked beside us.
The CIC Services team united in support of Light The Night and the families, survivors, and patients this event empowers.
The work continues long after the lanterns have dimmed. Blood Cancer United remains steadfast in advancing lifesaving research, expanding essential patient services, and supporting every family affected by these diseases. CIC Services is committed to standing with them as we move toward a future where every patient survives, thrives, and lives free from the fear of blood cancer.
A meaningful scene as participants and CIC Services team members illuminate the night with lanterns.
Those who wish to join CIC Services in supporting Blood Cancer United can give here.
CIC Services, LLC, a leading risk management consulting firm specializing in the formation and management of captive insurance companies, has named Jackson Arms vice president of risk management consulting. His appointment strengthens the firm’s advisory capabilities at a time when businesses across industries are increasingly looking to captives to gain more control over risk financing and volatility.
Arms brings more than 15 years of consulting and risk advisory experience, most recently guiding organizations in developing and refining risk management frameworks tied to long-term operational resilience. His industry experience includes architecture and engineering, manufacturing, construction, government entities, utilities, healthcare organizations, educational institutions, and municipalities. In his new role, he will support organizations evaluating captive insurance and alternative risk transfer strategies as part of broader enterprise risk initiatives.
“As market conditions tighten and traditional insurance coverage becomes less predictable or less affordable, more organizations are seeking structured, data-driven strategies to manage volatility,” said Randy Sadler, principal and Chief Marketing Officer at CIC Services. “Jackson understands how to translate complex operational risks into strategic captive solutions. His consultative approach will further strengthen our ability to help clients implement programs that improve stability, governance, and financial efficiency.”
Arms holds a Bachelor of Science in Communications from the University of Tennessee and is known for his ability to collaborate with client leadership teams to build tailored and sustainable risk programs.
His addition marks continued growth for CIC Services as captive utilization expands among middle-market companies, private equity-backed firms, and organizations seeking more transparency and control in their insurance spend. The firm has steadily expanded its advisory, operations, and compliance teams in response to increased demand for sophisticated captive solutions.
CIC Services has been accepted into Forbes Finance Council, an invitation-only community for executives in accounting, financial planning, wealth and asset management, and investment firms.
Randy Sadler, principal and CMO for CIC Services, was selected by a review committee based on the depth and diversity of his experience. Criteria for acceptance include a track record of successfully impacting business growth metrics, as well as personal and professional achievements and honors.
As a member of the Council, Randy has access to a variety of exclusive opportunities designed to help him reach peak professional influence. He will connect and collaborate with other respected leaders in a private forum. Randy will also have the opportunity to share his expert insights in original articles and contribute to published Expert Panels alongside other experts on Forbes.com. His profile on Forbes.com can be viewed here.
Randy’s first article, published through this membership, titled “How Hidden Dependencies Can Sink Your Company’s Financial Strategy,” has been posted on the Forbes website, discussing business dependency risk tied to the loss of a key customer, employee, or vendor and how to protect against the financial repercussions of this risk. The next article, “The Hidden Cost of Loyalty: When Trusted Employees Turn Criminal,” will be published next.
CIC Services’ acceptance into the Forbes Finance Council reflects the company’s ongoing commitment to thought leadership, deep industry expertise, and building trust with clients and partners. By contributing valuable insights on risk, strategy, and financial resilience, Randy and CIC Services continue to provide guidance that helps businesses navigate complex challenges, reinforcing CIC’s reputation as a trusted advisor in the financial services industry.
Businesses who implement ERM programs combined with a captive to plan for unforseen risks stand a better chance of surviving, and passing to the next generation.
Improved Cost Controls
Captive owners can leverage their ERM and captive programs to improve their negotiating ability when renewing their commercial insurance coverages.
Wealth Accumulation
Profitable captives will see their reserves grow over time to significant sums which can be utilized by their owners for retirement or other life cycle needs.
Advantageous Tax Treatment
Insurance companies are the only entities allowed to expense projected future expense against current-year revenues (claim reserves). Small captives (premiums of $2.2M or less per year) may also elect to only be taxed on their investment income, potentially resulting in substantial tax savings for their owners.
Insurance Profits
Utilizing your captive to reduce or replace your commercial insurance coverage with policies issued by your captive allows you to capture insurance profits previously realized by the carriers.
Improved Risk Management
Adding a captive and ERM program will result in a higher awareness and enhanced strategies for how your organization thinks about and plans for all risks.
Asset Protection
The assets held by a properly organized and managed captive enjoy a very high degree of protection from both the business’ and business owner’s creditors.
