Captivating Thinking

This is an unusual subject line – “INSURE Your Way To Greater Wealth.”  How is this possible?

There has been more noise in the captive industry of late, particularly in the last 18 months.  The IRS’s recent interest in small captive insurance companies (CICs) and its audit sweep of small captives has

You are, no doubt, familiar with the law of unintended consequences.  Jeffrey Sica, Contributor to Forbes On-Line summed it up well in a February 28, 2011 article titled, “The Law of Unintended Consequences: The Worst Mistake in Decades.”

The law of unintended consequences has long existed dating back to at least Adam Smith but was popularized in the twentieth century by sociologist Robert K. Merton. In his theory, Merton stated that often unanticipated consequences or unforeseen consequences are outcomes that are not the outcomes intended by a purposeful action. In some cases, the law of unintended consequences could create a perverse effect contrary to what was originally intended and ultimately making the problem worse.

Today, Captive Insurance Times (CIT) reported that Governor Bill Haslam of Tennessee signed legislation that improves upon the state’s already business friendly rules regarding captive insurance companies.  As we have noted