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March 2023 Edition
I get asked this question a lot: How Can I Find Out if a Captive Insurance Arrangement is Right for Me?

To decide if a captive insurance arrangement is desirable, we will facilitate the preparation of a feasibility analysis. This analysis includes input from actuaries, attorneys, and risk managers. The purpose is to analyze the parent company’s risk profile and financial position to determine the appropriate type of insurance policies to underwrite, along with an analysis of the legal environment for the proposed captive domicile and financial projections for the captive that the company is forming.

It all starts by downloading our online U.S. Captive Intake Form and sending it back to me or your U.S. Captive representative. Once everything is filled out, we can then start the analysis process.

So, if you are ready now or want to know all the information needed, go to our interactive U.S. Captive Intake Form today and get started.

As always, if you have any questions about implementing a Captive, call me directly or visit our Captive 101 section on our website by Clicking Here.

Sincerely,
Larry Papola
Lawrence J. Papola, Jr.
President
1-833-US-CAPTIVE
(1-833-872-2784)
IRS May Have Picked Wrong Fight with Oxford Microcaptives
IRS
When the IRS Large Business and International Division announced it was including microcaptive insurers in its campaign program in 2017, it implied that the entire microcaptive industry was a tax avoidance scheme.

Clients of captive manager Oxford Insurance Co. are fighting back, and while the taxpayers aren’t officially winning, the IRS is essentially dropping Oxford cases with stipulated decisions, the latest filed in the Tax Court February 16 in Series Protected Cell 102, a Series of Oxford Ins. Co. TN LLC v. Commissioner.
Commercial Rate Hikes Hold Steady
Commercial insurance premiums increased 8% on average in the fourth quarter, down marginally from the 8.1% rise in the third quarter, according to the Council of Insurance Agents & Brokers’ latest pricing report released Wednesday.
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Captive Claim Highlight
Client Profile
Industry: Construction
Specialty:  Commercial Contractor/ Construction Co.​
Location: Tennessee
Claim Information
Description: Our Insureds' client withheld a balance due for a project based on allegations that the Insured’s work delayed the project beyond the contractual date of completion. After investigation, it was uncovered that the delay was due to a third-party issue, not related to the Insured's work, and that the Insured’s work was in fact completed by the date required. After pursuing other reasonable mitigation efforts, the Insured considered legal action against their client; however, after obtaining legal advice, they concluded that the cost to pursue would have outweighed the balance owed. Through their Actual Net Loss Captive Policy "Contractual Liability" coverage, they were able to recover the lost income.
Line of Coverage:  Contractual Liability
This exposure was elected for coverage by the client under their Captive Policy. This resulted in a claim payment amount of approximately $200,000.
*Please note that each claim will undergo an independent investigation and thorough review process. Various components specific to the claim at hand will be assessed thoroughly to determine if the loss is covered by the policy.
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Happening This Month
3/3: World Wildlife Day
3/3: Employee Appreciation Day
3/8: Int’l Women’s Day
3/12: Daylight Saving Begins (DST)
3/17: St. Patrick’s Day
3/20: Spring Begins
3/23: National Puppy Day
3/29: Vietnam War Veterans Day
3/30: National Doctors’ Day

This Month is Observed as:

Women's History Month
National Nutrition Month
Hard Market for Property Reinsurance
The hard market for short-tail reinsurance lines will likely continue through 2023, while casualty reinsurance pricing remains firm, though price increases have moderated in the United States, according to a report from S&P Global Ratings.
Why Form a Captive?
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There are numerous potential advantages to forming a captive insurance company. Captive insurance companies are formed for both economic and risk management purposes. By forming a captive insurance company, a business can dramatically lower insurance costs in comparison to premiums paid to a conventional property and casualty insurance company.
Get Your Insurance Quotes From The:
Insurance Experts provides expert knowledge and assistance to individuals, families, and business owners who are making decisions about the proper insurance coverage for their needs. We’re here to help you cover losses you shouldn’t have to on your own.

Let our team of experts guide you through the daunting task of selecting the right insurance coverage for you or your business:
  • Life
  • Disability
  • Long-Term Care
  • Business
  • Personal
  • Captive
  • More...
48 South Service Road
Suite 400
Melville, NY 11747

Office: 1-833-US-CAPTIVE
     (1-833-872-2784)
Fax: 888-929-6565