October 2020 Edition
As we head into the fourth quarter, we will soon be knee deep into the holiday trenches; Not to mention the crazy election!

This month we touch on some hot items. Delaware is trying to speed things up, which is a great thing! Vermont has named their new captive insurance economic development director to take the place of Ian Davis, and some great info on the scare tactics the IRS has been using on micro captives.

Speaking of Feds, Don't forget Monday, October 12th, is Columbus Day. Did you know, Columbus Day is one of ten federal holidays recognized nationwide by the United States Government. All non-essential federal government offices are closed on Columbus Day, and all federal employees are paid even if they receive the day off.

If you have any questions about the information in these articles, call me directly. If you have questions about implementing a Captive, contact me or visit our Captive 101 section

We appreciate your business!
 
Sincerely,
Larry Papola
Lawrence J. Papola, Jr.
Principal
1-833-US-CAPTIVE
(1-833-872-2784)
Speed To Market
Delaware now offers a conditional certificate of authority on the same day the application is received for licensing a captive insurance company. 
Captive Claim Highlight
Client Profile
Industry: Construction
Specialty: New Home Construction
Location: Oregon
Claim Information
Description: One of our Insureds had an existing contract with a contractor to perform installation of electrical work in new homes. The contractor notified the Insured that there would be a price increase, however they failed to comply with the contractual obligation of a 60 day notice. The Insured was able to recoup the increase expense through their Captive's Actual Net Loss policy's, Subcontractor Default Coverage.
Line of Coverage: Subcontractor Default
This exposure was elected for coverage by the client under their Captive Policy. This resulted in a claim payment amount of approximately $220,000.
*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.
Vermont Names Brittany Nevins to Captive Economic Development Post
The Vermont Agency of Commerce and Community Development has named Brittany Nevins, captive insurance economic development director. Ms. Nevins replaces Ian Davis, who left the position earlier this year to take a private sector position in the captive insurance industry.

As captive insurance economic development director, Ms. Nevins is responsible for the marketing and business development of Vermont's captive insurance industry. In the role, she will work closely with the state's Department of Financial Regulation and the Vermont Captive Insurance Association to strengthen the reputation of the Vermont captive insurance domicile.
October 2020 Calendar
autumn_leaves_rustle.jpg
OCT 4: World Animal Day
OCT 5: World Teachers’ Day
OCT 7: Walk to School Day
OCT 12: Columbus Day
OCT 16: Boss’s Day
OCT 26: Nat’l Pumpkin Day
OCT 28: Nat’l Chocolate Day
OCT 29: Nat’l Cat Day
OCT 30: Nat’l Candy Corn Day
OCT 31: Halloween
October is Observed as:
Breast Cancer Awareness Month
Domestic Violence Awareness Month
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Industry reacts to IRS’ latest micro captive ‘scare tactics
The Internal Revenue Service’s (IRS) continued focus on ‘abusive’ micro captives, and its most recent statement “is a combination of past talking points that are meant to scare business owners utilising captives into exiting their captive structures, regardless of whether they are doing the right thing or not”, according to Ryan Work, vice president of government relations, Self-Insurance Institute of America (SIIA). 

In its most recent statement, the IRS said taxpayers should not assume they will be able to settle any transactions with the IRS or chief counsel on terms more favourable than the previously announced settlement offers.
The service also highlighted that any potential future settlement initiative that it considers will require additional concessions by the taxpayer.

Work explained that even after a number of congressional concerns around its timing and tactics, the IRS decided to flaunt the fact that it is “embarking on even more purposefully onerous and unnecessary requirements”, despite the ongoing COVID-19 pandemic...
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