July 2021 Edition
Happy Independence Day! I hope you will be spending time with family and friends and celebrating those who gave us our great freedoms!

In case you missed it, the Supreme Court has ruled "...the IRS has lost a battle in its ongoing war against Internal Revenue Code § 831(b) captive insurance companies, or so-called “micro-captive” insurance transactions." The article below goes into the details and some information on the Anti-Injunction Act, which is wrong for several reasons.

If you have any questions about implementing a Captive, call me directly or visit our Captive 101 section online by Clicking Here.

Have a Safe and Fun 4th of July,
Larry Papola
Lawrence J. Papola, Jr.
Captive Insurance Wins a Battle,
but the War Continues
On Tax Day, May 17, 2021, in a unanimous opinion authored by Justice Kagan, the United States Supreme Court held that the Anti-Injunction Act ("AIA") does not bar a pre-enforcement challenge to the legality of an IRS-imposed standalone reporting requirement, a violation of which may result in both civil tax penalties and criminal liability. The Court’s decision in CIC Services, LLC v. Internal Revenue Service may open the door to a host of pre-enforcement challenges to IRS reporting requirements brought by taxpayers and others who are affected by such requirements.
Captive Claim Highlight
Client Profile
Industry: Business Services
Specialty: Government Contractor for Training & Development
Location: Virginia
Claim Information
Description: One of our Insureds provides specialized training to foreign companies under governmental agency contracts. Due to a change in legislation, the contract was cancelled, causing our Insured to lose a valued and significant customer. Through their Captive's Actual Net Loss Insurance Policy "Loss of Key Customer" coverage, they were able to recover revenue lost from this relationship.
Line of Coverage: Loss of Key Customer
This exposure was elected for coverage by the client under their Captive Policy. This resulted in a claim payment amount of approximately $300,000.
*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.
Happening This Month in 2021
7/4: Independence Day
7/7: World Chocolate Day
7/18: National Ice Cream Day
7/21: National Hot Dog Day
7/30: Int’l Day of Friendship
This Month is Observed as:
Nat'l Parks Month
UV Safety Month
Nat’l Picnic Month

NCCIA Conference in August
The North Carolina Captive Insurance Association (NCCIA) has announced the sessions and speakers for its upcoming in-person annual conference to be held August 30 through September 1 at the Washington Duke Inn and Golf Club in Durham, North Carolina.
6 Reasons Why You Should Have
Life Insurance
Although no one enjoys thinking about the possibility of the future after their passing, life insurance can provide your loved ones with comfort and assurance in the event of your death.

In our lives, we often experience important milestones that lead us to contemplate our future. When we consider our lives and what lies ahead, we must inevitably consider what may happen to those we leave behind. Ultimately, your dependents or next of kin may be liable for any outstanding debt or expense such as tuition or childcare costs, mortgage payments, or even funeral, medical, or care expenses.
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...
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Suite 400
Melville, NY 11747

Office: 1-833-US-CAPTIVE
Fax: 888-929-6565