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Captive Insurance 101

A "captive insurance company" is a property and casualty insurance company specifically established to insure the risks of an associated business. Owning your own "captive" comes with advantages that help you gain better control over your business’s risk management, earnings, and tax planning. Conventional insurance policies often limit or exclude coverage for certain inherent operational risks.

With captives, these risks can be written right into the policy, free of vague or ambiguous language. Under IRC 831(b), middle market organizations can take advantage of both the primary benefits of captives, including tailor-made risk coverages and secondary benefits, such as improved tax planning. Capstone is the leading alternative risk planning company for the mid-market and we’re continuing our 17-year trend of growth and leadership in the industry. While other captive managers disclaim tax and legal services, we offer a comprehensive alternative risk financing program in collaboration with The Feldman Law Firm LLP. We invite you to explore all the benefits of forming captives and the turnkey services we provide.
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Capstone Associated Opens New Office in Atlanta, GA

Capstone Associated Opens New Atlanta, GA Office

September 30, 2015 (Houston, TX)New Services from Capstone Associated, Houston TX - Capstone Associated is pleased to announce the opening of its new Atlanta-area office. As part of its Southeastern expansion, William "Bill" Blankinship, CIC, CRM, has recently joined Capstone Associated as its Southeastern Director of Development, heading this new office.

With a focus on high-deductible, workers compensation, and P&C coverages, Blankinship is providing Southeastern-based middle market businesses opportunities for tailored coverages written through their own captive insurance company, along with realizing the ancillary benefits of the planning.

"Capstone Associated is continuing its 17+ year track record of providing exceptional turnkey captive planning to clients across the United States, now with a local presence in Atlanta," commented Stewart Feldman, CEO and General Counsel for Capstone Associated. "By having boots on the ground in Atlanta and soon in other areas, Capstone Associated is furthering its ability to deliver quality services throughout the U.S. We already boast clients from the Canadian to the Mexican borders and from the Atlantic to the Pacific coasts."

Blankinship added: "The Capstone team of tax, legal, financial, and insurance professionals – all under 'one roof' – is unique in the captive industry, allowing Capstone Associated to provide top-tier support to clients, wherever they operate. Both the breadth of Team Capstone's experience and its track record in delivering successful, compliant planning is unmatched. Unlike other so-called 'captive managers,' Capstone Associated, in combination with The Feldman Law Firm LLP, takes responsibility for the many aspects of the planning, including the all important state and federal tax, regulatory, legal, financial and insurance areas. This comprehensive approach is evident in Capstone's long track record of successfully implementing and operating captive insurance companies."

Since its beginning in 1998, Capstone Associated in combination with The Feldman Law Firm LLP has formed and operated in excess of 175 separate captives, drawing upon its Houston-based, headquarters staff, with additional offices in Delaware and in The Valley, Anguilla.

Capstone Associated is currently interviewing for senior managers for planned offices in the upper midwest and on the west coast. For more information on Capstone's 17-year work history in forming and operating captives, please contact a member of its executive team.


Captives in the IRS' Dirty Dozen List of Abusive Tax Schemes? Get the Facts
In the first quarter of each year, the IRS increases the volume of its press releases in a thoughtfully designed program to spur taxpayer compliance with our income tax system. This is a well-reasoned effort by the IRS.

Gallagher Captive Manager Artex discloses it's subject to IRS probe
Artex Risk Solutions Inc., the Bermuda-based captive management subsidiary of insurance broker Arthur J. Gallagher & Co., has confirmed that it is involved in an Internal Revenue Service probe into captive insurers formed under 831(b) of the Internal Revenue Code.

September 10, 2014 Federal Court Opinion Ordering Artex's Compliance with IRS Subpoena
The Internal Revenue Service (IRS) is conducting an investigation of Respondent Artex Risk Solutions, Inc. (Artex). The IRS is allegedly
examining Artex’s role in transactions involving captive insurance plans under 26 U.S.C. § 831, and investigating whether such transactions constitute abusive transactions.

Artex Docket Report
Petition to enforce IRS summons filed by United States of America (Shoemaker, Martin) (Entered: 06/03/2014).

Self Insurance vs. Captive Insurance
Captive insurance is a way to couple the benefits of self-insurance with the benefits of traditional insurance. A captive insurer is an insurance company formed by an operating business to insure its risks. Captive insurance companies are licensed by the department of insurance in the jurisdiction in which they are formed. They write insurance policies covering specified risks of the operating business.

Learn Everything About Captives
Captive insurance, as an alternative risk planning strategy, is gaining significant ground among middle market organizations. In this piece, you’ll receive an overview of the various benefits that captives can offer, along with information about the different types of captives that can be formed.

Definition and Benefits of Captive Insurance Companies
Captive insurance companies are those which are founded for the purpose of financing risks which flow out from their parent groups, which may in some cases also include insuring risks associated with the parent groups’ customers.

Best Alternative Risk Management Tool?
Identifying risks within an organization is half the battle. Mitigating these risks and protecting business assets in the event of a threat requires outside-the-box thinking and reliable support. Alternative risk management solutions have become more prominent in recent years as business owners look to cover their inherent risks without the fear of exclusions

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Power 50 captive Insurance award

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Captive Insurance Article
Experts from Capstone Associated Services and The Feldman Law Firm LLP weigh in on the true function of captives. Controversies and misconceptions about the alternative risk management strategy are discussed in full detail.