Captives for Larger Corporations: IRC 831(a)

For decades, large corporations such as those in the healthcare field, large franchises, and other organizations have formed their own captive insurance companies to insure risks, which may not be covered by a commercial insurance policy.

In general, captive insurance companies can be formed under various provisions of the Internal Revenue Code—those formed under 831(a) are best for larger corporations, with annual premiums that exceed $2.2 million. Certain financial benefits are associated with 831(a) captives, such as tax-deductible loss reserves, increased income tax efficiencies, and direct access to the reinsurance market. As is true for captives formed under IRC 831(b), captives formed under the 831(a) provision must operate as bona fide insurance companies, insuring risks of an affiliated company.

In addition to leading the industry in captive planning for mid-market organizations, Capstone has historically taken the lead in the design, formation, and management of captive insurance companies for large organizations via an award-winning, multi-disciplinary approach.
For CAP_YEARS_SUPER years, Capstone has helped form and currently manages captives formed under Section 831(a) of the Internal Revenue Code, as well as those formed under the 831(b) and 501(c)(15) elections.

Read more about Capstone’s attorney-led captive planning.

About Capstone

Capstone Associated Services, Ltd. is the most integrated and largest outsourced provider of captive insurance services for the middle market. In association with The Feldman Law Firm LLP Capstone administers property & casualty insurance companies that provide alternative risk financing services throughout the U.S. Now in its CAP_YEARS_NUMBERth year, Capstone provides turnkey services usually under a joint engagement with its affiliated law firm to manufacturers, distributors, service providers, and professional organizations.
Capstone's own staff of insurance professionals includes Chartered Property & Casualty Underwriters, Associates in Risk Management, accountants and administrators, in addition to the affiliated The Feldman Law Firm LLP's tax, corporate, financing and regulatory lawyers, and outside CPAs, risk managers, property & casualty professionals, and actuaries. On staff at Capstone include six CPCUs with more than 130 years of experience. Together, this team offers middle market companies the most comprehensive risk planning solution available. Today, captives are the premier risk management and risk-financing tool for qualified middle market companies.

To learn more about how alternative risk planning and captive insurance can protect your business from uninsured risks, please contact us at 800-500-3190.

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