Captive Insurance Articles

Captive Insurance ArticlesOver the years, Capstone has published numerous articles on captive insurance to help savvy professionals learn more about the industry. Our CEO and General Counsel Stewart A. Feldman has authored many of these articles, providing expert commentary on changing regulatory laws, misnomers about the industry, and the benefits of forming captive insurance companies. Our team is passionate about providing the facts to anyone who is conducting due diligence on captive management companies and managers. We know it is important to consider all factors when looking to alternative risk management solutions. That’s why we have made these professional articles readily available to the public.

In our library, you will find one-on-one interviews, eBooks, magazine articles, and other resources. If you have questions about any of the material or want to learn more about the turnkey captive planning solutions Capstone and its affiliated law firm offer, feel free to give us a call. We’re available to answer your questions during normal business hours at WEB_TEL. We’re looking forward to connecting with you.

The Captive Manager Fallacy

Captives are instrumental to many organizations’ risk solutions. As their popularity grows, so do the number of captive managers and the diversity of backgrounds of persons professing to be ‘captive managers’. It is paramount for captive owners to ensure they have the best possible firms managing their captives. Given that captives’ tax and corporate structures are fundamental to alternative risk planning, can captive owners really take the risk with ‘captive cowboys’?

Why Businesses Should Form Captive Insurance Companies

Owners of middle-market businesses are attracted to the cost-saving, risk management, and profit potential provided by owning their own insurance company. In a recent interview, Stewart A. Feldman, chief executive of Capstone Associated Services, a Houston-based firm specializing in alternative risk planning for closely-held businesses, explained: “Many middle-market businesses needlessly ‘self-insure’ a wide range of risks. By self-insurance, I mean ‘pay directly out-of-pocket as losses are incurred’. This is an inefficient and dangerous approach to risk planning.”

The Case Against the Cell

March 3, 2017 (Houston, TX) - In a new, hard-hitting article released by industry publication Captive Insurance Times, Capstone's CEO, Stewart A. Feldman brings to light the problems associated with cell captive arrangements. Feldman discusses cell captives' practical dangers and the poor protections afforded their owners and insureds. Feldman explains that " Theoretically, the cell structure should have the benefit of walls separating the cells or series LLCs.

The Case for Forming Captives Earlier in the Year

January 31, 2017 (Houston, TX) - In a newly published article, Capstone's Steven Lonergan, CPCU makes the case for forming captives earlier in the year. Lonergan discusses the benefits of allowing enough time for captives to be properly structured and fully vetted by a multidisciplinary team. Lonergan also addresses the IRS rules impending end-of-year formations. Steven Lonergan is Director of Business Development - Midwest at Capstone Associated Services, Ltd. He is based in the greater Minneapolis area.

Bloomberg BNA Publishes New Work by Feldman Law Firm Attorney

August 5, 2015 (Houston, TX) - Last week, tax attorney Logan R. Gremillion published an important survey about risk distribution as it affects the taxation of insurance companies.This well-received work was published by Bloomberg/Bureau of National Affairs, which is a leading source of legal, tax, and regulatory information to the tax community. Mr. Gremillion presented the article before a 20+ person national committee of tax professionals in New York City in June, and was subsequently accepted for publication by Bloomberg BNA. The article examines insurance companies for regulatory licensing purposes versus federal tax purposes -- an issue that has been extensively scrutinized. Gremillion also provides a high-level overview of the key tax court rulings affecting the classification of payments as insurance for tax purposes.

Captive Insurance Growth Among Smaller Middle-Market Companies

For years the largest US companies have realized the benefits of alternative risk financing/captive planning. Principal among the reasons is the ability to customize coverages to the insureds’ needs rather than simply relying on standard conventional policies riddled with restrictive exclusions.

Benefits of Physician-Owned Captive Insurance Companies

As the Patient Protection and Affordable Care Act and the upward spiral of overhead costs continue to loom large on the horizon, physicians face a growing threat to the profitability of their medical practices. One countermeasure on the radar screen of many physicians is the cost control and profit potential available through alternative risk management strategies—a strategy already used by many large health care providers.

Mitigating Inherent Risks with a Captive Insurer

Equipment failures, cave-ins, government fines and penalties, black lung disease, changes in the regulatory environment, gas explosions, fires—these and other risks within the coal mining industry have imposed a host of costs, expenses and losses on the industry. Conventionally-available insurance has been critical in disaster recovery over the past 20 years and it has helped coal mining businesses bounce back after suffering significant losses.

Get Smart About Your Business Interruption Insurance

The frequency of adoption of business interruption coverages has greatly expanded among small and midsize organizations. Although this type of insurance has become broader and more mainstream, the pitfalls of its exclusions still plague many businesses seeking comprehensive coverage.

Captive Insurance, Oil & Gas Companies and Financial Risk Mitigation

Lance McNeel, CPCU, ARM discusses the unique challenges that oil & gas companies experience, given the insurance options avaialble for their industry. Specific financial risks are discussed, along with how a captive insurance company can help fill insurance gaps.

Demystifying the Dodd-Frank Effect on Captive Insurance Companies

Dodd-Frank includes verbiage relating to the world of taxation, licensing, and eligibility rules associated with the procurement of insurance from non‑admitted insurers across the 50 states, the District of Columbia, and five U.S. territories. This section was titled the Non-admitted and Reinsurance Reform Act (NRRA). The legislation has brought dramatic changes for those procuring non‑admitted insurance for their organization from wholly-owned captives.

Filter Out the Noise – The Real Issue is Insurance

Business owners who have developed a greater understanding of how risk affects all aspects of their businesses take control of their risk management seek out alternative risk financing decisions beyond what is available in the conventional insurance market. Megan M. Brooks discusses how.

Overcoming Bank Over-Regulation Hassles with a Captive

Regulators have affirmed that they simply want banks to manage risk; however, bankers are de-risking and deciding that certain geographic areas and lines of business are just too expensive to profitability serve. De-risking, the new norm in the bank industry, has become extremely costly not only in efforts to adhere to strict compliance but ultimately in costing banks new business. Megan M. Brooks discusses how alternative risk planning may help insureds overcome over-regulation.

The Middle Market Gusher

Captives are a compelling proposition for middle-market companies in the US. Stewart Feldman spells out the benefits of taking charge of your own risk management. Lower insurance costs, improved risk management and loss control, and a tax-efficient mechanism for funding future losses are just some of the benefits that business owners realize from alternative risk planning.