Captive Insurance & Captive Insurance Company Services by WMS,LLC  Captive Insurance Management , Captive Insurance Feasibility Studies , , Captive Insurance Underwriting , IRS Letter Ruling support, Turnkey Captive Insurance Services

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IRC Section 831
IRC Section 953(d)
IRC Section 1563
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Marketing Partners



Captive Insurance Services

WMS,LLC (WMS) provides turnkey Captive Insurance Services and Solutions to mid sized Insurance Agencies and Associations who are interested in implementing an Agency Captive or Association Captive, solution which is tailored to their individual Insurance Program needs. We also assist businesses who are interested in using a Pure Captive to insure a portion of their commercial property and casualty risks in order to reduce or stabilize premiums, improve the availability and breadth of coverage, and economically insure risk exposures that are difficult or uneconomical to insure via traditional insurance markets.  WMS, LLC provides a complete menu of captive services including: Captive Insurance Company Planning,  Captive Insurance Feasibility Studies, Captive Insurance Domicile Selection,   Captive Insurance Company Formation & Licensing,  Captive Insurance Management, Captive Insurance Underwriting  and Compliance Reporting.

Note: Before you engage in any Captive Insurance transaction or arrangement, you should first consult with an independent licensed attorney and CPA who are experts regarding the, state and federal, insurance and tax, laws and regulations relating to captive insurance so they can properly advise you.  The insurance and tax laws/regulations (state & Federal) relating to insurance are complex and are beyond the scope of services provider by WMS,LLC. In addition, we strongly recommend that clients request an IRS Letter Ruling (if available) to determine the specific federal tax treatment their captive and its affiliated insured's will receive from the IRS.  An IRS Letter Ruling  can substantially reduces the potential tax risk associated with owning and operating a Captive Insurance Company.

To learn more about our services or to request a Free Consultation please click on the Free Consultation link or call us at (201)-995-9085 today.

Captive Insurance Company  Start Up and Operating Costs   

Captive Start-Up Costs Breakdown Fee
  Captive Feasibility Study (Business Plan) w  5 Year Pro Forma Financials


  Select Insurance/Reinsurance Agreements  Included
  File all Applications and Business Plans for Captive Incorporation and Licensing  Included
  Domicile Fees for Captive Insurance License Application  Included
  Incorporate Captive in Domicile  Included
  File Form SS-4  and obtain a Federal EIN for Captive  Included
  File an IRC section  953 (d) Election if Captive is Foreign  Included
  Actuarial Report to set Premiums & Loss Reserves  Included
  Establish an US Office for Captive  Included
Captive Start Up Cost Total       $    20,000
Annual Ongoing Operation Costs (excluding reinsurance and claims) Fee
  Annual Insurance License Renewal (as required)

 $     2,500

  Annual Corporate Registration Renewal  $        500

  Annual Captive & Risk Management Fee

 $   17,500
      Obtain a Registered Agent/Office in Domicile


      Perform Annual Policy Issuance and Administration included
      Issue/Accept Contracts on behalf of Captive included
      Maintain books & records of captive at US office


      Assist CPA who will prepare Captive's summary NAIC Annual Statement no charge
      Prepare & File Required Reports & Certifications with Insurance Regulators


      Ensure ongoing compliance with all Insurance laws & regulations of Domicile included
      Perform Minimum Required Solvency Margin and Capitalization Analysis included
      Assist CPA who will prepare Captive's Annual Financial Statements no charge
      Assist CPA who will prepare Captive's annual Form 1120-PC tax return no charge
  Annual CPA Audit of Captive's Financial Statements 1 negotiable
Annual Operating Expense Total         $    20,500
Initial Capitalization of Captive (in an US Bank Account)

 $  100,000

Annual Reinsurance and Claims Costs %
  Reinsurance. as a % of  Written Premiums 2 6.0% - 8.0%
  Loss Claims Expense as a % of  Written Premiums 3 See note
IRS Private Letter Ruling Request Fee

WMS, LLC recommends that all client's request a PLR (Private Letter Ruling) for their Captive from the IRS subject to availability, pursuant to Rev. Proc. 2002-75 in order to obtain written confirmation that the IRS will treat the Captive as an insurance company pursuant to IRC section 831 and that all premium payments  will be tax deductible as business expenses per IRC section 162.  ( payable to WMS, LLC )

IRS User Fee for requesting a Letter Ruling  ( payable directly to IRS ) 4





 $     35,000

     See IRS

1 Some insurance domiciles waive the annual requirement to have the Captives Financial Statements audited by a CPA Firm. In such cases, the annual Audit fee would be zero. Otherwise, an annual audit should cost between $1,500 and $5,000.

In order to satisfy Insurance Regulations and/or IRS Safe Harbor Rules regarding the Taxation of Captive Insurance transactions, virtually every Captive will require some amount of Reinsurance. You should realistically expect annual Reinsurance Expenses to be at least 6.0% to 8.0% of annual written premiums.

3  Note: Your annual related risk and unrelated risk loss cost %'s will be different, however, over the long- term, the average loss cost %'s of the related and unrelated risks which are insured by the captive should be approximately the same and the predictability of losses should increase as losses are smoothed out over time.

4  This fee represents the cost of having WMS,LLC draft and submit the PLR request on behalf of the captive and its related taxpayers. It does not include the payment of the IRS User Fee which is payable directly to the  IRS in order to obtain a Private Letter Ruling. The IRS User Fee is billed at cost and is subject to change each year at the sole discretion of the IRS.

Get a  Free Consultation

In order to schedule a Free Consultation you must fill out and submit the Form shown below. Please provide us with your contact information for all (*) fields below and we will promptly respond to your information request.  All information you provide is confidential and WMS does not  share, sell or disclose any information you provide to any other parties.  

Note: Please provide a valid business email and  website address as well as a business phone number  or we will be unable to contact you.

Have a Client Services Consultant contact me for a Free Consultation





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Contact Information

Telephone:  201-995-9085
FAX:               201-995-9087         
Postal address :  120 E. Main Street,  Ste. 101,  Ramsey,  NJ  07446
Electronic mail :  General Information:
NOTE - WMS, LLC  is not an insurance agency and does not engage in the sale, solicitation, negotiation, or issuing of insurance policies. Employees of WMS, LLC do not act in the capacity of insurance agents.
Copyright 2010   WMS, LLC