Captive Insurance Services and Solutions - WMS, LLC , Captive Insurance Planning , Captive Insurance Taxation , Captive Insurance Feasibility Studies , Captive Insurance Risk Pools , Captive Reinsurance , Captive Insurance Management , Captive Insurance Underwriting , Captive Insurance Accounting , IRS Letter Rulings, Turnkey Captive Insurance Services

Captive Insurance Asset Protection Benefits

Captive Insurance Companies can have Big Asset Protection Benefits!

Captive insurance companies can have significant Asset Protection benefits for their affiliated insureds and owners. The list below contains a number of the critical features which make Captive Insurance Companies excellent Asset Protection vehicles for high net worth businesses and their owners.

Formed as Corporations or Limited Liability Companies - Since most Captive Insurance Companies are formed as either a Corporation or a Limited Liability Company, they provide their shareholders or members (owners) with limited liability up to the extent of their investment in the Captive.

Captive Ownership is Confidential - Captive Insurance Company ownership information s is kept in strict confidence by the insurance regulators and corporate registrars of the various domiciles that permit Captives to be formed and operated in their jurisdiction.

Protected Premiums Accounts - Some Captive Insurance Domiciles have Captive Insurance legislation which prevents premiums paid to a Captive from attack by creditors. For example, Anguilla has excellent Captive Insurance legislation which provides for "Protected Premium Accounts" Anguillan insurance law protects the premiums paid by an insured to an insurance company from being challenged by creditors, unless the payment of such premiums was made with the intent to defraud the creditor. In addition, premiums are protected against any legal actions, provided such premiums are maintained in an account separate from any other. This Protected Premium Accounts legislation makes Anguilla an excellent domicile for Captives concerned with Asset Protection.

Choice of Laws and Venue - If the Captive Insurance Company is formed offshore and an IRC section 953(d) election is made to have the Captive treated as a domestic US corporation for federal tax purposes, the Captive will not incur any excise taxes in the event it transfers Captive assets to an offshore bank or investment account. In such an event the Captive would however, have to file certain information returns disclosing its ownership and authority over any such foreign bank and investment accounts. Creditors wishing to bring an action against the Captive would have to use the foreign domiciles courts and laws in order to pursue their claim. Moving the Captive's assets to an account in the foreign country where the Captive is domiciled and forcing creditors to bring legal actions in the domicile's courts using its law, creates a formidable if not insurmountable obstacle for even the most aggressive creditors.