what is an attorney, captives for businesses

Can I get a captive for my business?

Jul 01, 2021 · Since a captive is a company or corporation, officers and directors are needed. The captive manager and/or the attorney can handle incorporation and drafting bylaws and other formal operating documents. Most domiciles require some referencing to ensure the directors and officers are in good standing.

What is a captive insurer?

Aug 08, 2018 · August 08, 2018. A "captive insurer" is generally defined as an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits. These points do not clearly distinguish the captive insurer from a mutual insurance company.

What is a captive and how does it work?

Attorney-led Captive Planning For Trucking Businesses Capstone is the most integrated and largest outsourced provider of captive insurance services for the U.S. middle market. In association with The Feldman Law Firm LLP , Capstone offers platinum level attorney-led captive planning and administers property & casualty captive insurance ...

Why are there so many captives in the US?

Nov 11, 2014 · A captive insurer is a legal entity formed primarily to insure the risks of one corporate parent or a number of similar corporations (e.g., trade associations) thereby contributing to a reduction ...

What is captives in business?

A captive is an insurance company set up by its owners primarily to insure against its own specific risks. Once established, the captive works in the same way as a commercial insurance company and is subject to statutory regulatory requirements including reporting, capital and reserve requirements. ...

What are the types of captives?

Types of CaptivesAssociation Captives. A captive insurer having two or more owners, typically members of an industry trade association. ... Branch Captive. ... Industrial Insured. ... Protected Cell. ... Pure Captive. ... Risk Retention Group (RRG) ... Special Purpose Financial Captive.

What is a captive law firm?

Captive Firms Defined In the U.S., captive law firms are predominantly used by the insurance industry, and are small pseudo-independent law firms that essentially function as the in-house legal team of an insurance company, providing legal defense to the company and its policyholders.Oct 30, 2013

What are the two major types of captive insurance companies?

Captive insurance companies can take a number of different forms. However, the most common types are single-parent captives and group captives. A single-parent captive, also known as a pure captive, is owned and controlled by one organization and formed as a subsidiary of that organization.May 18, 2016

What is a pure captive?

Pure Captive — a captive insurance company with one corporate owner, insuring only the risks of the parent organization or its subsidiaries. Also called a single-parent captive.

What is a captive insurer?

August 08, 2018. A "captive insurer" is generally defined as an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits. These points do not clearly distinguish the captive insurer from ...

How do captives put their own capital at risk?

Insureds in a captive choose to put their own capital at risk by working outside of the traditionally regulated commercial insurance marketplace. The traditional insurance regulatory environment tries to "protect" the insured from the insurer. Regulations are expensive to implement, costly to monitor, and sometimes fail.

Why is captive insurance important?

Because captive insurance inherently offers financial rewards for effectively controlling losses, safety and loss control get a higher level of attention. The underwriting profits and gains from the invested premiums that would otherwise be held by a conventional insurer are retained by the captive.

What is ownership and control by its insureds?

Ownership and control by its insureds distinguish a captive insurer from a commercial insurer. This is not the type of ownership or control evidenced by a nominal percentage share in the company's surplus. It means ownership in the company's strategic business purpose.

What is a pure captive?

The term "pure captive" is generally used to describe captives insuring only the risks of their owner or owners. Single-parent captives have only one owner. Group captives have multiple owners. A group captive is formed by a group of individuals or entities that come together to jointly own a captive insurance company.

How does pricing stability work?

Pricing stability is achieved over time as a captive matures and expands its own risk retention capability. The more capital that is accumulated, the greater the captive insurer's ability to retain risk and insulate itself from changes in the commercial insurance market. A captive insurer can also provide stability in the availability of coverage.

What is captive insurance?

Forming a captive insurance company can combat these risks with a one-two punch:: a captive insurance program working in combination with a highly-rated commercial insurer can bring the total cost of risk down for trucking business that control losses.

What is a capstone?

Capstone is the most integrated and largest outsourced provider of captive insurance services for the U.S. middle market. In association with The Feldman Law Firm LLP, Capstone offers platinum level attorney-led captive planning and administers property & casualty captive insurance companies that provide alternative risk financing services throughout the U.S.

What are the risks of trucking companies?

One of the major risks trucking companies face is auto liability. Over the last 10 years, bad underwriting results and low investment returns have resulted in increasingly higher rates and fewer insurers in the market. Physical damage to trucks and cargo, and workers’ compensation have also been very difficult coverage lines for trucking companies. Unexpected fuel cost hikes and labor shortages can also chip away at a company’s earnings. In this uncertain environment, trucking companies are increasingly turning to captive insurance planning to stabilize operations.

Does Capstone offer tax support?

Unlike most other captive management companies, Capstone’s turnkey service providers do not disclaim tax and legal support. The company has an award-winning track record for standing with clients in the design, implementation, ongoing management, and defense of their property & casualty captive insurance programs.