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DOMICILE REGULATORY
DECISIONS LOCATION, LOCATION, LOCATION of your Captive IS significant. The old joke of the domicile location being
selected based on the risk manager looking for a nice place to visit and play
golf, ski, or visit the mountains and lakes, does not apply today. This is serious business. The state of domicile selected is critical
to the effectiveness of the owners and insured’s overall captive structure,
purpose and program. Recent regulation in the One of the DOL requirements is
that the Captive must be a The state of domicile for a
Captive that will be used to Insure/Reinsure Employee Benefits must allow the
Captive to write DIRECT, without the use of a front company. One state is even attempting to allow
Workers’ Compensation to be written direct with the Captive without a front. The laws, both at the Federal and the
State level, are creating change and more Self Insured and Alternative Risk
Transfer options, to which your OWN Industry Captive and RRG can and
should be considered as a viable option. If the Business or Industry
intends to use the Captive for Employee Benefits, the state of Domicile that
permits the DIRECT writing of IRS qualified third-party Employee Benefits,
which eliminates the need for a fronting insurer, would be a primary
consideration. |
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