Talk:Captive Insurance

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[edit] Alternative uses

I'm a bit unhappy about the new alternative uses section that came in (even after I cleaned it up a bit). The fact that it has come in from an IP address, and the external links that were included with the edit (now removed), makes me suspect spam. But I have left it for now (tidied up a bit) but put a "source needed" tag on it. If anyone has any more information on this alleged tax loophole, please edit as appropriate. Legis (talk - contributions) 21:50, 12 December 2006 (UTC)

[edit] Mostly Used

I would be surprised if the statement that "Captives are mostly used by doctors, dentists and other wealthy business owners for tax benefits." proved to be factually correct. I believe it is the case that, in terms of premium volume and probably raw count, that the majority of captives are owned by commercial business enterprises or associations. Given the number of captives in Bermuda that make the 953(d) election, I am not confident that the 'for tax benefits' part of that statement can be supported either. Is there a source?

--Rcherrick 22:54, 25 January 2007 (UTC)

I thought that it sounded dubious myself, but it is not really my practice area, so I left it for others to edit if they thought appropriate. --Legis (talk - contributions) 08:01, 26 January 2007 (UTC)

Search "captive insurance" in Google and you'll find out many things like "A captive insurance company is, in its simplest and purest form, an insurance company that only insures all or part of the risks of its parent. This definition is, however, rather narrow and fails to reflect the way in which captives have developed over the years. A captive may more usefully be described as an insurer that writes risks whose origins are restricted or risks to which it has unique access." from http://www.captive.com/service/kpmg/kpmg_article2.html

It's all one company and the ricks are usually ridiculous like "Loss of key employee or "Loss of computer equipment" basically items which are already covered under the parent companies "real" insurance policies.

The statement "Captives are mostly used by doctors, dentists and other wealthy business owners for tax benefits." is correct. The dentist or doctor just incorporates thus becoming a business. "Other wealthy busness owners" are the commercial business enterprises, whcich usually have one owner, who makes the profit from his commercial business. Captive insurance policies are not for the poor, that's for sure! —The preceding unsigned comment was added by User:Oiseau777 (talk • contribs) 00:31, 8 February 2007.

I hear what you say, but I put the citation-needed tag back on until someone can post either a credible link or cite a credible source for the proposition. Certainly the captives I have seen in practice have mostly been law firms who are seeking to add a layer of cover either at the top or bottom of their existing PI cover, and seeking basically to retain the benefit of the brokers fees for themselves. --Legis (talk - contributions) 12:06, 8 February 2007 (UTC)