OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, attendees at the Delaware Captive Insurance Association's Fall Forum in Wilmington, DE, said captive managers and sponsors are busy preparing for new tax rules that will allow sponsors to place more premium in 831(b) captives. However, those captives also must meet risk diversification and ownership standards. Click on http://www.ambest.com/v.asp?v=dcia916nc to view the entire program.
At this year’s forum, captive managers and regulators are focusing on the opportunities and challenges captives are facing.
“The captive industry is a growth one, and I fully expect it will continue to be so,” said Steve Kinion, director, bureau of captive and financial insurance products, Delaware. “One of the changes that the industry is facing concerns the federal tax laws regarding captives that make 831(b) elections. Those changes will take effect on Jan. 1, 2017, and with this in mind, a number of captive managers are reorganizing their captives in order to comply with the new requirements.”
Andrew Rennick, director, Gordon, Fournaris & Mammarella, P.A., highlighted the requirements a company must have in order to comply with the 831(b) election.
“In order to qualify to take the 831(b) election, captive programs must pass either a risk diversification test or an ownership test. Consequently, clients are trying to get their captives compliant with the new regulations,” said Rennick.
Other people that appear in this episode:
- Patrick Theriault, managing director, Strategic Risk Solutions;
- Stewart A. Feldman, chief executive officer and general counsel, Capstone Associated Services, Ltd.;
- Douglas W. Butler, partner, Moore Ingram Johnson & Steele; and
- Jerry D. Messick, principal and managing director, Elevate Captives.
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