Benefits of Captive Insurance Companies

Jarvis, Christopher R.; Mandell, David B.
August 2003
Click (1532-0391);Aug2003, p12
In this article the author presents his views on the asset protection and tax-favored wealth planning in medical practices. The author remarks that frequent speakers to physicians and healthcare executives on asset protection and tax-favored wealth planning, are often asked about captive insurance companies (CICs) and how physicians can use them for both types of planning. A CIC is a legitimate insurance company licensed to write insurance in the U.S., but typically based in an offshore jurisdiction, such as Bermuda or the British Virgin Islands. The physician or healthcare group's CIC may be used to insure all, or portions of, a medical practice's significant risks, such as malpractice or high liability non-malpractice risks like wrongful termination or sexual harassment.


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