Bingham Greenebaum Doll LLP has a wide variety of experience in representing captive insurance companies and their owners, in companies' formation, operation, regulation and taxation. The owners include public companies, closely-held business, individuals and tax-exempt entities.
In total, there are five favorable Court of Appeals cases dealing with captive insurance taxation; they were decided on two theories. Our firm has represented taxpayers in two of the five cases, and each case is on a different theory. Our firm represented Humana in the Sixth Circuit Court of Appeals case that validated the concept that "brother-sister" insurance can supply risk distribution. This case is a seminal case in captive insurance taxation. The firm also represented Ocean Drilling & Exploration Company in its Federal Circuit victory, which adopted the concept that sufficient unrelated business can supply risk distribution.
In addition to our court representation, we have represented taxpayers at the IRS audit level and before the IRS Appeals Office. We have also counseled taxpayers in the tax consequences in planning captive insurance arrangements and obtained favorable private letter rulings from the Internal Revenue Service.
We have represented and worked with captive managers and clients in the pre-formation, formation, application, licensure and operation of captive insurance companies. We also have extensive experience with regulatory issues, investigation, hearings and orders with commercial insurance companies, as well as coverage and claims issues, and alternative dispute resolution.
We have incorporated approximately 55 Kentucky and Utah captive insurance companies. We have re-domesticated numerous foreign insurance companies into the United States. In addition, we have assisted in the corporate aspects of the operation of captive insurance companies.
In addition to our historic involvement in commercial insurance industry activities, one of our attorneys speaks and writes extensively on captive insurance topics. For several years, he has also co-taught the six-session “Forming and Operating” course conducted by the International Center for Captive Insurance Education. He is a member of the CICA and VCIA joint Captive Taxation Advisory Committee and has been an active participant in comments by those groups to the IRS on a variety of topics.
- Ocean Drilling & Exploration Company v. United States, 988 F.2d 1135 (Fed. Cir. 1993) - substantial unrelated business captive insurance
- Humana Inc. and Subsidiaries v. Commissioner, 881 F.2d 247 (6th Cir., 1989) - "brother sister" captive insurance