Understanding the tax considerations of a captive is an important part of forming, operating and overseeing a successful insurance program. This introductory session will explain the essential concepts in plain language, giving attendees a foundation for more informed conversations with their tax advisors.

Panelists will explore what makes an arrangement insurance for U.S. federal tax purposes, including risk shifting and risk distribution, and explain the distinction between the insured’s ability to deduct premiums and the captive’s own tax obligations. The discussion will also introduce federal income taxes, state premium taxes and common reporting considerations.

Using a straightforward captive example, speakers will illustrate how program structure, documentation and day-to-day operating practices can affect tax treatment. Attendees will learn to recognize common misconceptions, understand the information their advisors need and identify situations that warrant additional tax review.

Following this session, attendees will be able to explain fundamental captive tax concepts, distinguish key tax considerations affecting captives and their insureds, and ask informed questions when evaluating or overseeing a captive program.