ENG26SS205. Tax Deferred Risk Mitigation for Business: Understanding The 831(b) Tax Code, presented by SRA 831(b) Admin

Examine how a business can use 831(b) micro captives as an alternative risk finance solution for under- and uninsured risks. This presentation discusses the tax and accounting implications of micro captives, investment regulations, the types of fortuitous risks that can be included, domicile options available, how reinsurance is applied, and who is a fit.

Learning Objectives:

• Recognize the benefits, risks, and opportunities of using a captive to finance an entity’s risks, identify the aspects of a micro-captive, and recognize the types of risks that can be included in the program.
• Identify factors to be considered in evaluating the cost of risk and recognize the various ways in which the costs of financing risks through a captive can be lower than the costs of commercial insurance or self-insurance plans.
• Acknowledge the federal requirements that must be met for a microcaptive to qualify as an insurance company for tax purposes.
• Understand the contribution and distribution requirements of the captive and the administration functions, including required filings.