Typically, CIC clients are small business owners who wish to create a legitimate and bona fide insurance company to provide supplemental coverage for their business. Prior to formation of a CIC, our parent firm, Moore Ingram Johnson & Steele, LLP (“MIJS”) conducts a preliminary feasibility study to determine whether captive planning is appropriate for the client. The majority of CICs that MIJS forms are in the States of Kentucky, Delaware and Hawaii, due both to each state's rigorous vetting process and its strict regulatory and financial standards (which, in addition to MIJS feasibility study, will ensure the financial success of the CIC). Once retained by a client, MIJS begins preparation of the application, identification of business’s risk and drafting of policies to cover such risk.
Once a captive is approved in the jurisdiction of choice, MIJS Captive Management, LLC, (“Management”) serves as the management company for each formed captive. A wholly owned subsidiary of MIJS and an established Company in Kentucky, Delaware and Hawaii, MIJS Captive Management is in charge of the day-to-day operations of the captive, including preparation of annual filings, research of federal and jurisdictional captive requirements, preparation of the annual audit and accounting of premiums paid, the handling of all insurance claims, and the custom writing and re-writing of all policies issued by the captive. Management contracts with reputable and nationally known actuaries and auditors to make certain they maintain a level of independence in these critical areas.