MCS Services

Process Steps

  • Risk Audit Conducted
  • Identify captive goals
  • Actuarially estimated premiums
  • Recommended lines of coverage
  • Detailed proforma
  • Evaluation of captive domicile
  • Proposed program structure
  • Additional data requests
  • Ownership structure & Legal Questions
  • Identify structure of ownership & governance
  • Draft claims practices and procedures
  •  Investment Strategy
  •  Draft Insurance Policies
  • Actuarial certification letter
  • Draft underwriting procedures
  • Recommended capitalization
  • Formation of Captive
  • Draft Captive Operating Agreement
  • Investment  Policies
  • Draft articles of organization
  • Obtain captive insurance licenses with applicable DOI
  •  Submit documents in Business Plan
  • Credit /Background Check
  • File for 831(b) status with IRS

MCS - Captive Management Services

Captive Design:

  • Review of operating company’s financial statements, tax returns and existing insurance policies for initial micro-captive fit;
  • Conduct analysis to identify Enterprise risk in existing commercial coverage;
  • Review of operating company’s business plan and ownership structure for micro-captive fit;
  • Conduct a formal feasibility study w/ assistance from independent actuary and CPA; and
  • Perform a domicile review of appropriate jurisdiction of micro captive.

Licensing, Formation & Insurance Management:

  • Annually underwrite and draft insurance policies and premium designs for micro-captive (with confirmation from independent actuary);
  • Draft and review all reinsurance contracts of micro-captive; and
  • Prepare all regulatory, including (i) the micro-captive’s organizational documents, (ii) a Statement of Oath on the micro-captive’s financial condition, (iii) 
  • A Statement of Benefit; (iv) the Biographical Affidavits on Officers and Directors; and (v) a Business Plan of Operation for the micro-captive.

Captive Regulatory Compliance & Management:

  • Prepare quarterly and annual unaudited financial statements, reserve reconciliations and monitor all account activity;
  • Coordinate w/ CPA to review and file annual audited financial statements with applicable Department of Insurance.
  • Conduct annual surplus and loss reserve analysis;
  • Conduct annual risk coverage analysis and micro-captive efficiency review;
  • Process and manage all claims of the micro-captive;
  • Resolve any issues with applicable Department of Insurance the IRS and other regulatory authorities;
  • Oversee annual board of directors / managers meeting;
  • Monitor and summarize all applicable federal and regulatory changes;
  • Maintain all corporate records of micro-captive;
  • Coordinate payment of all regulatory and audit fees;
  • Consult with owner(s) and respective financial advisors, executives and attorneys regarding the proper investment structure and strategy for the micro-captive’s assets; and
  • Captive liquidation and winding-up of activities (when necessary)