The Perils of Captive Insurers: Guarantees and Kickbacks

[Editor's note: Mr. Hall is a former law firm partner, a former insurance and reinsurance company executive and acts as a reinsurance and insurance consultant and expert witness as well as an arbitrator and mediator of insurance disputes. The views expressed in this article are those of the author and do not reflect the views of his clients. Copyright 2009 by the author. Further information about the author and his other articles may be viewed on his website: robertmhall.com.]

Introduction

Captive insurers are often formed by commercial insureds or trade associations in an effort to gain control of, and reduce …