Captive Insurance Companies

[Guest djsimonetti]

One of my doctor clients recently sent me an article touting the use of CICs as nonqualified deferred compensation plans. Apparently, these which allow the employer to take a current deduction for malpractice insurance premiums paid to an off-shore insurer owned by the doctor. The assets accumulate tax -free until the doc retires and then liquidates the insurer at captal gains rates. The arrangement is als being touted as an asset protection device. The only info I can find on CICs has been published by the touts. Does anybody have any experience with these things?

------------------