CHICAGO (December 26, 2007) — On December 21, 2007, McDermott Will & Emery delivered a response on behalf of the Coalition for Fairness to Captive Insurers (CFCI) in follow up to a request for comments made by the Internal Revenue Service (IRS) and the Department of the Treasury in its September 28, 2007 notice of proposed rulemaking regarding amendments to Treasury Regulation §1.1503-13(e). According to president of the Captive Insurance Companies Association (CICA), Dennis Harwick, "The comments that were filed with the IRS are substantive and compelling. The arguments outlined strongly refute both the technical and factual rationales given by the IRS in proposing this regulation."
The CFCI hired McDermott and Dewey & LeBoeuf LLP to develop a coordinated response to the IRS' proposed regulation in November 2007. CFCI responded to the IRS and the Department of the Treasury in attempt to achieve withdrawal of the proposed regulation.
The CICA and the Vermont Captive Insurance Association (VCIA) previously announced the formation of CFCI in October 2007. The group is comprised of numerous organizations from the private and public sectors with representatives from every active captive domicile in the United States.
McDermott lawyers are pioneers in the structuring of alternative risk transfer mechanisms as well as in the legal aspects of the adjustment of self-insured claims that inevitably arise. Our client services focus not only on the development of creative risk retention/transfer solutions but on the operation of efficient risk management programs specifically designed to enhance business performance by aligning economic incentives with loss minimization to lower the enterprise’s cost of risk. The lawyers comprising our captive insurance and reinsurance practice provide legal advice on a wide variety of issues, transactions and disputes across the risk-funding spectrum.