Delaware Captive Insurance Association 2014 Spring Forum Highlights

Sandra and I attended the Delaware Captive Insurance Association Forum on May 12th and 13th in Wilmington, DE.  The event was well attended with 79 participants from many disciplines all working in the captive space: attorneys, actuaries, CPA’s, captive managers, and Delaware regulators including the Insurance Commissioner, Karen Weldin.  The forum offered a great opportunity to meet with several key players working with captives domiciled in Delaware.

Sandra was asked to present Tuesday morning and conducted a lively session regarding policy construction with Andrew Rennick, Esquire of Gordon, Fournaris & Mammarella, P.A.  We had an interesting session with Steve Kinion, the Delaware Director, Bureau of Captive and Financial Insurance Products, where he shared his views on the National Association of Insurance Commissioners’ (NAIC) move to change the definition of multi-state insurers which may adversely affect captives.  Steve also went over his proposed changes to Delaware regulations primarily affecting series captives, as well as providing new loan guidelines for all captives.

One of the participants of note was Chaz Lavelle of Bingham Greenebaum Doll, LLP.  Chaz was the Tax Counsel for two key taxpayer victories in captive insurance cases including the Humana Inc. v. Commissioner which decided the “brother-sister” issue regarding risk sharing and risk distribution.

Great forum and time well spent!

Lynn H. Desmone

Account Executive

Capterra Risk Solutions

Exciting News in Utah

As a result of Ross Elliott’s retirement, there is officially a new Director of the Utah Captive Division.  David Snowball, ACI, APIR was appointed the new Director in the first quarter of 2014.  The Capterra team has been informed that Mr. Snowball plans to carry on the current traditions of responsiveness and good service previously provided under Mr. Elliott’s directorship.

Capterra Risk Solutions would like to wish Ross Elliott a very happy retirement and thank him for all of his assistance in the past.  While we are sad to see Ross Elliott leave, we are very excited to congratulate David Snowball on his promotion from Financial Examiner to Captive Insurance Director in Utah.


Visit this site to view the announcement:

“Utah Insurance Commission picks new director for Captive Division” Article / Announcement written by Rodd Zolkos of on March 10, 2014 – 11:33am|256|76|60#


The Insurance Commissioner Kiser tweeted on March 7, 2014 that a New Insurance Directors was appointed.







Released last week at the 2014 RIMS Annual meeting, the Marsh report contains a lot of interesting information regarding captives.  Some of the benchmarks included were:

  • 66% of the total captive count are single parent captives
  • Of the captives treated as insurance companies for tax purposes, 47% use a “brother/sister” approach, 42% use third party risk, and 11% use a hybrid of the two approaches.
  • Of the non-traditional coverages written in captives, crime insurance tops the writings, with medical stop loss or another layer of a self insured health plan also growing in popularity.

See the press release and article here:

“Majority of US-Owned Captives Not Generating Tax Benefits: Marsh”- Article written by Marsh on Tuesday, April 29, 2014, Article posted by The Wall Street Journal on Tuesday, April 29, 2014



And the full report:    “The Evolution of Captives: 50 Years Later” by Marsh USA published April 29, 2014:

Vermont signs a new Captive Insurance Legislation into law, which is expected to strengthen Vermont’s “Gold Standard” legislation.

“Vermont’s New Captive Insurance Legislation Signed into Law; Changes Strengthen Vermont’s “Gold Standard” Captive Insurance Legislation”

Article posted by on Thursday, April 17, 2014

Press Release posted by Digital on Friday, April 18, 2014

Vermont has just enacted new legislation which creates a “dormant” status for captives. The dormant status provides a way for a captive that has ceased insurance operations to cost-effectively retain its license should it elect to resume operations in the future.  (Bill H.563 amending Title 8) – Lynn H. Desmone, Account Executive, Capterra Risk Solutions (4/25/2014)


Read more here:

“New Legislation has passed in the Vermont State Legislature updating the state’s captive law. The new law, which takes effect immediately, amends the reciprocal insurer section and creates a new “dormant status for captives.” – Montpelier, VT (PRWEB) April 17, 2014 (


View the press release on by clicking the link below:


To view “Bill H.563 amending Title 8” passed including amendments click on the following link:


What Doesn’t Belong In Your Captive

Blog Post Written by Lynn H. Desmone, Account Executive, Capterra Risk Solutions

Last week, I attended (via Webinar) a presentation at the CICA International Conference, held in Arizona, entitled “Best Captive Practices for 831(b)s- Do Them Right or Don’t Do Them At All.  This presentation looked at small captives from the perspective of a captive manager, an actuary, an attorney, and a captive owner.  It was an interesting presentation covering many aspects of captive insurance companies and their structure including best practice guidelines.  While there were many topics worth sharing, one of the initial items discussed was what NOT to place in your small captive (may be appropriate in a larger captive, or a group captive):

  • Primary, working layers of easily accessible commercial coverages like general liability and auto liability;
  • High frequency coverages like workers compensation, auto physical damage; and
  • Long tail or primary coverages seen as inherently “risky” like medical malpractice.

What you are likely to want to place in your small captive are more “traditional”, low frequency risks that potentially have a high severity:

  • Weather related risks: flood, wind;
  • Pollution liability and clean-up; and
  • Excess or Wrap/DIC policies.

You’ll also want to consider including coverage for some more non-traditional risks (but be careful that these are not just “business risks”) including coverage that is not available at all in the traditional insurance market and currently self-insured.  Want to learn more?  Please give us a call, or send us a comment or question!

Captive Domiciles

Blog Post Written by Lynn H. Desmone

Finally!  We’re feeling a thaw here in Pittsburgh and are ready to embrace spring!  While winter might be a time of hibernation for some, not here at Capterra Risk Solutions.  We were busy over the winter forming several new captives, three of which were organized in a relatively new domicile for us, Utah.  The Utah Captive Insurance Division was most helpful in getting these new captives up and running and the staff has been a real pleasure to work with.  We now have captives located in several domiciles, both onshore and offshore.

In addition to working with business owners to assess their fit for forming a captive, we’ve been working closely with the regulators in several domiciles, staying abreast of changes such as new filing requirements in Delaware and tightened regulations in Anguilla due to increased focus from the International Monetary Fund regarding all financial institutions domiciled there.  Each domicile has its own challenges and opportunities.  Several states have recently enacted new legislation making the organization of a new captive in a U.S. domicile an attractive option.

Is a captive insurance company a fit for you? As an additional risk management tool, a captive insurance company allows you, the business owner, to determine how much risk to retain, as well as insure risks that may be traditionally “uninsurable” or cost prohibitive.  Risks like warranty programs, loss of a key contract or key employee, these all fit well into a captive insurance company.  Want to learn more?  Please give us a call, or send us a comment or question!

Capterra Welcomes Michael A. Scott as the Fiscal Officer

Michael's Photo - sized

Capterra Risk Solutions welcomes, Michael A. Scott.  Michael came to Capterra with a formal education and professional work experience in accounting, audit, and tax.  As our new Fiscal Officer, he is responsible for the accounting and financial matters of all of our captives under management as well as providing oversight during the formal financial audit process with our outside vendors/CPA firms.  We are very excited to have Michael on board.  To read Michael’s full bio, please visit

Congratulations to Stefanie Cellitti

Stef's Photo - sized 2

We congratulate Stefanie Cellitti on her new position with Capterra Risk Solutions as the Assistant Controller. Stefanie was previously responsible for the day to day accounting functions of all captive insurance companies under the management of Capterra, and now Stefanie is responsible for the day to day internal accounting functions of Capterra.  Stefanie’s full bio can be viewed at

Welcome to Our Blog

Welcome to Our Blog – Added During Our Rebranding Process

Evaluating how our company presents itself to our customers and community is valuable and important.  Earlier this year (2013) we began an evaluation and promptly started a rebranding process to better define our company.  The culmination of this effort is our new name, logo, and website.

To begin this process, we contemplated and examined what our customers described made us unique and distinct.  After reflecting on what our customers shared, our business relationships and what makes them work, we rapidly concentrated on the following:

  • Our team members’ expertise in alternative risk transfer platforms
  • Our team members’ knowledge base and experience
  • Our team members’ expertise in Independent Risk Management & Consulting
  • Our team members’ outstanding customer service

We wanted to capture the essence of these specialties in our new name.

*Integrity is one of our Company’s most valued assets; it is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes.  The word “integrity” stems from the Latin adjective integer (whole, complete).  In order to present our company in a way that succinctly describes our attributes, such as integrity, we chose the name Capterra.

We are pleased to introduce:

 1)      Our New Name:                    Capterra Risk Solutions

 The new company name Capterra derives from a combination of the words Captive, from Captive Insurance, and Terra, meaning the planet earth and the vast landscape of alternative risk solutions.

 2)       Our New Logo:   Capterra_FullColor-01

 The logo is a globe shape due to the definition of Terra. It includes a “C” for Capterra embedded in the dark blue lines on the inner circle of the logo.

3)       Our New Website:      

 We hope you’ll find the website to be easy to navigate and informative.  The focus of the website is to educate the public on Captive Insurance and the many benefits of the Capterra Experience.  It provides visitors with insight on how they can take advantage of the benefits of forming a Captive Insurance Company domiciled either onshore or offshore.  Capterra can help businesses capture real profits by embracing a solid risk management program.

The website includes a blog as well as a page that visitors can sign up to receive the Company’s email newsletter and updates.  Visitors can easily request a free consultation directly on the home page or choose to follow Capterra on Facebook or LinkedIn by clicking on the icons.

The Capterra Risk Solutions team would appreciate you sharing thoughts and feedback regarding the new branding – name, logo, and website.  Please share your comments with our team in the comments section of this blog post.  Thank you.


*definition of Integrity from